Discuss the ways in which Multinational Enterprises (MNEs) need to adapt their product for sale in o
Source Report
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Class: | Date:
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Essay title or question:
| Title:
The ways in which Multinational Enterprises (MNEs) adapt their product for sale in overseas markets |
Plan for overall structure of essay:
| Plan for overall structure |
| Introduction – context and position: Adapting the products to the needs of the overseas market takes great resources and time. A multinational enterprise has to customize a product for the export and adopt to meet the needs of customers in the global market. A multinational enterprise requires time to understand an adaptation strategy that will understand the market place and respect the customer expectations and local cultures. Gaining a deeper understanding of each market where the company needs to understand the region expectations and preferences since the marketing for these products have to vary from place to place. Growth of global business strategies is based on the sound understanding of differences and similarities that exist in the countries all over the world. Considerably, adaptation of a product in a global market varies depending on dissimilarities of the external environment. Adaptation of products in the global market is considered in the major dimensions; how the product and brand matches with the market place and how it is linked to the end user needs and wants. Product adaptation in the overseas market entails understanding the different customer expectations and needs which are characterized by legal social and political factors |
| Thesis statement: Adaptation of product into the global market comprises of market entry strategies that include choice of primary markets, channels strategy, product value offerings, determination of target consumer and operating model. |
| P1. Adaptation is considered as a passive response to the external environmental changes and reaction to contingencies. |
| P2. MNEs have to resemble the existing companies in the new market and conform to the needs of the local environments. |
| P3. Cultural factors are highly considered to determine whether an organization will success in the global market. A product has to fulfil the consumer wishes of the local. |
| P4. Regulatory and legal barriers have to be considered to ensure that the product operates within the demands of the local regulations and laws. |
| P5. To effectively adopt into the foreign markets, MNEs have to conduct market analysis to understand the personality of the market, market developments, economic viability and financial cost patterns. |
| Conclusion. Product adaptation into the overseas markets allows fastest growth of the business and brand globally. The various ways through which products adopt in the overseas market is deterministic and fixed to environmental perspectives of the market. These include the economic factors, cultural factors, social and legal factors that guide the expectations of the market. Adopting an effective market entry strategy offers a product or brand a solid starting point for entry into the overseas market. An adaptation strategy ensures that the brand meets the regulatory requirements and local cultural needs which increase the market attractiveness of the product. |
Part 1: List of relevant sources
| Abner, B., 2015. 4 Considerations before taking your business International. [online] Bizjournals.com. Available at: <https://www.bizjournals.com/bizjournals/how-to/growth-strategies/2015/02/considerations-for-taking-your-business-global.html> [Accessed 24 March 2021].
Ananthan, B., Appannaiah, H. and Reddy, P., 2010. Business management. Mumbai [India]: Himalaya Pub. House. Khurana, A., 2021. Going Global: Adapting Your Products to Meet the Needs of the. [online] Mastercard Biz. Available at: <https://www.mastercardbiz.com/2013/05/24/going-global-adapting-your-products-to-meet-the-needs-of-the-marketplace/> [Accessed 24 March 2021]. Cornelis. A., 2012. The Globalization of Companies and Industries. [online] Saylordotorg.github.io. Available at: <https://saylordotorg.github.io/text_fundamentals-of-global-strategy/s04-the-globalization-of-companies.html> [Accessed 24 March 2021]. Nederveen Pieterse, J., 2012. Periodizing Globalization: Histories of Globalization. New Global Studies, 6(2). |
Part 2: Relevance of sources
| (Ananthan, 2010) | This source is relevant to my essay because it has a chapter that focuses on international management which entails the management of business operations in organizations that are operating and serving markets in more than one country. To effectively success in adaptation of a product in the overseas market, an organization has to develop international strategies that will allow familiarity with the local market, economic viability, competitive conditions and legal environment. Managing a brand in the overseas market demands extensive knowledge on international business management which offers a set of skills and knowledge of the local adaptability and conditions. Ananthan 2010 has stressed on the need for improved and high set of skills that will enable a business to succeed beyond national borders. The source extends product adaptation studies in the international market from a single product level to an organizational level. The source has paid attention to international business market and how business diffuse new products into overseas market. The source has also focused on international marketing as part of product adaptation to meet the needs of the consumers in the overseas market. In international business management, Ananthan, (2010) has revealed the importance of adaptation strategy for companies to meet the needs of the overseas market. Additionally, with the management theories and strategic management practices, one is able to visualize on international management as well as how to run more functional areas in product adaptation such as finance and resources, marketing as well as people and organization.
