Prior to beginning work on this discussion forum, review the following resources:
·
Anheuser-Busch wins long-running battle against Budweiser BudvarLinks to an external site.
article
· You should also conduct research to find additional articles on this topic to assist with this discussion
· You can review the
Company Research in the UAGC LibraryLinks to an external site.
resource in the UAGC Library if you need help with conducting your research.
Select one company from the United States and one from Europe.
In your post,
· Discuss the difficulties that both companies faced operating in international markets.
· How might leadership from both companies been able to avoid some of the difficulties that you discovered?
· Discuss two lessons that you learned from the articles about entering your business into international markets.
Your discussion post should be 250 words.
Reply 1:
Stacey Barnes
Good Morning Class,
The two companies I have chosen Apple (US) and Nestle (Europe).
Expansion is key to the growth of companies and business in order to reach the mega goals that they may set for their organization. With this comes the mobilization across borders and water to meet these expectations. Once these lines are crosses by a company there are certain demographics, guidelines and policies that have to be followed that might differ from your origin country. When we look at companies like Apple and Nestle they are no exception to these ideas.
As of 2024 Apple is dealing with many international confliction such as the geopolitical tension that is present in China at this moment that is resulting in a decline of sales. “In 2024, iPhone sales in China fell by 24% in the first six weeks of the year, and February sales were down 33% compared to the previous year.”(Kharpal, CNBC.com) From a leadership standpoint we can see that our company revenue is being impacted by politic powers and creating a distrust from international parties. As a leader you must create a level of trustworthiness with the international consumer and ensure that there are no political agendas behind the business you are bringing across seas.
On the other hand Nestle is battling and facing issues of child labor laws in its supply chain. “Children younger than 15 continue to work at cocoa farms connected to
NestléLinks to an external site., more than a decade after the food company promised to end the use of child labor in its supply chain.”(Clarke, Theguardian.com) As we know there are different laws a restrictions when speaking of different areas and country. What may be accepted in one place will not be tolerated in another. As a leader Nestle needs to ensure the image that is being portrayed and controlled by media isn’t what it is. Cementing that these individual aren’t being mistreated and that they are abiding by all laws and regulations in regards to these employees.
Two lesson that I can take from these situation are that when moving business across borders to ensure to know the law of the land before doing so. While also understanding that just because your company is there the population may not be to keen to your presence in their land and may take some winning over.
References
Kharpal, A. (2024, February 2).
Apple’s sales plunged in China — these are the iPhone giant’s 5 biggest problems right now. CNBC.
https://www.cnbc.com/2024/02/02/apples-biggest-issues-in-china-right-now-after-sales-plunged.htmlLinks to an external site.
Clarke, J. S. (2017, October 6). Child labour on Nestlé farms: chocolate giant’s problems continue.
The Guardian. https://www.theguardian.com/global-development-professionals-network/2015/sep/02/child-labour-on-nestle-farms-chocolate-giants-problems-continue
Reply 2:
Jesse Taylor
Happy Last week of Class, classmates,
Companies I chose for this week discussion:
1. United States: Walmart
2. Europe: Tesco
Challenges Faced:
Walmart, a retail giant from the United States, struggled significantly when it entered the German market. The company faced cultural clashes, with its “Always Low Prices” strategy not resonating with German consumers accustomed to high-quality local brands. Additionally, Walmart’s American management style clashed with German labor laws and work culture, leading to internal discontent and operational inefficiencies.
Tesco, a leading UK-based retailer, encountered challenges in the United States with its Fresh & Easy chain. The company misjudged American shopping habits, such as the preference for one-stop shopping at large supermarkets rather than frequent visits to smaller, convenience-oriented stores. Furthermore, Tesco’s self-service model did not appeal to the American consumer base, who preferred more personalized customer service.
Leadership Strategies to Avoid Difficulties:
For Walmart, adopting a more localized approach could have mitigated some difficulties. Leadership should have conducted extensive market research to understand the German consumer preferences and competitive landscape. By adapting their product offerings and marketing strategies to align with local tastes and practices, they could have built stronger customer connections. Moreover, employing local managers who understood the cultural and legal nuances would have helped in smoother operations.
Tesco’s leadership could have benefited from better market analysis to understand the intricacies of American consumer behavior. Engaging in pilot testing with flexible models before full-scale launch might have provided critical insights. Additionally, considering partnerships with established local retailers could have helped Tesco navigate the market more effectively.
Lessons Learned:
1.
Cultural Sensitivity and Adaptation: A profound understanding and respect for the local culture are crucial when entering international markets. Both Walmart and Tesco’s experiences highlight the importance of customizing business models to fit local consumer behaviors and preferences.
2.
Comprehensive Market Research: Rigorous market research and pilot testing can prevent costly missteps. Understanding local market dynamics, consumer preferences, and competitive landscapes can guide better strategic decisions and operational practices.
