EXPORT STRATEGY

1. CONCEPTS

Exportation: "Goods and services that are produced domestically and sold to buyers in another country". (Teachmefinance, 2010)

Strategy: "Alternative chosen to make happen a desired future, such as achievement of a goal or solution to a problem." (Business dictionary, 2010)

2. WHAT ARE THE ADVANTAGES OF EXPORTS?

Improved Profits and Sales:

Selling items and services in a marketplace which the company has never touched before will boost sales and hence raised revenues. Additional overseas sales over the long term, once export development expenses have been covered, enhances overall profitability." ( Articles base, 2010 )

Develop Domestic Competitiveness: When companies have effective strategies in a local market, they can use that knowledge to introduce in the global market, and finally the global strategies become more efficient to afront the new markets.

Increase Worldwide Market Shares: This is an important advantage because if a company get expand the market, it could adquire market positioning so therefore it could increase the sales.

Diversification and risk minimization: Exports allow companies to have low risk in therms of market, because they don't control the market in the other countries.

Balance for Seasonal Demands: this an advantage because products that are not sold locally in a given season, they can be sold in another country because of the demand is prepared to buy that products.

Expand New Knowledge and Experience: Entrying to another countries allow companies that other companies know the own ideas, or for example new tools to negociate or to do the process.

3. POINT OF VIEW

Globalization can't be avoided, if a company wants to entry in another kind of markets, it should make an analysis not only about documentation and tariffs but also about information of markets in a given country. The decision of choose direct and indirect export depends on the expirerience because if a company doesn't need a distributor the best option is the direct exports.

I think companies should be more carefull when they are expanding to another kind of markets because if a company fail, it is likely that company has to reinvent the strategies.  the marketing intelligence is very important in this aspect, because analyse information give ideas of what kind of tastes and emotions have the consumers in other countries, and also why competitors could affect the business. As export.gov says: "Plan your market entry the right way – use market research to learn your product’s potential in a given market, the best prospects for success, and the market’s business practices before you first export." (Export.gov, 2010) 

CYBERGRAPHY

Export.gov. (2010). Market Research. [online]:  http://www.export.gov/mrktresearch/index.asp

Articles base. (2010). Export Trading - What are Exporting Advantages. [online]: http://www.articlesbase.com/international-business-articles/export-trading-what-are-exporting-advantages-941564.html

Japan's Export Growth Slows As Global Demand Wanes. getty image. (online) Available at:

http://www.gettyimages.com/detail/103624418/Bloomberg

Fabricated Bridges Are Sent To Pakistan As Part Of UK Flood Aid. getty image. (online) Available at:

http://www.gettyimages.com/detail/103626965/Getty-Images-News

Business Dictionary. 2010. (online). Available at: http://www.businessdictionary.com/definition/strategy.html

Teachmefinance. (2010). (online). Available at:

http://www.teachmefinance.com/Financial_Terms/export.html

CARREFOUR

1. CONCEPTS

Client-oriented culture: It is a mechanism in which a company orients their process in the knowledge of its clients to satisfy their needs efficiently.

Transformation: "Increasing agility, execution quality and competitiveness". (Carrefour, 2009).

Innovation: "Regaining initiative and leadership." (carrefour, 2009)

2. WHAT ARE THE MAIN STRATEGIES OF CARREFOUR GROUP AND WHY THEY IMPLEMENT THEM?

The main strategies that Carrefour group implements are:

• 
  
  Client- oriented culture: "The Carrefour group is enhancing its knowledge of customers, with the aim of serving them better and improving its brand image. In stores, the Carrefour brand will be conveyed in a way that is closer to the customer and more emotionally involving." (Carrefour, 2009).

When Carrefour began to internationalize, it had a previous knowledge of what clients needed due to the change in requirements in France, and the obstacles with the government authorities, follow the reasons they brought with experience to expand.

the client-oriented culture is a good strategy because Carrefour look for opportunities where any other competitors find them.