Ananthan provides the nature of multinational enterprises and reveals the relevance of adaptation as a passive response to the outside environment changes in the overseas market. The source offers an example of an international model by Uppsala school which shows the adaptation in IB literature. This is an effective example of an entry mode. Companies first internationalize their operations to nations that have closer psyches and gain more knowledge and expertise as well as devote greater capital to countries that are more physically remote. |
| (Nederveen Pieterse, 2012). | The source is relevant to my essay since it focuses on the factors that need to be considered while entering overseas markets. Considerably, mot all countries are attractive to all companies. Some markets fail to afford the products sold thus refraining some companies from entering the market. Relatively, there are markets that accept slightly different experience from their existing products. Therefore, adaptation of products into the overseas market has to consider some factors such as economic, legal, political, and social factors before agreeing to commit their resources. For instance, Nederveen Pieterse (2012) examines the business options outside Germany. The source focused on legal factors, economic factors, social and cultural factors. Access to significant supplies and services, currency exchange rates, transport choices, connective and government help programs, corporate security, access to affordable funding, immigration and employment laws should be considered. Generally, Nederveen Pieterse (2012) has clearly listed and briefly described some of the factors that brands have to consider while entering the global market. |
Part 3: Source 3
| Type of source: Journal
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Reference: Abner, B., 2015. 4 Considerations before taking your business International. [online] Bizjournals.com. Available at: <https://www.bizjournals.com/bizjournals/how-to/growth-strategies/2015/02/considerations-for-taking-your-business-global.html> [Accessed 24 March 2021]. | |||
| I found this source by Abner (2015) which focused on some of the aspects that a business needs to consider while entering the overseas market. The source has stated four factors which include culture, regulatory and legal barriers, foreign government conditions and the business case. The cultural differences can indicate whether a business will be successful in the overseas market or not. For instance, a product that fails to add value and meet the needs of the local market cannot success in the overseas market. Abner (2015) states that it is important for a product or service to understand the local market and highlight what they value. Understanding how to conduct business in the local market is very significant. Brands should invest significant energy and time to appropriately venture overseas. Abner (2015) adds that carrying out a business in foreign markets is achievable if the company is flexible enough such that it can effectively work with the local regulations and law guidelines. Examining the local government stability and its authority is very essential when reviewing the business options in overseas. Some of the government aspects that a business needs to consider is the access to the required materials and resources, currency exchange rates, transportation and communication options, employment and immigration laws and protection plans for business operation. Business case entails the ability of the business to respond to the challenges in the overseas market. | ||||
| I have identified this source is reliable and appropriate for academic use because it relates to the topic on ways of products adaptation in overseas market. The source has offered relevant facts on the factors that a business should consider during international expansion. These factors are linked to the ability of the products to be adopted in the new market. This is because these factors define the characteristics of the overseas market which needs to be considered to effectively fit into the overseas market. | ||||
| Criteria | Tick all statements which apply and provide an example or evidence where required | |||
| Currency
The timeliness of the information
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☒The article is current
☐Research in the area has not been updated ☐My essay requires reference to older research REASON: The journal was published in 2021 and present the most recent research in the business journals. |
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| Authority
The source of the information
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☒The authors have the appropriate level of expertise in the field
EVIDENCE: The American City Business Journals offer top quality news and information with most talented reports in the media industry. |
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| Accuracy
The reliability and correctness of the information
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☐The information has been peer-reviewed
