Challenges and Strategies for International Marketing in MNEs

This article discusses the challenges faced by MNEs in international marketing and strategies to mitigate them. It covers entry modes for small scale enterprises, divisional organizational structure, and the impact of diverse demographics, slow growth rate, tariff barriers, political instability, and increased competition level. The article also suggests strategies such as expanding brand awareness, researching markets, and adopting low-cost marketing techniques.

international business

TABLE OF CONTENTS
.........................................................................................................................................................1
MAIN BODY...................................................................................................................................3
Question 1........................................................................................................................................3
Question 3........................................................................................................................................4
Question 5........................................................................................................................................5
REFERENCES................................................................................................................................8

MAIN BODY
Question 1
There are various models of entry are available to the small scale enterprises that wish to
expand in the future into newer regions. Moreover, for small company in republic of Ireland
named Art by coffee it can be said that below is the list of entry modes that might be adopted :
Direct exporting : This is easiest and convenient method that might be adopted by the
firm so that coffee products might be sold the other regions where higher profits might be
achieved (Bau', Chirico and Pittino, 2018). Also, through adopting this model the cited firm need
to look into those markets where maximum sales might be done without many problems. Hence,
once the places are identified than sales representatives in target country would sell goods in
name of company.
Joint ventures: This is another method that might be opted by the firm in which
company in the target market joint hands with the parent company and both agree to share
certain risk and profits in mutually decided manner. Moreover, investment costs, profits and
losses are also shared in the best manner. Also, both partners in the joint ventures are ben
benefited in the form of shared expertise thus enabling in generating greater revenues in the
future for both the business.
Franchising: This is method of entry mode where the firm has the option to provide
certain rights and ideas to the franchising company where responsibility of the franchisee to sell
various goods in the name of the franchisor in the target market (Modes of Entry into
International Business [Advantages & Disadvantages], 2022). Also, the strong brand recognition
helps in selling the goods in the target places in most efficient manner as consumers associated
with the brand they love and tends to purchase even at little higher prices. This way art of coffee
need to spend large amount of funds in establishing the business in various areas that will
further save the cost and helps in generating more revenues.
Mergers and acquisitions: Merger is the method in which the one company combines
with another ones through consolidating assets and other financial things. Moreover, through this
method completely new company is formed that has its own purpose and gaols. On the other
hand acquisition is one in which there is takeover of one entity from the other and after this all
the operations are conducted by the company that had acquired all the rights of the business.

Thus, the one that would be best suited for ART by coffee based on the current
operations would be Franchising as the company that as acquired the right of art by coffee for
certain period would have greater knowledge of the target markets and needs and preferences
hence it would be able to sell the goods of the company more efficiently. Also, it will reduce the
political risk of the company and overall infrastructure cost. Thus, it would allow cited firm to
expand to various newer regions with minimal investment costs and funds.
Question 3
Organization structure are the ones that help any company to carry out the tasks in most
effective manner through specifying the roles and responsibilities in clear and well-defined
manner. Furthermore, there are various type of structure that might be adopted by the company
based on the objectives that they wish to achieve. Moreover, some structures are functional, flat,
top down and divisional structure. Furthermore, the one that is adopted by the bell Canadian
online services is divisional organizational structure where all the activities that are carried
within the business are based on the geographical markets, product or services groups. Thus,
such type of division ensures greater efficiency and productivity among the employees(Pros and
Cons of Implementing a Divisional Structure, 2022). Further, opting such type of structure would
give higher degree of specializations and will ensure that all the work is carried out with the least
amount of errors and wastage of resources. Moreover, it helps in enhancing the cooperation
among various department levels employees as they had opportunities in developing greater
skills from other departments working. Also, more accountability and sense of responsibility
would be created for all employees that are part of the divisional structure thus improving the
working of the business. Moreover, divisional organizational structure would help bull in
improving the overall working culture and create positive impact in achieving greater innovation
and creativity at the workplace in the future. Also, the cited company would be able to do more
offering in the form of new products and services to the target market that will further help in
building the greater customer loyalty on long term basis.
In the context of organization culture it can be said that it consist of set of values,
expectations and ideas that need to be followed by each employee that is part of the firm. Also,
the best culture is one that is having the employees that are not only having positive attitude but
are also motivated to perform certain job roles in best of manner. Also, positive culture of any
business bring changes in attitudes and behaviours (Martínez-Caro, Cegarra-Navarro and