By learning from these examples, companies can better navigate the complexities of international expansion, ensuring greater success and sustainability in global markets.
References:
Aithor. (2024, April 27).
Style of leadership in TESCO case study. aithor.com. https://aithor.com/essay-examples/style-of-leadership-in-tesco-case-study
Rickard, B. (2024). Large-scale organizational change leadership: The emergence, impact, and evolution of Walmart.
Required Resources
Text
Oedekoven, O. O., Lavrenz, J., & Robbins, D. (2014).
Leadership essentials: Practical and proven approaches in leadership and supervision
Download Leadership essentials: Practical and proven approaches in leadership and supervision
. Peregrine Leadership Institute.
· Chapter 6: Project Management Leadership
· Chapter 6 discusses project management and deliberate decision making. It will assist with your Walmart Analysis for Leadership final paper this week.
Articles
Bellman, E. (2007, January 23).
A Dollar Store’s Rich Allure in India; A U.S. Franchise’s Success Shows ‘made in America’ Sells; Lessons for Wal-mart’s Entry?Links to an external site.
The Wall Street Journal.
· The full-length version of this article is available through the ProQuest Central database in the University of Arizona Global Campus Library. This article provides information about the success and challenges faced by the My Dollar Store franchise in India. The article will assist with your Walmart’s Global Challenges discussion forum this week.
Breuer, G. (2011, September 16).
Anheuser-Busch wins long-running battle against Budweiser BudvarLinks to an external site.
.
World Trademark Review. https://www.worldtrademarkreview.com/article/anheuser-busch-wins-long-running-battle-against-budweiser-budvar
· This article reviews the Federal Court of Appeals decision on the longstanding dispute between Budweiser Budvar and Anheuser-Busch. The article will assist with your Five Cross-Cultural Competencies discussion this week. Accessibility Statement does not exist.
Privacy PolicyLinks to an external site.
Loeb, W. (2013, October 16).
Walmart: What happened in India?Links to an external site.
Forbes. https://www.forbes.com/sites/walterloeb/2013/10/16/walmart-what-happened-in-india/#23c5849b7d1c
· This article provides information about the difficulty Walmart had in trying to penetrate the market in India. The article will assist with your Walmart’s Global Challenges discussion forum this week. Accessibility Statement does not exist.
Privacy PolicyLinks to an external site.
Worstall, T. (2017, April 30).
Walmart expands again in India – but still not able to open consumer stores to consumer detrimentLinks to an external site.
.
Forbes. https://www.forbes.com/sites/timworstall/2017/04/30/walmart-expands-again-in-india-but-still-not-able-to-open-consumer-stores-to-consumer-detriment/
· This article provides information about another attempt by Walmart to penetrate the market in India. The article will assist with your Walmart’s Global Challenges discussion forum and the Walmart Analysis for Leadership final paper this week. Accessibility Statement does not exist.
Privacy PolicyLinks to an external site.
Multimedia
The University of Arizona Global Campus. (2024).
Global markets
Links to an external site.
[Video]. Kaltura. https://uagc.mediaspace.kaltura.com/media/BUS621+%7C+Week+06+%7C+Global+Markets/1_nj02p23z
· This video explores effective leadership and emotional intelligence. The video will assist with your Walmart Analysis for Leadership final paper this week. This video has closed captioning and a
transcript
Download transcript
.
Webpages
Hughes, A. (2020, April 12).
This bud’s for who? The battle for ‘Budweiser’ spans centuries, countries, and courthouses
Links to an external site.
. VinePair. https://vinepair.com/articles/budweiser-vs-budvar-name-challenge/
· This webpage provides information on the longest running commercial disputes between Anheuser Busch and Budejovicky Budvar. The webpage will assist with your Five Cross-Cultural Competencies discussion forum this week. Accessibility Statement does not exist.
Privacy PolicyLinks to an external site.
Lumen Learning. (n.d.).
Dimensions of cultural difference and their effect
Links to an external site.
. https://courses.lumenlearning.com/wm-principlesofmanagement/chapter/dimensions-of-cultural-difference-and-their-effect/
· This webpage provides information about the nine global dimensions of cultural differences. The webpage will assist with your Walmart Analysis for Leadership final paper this week.
Accessibility StatementLinks to an external site.
Privacy PolicyLinks to an external site.
Walmart. (n.d.).
Our history
Links to an external site.
. https://corporate.walmart.com/about/history
· This webpage provides information about the Walmart corporation and will assist you in your Walmart’s Global Challenges discussion forum and with the Walmart Analysis for Leadership final paper. Accessibility Statement does not exist.
Privacy PolicyLinks to an external site.
A century of Bud v Bud. (2011). Managing Intellectual Property, 212, 3. Pfanner, E. (2005, May 9). On Advertising: ‘Bud’ fight is one for centuries. The New York Times. Retrieved from https://www.nytimes.com/2005/05/09/business/worldbusiness/on-advertising-bud-fight-is-one-forcenturies.htm
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