☐The source uses academic conventions throughout ☒The arguments are supported by sound evidence EVIDENCE: The article has focused on four major aspects that are greatly focused in international business market entry. These factors enable an organization to determine whether they will be successful in the international business operations. |
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| Purpose
The reason the information exists |
☐This source has not been commissioned by a company or organisation
☒The purpose of this source is to inform / educate ☐The information contained in this source is presented without bias EVIDENCE: The source aims at educating and informing businesses that are planning for international expansion. The focus of the source is to highlight major aspects that businesses need to consider while deciding to expand their operations in overseas markets. |
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| Use of source | ||||
| Relevant key point from the text | Supporting evidence / example/ data for the key point | Use of source | ||
| Cultural differences greatly affect the success of a business and product in overseas market. | If the service or product does not add value to the demands of the new market, there is no need to venture into the overseas markets. | The source will be used to indicate the importance of considering the cultural factors of an overseas market. | ||
| Regulatory and legal barriers may influence product adaptation in overseas markets. | Carrying out business in the foreign markets is only successful if a business is flexible enough to work under the local regulations and laws that guide their business operations. | The source will be used in exploring some of the barriers of product adaptation in overseas market. | ||
| Examining the foreign government is essential when reviewing business options in overseas market. | The aspects to consider while determining the stability of the foreign government include the exchange rates, resource accessibility, government assistance, transportation and communication options and protection policies. | The source will be used to answer the question concerning factors that should be examined while taking a product into overseas market. | ||
Source 4
| Type of source: Journal
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Reference: Khurana, A., 2013. Going Global: Adapting Your Products to Meet the Needs of the Marketplace. [online] Mastercard Biz. Available at: <https://www.mastercardbiz.com/2013/05/24/going-global-adapting-your-products-to-meet-the-needs-of-the-marketplace/> [Accessed 24 March 2021]. | |||
| I found this source by Khurana (2013) which focuses on what a product should adopt while going global to meet the demands of the market place. The source argues that success of a product in the global market has to pay attention to the preferences of the consumers in the market. | ||||
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| I have identified this source is reliable and appropriate for academic use because it offers tips on how products can adopt to a foreign market place. Khurana (2013) stated that there are many factors that are at play rather packaging. Branding, physical environment, measures and weights, local products regulations and CE mark that ensure consumer safety in varying countries need to be considered while venturing into overseas markets. | ||||
| Criteria | Tick all statements which apply and provide an example or evidence where required | |||
| Currency
The timeliness of the information
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☒The article is current
☐Research in the area has not been updated ☐My essay requires reference to older research REASON: The article was published in 2013 which means that the timeliness of the information makes it relevant.
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| Authority
The source of the information
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☒The authors have the appropriate level of expertise in the field
EVIDENCE: Khurana is an educator, mentor and serial entrepreneur who helps small business and entrepreneurs to expand their businesses internationally. |
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| Accuracy
The reliability and correctness of the information
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☐The information has been peer-reviewed
☐The source uses academic conventions throughout ☒The arguments are supported by sound evidence EVIDENCE: The arguments have offered a strong piece of evidence when it comes to offering expertise in going global.
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| Purpose
The reason the information exists |
☐This source has not been commissioned by a company or organisation
☒The purpose of this source is to inform / educate ☐The information contained in this source is presented without bias EVIDENCE: The purpose of this source is to offer essential information to small business and entrepreneurs on the tips of adapting products globally.