Alfonso-Ruiz, 2020). Moreover, it can be said that organizational culture might be identified
through applying the handy cultural model that states that culture might be divided on the basis
of the power, task culture, person culture and role culture depending upon the business
environment in which the firm is working. Also, for the firm like Bill it can be said that role
culture would be best suited as based on that each individual would be assigned certain roles and
responsibilities according to the specialization. Thus, this will help company in extracting the
best out of each individual employee and would force them to accept certain challenges for their
personal development and growth in the future. Also, the individual would develop greater
accountability for all the work that is carried out by him during certain period and this will
proved useful for cited firm to develop effective leaders in due course of time.
Question 5
Answer. International marketing is mainly involves various actions for promoting the company
products and services at the global level. It is mainly applying various principles and approaches
of marketing into the global country.
Various challenges faced for marketing into international country for the MNE are as follows :
Slow growth rate: By operating the business into the international markets with the
slower growth rate will impact the marketing of various products and services of the company.
As with slow economic growth in the international and global country impacts the marketing of
the company which result in delaying the workings. Further, this impact the sales and decreases
the earnings of the business which results in impacting the marketing.
Diverse Demographics : While marketing into the international countries for th MNE,
population and demographics for purchasing various products are the aged individuals in the
developed countries (Leonidou and Hultman, 2019). Therefore, the individuals from different
culture and the backgrounds impact international marketing.
Tariff barriers: various tariffs barriers as for marketing the products of the domestic
country into the international market impose the tariff barriers for restricting the marketing also
frequent change in tariffs imposed impact the marketing of MNE companies.
Political instability: various rules and regulation imposed by the government into the
international markets impacts the marketing of various products into the country.

Increased competition level : With high competition and innovation level of the large
number of MNE into the country impacting the marketing of various products and services into
the global country.
Further various measures adapted for mitigating these challenges of marketing the
products of MNE into international market :
 With expanding the brand awareness helps in marketing effectively by supporting the
company and understanding the consumers effectively about the products and services
with building the trust and creditability (Paul and Mas, 2020). This helps in mitigation the
slow growth rate change and the high competition level by creating strong brand
awareness.
 As by marketing the product into untapped and unversed market helps in Promoting the
company in the emerging markets helps in reducing the challenge of international
marketing of the diverse demographics and the slow growth rate in the economy.
 Researching the markets before marketing as understanding all the market trends and
preferences of diverse cultures, backgrounds, political rules, economy level supports in
understanding and complying all the legal laws before marketing of the products which
results in marketing positively for the MNE into international markets. Thus, this helps in
reducing the impact of political issues, legal laws, cultural differences , language barriers.
 For reducing the impact of competition marketing with adopting more innovation
technique a or attracting the target market with using campaigns, using social media apps,
various banners, hoardings. As by adopting the low cost marketing strategy for attracting
the loyal consumer base by increasing the impact of marketing for MNE into global
market.
Thus, these all challenges and the strategies helps in mitigating the impact on the
marketing for the MNE into the international markets .

REFERENCES
Books and Journals
Bau', M., Chirico, F. and Pittino, D., 2018, July. Modes of Business Entry and Exit in Family
Firms: The Role of Resource Intangibility. In Academy of Management
Proceedings (Vol. 2018, No. 1, p. 13526). Briarcliff Manor, NY 10510: Academy of
Management.
Leonidou, C.N. and Hultman, M., 2019. Global marketing in business-to-business contexts:
Challenges, developments, and opportunities. Industrial Marketing Management. 78.
pp.102-107.
Martínez-Caro, E., Cegarra-Navarro, J. G. and Alfonso-Ruiz, F. J., 2020. Digital technologies
and firm performance: The role of digital organisational culture. Technological
Forecasting and Social Change. 154. p.119962.
Paul, J. and Mas, E., 2020. Toward a 7-P framework for international marketing. Journal of
Strategic Marketing. 28(8). pp.681-701.
Online
Modes of Entry into International Business [Advantages & Disadvantages]. 2022. [Online].
Available through:<https://www.superheuristics.com/5-modes-of-entry-into-international-
markets/>.
Pros and Cons of Implementing a Divisional Structure. 2022. [Online]. Available
through:<https://www.indeed.com/career-advice/career-development/divisional-structure>.