• 
  
  Transformation: "It will redesign its organisation, enhance synergies between sales and purchasing, and create new relationships between head offices, countries and stores. Sharing of knowledge and best practice will form the heart of this transformation process, which will be carried out by, and for the benefit of, our staff. " (Carrefour, 2009)

The strategy of transformation shows that carrefour is an organization that learn of it own errors. When Carrefour expanded to United States and united Kingdom, it realized that not all the costumers are the same and that not all the clients have the same needs. Carrefour implement this strategy to improve, because improving is the unique way to expand to another countries where needs are really difficult to satisfy.

• 
  
  Innovation: "In France, Carrefour is opening pilot convenience stores, i.e. Carrefour City in city centres and Carrefour Contact on the outskirts or in the centre of small towns. In Taiwan, Carrefour has created Carrefour Convenient Buy, a store open 24 hours a day. Carrefour is a multi-format group, and intends to be a multi-channel retailer too, strengthening its presence in e-commerce. The in-store offering will be enhanced with the launch of new product ranges that meet customers' current needs. Together with other innovations, Carrefour will become a multi-service retailer." (Carrefour, 2009).

This kind of strategies, allow Carrefour be more confident for the clients, because carrofour should use that information about their costumers and become it in the way to attract people. Innovation is something that add value to the service so costumers adapt the new product or service to their own needs.

3. POINT OF VIEW

Companies have to be creative in way they do the things. When something is bad for example in the expansion, like in the case of Carrefour, strategies should be the better to internationalize. It is a mistake to think that a strategy can run on either side, for that carrefour is trying to create a new way to expand to countries like Romania or "opening the 64th Carrefour Hypermarket in Mojokerto city." (Carrefour, 2009).

Carrefour has a great opportunity because it can innovate with both products and services.

"To survive and compete in today’s marketplace, a firm must be able to respond quickly to external change and think imaginatively about its services and the way in which it offers them to consistently meet clients’ needs and maintain profitability. Firms must recognise that providing legal services in line with those needs forms the core of their business: technical competence is no longer enough." (Carrefour, 2009).  

BIBLIOGRAPHY

Daniel, John D.2010.International Business: Environments and operations. Pearson.

CYBERGRAPHY

Carrefour. (2009). Our strategy. [online]: http://www.carrefour.com/cdc/group/our-strategy/ 

An Indonesian cashier attends to custome. getty image. (online) Available at:   http://www.gettyimages.com/detail/97427280/AFP

Inside New Carrefour Planet Store. getty image. (online) Available at: http://www.gettyimages.com/detail/103629348/Bloomberg

THE IDEA OF INDUSTRY STRUCTURE

1. CONCEPTS:

INDUSTRY STRUCTURE: "Is an explanation of the functions form, and interrelations among :

• 
  
  Suppliers of inputs
• 
  
  Buyers of outputs
• 
  
  Substitute products
• 
  
  Potential new entrants
• 
  
  Privalry among competing sellers ". (Daniels, 2004, P. 378).      

GLOBAL INDUSTRY: "is one in which a firm's competitive position in one country is significantly affected by its position in other countries."  (Daniels, 2004, P. 379).    

2. WHY IS IMPORTANT TO ANALYSE INDUSTRY STRUCTURE?

To understand why is very important to analyse the industry structure, firstly we should analyse the Porter’s Five Forces Model.

SUBSTITUTES: "The competition form substitutes is affected by the ease with which buyers can change over to a substitute. A key consideration is usually the buyers switching costs--the one-time costs facing the buyer in switching from use of X over to a substitute for X."   

When a company is entrying in the market, or when a company is introducing a new product in the market, it should analyse the cuantity and quality of substitute goods that could going to affect the product. And I say affects because in many cases costumers feel that they get more adevantages with the substitute goods than with products of company. So whit this kind of tools managers can make strategic decisions. for example if a company of cofee doesn't analyse the own industry, could appear other company selling tea for example and maybe company could be behind in variables like technology or positionin.

