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INTERNATIONAL BUSINESS RESEARCH

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c) Sources of Secondary Data: US Government: Department of Commerce ... Trade Associations: American Chamber of Commerce. Directories and Newsletters ... – PowerPoint PPT presentation

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Title: INTERNATIONAL BUSINESS RESEARCH


1
INTERNATIONAL BUSINESSRESEARCH
Source Czinkota, M., Ronkainen, I., and Moffett,
M. (1999). International Business. Fort Worth
The Dryden Press.0
The single most important cause for failure in
international business is insufficient
preparation and information
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  • I - INTRODUCTION
  • The failure of managers to comprehend cultural
    disparities, the failure to remember that
    customers differ from country to country, and the
    lack of investigation into whether or not a
    market exists prior to market entry has made
    international business a risk activity
  • Differences between domestic and international
    research
  • a) new parameters (duties, foreign currencies,
    international documentation)
  • b) new environmental factors (legal issues,
    cultural issues, political issues, technological
    level of the society)
  • c) The number of factors involved
  • d) Broader definition of competition (much
    greater variety of competition)

3
  • II - RECOGNIZING THE NEED FOR INTERNATIONAL
    RESEARCH
  • Lack of sensitivity to differences in culture,
    consumer tastes, and market demands
  • Limited appreciation for the environment (Labour
    rules, distribution systems, the availability of
    media, or advertising regulations)
  • Lack of familiarity with national and
    international data sources and inability to use
    international data once obtained

Research allows management to identify and
develop international strategies (identification,
evaluation, and comparison of potential foreign
business opportunities and subsequent
target-market selection)
4
Research is necessary for the development of a
business plan that identifies all the
requirements necessary for market entry, market
penetration, and expansion Research provides the
feedback needed to fine-tune various business
activities Research can provide management with
intelligence to help anticipate events, take
appropriate action, and adequately prepare for
global changes.
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III - DETERMINING RESEARCH OBJECTIVES
  • Objectives will vary depending on the views of
    management,the corporate mission of the firm, the
    firms level of internationalization, and its
    competitive situation.
  • Going International Exporting Cursory of
    general variables of a country, including total
    and per capita GNP, population figures. These
    details will enable the researcher to determine
    whether corporate objectives might be met in the
    market.
  • Next Step, the researcher will require
    information on each individual country for a
    preliminary evaluation.

6
  • Third, selection of appropriate market for
    in-depth evaluation
  • Fourth, a competitive assessment needs to be
    made, matching markets to corporate strengths,
    and providing an analysis of the best potential
    for specific offerings

7
IV - CONDUCTING SECONDARY RESEARCH
Typically the information requirements will cover
both macro information about countries and trade
as well as micro information specific to the
firms activities Most critical International
Information for U.S. firms
  • A) Macro data tariff Information, U.S.
    export/import data, nontariff measures, foreign
    export/import data and data on government trade
    policy
  • B) Micro Data Local Laws and Regulations, Size
    of the market, local standards and
    specifications, distribution system, and
    competitive activity.

8
c) Sources of Secondary Data US Government
Department of Commerce International Agencies
United Nations-UNCTAD, World Bank, IMF Service
Organizations Banks, Accounting Firms, foreign
Research firms, freight forwarders Trade
Associations American Chamber of
Commerce Directories and Newsletters Databases
on-line interactive delivery, read-only
memory Secondary data should be evaluated
regarding the quality of their source, their
recency, and their relevance to the task at hand.
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V - CONDUCTING PRIMARY RESEARCH
  • Typically primary research intends to answer such
    clear-cut questions as
  • What is our sales potential, how skilled is the
    labour force, what will happen to demand if we
    raise the price by 10? What effect will a new
    type of packaging have on our sales?
  • Determining the Research Technique Selection of
    the research technique depends on a variety of
    factors
  • Objectivity of data, unstructured data, data
    collected in real world or controlled
    environment, historical facts or information on
    future developments

10
  • Interviews
  • Surveys must pay attention to cultural
    differences
  • Focus Group (Collective Interviews)
  • Observation
  • Environment Scanning necessity for tracking
    developments in the environment. Environmental
    scanning activities provide continuous
    information on political, social, and economic
    affairs internationally on changes of attitudes
    of public institutions and private citizens and
    on possible upcomings.

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  • Typically, environmental scanning is designed
    primarily to aid the strategic-planning process
    rather than the tactical activities of the
    corporation
  • Delphi Studies A means for aggregating the
    information of a group of experts. Typically,
    Delphi Studies are carried out with groups of
    about 30 well-chosen participants who possess
    expertise in an area of concern such as future
    developments of the international trade
    environment.
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