International Strategy
– A firm that has operations in more than
one country.
– part of the news paper where you can
see the list job organization types.
2 types of organization

Types, of international strategies:
1.
2.
3.
4.

- neither concerned about costs nor
adapting to the local cultural conditions. They attempt
to sell their products internationally with little to no
change.
measurable value that shows how effectively
an individual, team, or organization is achieving a business
objective.
The Cultural Dimensions:

– The degree to which the
less powerful members of a society accept and expect
that power is distributed unequally.

– Masculinity side of this
dimension represents a preference in society for
achievement, heroism, assertiveness, and material
rewards for success, whereas femininity, stands for a
preference for cooperation, modesty, caring for the
weak and quality of life.
Ex. Harley Davidson Motorcycle | Rolex Watch |
Luxury Bags.
- does not focus on cost or efficiency but
emphasizes responsiveness to local requirements within
each of its markets.
Ex. Netflix
- sacrifices responsiveness to local
requirements within each of its markets in favor of
emphasizing lower costs and better efficiency. This
strategy is the opposite of a multidomestic strategy.
is increasingly becoming common for large
organizations even for domestic ones. However, in a global
firm, additional workforce diversity emerges because of
hiring personnel from different countries.
3 Collar Jobs
Ex. Microsoft, P&G
Blue -
- seeks a middle ground between a multidomestic strategy and a global strategy. Such a firm
tries to balance the desire for lower costs and efficiency
with the need to adjust to local preferences within
various countries.
Pink -
Ex. MCDONALDs
These strategies vary depending on two pressures:
1. on emphasizing low cost and efficiency
2. responding to the local culture and needs.
is the process of employing, training, and
developing and compensating the employees in international
and global organizations and effectively utilizing human
resources in a multinational corporation
International Human Resource Management Functions
1.
2.
3.
4.
Basic of Human Resource
1.
2.
3.
4.
- management operates very
diversely (30 employees and not sharing task)
Hiring
Training (
Policies (
Labor Laws
)
)
White -
Employee Category
— a parent country national sent on a longterm assignment to the host country operations.
— a host country national or third country
national assigned to the home country of the company
where it is headquartered.
— an expatriate coming back to the home
country at the end of a foreign assignment.
Language Diversity

is a medium of expression but employees
coming from different countries have different
languages. Though English is a very common language,
it does not serve the purpose adequately as it does not
cover the entire world. While employees coming from
different countries may be encouraged to learn the
language of the host country for better dissemination of
the information, it does not become feasible in many
cases.
 An alternative to this is to send multilingual
communications. It implies that anything transmitted to
employees should appear in more than one language to
help the message get through. While there are no hardand-fast rules in sending such messages, it appears safe
to say that such a message should be transmitted in the
languages the employees understand to ensure
adequate coverage.
International Human Resource Management – Activities