THE ECONOMIC POWER OF SUPPLIERS:  here we are going to analyse two situations:

1. "When the supplier industry is dominated by a few large producers who enjoy reasonably secure market positions and who are not beleaguered by intensely competitive conditions." (Devinney, 2003)

In this case the company adquire competitive advantage, because suppliers also add value to the products, and if costumers also know the positioning of suppliers is more easy for the company to be in the mind of clients.

2. "When suppliers’ respective products are differentiated to such an extent that it is difficult or costly for buyers to switch from one supplier to another." (Devinney, 2003)

In this case, not only suppliers has the advantage but also the company who buy the inputs. This is because when the inputs are different from the competitors, company could add value through the process, thus it is more difficult to competition to gain the game.

THE BUYERS: Costumers are one of the most important aspect to analyse in the industry structure, because they will contribute to know how satisfy them. All company in its performance has to know their own clients, but they also has to know how consumers behavie within the industry and with the competitors. consumers bahavie in a different way depending on each economic sector.

for example is not the same to go to a supermarket that to go to the pharmacy.

THE COMPETITIVE FORCE OF RIVALRLY: One of the most important aspect to analyse is the competitors who are in the same industry. With a good analysis of them, companies couls create effective strategies to be different and therefore to be more attractive fpr the costumers.

"Rivalry is usually stronger when demand for the product is growing slowly." (Devinney, 2003). This is because when demand is low, rivals are more able to increase extents and strategies to improve their products which makes that companies also be stretegic making decisions.

THE NEW ENTRANTS: Companies might analyse the new entrants because in some cases, they entry to the markets with strong and agressive strategies that it can damage the stablished strategies a company had. This analysis should be sequentially, because there are increasingly new companies entrying in industries.

3. POINT OF VIEW

I think No matter if a company has a great market position, all companies in any industry should analyse the relation between the previous factors, because if they don't do it, they could dissapear. Companies require of a constant work. when companies are confident that it could be for a long time they are lying, because companies are systems and systems require a feedback. for example technology and other variables change, as James M. Utterback says:  "At least for the case of manufacturing firms, there may be more profound causes than competitive turmoil that explain a firm's survival chances. These have to do with the evolution of technology in an industry." (Utterback, 2002).

CYBERGRAPHY

Utterback, J. (2002). Innovation, competition, and industry structure. [online]: http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6V77-45GSHF2-1F&_user=10&_coverDate=02%2F28%2F1993&_rdoc=1&_fmt=high&_orig=search&_origin=search&_sort=d&_docanchor=&view=c&_searchStrId=1444365567&_rerunOrigin=scholar.google&_acct=C000050221&_version=1&_urlVersion=0&_userid=10&md5=5e2105a70d252746bb4fee7ae838f319&searchtype=a

A member of the Japanese performance gro .getty image.(online)Available at:
http://www.gettyimages.com/detail/86221426/AFP

Image of Manual worker inspecting equipment in factory . getty image.(online)Available at: http://www.gettyimages.com/detail/84588340/Photodisc

Chinese shoppers buy vegetables at a sup. getty image.(online) Available at: http://www.gettyimages.com/detail/103717796/AFP

Devinney, T. (2003). External Analysis: Analyzing Industry Structure and Rivalry. [online]: http://www2.agsm.edu.au/agsm/web.nsf/AttachmentsByTitle/Strategy+External+Analysis/$FILE/Strategy+External+Analysis.pdf

POLITICAL RISK in Romania

1. CONCEPTS:

Terrorism: "Terrorism is a criminal act that influences an audience beyond the immediate victim". (International Terrorism and Security Research, 2010).

Property seizure: "Seizure is the act of law enforcement officials taking property, including cash, real estate, vehicles, etc." (US legal, 2010)

Confiscation: "Forced transfer of assets from a company to the government without compensation." (Daniels, 2004)

Expropiation: "forced transfer of assets from a company to the government with compensation." (Daniels, 2004) 

Policy Changes: "A major change in attitude or principle or point of view; "an about-face on foreign policy". (free dictionary, 2010).

