International Business and Trade

Ming Chuan University

REFLECTION PAPE
Professor Hsieh

Name ID Nationality

Minso 08913643 Vietnam

8. What is the significance of material culture for international business? In what
ways may a religion affect the international business activities in India?
Material culture influences the demand levels, product types and quality preferences,
functional characteristics, production methods, and distribution channels. The
material culture of a nation has numerous marketing implications. For example, while
electric can openers and juicers are acceptable in the United States, they are not only
unaffordable and likely undesirable, but they would also be a spectacular waste of
money in less developed nations and even some European nations where disposable
income could be used more effectively on better homes, clothing, or food. Moreover,
the connection between culture and competitive advantage is essential. They have two
kinds of material culture that are technology and economics. Technology refers to the
technical know-how possessed by members of a society and encompasses the
methods utilized in the production of tangible commodities. A culture's technological
level can be seen in a variety of ways. Many low-technology civilizations do not
understand ideas like preventive maintenance. The way people make use of their
skills and the rewards that follow is called economics. Production of commodities and
services, distribution of those goods and services, consumption of those goods and
services, means of exchange, and revenue from the development of utilities are all
covered by the study of economics. Secondly, In both international marketing and
international business, both the objective and material aspects of a culture are
significant. Both cultural facets have an impact on people's consuming habits and the
marketing strategies used by multinational corporations.Numerous marketing
strategies and features are influenced by material culture. For instance, how a home is
constructed affects how it may be furnished, which in turn affects the style and scale
of the furniture marketed in a particular nation or culture.
Based on the determinants of culture, religious belief may affect the Business in India.
A religion with its roots in India, Hinduism emerged there in the first millennium BC.
Hinduism, a polytheistic religion, had a significant impact on how Indian culture was
developed. The Veddas, a collection of religious texts composed by many Rishis, are
the foundation of Hinduism. Important economic principles including production,
exchange, wages, interest, rent, profit, and the market may be found in the Vedas.
According to what I learned in class, the ways may a religion affect the international
business activities in India is transaction costs. Although economic exchange is
encouraged, trading is typically limited to a particular caste. The high level of
confidence between the trading caste may be able to counterbalance the high
transaction costs implied by this system. It could be challenging to get a suitable
Hindu commercial partner for other religions.

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6. Please compare the different business strategies of Carrefour, Pxmart and 7-Eleven
in Taiwan. Who are their target markets?
- Carrefour : They use glocalization strategy to enter Taiwanese market.
Carrefour has successfully glocalized its techniques in Taiwan, using the
country as the research case study. The information from several sources for
this qualitative study was gathered using a triangulation strategy that included
interviews, document exploitation, and observations. According to the report,
Carrefour adapted its strategy to the particularities of Taiwan, including
Chinese culture, language, regional competitiveness, and governmental policy.
It has been discovered that Carrefour's entry, expansion, position, sourcing,
human resource development, and promotion initiatives all reflect the process
of glocalization. Furthermore, their target market is local market the Retail
(Grocery) industry. They use “ we are global, we act local.” They also use
Global Retailing Strategies. Carrefour is one of the earliest retailing
companies to globalize its business ventures into Asia in the 1990’s, and with
Carrefour first successfully investing and succeeding in Taiwan in 1989
(Kamath and Godin, 2001).
- 711: They use localization in Taiwan. The notion of convenience stores in
Taiwan was strengthened by the localisation of 7-Eleven. As part of the
standardizing approach for 7-11 convenience stores in Taiwan, the firm
franchised the operations there and welcomed the local needs of the
customers.711 provided fast-food such as hot dogs, which were becoming
popular in Taiwan as well. Secondly, 7-eleven decided to globalize its services
in other countries as well, for which it used the franchising technique to enter
Taiwan. The franchising technique enabled 7-eleven to lower the barriers of
trade.
- Px mart: They also use localization strategy in Taiwan. PX Mart Chairman Lin
Ming-hsiung, the founder of a construction firm, is renowned for going all out
and taking temporary losses in order to achieve his goals. In contrast, Lo, who
holds the dual positions of chairman of the listed businesses President Chain
Store and Uni-President, needs to maintain the satisfaction of his shareholders
in order to maintain both positions. Their target market is in urban areas.
In my conclusion, they all use retail techniques and localization strategy in Taiwan
Market. PX Mart has made significant investments in modernizing many of its stores
and adding ancillary services, and Carrefour Markets also provides a number of the
numerous services offered by convenience stores, such as seating places.

5. Please compare the different successful business models of McDonalds, Nike and
Starbucks.
- Nike: For many years, Nike has been the clear market leader in sports wear.
By aggressively cultivating connections with famous athletes, they were able
to reach this position. Most significantly, the business signed an exclusive deal
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 with Michael Jordan, which sparked a sharp increase in demand for their main
line of footwear and clothing. Due to the campaign's success, there is now
more demand for common stock ownership. (2010's New Business Model for
Nike) Nike switched from using traditional marketing and increased their
spending on social media. Nike is concentrating its attention on athletes who
can demonstrate a high return on investment (ROI) based on the number of
Facebook likes and Twitter followers they have. Nike is focusing on teams
that display their passion.
- Mc Donald’s: A three-structured franchise model is used by McDonald's. 90%
of the restaurants owned and run by the company are franchises. Franchisees
manage their restaurants under the company's supervision and serve as their
employees' employers. They have a lot of influence over how their restaurants
are priced, sold, and run. A global master plan called "Plan To Win," which is
the foundation of McDonald's corporate strategy, is used. McDonald's upholds
each of the four principles outlined in its mission statement: "Quality, Service,
Cleanliness, and Value."

- Starbucks: The architectural and networking partners that Starbucks partners

with to create, deliver, and sell value derived from valued revenue streams
constitute the foundation of its whole business model.The Starbucks business
model is well-crafted to ensure the success of the company and to show how it
can increase profits. Exceptional customer interactions and experiences are
how Starbucks derives its value. People can enjoy sipping coffee thanks to
Starbucks. With top-notch beverages at its coffee shops, it fosters a tranquil
and soothing atmosphere for its clients. Starbucks has always been quite
innovative with its business practices and tactics. It constantly provides its
clients with delivery that is immediate and on schedule. Now that we have a
fundamental understanding of Starbucks' business strategy, let's focus on what
makes it special and consider how the company actually generates revenue.
For McDonald's, “The company keeps the ownership of the real estate with itself,
with franchisers paying rent and royalties. This model of owning real estate ensures
that the company has a steady and predictable flow of cash”.(Linkedin Varun Jain).
Sales from corporate-owned restaurants are falling year over year while sales from
franchised restaurants are rising, with the latter surpassing the former in 2018.
However, Starbucks offers consumers a “third place,” away from home where they
can enjoy a cup of coffee and socialize.; follows a "corporate owned" heavy model
since the corporation wishes to keep complete control over the distinctive "Starbucks
Experience" as well as the quality of the coffee, tea, and other items. Lastly, Nike
offers consumers top quality shoes, apparel, and accessories.