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MKX 9550 Tutorial

Global market environment and Macro environment
Week 4 25th March 2013

Objectives
Appreciate some important macro-environment developments Understand the key methods for tracking and identifying opportunities in the macroenvironment Know what factors a company should review before deciding to go abroad Understand how the company should manage and organise its international activities

Tutorial discussion
Despite the many challenges in the international arena (shifting borders, unstable governments, foreign-exchange problems, corruption and technological pirating), companies selling in global industries need to internationalise their operations. Companies cannot simply stay domestic and expect to maintain their markets. In deciding to go abroad, a company needs to define its international marketing objectives and policies. The company must determine whether to market in a few countries or many countries. It must decide which countries to consider. In general, the candidate countries should be rated on three criteria: market attractiveness, risk and competitive advantage. Developing countries offer a unique set of opportunities and risks. Once a company decides on a particular country, it must determine the best mode of entry. Its broad choices are indirect exporting, direct exporting, licensing, joint ventures and direct investment. Each succeeding strategy involves more commitment, risk, control and profit potential.

Case study
Remember, you must bring along typed answers to the following three questions, to be handed to your tutor after the case discussion. You will be able to hand-write additional comments onto your answer sheet for later revision of this topic.

Students should read the Intuit case on page 142 - 143 of your text book, and then answer the following questions: 1. Complete a five forces analysis. 2. Examine the potential market entry methods possible for Intuit.

Marketing dilemma (written submission is not required)

In todays multi-cultural world, we will have been exposed to products marketed across geographic or national boundaries, so the peoples ability to grasp this concept should be straightforward. What could present a challenge is the extent of marketing planning and detail needed by the company in making their marketing decisions nationally and internationally. Discuss the importance of this comment.