Local Content Requirements: " Laws stipulating that a specified amount of a good or servce be supplied by producers in the domestic market." (Daniels, 2004).

2. HOW POLITICAL RISK COULD AFFECT INTERNATIONAL BUSINESS IN ROMANIA?

Concepts like terrorism, kidnapping and expropiation are very common in many countries, but unfortunately they are not the unique. in countries located in middle east for example is more common wars, terrorism and conflicts with other countries and , but in other countries the most common concepts are not the same. "Political risk levels vary from nation to nation". (daniels, 2004, p. 86).
In countries like Romania, Ukraine or Hungary the political risk is not characterized by terrorism, but yes for corruption, political instability, lack of political transparency and therefore risk of insolvency.

Romania has several problems due to the corruption, "Malfunctioning political institutions and weak political standards can undermine the legitimacy of democratic institutions and erode the whole system. In Romania, studies have found that the frequent failure to uphold social and political norms feeds a strong cynicism among both voters and politicians. It creates a socio-economic context where breaking the rules is “normal” and individuals’ trust in institutions, politicians and their fellow citizens is extremely low." ( Kreko y Szabados, 2009)

When a company analyse countries to invest there, political risk is very important, just because anybody would invest in a place where terrorism, corruption and expropiation could affect directly or indirectly their own business. International business can be affected at this context also because this kind of problems affect the economy of the country and therefore the economic variables affecting affects the sale of products and services. For example in Romania, "Emerging political risks have made it even more difficult to get a bank loan and can raise interest rates to extreme heights." ( Kreko y Szabados, 2009).  This situation affects companies in two ways, firstly when interest rates are high, consumers can´t get money that they could use for the concumption of products, so there is a discourage of consumption and secondly, if a company decide to get a bank loan, is more expensive because of the interest rates.

 3. POINT OF VIEW

I think problems should be solved root. when exists this kind of political risks, people think that these problems are not serious enough yet to be solved immediately. There is not a magic formula to solve corruption and it is difficult situation precisely because people in the power are less transparent in their responsabilities , but I think problem should be solved firstly inside the country. "Political risk insurance is available against a broad spectrum of risks, including non-payment products for financial institutions, expropriation, war and political violence, cancellation of operating licences, exchange transfer problems, import and export embargoes and non-repossession for global corporations". (AON, 2010).

A company could have tools like Daniels propose: "adaptation, information gathering and political influence" (daniels, 2004, p. 91), but to the extent that companies make this type of study, are realizing that there are countries that are managing this situation and that this is more efficient to invest in them, which makes direct foreign investment is shrinking in the country. 

BIBLIOGRAPHY

Daniel, J. (2004). International Business: Environments and operations. Pearson.

CYBERGRAPHY

AON. (2010). Political Risk Management. [online]:
http://www.aon.com/risk-services/political-risk.jsp

Female executive standing in front of seated male executive, gun behind her back. getty image. (online). Available at : http://www.gettyimages.com/detail/72803733/Asia-Images

Kreko, P. y Szabados, K. (2009). Most Significant Risk Factors that Could Hinder Economic Recovery in Romania. [online]:    http://www.riskandforecast.com/post/nakheel/most-significant-risk-factors-that-could-hinder-economic-recovery-in-romania_333.html

Special Operation Forces soldier in combat. getty image. (online). Available at: http://www.gettyimages.com/detail/103299634/The-Image-Bank

Terrorism research. (2010). What is Terrorism?. [online]: http://www.terrorism-research.com/

The free dictionary. 2010. (online). Available at: http://www.thefreedictionary.com/policy+change

Us legal. (2010). Seizure Law & Legal Definition. [online]: http://definitions.uslegal.com/s/seizure/

CULTURE: The hidden part of the organizations

1. CONCEPTS:

Culture: "The relatively stable set of inner values and beliefs generally held by groups of people in countries or regions and the noticeable impact those values and beliefs have on the peoples' outward behaviours and environment." (Peterson, 2004)

Cross-Cultural: "Of or relating to different cultures or comparison between them:". (Oxford dictionary, 2010)

Generalizations: "A general statement or concept obtained by inference from specific cases". (Oxford dictionary, 2010).

