Cultural savvy - the essential factor
Article Abstract:
The international success of US fast food companies such as McDonald's Corp offers several important lessons for multinational corporations. Trends that have contributed to the success of fast food companies such as the increasing number of mothers who work outside the home, are not restricted to the US. The keys to successful foreign operations are product quality, technical expertise, entrepreneurship, financial backing, and cultural expertise. Fast food companies possessed technical expertise and financial strength when they began to expand overseas in the early 1970s, but it was not until they developed cultural savvy that they began to achieve notable success abroad. Cultural savvy is the ability to listen to and accept the values and norms of another culture, and the ability to integrate the most successful components of both.
Publication Name: Multinational Business
Subject: Business, international
ISSN: 0300-3922
Year: 1987
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Why global manufacturing?
Article Abstract:
A study of the domestic appliance industry in Europe indicates that profits are higher for companies focusing on home markets than for multinational and other export-oriented companies. The European market for washing machines is mature: non-tariff barriers hinder the marketing of new products. The fragmented nature of the market is apparent in the limited penetration of international brands and national preferences for specific features. The large plants of export-oriented companies produce several models for different countries, with a resulting diminished economy of scale and lower productivity than in nationally oriented companies. Exporting companies must also bear advertising and selling costs and provide after-sales service.
Publication Name: Multinational Business
Subject: Business, international
ISSN: 0300-3922
Year: 1988
User Contributions:
Comment about this article or add new information about this topic:
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