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| Relevant key point from the text | Supporting evidence / example/ data for the key point | Use of source | ||
| Branding should consider the language of the country the brand is about to enter. | The name of the product or brand may work well in the local market but have negative connotations in the foreign market due to language differences. | The source will be used in indicating some of the ways that a product should adopt while entering a foreign market to prevent negative connotations. | ||
| Brands should pay attention to the physical environment to facilitate product adaptation. | Weather and climate considerations tend to play into how products work. Therefore, it is important to consider the differences between the foreign and home market. For instance, room air conditioners in Egypt need special filters and sturdy enough to hand the thick dust. | The source will be used in exploring the importance of focusing on physical environment in product adaptation. | ||
| Foreign products need to scrutinize the local product regulations to satisfy the requirements of foreign country. | Some countries require a statement about the product which indicates the purpose in the market and where the product is made. Therefore, it is important to check what is required by the law in the country where the product is about to be sold. | The source will be used to illustrate the necessity of scrutinizing the regulations and laws that govern the foreign market. | ||
Source 5
| Type of source: Journal
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Reference: Cornelis. A., 2012. The Globalization of Companies and Industries. [online] Saylordotorg.github.io. Available at: <https://saylordotorg.github.io/text_fundamentals-of-global-strategy/s04-the-globalization-of-companies.html> [Accessed 24 March 2021].
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| I found this source by Cornelis (2012) on the fundamentals of global strategy with a chapter on the globalization of industries and companies relevant in revealing the globalization stages and how companies experience different challenges and opportunities linked to creating value. Cornelis (2012) indicated some of the factor conditions that explain why some regions attract certain industries. Such factors include capital infrastructure, skills levels, natural resources and endowments. | ||||
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| I have identified this source is reliable and appropriate for academic use because it illustrates some of the ways through which a product can adopt into an overseas market. Additionally, the source has discussed some of the factors that a brand needs to consider in overseas market such as related and supporting industries, skills levels and natural resources which facilitate the success of their business operations. The source is relevant to the study on product adaptation in the overseas market. | ||||
| Criteria | Tick all statements which apply and provide an example or evidence where required | |||
| Currency
The timeliness of the information
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☒The article is current
☐Research in the area has not been updated ☐My essay requires reference to older research REASON: The article was published in 2012 and clearly covers the concept of globalization of companies and existence of international operations which highlight ways through which products adapted in overseas market.
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| Authority
The source of the information
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☒The authors have the appropriate level of expertise in the field
EVIDENCE: The text was adapted by Saylor foundation from distinguished professors of management from the University of Oregon. |
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| Accuracy
The reliability and correctness of the information
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☐The information has been peer-reviewed
☐The source uses academic conventions throughout ☒The arguments are supported by sound evidence EVIDENCE: The source offers a good portion of material and accurate content that is backed up by other cited sources.
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| Purpose
The reason the information exists |
☐This source has not been commissioned by a company or organisation
☒The purpose of this source is to inform / educate ☐The information contained in this source is presented without bias EVIDENCE: The source covers major points that need to be considered by a business planning to develop a global strategy. |
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| Relevant key point from the text | Supporting evidence / example/ data for the key point | Use of source | ||
| Companies should consider the government global drivers in the global market to succeed in product adaptation. | The absence or presence of favourable trade policies, regulations and technical standards affect the global strategy of a business. | The source will be used to illustrate the importance of focusing on government drivers to effectively fit in the overseas market. | ||
| Differences in factor costs for development are important determinants in global strategy. | Economies of scale, experience effects and exploiting the variations in factors of costs for manufacturing, product development and sourcing in different regions are of great importance as global strategy determinants. | The source will be used in supporting the need to consider the costs of operations in different since cost factor affects the ability to adapt in a overseas market. | ||
| The key to exploiting an opportunity in the overseas market is examining the various factors that influence consumer needs and preferences.
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Disposable income, cultural variables and degree of homogeneity influence the extent at which a product is used and consumed with responsiveness to local conditions and preferences. | The source will be used to highlight the various factors that need to be considered for product sale in overseas market. | ||
| Part 4 Conclusions drawn from your reading |
| · Product adaptation into the overseas markets allows fastest growth of the business and brand globally.
· Multinational Enterprises need to focus on economic, legal, political and social factors to adapt their products for sales in the overseas market. · Adapting a product in the overseas market requires analysis of the consumer needs and preferences. · Multinational Enterprises need to focus on strategies that will enable them achieve efficiency and respond to the local demands and varying consumer preferences. |