Stereotype: "a widely held but fixed and oversimplified image or idea of a particular type of person or thing". (Oxford dictionary, 2010)

Values: "A person‘s principles or standards of behavior; one’s judgment of what is important in life" ( Oxford dictionary, 2010)

2. WHICH ASPECTS CAUSES THAT ORGANIZATIONS DON'T DEEPLY KNOW CULTURES?

Culture is a global concept that includes many things in which behaviour plays an important role. It can exist many definitions about the concept but there is a great distance between our culture and the other people's culture, and also there is a difference between our thoughts and our acts. People can say that respect cultural diferences, but How could people respect cultural diferences, if they don't even know?. People and organizations tend to think that their principles, values and behaviors are the same worldwide. Sometimes professionals don't know about the culture of the people with whom they do business, so education is an important cause for understanding culture Organization, is an important tool to learn how they used to do business, as Pat Burke Guild (2010) says: "To understand people's behaviors, we need to look at the roots of their actions. One way to do this is to consider several basic ways in which we all interact with a situation, a person, information, or ideas."

On the other hand, there is a tendency to create stereotypes and generalizations about how other people think or act in certain situations; this represents a barrier to do business with other people, because for example is not the same to negociate in a country with an individual orientation than with a country with a group orientation.

In some cases organizations don't even know their own inside culture, so is more difficult to know other cultures. One of the reasons why organizations don't know cultures is because they don't like to change, as John Steidl (2010) says: "This is not surprising, since most organizations demonstrate an innate tendency to resist change". If an organization is not flexible, it couldn't understand why diferent cultures behave in a certain way and therefore it can not afford to adapt to the changes that globalization generates, for example as John Childress and Larry Senn, say in their book (In the Eye of the Storm), “To truly reengineer the corporation, you need to reengineer the culture.”

3. POINT OF VIEW:

I think that if culture is a concept that contains many aspects of daily life and there is so much cultural diversity, education should be deeper on this subject. Not only managers need to know about how a certain group of society behaves but also everyone should understand what is behind those behaviors. Since childhood education should be more deeply about other cultures.

When an organization is not flexible is likely to have problems as well as the famous phrase: "Whoever does not adapt is doomed to disappear", and even more in this globalized world. Organizations could also establish policies for their employees in order to know and understand also that we don't behave at the same way and that any minimum behavior may cause contempt or admiration instead.

Open mind is the solution, I think there should be more management to people understand that all groups of society behave diferent, which will allow that people respect others, and to have an strategy that should allow profesionals to be more efficient and to know their costumer needs.

"Without an understanding of the unique meanings existing for the individual, the problems of helping him effectively are almost insurmountable". (Arthur Combs)

BIBLIOGRAPHY

Peterson, B. (2004). Cultural intelligence: a guide to working with people from other cultures. Yarmounth, Maine: intercultural press.

CYBERGRAPHY

Oxford dictionary. 2010. (online). Available at:

http://oxforddictionaries.com/view/entry/m_en_us1250426#m_en_us1250426

Oxford, dictionary. 2010. (online). Available at:

http://oxforddictionaries.com/view/entry/m_en_us1294280#m_en_us1294280

Oxford dictionary. 2010. (online). Available at: http://oxforddictionaries.com/view/entry/m_en_us1237220#m_en_us1237220

Oxford dictionary. 2010. (online). Available at:
http://oxforddictionaries.com/view/entry/m_en_us1303448#m_en_us1303448.002

 John Steidl. (2010). Culture and Performance-Overcoming the Hidden Barriers to Transformational Change. [Online]: http://www.thomasgroup.com/eLibrary/White-Papers/Culture-and-Performance-Overcoming-the-Hidden-Barr.aspx

