BA 447 Adler Introduction Notes Four stages of international business and each has culturally sensitive issue(s) Stage 1. Make product domestically, source domestically, and sell domestically. Cultural issue: Ethnocentric. Other country buys and adjusts to product as made for domestic use. Assumes one best way to manage.
BA 447 Adler Introduction Notes Stage 2. International competition. Shift from production to marketing sensitivity. Cultural: Equifinality = many good ways to manage. Manufacturing worldwide therefore sensitivity needed.
BA 447 Adler Introduction Notes Stage 3. Similar good/services worldwide. Price is measure of success. Cultural: Change from “one best” and “many best” ways to manage to “least cost” way to manage.
BA 447 Adler Introduction Notes Stage 4. Top quality, least cost are measures to get into the game. Must now strategically advance via worldwide view. Market segmentation. Niches rule. Culture: Market segmentation/production requires cultural sensitivity. Use of teams, global alliances. Global HR is essential to a firm’s success.