Learning Activity 1
In the readings for this week we learned about the Demand Model that was introduced by Professor Michael Porter. According to the model, the ability of the firms in an industry whose origin is in a particular company to be successful in the international arena is shaped by four factors (1) their home country’s demand conditions, (1) their home country’s factor conditions, (3) related and supporting industries within their home country, and (4) strategy, structure, and rivalry among domestic competitors.
(1)Which of the four elements of the diamond model do you believe has the strongest influence on a firm’s fate when it competes in international markets?
(2) Provide an example of a company that demonstrates this ability to compete internationally and how this company demonstrates this ability.
(3)Which of the three types of International Strategies that were discussed in our readings does this company demonstrate? Provide a justification for your strategy choice.
The Global Challenge
1. Few companies can afford to ignore the presence of international competition. Firms that seem insulated and comfortable today may be vulnerable tomorrow.
a. How to gain and maintain exports to other nations
b. How to defend domestic markets against imported goods.
Compare Business Cultures Across Countries. This exercise gives you experience gaining information about business culture in virtually any country.
Step 1 – Go to the website http://www.kwintessential.co.uk/resources/country-profiles.html where you can click on more than 100 countries and obtain a synopsis of a country’s business culture. Click on any two countries located on different continents. After clicking on a country at the website, you may scroll down to reach the section titled “Business Etiquette and Protocol”.
Step 2 –. With the information that you have obtained in Step 1 compare and contrast the similarities and differences that must be considered when doing business in these two countries.
Explain how awareness of business culture across countries can enhance strategy implementation