Pat Burke. (2001). Guild Diversity, Learning Style and Culture. [Online]: http://www.newhorizons.org/strategies/styles/guild.htm 

Spanish Prime Minister Jose Luis Rodriguez Visits Shanghai Expo. Gettyimage. (online).Available at: http://www.gettyimages.com/detail/103720338/Getty-Images-News

Image: Woman Wearing Red Sari. Gettyimage. (online).Available at: http://www.gettyimages.com/detail/3356-000095/Photonica

Importance of GDP in USA

1. CONCEPTS

GDP:  The abbreviation for ‘gross domestic product’ (the total value of all the goods and services produced by a country in one year) (Oxford dictionary, 2010)

ECONOMIC INDICATOR: "A statistic used to gauge future trends in a nation's economy". (Oxford dictionary, 2010)

2. WHY USA IS THE COUNTRY WITH HIGHER GDP IN THE WORLD AND WHY IS IMPORTANT FOR IB?

USA is a very productive and competitive country, therefore, its products are highly demanded by other countries, making it in one of the countries with higher exports in the world.

Around two-thirds of the total production of the country is driven by personal consumption which allow increase the demand and then the supply.

GDP es very important for USA, because what GDP represents has a large impact on nearly everyone whitin that economy.

It's very important in International Business, because GDP is an economic indicator of how is the economic growth and development in a country, and the economy is increasingly influenced by the dynamic economies of other countries. It therefore faces internal and external challenges. Although it is an important tool in international business, it also has problems as many experts have said: "Economic theorists still find flaws and problems with it as an economic tool. Among these problems are, the inability of GDP per capita to provide information about income distribution. Some income derived from the black market, or those which were not reported to the government were not accounted for. Likewise, GDP does not count volunteer work and services provided by social workers and charity institutions. It also do not account for reconstruction work and services done due to national disasters and calamities. Additionally, GDP as a statistical account is subject to fraud especially from those who are engaged in tax evasion processes. Some companies do not foreclose their true gross domestic transactions to lessen their tax payments." (Madsen, 2006).

3. POINT OF VIEW

For countries like United states is very important this information, but I think that the importance of GDP is not the data, I think the most important thing is to know how to use that kind of information. As Hebert E. says: "To keep from drowning in information we must learn to use it properly, which means figuring out what the information is telling us. After all, it isn't the information itself we use to make decisions; it's the knowledge within the information that we use. This is why we must learn how to analyze information - how to determine just what information we need to make the decisions we face, how to get that information, and then - this is the most crucial step of all -- how to reach inside this information to grasp the knowledge it contains." (Meyer, 2007)

Although USA has the largest economy in the world, needs to network with other countries by negociating agreements, allowing it to obtain a stronger economy and a higher production growth and to overcome economic crisis caused by posible faults.

GDP is a usefull tool in international business, because it gives information about the economic growth of a country, consequently we can know which countries are attractive to establish agreements and negociations. It's important to clarify that it is not the only mechanism to invest or negociate in a country, there are many economical, political, social and cultural variables that influence this kind decisions.

CYBERGRAPHY

Oxford dictionary. 2010. (online). Available at: http://www.oxfordadvancedlearnersdictionary.com/dictionary/gdp

Oxford dictionary. 2010. (online). Available at:
http://oxforddictionaries.com/view/entry/m_en_us1262599#m_en_us1262599

Madsen, C. (2006) The Importance Of GDP Per Capita. [online]:  http://www.nationmaster.com/article/The-Importance-of-GDP-Per-Capita

Meyer, E . (2006) How to Analyze Information: A Step-by-Step Guide to Life's Most Vital Skill. [online]: http://www.howtoanalyzeinformation.com/

Economy watch. (2010). US Economic Profile. [online]: http://www.economywatch.com/world_economy/usa/

Image: US Flag. Gettyimages. (online).Available at:

http://www.gettyimages.com/detail/102518378/Photographers-Choice-RF