Blog: MGT520 GDB # 1 Solution Spring 2013 File 1 Due Date 14th May, 2013

Graded Discussion Board

International Business (MGT520)

Dear Students

This is to inform that Graded Discussion Board (GDB) No. 01 will be opened on 10th May, 2013 for discussion and last date of discussion is 14th May, 2013.

Topic/Area for Discussion:   “Global Standardization or international Adaptation”

Note:

For acquiring the relevant knowledge, do not rely only on handouts but watch the course video lectures and read additional material available online or in any other mode.

Important Instructions:

·       Your discussion must be based on logical facts.

·       The GDB will open and close at above specified date and time. Please note that no grace day or extra time will be given for posting comments on GDB.

·       Use the font style “Times New Roman” and font size “12”.

·       Your answer should be relevant to the topic i.e. clear and concise.

·       Do not copy or exchange your answer with other students. Two identical / copied comments will be marked Zero (0) and may damage your grade in the course.

·       Books, websites and other reading material may be consulted before posting your comments; but copying or reproducing the text from books, websites and other reading materials is strictly prohibited. Such comments will be marked as Zero (0) even if you provide references.

·       You should post your answer on the Graded Discussion Board (GDB), not on the Moderated Discussion Board (MDB). Both will run parallel to each other during the time specified above. Therefore, due care will be needed.

·       Obnoxious or ignoble answer should be strictly avoided.

·       You cannot participate in the discussion after the due date via email.

·       Questions / queries related to the content of the GDB, which may be posted by the students on MDB or via e-mail, will not be replied till the due date of GDB is over.

·       For planning your semester activities in an organized manner, you are advised to view schedule of upcoming Assignments, Quizzes and GDBs in the overview tab of the course website on VU-LMS.

Note related to load shedding: Please be proactive

Dear students!

As you know that Post Mid-Term semester activities have been started and load shedding problem is also prevailing in our country now a days. Keeping in view the fact, you all are advised to post your activities as early as possible without waiting for the due date. For your convenience; activity schedule has already been uploaded on VULMS for the current semester, therefore no excuse will be entertained after due date of assignments, quizzes or GDBs.

Topic: Global Standardization or international Adaptation

Background:

Companies go global mainly with these three objectives: to increase sales, to diversify/acquire resources or to minimize competitive risk. Once the decision to venture into international markets has been taken, there are two broad strategies, which can be adopted. A fundamental strategic decision has to be made immediately as to; whether employ uniform standards for products (Standardization) or customize the products according to the local culture (Adaptation) to take account of the unique characteristics of each local market. Furthermore standardization is done to achieve economy of scale and the prices of goods are relatively lower with lower profit margins as compared to customized products & adaptation is preferred when host country has higher income level and buying power with greater trend towards luxuries, the prices of goods are relatively higher along with profit margins.   

Real Time Case:

Afghanistan is an Asian country with the population over 30 million, covering an area of approximately 647,500 km². Afghanistan became member of World Trade Organization (WTO) in 2004. Afghanistan is enlisted with less developed countries; it has poor economic conditions (almost no major flourishing industry, agriculture and textile), lower income level with less buying power and relatively unstable political environment (security issues, foreign invasion, private action etc.). Social and cultural values of Afghanistan are very much different from Pakistan. One thing to remember here is that; style, trends and preferences of Afghani people and Pakhtunes (residents of Khyber Pakhtunkhuwa of Pakistan) are very much alike when it comes to dresses and shoes. Bata Pakistan is the leading footwear brand of Pakistan. Bata is proved to be a successful shoe manufacturing company in all the market segments (Men, Women, children and people of all ages and cultures) in Pakistan. Consider Bata Pakistan decides to start its business operations in Afghanistan where millions of pairs of shoes may find their consumption.

Question:

By keeping in view the above scenario please discuss that Bata Pakistan should go with Standardization or Adaptation Strategy while doing business in Afghanistan.