Reviewing Employment Policies
Recruitment
Selection Process
Performance Assessment
Training and Development
Employee Compensation
Check their relevancy and applicability
to international operations. For instance, Equal Employment
Opportunity Policies relevant to the United States may not
be applicable to the subsidiaries in overseas operations.
Some countries allow only certain percentage of expatriates
to be appointed in their subsidiaries.
Recruitment and selection policies
must be established taking local regulations and rules.
Human resource plans must be drawn for the local
operations annually and such information must be passed on
to the headquarters for compilation of a cumulative plan for
the whole corporation. Checks and verifications must be
made for the accuracy and relevancy for scheduled
production and service operations of the subsidiary.
The steps involved in the selection
process must be examined to see their relevancy and
applicability to the subsidiaries. For instance, the content
and the information secured through application forms must
be relevant and applicable to the local situation. Care must
be exercised in importing such forms from parent company
and using them in the subsidiary without incorporating the
local content.
is an essential part of the Human resource
Management in many of the international companies. They
may range from simple to complex assessment systems, such
as Competency based systems. The employee’s performance
is evaluated periodically with a formalized assessment
system.
Through Training and Development,
international companies have contributed a great deal of
education to the employees of their subsidiaries. In many
organizations, a separate department is set up to look after
this responsibility. Training improves the ability and
knowledge of operative employees and development,
improves the ability and knowledge of managerial
personnel.
Compensation is a complex subject when it
comes to international area of management. Conditions,
systems, and legal aspects vary from country to country. If
two or more countries are involved in determining salaries
and benefits to their employees in world-wide locations, the
complexity is further increased.
– UNDERSTAND CUSTOMER BEHAVIOR IN A
DIFFERENT WORLD
-
The people you are marketing to and the product
that you are marketing go hand in hand. However,
we’re leading off with the people because if you
don’t first and foremost understand who you are
marketing to, you may end up trying to sell them a
product they don’t want and probably will never buy.
– ALTERING TO FIT THE NEEDS OF YOUR NEW
MARKET
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If you notice that the current offering of your
product now won’t play in the new market, you want
to enter then you can do one of two things:
A.) Decide not to sell in that market
B.) Change your offering to meet the local demand
The classic example of this is McDonald’s.
– CHOOSE THE PREMIUM OR ECONOMY
PRICING STRATEGY
-
-
For the most part, if you already have a product or
service that is successful in one area of the world, the
price point you use won’t very much in comparison to
the competition in that area.
If you have a premium product, it’s likely premium
elsewhere.
If you have a more affordable, economically friendly
product, it’ll be the same in your new market.
– CHOOSING STRATEGIES THAT WORK IN THIS
NEW ENVIRONMENT
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-
Figuring out the most effective methods for
marketing your product or service abroad is not that
much different than doing it domestically.
Even if you live where you’re promoting your
product, you still have to do some additional
research to find out where your target audience is
and which mediums they frequent.
SAMPLE QUESTIONS TO BE ASKED WHEN DOING PRICING
MARKETING STRATEGY
•Are certain markets susceptible to buy-oneget-one
messages in retail stores?
• Is the country I’m planning on operating in using email?
• Does my new target market like coupons?
• Should I be advertising on television in this part of the
world
• is Youtube be more appropriate?
– FINDING THE SALES AVENUE THAT YOUR
CONSUMERS USE
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-
Defining where you’ll be advertising and marketing
your product or service is one thing. But finding the
right place to actually sell your offering is another.
One of the bigger questions you should look to
answer is whether or not you’ll be able to sell your
product online.
– FINDING THE RIGHT LOOK
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The way you package your product or service may
vary a lot from country to country.
When you determine how to package your offering,
color is an important choice. One reason for this is
because different areas of the world associate
specific meanings to certain colors.
For example, in Eastern and Asian cultures, red is a color
that is synonymous with happiness, joy, and celebration.
But in the Middle East, red is considered a warning and
brings forth feelings of danger. Some also consider it to
be the color of evil.
- Determining Which Messages Will Resonate
With The Market
Positioning is absolutely critical when entering a new
market.
-
A significant part of your positioning will be evident
in the messages you relay in marketing campaigns.
The messaging should be derived from your unique
value proposition (UVP), which should be made up of
the following:
1.
— how your product solves customers’
problems or improve their lives
2.
— what are the specific benefits
3.
— why your ideal customers should
choose your product over the competition.
- Getting the Ambiance and Mood Right
The physical evidence can be broken into three separate
areas.
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The physical environment is the
physical space that surrounds the consumer during
the service or experience. So, if you’re selling food,
then the restaurant is the physical environment.
You can look at the ambiance as a
subsidiary of the physical environment, it is about
the mood and feeling inside the physical space.
Colors, music, and lighting are little details that can
make a big difference when it comes to how your
service is perceived by your consumers.
To further illustrate the significance of
the actual layout of the space where your service is
offered, let’s consider a karaoke bar. In the U.S,
karaoke bars typically set up the karaoke machine in
an open space, where anyone can see the person
performing.
- Don’t Overlook Them
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Not only do you have to make sure local teams are
incorporated into your global marketing strategy, but
you should also use them as a helpful resource.
- Making a Positive Influence on Your New
Community
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At the basis of all of these principles, there is a
common theme of understanding your consumers.
You should constantly be asking what are their
needs, wants, pain points, and desires.
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Answering all of these questions and incorporating
them into your global marketing strategy will help
you find success with sales