International Business: Standardization, Adaptation, and Issues

This report provides an in-depth analysis of international business management, focusing on the concepts of standardization and adaptation within international markets. It explores the application of ethnocentric and polycentric approaches, offering insights into how companies like Tesco and Sainsbury can navigate global business operations. The report identifies key international marketing issues, including pricing strategies, promotion challenges, product differentiation, and market placement, and offers recommendations for addressing these challenges. The study emphasizes the importance of adapting business practices to suit diverse international environments, ultimately aiming to provide a comprehensive understanding of successful international business strategies. The report references various academic sources to support its findings and conclusions, providing a solid framework for understanding the complexities of international business.

INTERNATIONAL BUSINESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
Assessment ......................................................................................................................................2
Standardization, adaptation of companies in international markets. ..........................................2
Key international marketing issues..............................................................................................2
Companies response and recommendations................................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................4

INTRODUCTION
International business is type of business process where type, process, scale, governance
along with other aspects carry out in international borders. International business needs
knowledge and skills beyond normal business expertise where organizations operates
understanding customs, laws and capability for conducting transactions involving multiple
currencies (Meyer and Peng, 2016). The transactions include transfer of goods, technology,
services, managerial knowledge along with capital of other countries. The report will include
contextualising, adaptation and standardization along with key international market issues.
Further the study will address responses and recommendation for the same (Kourula, Pisani and
Kolk, 2017).
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Assessment
Standardization, adaptation of companies in international markets.
The practices can be justifies by by applicability of following practices
Standardization (Ethnocentric)
Ethnocentric approach is a method of international recruitment method where human
resources is responsible for recruitment for right person to perform right task on the base of skills
required along with willingness of candidate to get mix in the culture of the organization as well.
These practices develop better ordination between parent and host country, along with
influencing beliefs and practices into foreign lands, technology in this case can be effectively
transferred along with development of effective and development in labour markets as well so
Tesco and Sainsburry run effective and efficient business types as they hire an individual who is
assured of his roles, responsibilities and task to be performed on international grounds (Kourula,
Pisani and Kolk, 2017).
Adaptation (Poly centric)
Polycentric approach is where an individual is appointed to perform business operation
for international lands. These practices include individual of nation of host country is appointed
to carry operations in subsidiary countries. Rationale behind the approach state locals of host
country know their culture better more effectively along with compared to that on their foreign
lands (Cano-Kollmann and et.al., 2016). The practice help to hire locals which is competitively
less expensive for business operations so the morale of employee based on their knowledge
alongside and further develop career opportunities along with better governmental support and
develop high chances for success rates in the organization as well so the business operations of
Tesco and Sainsburry can perform their business operation in effective and efficient manner to
sustain in market competition with individuals requiring low training and perform their jobs
effectively help in reducing the operational cost of the company and leading to effective
practices of business for Tesco ans Sainsburry (Kourula, Pisani and Kolk, 2017).
These practices of people to perform their business operations in international market will
boost the efficiencies of employees to perform effectively their business operations and practices
leading to effective justification for their type of business activities (Cano-Kollmann and et.al.,
2016).
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Key international marketing issues
Price
The price of particular product or article is issue for international marketing as these
practices vary from place to place along with the fact that they fail to ensure development of
different pricing strategies in different place of the world. The differences in currencies across
the world Is also an issue for operation's in marketing as people are un aware of marketing
context for price of articles. Tesco and Sainsburry with their enormous range in business will
have to set their prising according to their location and will have to manage business operations
in different ways as people in diferent regins have several paying capacities for products or
articles. (Doh and et.al., 2017).
Promotion
The practices conclude crucial issue for marketing activity. As based on international
ground companies tend to contract sport personality, entertainment stars or even politicians and
leaders for the promotion of the article or products but in places there might be chances that
people are not happy with them and also they involve lot of cost in the process will lead to
creation of issue where people are no longer influenced by their acts as well as practices. The
type of practice for Tesco and Sainsburry will lead to increased cost of operations and had to
minimise their profits as they are facing tough competition from each other for business
opearations (Hamilton and Webster, 2018).
Product
Difference in products across the globe is major issue for the international marketing
activity where every nation require different products and at time particular firm fails to deliver
those which concludes great dis advantage to the company when they fail to deliver individuals
what they are looking which de motivate companies practices (Cano-Kollmann and et.al., 2016).
Different people use to know and utilise different products for the purpose of selling and people
from different demographies for the effect of the practices. The practice for Tesco and
Sainsburry will lead to satisfy each and every customer and keep their products updated and
match the requirement of consumers which is a tough job to perform as these two companies
have to invest enough of their resources for running these business opeartions (Kolk, 2016).
Place
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Marketing of product in international market is tough as they fail to justify potential
market for selling and promoting their products. At times seller fail to identify potential market
for selling their products and services which put companies lot of cost in the market and business
process and fail to generate potential or expected outputs (Hamilton and Webster, 2018).
Differences in place and taste of product in different places will change due to change in
preference and priorities of people in their demographic area and other factors associated with
them. Tesco and Sainsburry will perform advance research and development techniques before
performing business activities so they never face defeat in these business conditions as to figure
conditions of market and potential outcomes they can withdraw (Kourula, Pisani and Kolk,
2017).
Companies response and recommendations
Companies to operate international marketing activities will need to ensure adaptation of
activities where they aim on attainment of activities for managing their business operation's on
international borders. The practices of companies going global need to opt for poly centric
approach for performing their business operations so they need to ensure right staff is working
for attainment of objectives of companies to work effectively and efficiently (Kourula, Pisani
and Kolk, 2017). The companies must ensure they hire staff fro their home land to ensure
practices of operations happen in the deired places for staff preferences and their home practices
for the befit of their organizations (Hamilton and Webster, 2018).
CONCLUSION
The above study concluded practices for firm to enter and establish their business practise
in international border using 7 P's practices for attainment of advantage of performing effective
business operations. Also issues to operate business type in marketing activities are also
addressed as they find it difficult to match the prices along with identifying potential buyers for
the products in those markets due to change in preferences, promotion types and place for selling
those articles.
REFERENCES
Books and Journals
Beugelsdijk, S. and et.al., 2015. Cultural distance in international business and management:
From mean-based to variance-based measures. The International Journal of Human
Resource Management. 26(2). pp.165-191.
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Boddewyn, J.J., 2016. International business–government relations research 1945–2015:
Concepts, typologies, theories and methodologies. Journal of World Business. 51(1).
pp.10-22.
Buckley, P., 2017. International business. Routledge.
Cano-Kollmann, M. and et.al., 2016. Knowledge connectivity: An agenda for innovation
research in international business.
Doh, J., 2017. Phenomenon-based research in international business: Making IB relevant again.
AIB Insights. 17(2). pp.14-16.
Doh, J. and et.al., 2017. International business responses to institutional voids.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business. 51(1).
pp.23-34.
Kourula, A., Pisani, N. and Kolk, A., 2017. Corporate sustainability and inclusive development:
highlights from international business and management research. Current opinion in
environmental sustainability. 24. pp.14-18.
Meyer, K. and Peng, M.W., 2016. International business. Cengage Learning.
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