International and Global Marketing

International and
global marketing

Table of Contents
INTRODUCTION ...........................................................................................................................................3
MAIN BODY .................................................................................................................................................3
A - Drivers that prompt organisations to seek international expansion. Discuss the factors that could
have an impact on your business abroad. Support with examples. .......................................................3
B - For the entry of organisation’s products and services into a new foreign market, some institutional
arrangements is necessary like entry modes and discuss benefits and implications. Which factors
(internal/external) may influence choice of the mentioned entry modes? ...........................................5
C – ‘Think Global, Act Local’ is an international marketing principle that urges companies to have a
consistent strategy when selling internationally while adapting their tactical approach to
the local market they are targeting. ......................................................................................................7
REFRENCES................................................................................................................................................11

INTRODUCTION
Now a day every company want to expand their business at the national as well as
international level because through that they able to gain numbers of benefits such as enhance
profit, market shares, customer’s shares and many more. International marketing is determined
as marketing practices conducted by a company in order to expand their business at the
international market (Buccieri, Javalgi and Cavusgil, 2020). Organization selected for this report
is Bath and Body Works which is founded in 1990 by Les Wexner and its head office is located
United State. Its parent company is L Brands and products offer by company are fragrance mists,
shower gels, lotions, cream, candles and so on. Now company is planning to open their store at
Vatican City. Topics covered in this report are related to expansion method, factors which
impact, drivers which leads to expansions and principle which company may adopt for
expansion.
MAIN BODY
A - Drivers that prompt organisations to seek international expansion. Discuss the factors that
could have an impact on your business abroad. Support with examples.
International expansion is considered as process through which an organization able to
expand their business at different nation market as through that they can attain more profit and
market share. There are several drivers which prompt a company to seek international expansion
from which some main are mentioned below in respect of Bath and Body Works :-
 High rate of profit – It is one of the main factor which attract company to expand their
business at the international market because they able to increase their profit rate. In
respect of Bath and Body Works they want to expand their business at the Vatican City
market through which they able to increase their profit (Kotabe and Helsen, 2020). For
example if respective company expand business they able to attract more and more
customers which increase their sales as well as profit.
 Increase technology and advancement – According to this driver if a company expand
their business internationally they able to adopt new as well as advance technology which

enhance effectiveness of their productions. In respect of Bath and Body Work by
expanding at Vatican City they able adopt new technology as well as advancement of
respective nation. For example it will help in adopting new technology which increases
their effectiveness.
 Increase customer’s base – It is also one of the main drivers which encourage companies
to expand their business at the international market because through it they can attract
more and more audiences toward the products and service (Kumar and Ravikumar,
2020). In respect of Bath and Body Works by expanding their business at the Vatican
City they able to increase their customer’s base which help in enhancing sales and then
profit ratio.
Along with this there are several factors which impact on the business when they operate
at the international level. From which some are mentioned below in respect of the Bath and Body
Works:-
 Political factor – There are different political elements influence worldwide variables.
Political factor for example, changes tax rates, policy, and activities of the government,
political dependability of the nation, foreign trade guidelines, and so forth influence the
working of a global business firm. Absence of political soundness in the nation
straightforwardly impacts the activities of a business firm. So it is essential for Bath and
Body Works to understand Vatican City political condition before expanding business.
 Economic factor – Financial or economic elements identify with the economic system of
the nation where the firm has its operations (Madura, 2020). Different economic factors,
for example, inflation rate, employment ratio, salary circulation, work level, distribution
of the administration spending plan, and so on, directly affect business of respective firm.
 Social factor – Social factors are like education, awareness, and patterns, trends and
status of individuals in the public impact on the consumer behaviour in order to purchase
several goods and services. Additionally, Social condition as well s culture such as
customs, ways of life, and qualities vary from nation to nation which further
straightforwardly impacts the Bath and Body Works and accordingly they need to
conduct innovation.