International Business Management

International Business Management Order Description Pole position “The company was formed in 2009 and we began exporting in 2010. We knew at that time that there was a huge market for crisps around the world and a lot of other crisp brands were already exporting. Rebecca Russell, global brand manager of Mackie's Crisps, shares her exporting journey. “We were also aware that there’s a good market for Scottish food and drink around the world and it’s perceived as being high quality and premium. So we saw an opportunity to become the first Scottish manufacturer of crisps to begin exporting. “We currently export to 17 countries and export makes up about 15% of our business. It’s not concentrated on one specific area – we export to Europe, North America, Asia and Australasia. “We began by working with some of the customers we already had through Mackie’s ice-cream, our sister brand and cross-selling crisps to them. And when it came to targeting new business we worked with Scottish Development International to identify opportunities and target new markets. China is a big opportunity “At the moment, our biggest export market is China. We began trading there in 2014 and business has grown really rapidly since then. “For us, China is just a really big opportunity in terms of its sheer population size, but also by the fact that there is high demand there for imported premium, high quality food and drink products. Mackie's Crisps are produced using a unique gentle cooking method which protects the flavour and quality to ensure a great crunch, fresh potato taste and dry texture. “China is very different to any other market, especially to the UK. It has been challenging. We’ve had to learn a lot. For example, just getting product in through customs can be a challenge and we had to send in test orders to begin with before we could properly trade there. “The other interesting thing about the Chinese market is the ecommerce industry there. Consumers buy a lot more things online than we do here. In the UK we tend to do trade more through supermarkets, whereas in China we work with a lot of the online channels, so that was very new for us as well. Adapting to different markets “There are some countries where we have had to make adaptations to our product ? either to meet specific needs of that market or regulations. For example, we had to change our Aberdeen Angus seasoning for the US and Canadian markets to a vegetarian version and that’s because of import legislation there. "We’ve also had to make changes to our packaging for some markets. Sometimes we can just put a label on the back of packs with translation and that works just fine. But there are some markets where we’ve completely revamped our packaging. “For example, in the Canadian market we’ve got dedicated Canadian packaging which is bi-lingual with French and English text. And we’ve also put a Scottish Saltire on the front on our Canadian packs due to the high affinity that Canadian consumers have with Scotland. “And we’ve just launched our Chinese packaging. Selecting the best route to market I would 100% recommend Scottish Enterprise and Scottish Development International for any business that’s looking to export. I think we’re really lucky here in Scotland to have that resource. “Route to market varies according to specific markets. Generally we work with distributors and have one distributor for each market we work in. However, there are a few countries where we work via agents. It really just depends on the specific market and what works best for that market. “I think it’s important to understand the pros and cons of all the different routes to market, especially in terms of the specific country you’re working in. Different routes work better for different countries. “I think even more important than the route to market itself though, is finding the right partner to work with. We tend to see our agents or distributors as extensions of our sales and marketing team and we try to work collaboratively with them to grow our export markets. Which markets? “When we first began exporting it would’ve been good to understand the importance of prioritising markets. We didn’t have any real clear focus on a particular market and it was a bit of a scattergun approach, going after any new market that we could. “For us, that just wasn’t sustainable so now we have a much more targeted approach. “The biggest challenge for us is that the countries we work in can be so different. When you’ve got a small team and limited resources, it can be very difficult to be everything to every market. The way we’ve overcome this challenge is by prioritising those markets where we feel we got the potential for the greatest success and we focus our efforts and resources on those specific markets. That’s how you get the best returns for the effort you put in. “So it’s all about effort for reward. Far-reaching benefits Everyone should view export as a learning journey. “From a business perspective, the benefits come in all shapes and forms. Firstly, there’s the additional revenue streams it generates, but more importantly is the brand equity we build by raising our profile on a global scale. Secondly, we achieve operational efficiencies and cost advantages through securing economies of scale and spreading business risk. “From a personal point of view, it’s really exciting for me to see our products appearing in supermarkets, hotels and cafes all around the world. Also I get to meet lots of people from different backgrounds and learn about different countries and cultures – so it’s really interesting. It's a 'learning journey' “Everyone should view export as a learning journey. It has been for us. And for me personally, I didn’t have a lot of experience of exporting before I was brought into this job, but I’ve learned a lot along the way. Assignments Tasks You are employed as an International Management Consultant by Mackie's Crisps and have been asked by the Chief Executive Officer to prepare a report that addresses the following tasks: 1. Using an appropriate analytical framework, analyse and apply the critical macroenvironmental factors that can influence Mackie’s Crisps international business activities and their likely implications on the company’s operations. (30 Marks) 2. In entering and managing an emerging market of your choice, discuss the four IHRM approaches Mackie’s Crisp can adopt and recommend (with justification) the most appropriate approach to adopt within your chosen market. (30 Marks) 3. Discuss how Mackie’s Crisps might adjust its management style and approach to the typologies of national culture within your chosen country. (30 Marks) Presentation/ Grammar and spelling (10 Marks) Assessments Criteria You are expected to read extensively for this assignment. Your answers must be supported with relevant theories, academic concepts and practical examples. There is no correct number of academic references to be utilised as you are expected to draw on as many references as required to provide a high quality answer. However, a minimum of 12 academic sources are expected, and a majority of these should be current, internationally peer reviewed journal articles or accredited textbook references. Sources such as Wikipedia and the like are not accepted. You must be mindful of how marks are allocated based on your ability to identify, analyze and apply the key concepts.