Geert Hofstede has been borne of factor analysis which seeks to establish the effects of stakeholder values to the different aspects of organizations.
- Power distance (strength of social hierarchy).
- The power an authority bestowed on individual with regard to execution of his/her task determines the final outcome as well as the desire to handle related assignments.
- masculinity- femininity : this tries to establish the roles assigned to a particular individual with regard to their sex(men or female).Men are known to perform some tasks more easily and efficiently, for example manual tasks. On the same note, for women some tasks are easy. Hence, placing the right person for the right job makes alignment of employees to the organizational vision easy.
- individualism -collectivism: It is a well established fact that at any working environment there has to be specific roles that can only be performed by a specific person, whereas others has to be matter of team work for perfect execution. In this case, it means that a perfect blend of individual brilliance and team spirit plays a vital role in ensuring that organizational objectives are taken care of from all aspects.
- uncertainty and avoidance :There comes a time when stakeholders of an organization (employees and owners alike) has to act on conditions of uncertainity.It takes a dose of sacrifice to let some perfect opportunities slip by, but doing this for the good of the firm makes a lot of sense.
It is prudent for global marketers to use the limitations of this model since it gives management invaluable insight in governing the performance of their subjects. It will also provide a clear guidance on allocating duties.
Problems associated with secondary data.
Secondary data refers to the information that is obtained from a medium, which in itself is not the original source. Original sources of information refer to the information sources that are collected first hand for a specific purpose identified by the person collecting the information. Example is questionnaires.
Hence, the disadvantages associated with secondary data will mainly relate to the manner and the original purpose which the information was indented to serve.
The below are the disadvantages:
- Outdated information:
- After passage of time, information becomes irrelevant with regard to meaning as well as effectiveness. As a way of example, directories have been rendered ineffective by the tremendous growth of cities. In this case, any person who relies on the information from these outdated sources will not get the planned for results.
- No chances to rectify errors that might have been made during the original information capture
- During the time of obtaining information there might be cases of data collection, in case the collector did not lay emphasis on the contents, poor information will gathered.Subsequently,any person who relies on the data is bound to get disappointing results.
- There are chances that the information recorded may be biased to the original views of the collector.
- In most of cases, a price tag may be placed on such information by the original collector is sometimes high and unjustified. Other contingent costs like scanning, photo copying will only serve to increase the information cost.
First mover advantage.
This is the benefit that accrues to a trader or any person in business as a result of being the first person to venture in to an activity, or being the first to set up a particular business in a certain locality.
A company that makes the first step to set up its business in certain area will record high sales as result of few options presented to the customers. Owing to the customer loyalty when treated well, a small deal of innovation will ensure the trader in question will retain most of the customers. It will not make for all companies to treat first mover advantage as the determinant of subsequent performance. This is because due to timing differences as well as resource endowments, different corporate citizens will take different periods to conquer a certain market place. But provision of superior goods than those of competitors will make up for the lateness in venturing the market place.
Economies of scale relate to the benefits that accrue to a firm as a result of adoption of different business ideologies like bulk production of goods, reduced production and distribution time as well as bulk buying of raw materials used in the production. It will be highly recommended that a company adopt those strategies that will enable it cut costs; failures to which rivals who have already taken the initiative drives them out of the market place.
Tariffs play a very essential part in attracting customers for a particular business undertaking. It may take the form of reduced prices, or increased quantity per unit price. Global marketers will have to rely on tariffs to boost their chances of market penetration since the effects of first mover advantage will create a strong bond of customer loyalty which might prove too difficult for any entrant to break.
Alternative market entry approaches.
Market entry approach will outline the procedure adopted by a firm in venturing in to a specific locality. Below are some of the methods that can be adopted:
- Franchising
This involves licensing independent distributors to be selling the products or services of another company. The franchisor is given distribution rights, and has an option of reaching out to other producers with an aim of securing other businesses. This method is adopted by large companies like Coca Cola, and helps a great deal in making a brand an house hold name.
- Acquisitions and merging
For the sake of maximizing returns in the market place, rivals can come together so as to ensure they benefit from economies of scale. This will guarantee superior products for customers due to merging of strengths as well as cushioning of areas identified as weaknesses.
- Licensing of firms to be trading on another company’s goods
The producer will fully control the licensee, in a bid to ensure that no revenue leakages as a result of the deal.
Public relations in any firm a crucial communication platform between management and other stakeholders like customers and employees. Through efficient communication, ironing out of differences between the parties is made easier hence smooth running of the entity. Example of a PR activity will be bringing to the attention of customers any fraudster who is after conning customers by supplying expired goods.
Implementing global theme approach will enable a company to be at par with other industrial players in the globe, thus making it difficult for customers to note any difference in alignment of goals .This helps in maintaining the status of an enterprise.
Adopting functional organization structures enables a company in clearly defining the roles of each person involved in running the affairs of the enterprise. With these, chances of duplication of activities will be reduced, as well as ensuring each stakeholder is motivated to play his/her part in prosperity of the firm.
References
Blythe J. (2009).Business to business marketing management. New York: Thomson learning
