select a market that fits your product as you go international
with it, and decide what marketing strategies to follow.
Step #1. Product Selection. Select a product that you want to sell internationally. It can be a
product from your place of work, or any product that you are knowledgeable or interested about.
Try selecting a product that is currently only sold in the United States and that you can envision
selling in another country.
Step #2. Country Selection (10 points). Select a market based on your market screening. Following
the steps for market screenings for a country that you read about in chapter 12, explain what
factors would be important in your market (country) screening. Go through each of the first four
steps in the screening process and describe what kind of criteria would be desirable for your
product in terms of: Basic needs potential, Financial and economic forces, political and legal forces,
and cultural forces.
Step #3. Select a mode of entry (10 points). Review the advantages and challenges of the different
modes of entry and select the most appropriate for your type of
decreasing trade barriers to set up business in another country. So before setting business in another country it is essential for the managers to understand the cultures of host country because every country has different culture. As the Australia and New Zealand are going to do business with Indonesia. As Indonesia is the part of the Southern Asia cultural cluster and Australia and New Zealand are the part of the Anglo cultural clusters (Deresky 2011). There is lot of cultural differences between these. So before doing business foreign investors should check the cultural differences. Cultural Dimensions by Geert Hofstede: Different sources has identified different cultural dimensions. (Phatak, Bhagat and Kashlak 2009) has identified 5 cultural dimensions that are Power Distance, Individualism, Masculinity, Uncertainty Avoidance, Long Term Orientation. But in the website resources Geert Hofstede has added six dimension that is indulgence. For the study purposes, six dimensions are discussed here. • Power Distance: It means dealing with inequalities which occurs within cultures. It sees the superiors and subordinate’s relationship and what are power distances between them. As we see in the case, Indonesia is a highly power distance country where business relationships are paternal and maternal, subordinates think that superiors should take care of their interests as parents. They are too much dependent on the superiors and there is lot of unequal rights to both. Communication is inappropriate. While in Australia and New Zealand, the power distance is low that means they believe that everyone in the business know why they are in the organisations, what the organisations expect from them and top management feels that employees should communicate their problems to them and gain equal rewards for their work. • Individualism: It describes the norms, cultures to focus on the relationship between individuals and groups. It sees whether people works individually and as a part of group. Indonesia has low individualism means that employees work as a group in the workplace, they give more importance to family, friends etc. They generally try to select that persons who are their favoured. Where as in western countries like Australia and New Zealand the people work for themselves and they keep their personal and professional life separate and fulfil their own contracts, needs. • Masculinity: It means to see whether emphasis is on achievement and earning. Indonesia scores low on the masculinity as compared to Australia and New Zealand that means Asian people that they prefer quality of life and not run after material things like money while in western countries during work they give high priority to the work if they have set some deadlines they tend to achieve it on the specific time. • Uncertainty Avoidance: It means to measure how people reacts to the unseen situations. Indonesia scores less on the uncertainty avoidance as compared to Australia and New Zealand. Indonesian believes that uncertainty is common in business and they do not take stress. They believe that managers shoul>GET ANSWER