Executive Summary
The most striking trend in business today is the growing internationalization of markets worldwide. This is true for everything from airlines to automobiles, banking to burgers. Moving into International markets opens up new opportunities throughout the world for expansion and growth. Before deciding whether to operate internationally, a company must understand the international marketing environment. The international marketer must study the unique Economic, political-legal, technological and Socio-cultural environments that reflects the countries attractiveness as a market.
Literature review section looks at the increased globalization of world markets. A rationale for international trade is outlined, followed by an
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This aromatic white coffee soon gained popularity within the township and news of its unique taste spread beyond Ipoh to other flourishing towns.
In 1998, the launch of the OLDTOWN White Coffee Classic 3-in-1 instant fulfilled their dream to let people bring OLDTOWN back into their homes. This product has gained wide acceptance in several Asian countries. The OLDTOWN Brand has evolved and crossed over into the food and beverage business in the form of the retail chains of OLDTOWN F & B Outlets. The flagship in Ipoh has grown successfully into a full-fledged franchise chain which stands at 166 outlets as of July 2010 in Malaysia and Singapore .
2.0 Literature Review
Globalization has altered the nature and scope of strategy and competitiveness for most firms (Melin, 1992; Zahra & George, 2002). Increased market liberalization, the use of information and communication technology and innovative supply chain management practices have increased the opportunities to internationalize for all enterprises (George et al., 2005; Westhead et al., 2001). Firms need to be well equipped with resources to successfully compete in international markets (Dunning, 2000; Eriksson et al., 1997; Peng 2001).
Widespread movement into international markets by companies of all types has made an increasing number of product markets global or regional rather than domestic in scope (Craig, C.S & Douglas, S.P. 1995). The trend towards globalization has not been
International marketing or business is uniquely different from the local market because the product price, place and promotion is vastly different from what is been offered to local customers (Johansson, 2000) With the emergence of the information technology, cross border marketing has never been a distant dream. However, it has never been easier even for giant multinational companies to face challenges that come in international business. The biggest challenge comes from the culture which varies from country to country.
Also there were large restaurants trying to find ways to capitalize on the specialty coffee industry i.e.: Macdonalds, Krisspy, Dunkin, Donuts …..
* It is a global coffee brand built upon a reputation for fine products and services. It has almost 16,000 cafes in almost 40 countries.
Today, firms have to deal with a global marketplace; marketers have no other choice. Participation in global marketing has begun to shift from a mere “option” to an imperative. The world is becoming more homogeneous. Distinctions between national markets
Globalisation is the internationalization of trade and often forces businesses to adopt new strategies for operations to suit different cultures and economies. The often easily saturated domestic market has triggered many large
(2012). Chapter 7: International Strategy. In G. G. Dess, G. T. Lumpkin, A. B. Eisner, & G. McNamara, Strategic Management (pp. 257, 259-260). New York: McGraw-Hill/Irwin.
1. To what extent is a global approach to international marketing appropriate to firms in the Asia-Pacific?
In the business industry, if businesses want to export their goods and services to other countries, they must become familiar with and adopt international and global strategies. Consequently, there are three types of international and global business strategies. The first type is international, which entails conducting a significant amount of activities outside the home country, yet its focus remains on the home market (Fung, 2014). The second type is multinational, which consists of operating in multiple countries, yet the headquarters is in its home country, not to mention that the competitive advantage will vary by country (Fung, 2014). The third and final type is global, which is when the organization treats the whole world as one market and one source of supply, not to mention, that its competitive advantage is contingent of common brands, standardized products, and global scale production (Fung,
For the concept of standardization of The Coffee Bean & Tea Leaf, branding and image are consistent in host markets with that of home market. Despite the expectation that cultural differences may affect the demand for their products and services the coffee shop felt that maintaining standardization was more important than adaptation. Standardization is enforced by the company on branding to ensure that the brand image and value is being perceived consistently by the customers in all markets. Adaptation has also applied to the product offering For example in its home country, the coffee shop have a limited range of food and beverage items in their outlets. However, the coffee shop had included a wider range of hot food items in Asia as Asians need to have food with their coffees. The Coffee Bean & Tea Leaf also provide both the good quality of input and output has brings a big achievement. The foundation of the coffee chop is a commitment to quality. They produce and serve only the finest coffees and teas from around the world.
Their vision statement is to be Asia Pacific’s leading white coffee brand, providing high quality products and Unique Malaysian Taste to customers worldwide.
The world offers significant business opportunities for every company, however, opportunities are accompanied by significant challenges for managers. Managing global operations across diverse cultures and markets represents a big challenge and opportunity for companies. To compete in the global market and be successful, companies must learn the strategies, policies, norms and technology necessary to conduct international business. The opportunities for global expansion are numerous, and attaining success is a matter of developing the right strategy to win local markets and its consumers.
Companies can decide to go global or to enter international markets for various reasons, and these different objectives at the time of entry that enable the business to produce different strategies and the performance goals, and even forms of market participation.
As trade increases hyper-competition grows forcing organizations to go global. By a company going global it requires them to rethink strategy and reform (Ananthram and Pearson, 2008). Global organizational structure is the way a company aims to merge local preferences with global strategy. The definition of global strategy is “strategic choices that have the characteristics of being globally uniform or integrated,” (Yip et al., 1997) such as standardization of products, uniform marketing, and competitive moves, but all globally (Townsend et al., 2004; Zou and Cavusgil, 2002; Bayraktar and Ndubisi, 2014). Global strategic strategy is a way to adjust to globalization. Globalization is “the economic and social process by which economies and communities grow inextricably interdependent “(Jhirad et al., 2009). The recent financial crisis (Das, 2010), large amount of poverty, and climate change are all problems that show how the world is globally connected because all countries impact each other (Jhirad et al., 2009).
He goes on to imply that business must make global strategies that would involve making investments in as much countries as possible. Rajdeep, Murali & Robert (2008) agrees with Tallman, as he extends his view that these strategies must become more flexible and effective to comply with needs of the changing environment.