Journey of HUL-

Journey of HUL- One of the most successful company of India. In the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers". With it, began an era of marketing branded Fast Moving Consumer Goods (FMCG) 1895- Lifebuoy launched. 1918- Pears, Lux and Vim. 1937- Dalda brand came to the market 1956- Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company in 1931, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). These three companies merged to form HUL in November 1956. 1972- Unilever acquired Lipton 1984- Brooke Bond joined the Unilever fold 1986- It joined the Unilever fold through an international acquisition of Chesebrough Pond's USA 1993- Tata Oil Mills Company (TOMCO) merged with HUL. It acquired the Kissan business from the UB Group and the Dollops Icecream business from Cadbury India 1998- Lakme sold brands to HUL. 2000- In a historic step, the government decided to award 74 per cent equity in Modern Foods to HUL, thereby beginning the divestment of government equity in public sector undertakings (PSU) to private sector partners. HUL's entry into Bread is a strategic extension of the company's wheat business. In 2002, HUL acquired the government's remaining stake in Modern Foods. 2001- “Project Shakti”. It is a rural initiative that targets small villages populated by less than 5000 individuals. It is a unique win-win initiative that catalyses rural affluence even as it benefits business. Currently, there are over 45,000 Shakti entrepreneurs covering over 100,000 villages across 15 states and reaching to over 3 million homes 2002-HUL made its foray into Ayurvedic health & beauty centre category with the Ayush product range and Ayush Therapy Centres. 2004- ‘Pureit’ water purifier launched. 2007- Company name was formally changed to Hindustan Unilever Limited from Hindustan Lever Limited 2008 - HUL completed 75 years of corporate existence in India

Progeria

Progeria, is one of the most discussed disease these days due to release of “Paa”, where Amitabh Bacchan plays character of “AURO”- a 13 year old kid suffering from Progeria. The word "Progeria" comes from the Greek progeros meaning 'prematurely old'. The Greek word pro means 'before', while the word geras means 'old age'. Progeria was first described in an academic journal by Dr. Jonathan Hutchinson in 1886, and Dr. Hastings Gilford in 1897 - both in England. Therefore, it is also called HGPS (Hutchinson-Gilford Progeria Syndrome). Progeria is an extremely rare, fatal genetic condition. Progeria affects children and gives them an appearance of accelerated aging. Although they may come from varying ethnic backgrounds, children with Progeria have a surprisingly similar appearance. Progeria patients generally die between the ages of 8 and 21 - with the average age being 13. Scientists are particularly interested in progeria because it might reveal clues about the normal process of aging.

Two stories- FROM RAGS TO RICHES

Dhirubhai Ambani (1932-2002)-

The greatest creator of wealth in the century. Dhirubhai Ambani alias Dhirajlal Hirachand Ambani was born on December 28, 1932, at Chorwad, Gujarat, into a Modh family. His father was a school teacher. Dhirubhai Ambani started his entrepreneurial career by selling "bhajias" to pilgrims in Mount Girnar over the weekends. After doing his matriculation at the age of 16, Dhirubhai moved to Aden, Yemen. He worked there as a gas-station attendant, and as a clerk in an oil company. He returned to India in 1958 with Rs 50,000 and set up a textile trading company. Assisted by his two sons, Mukesh and Anil, Dhiru Bhai Ambani built India's largest private sector company, Reliance India Limited, from a scratch. Over time his business has diversified into a core specialisation in petrochemicals with additional interests in telecommunications, information technology, energy, power, retail, textiles, infrastructure services, capital markets, and logistics. In 1992, Reliance became the first Indian company to raise money in global markets, its high credit-taking in international markets limited only by India's sovereign rating. Reliance also became the first Indian company to feature in Forbes 500 list.

Karsanbhai Patel-

Karsanbhai Patel is the man behind the hugely successful brand, Nirma. His' is a legendary rags to riches journey during which he shattered established business theories and rewrote new ones. Karsanbhai Khodidas Patel (K.K. Patel) came from a humble farmer family from Mehsana, Gujarat. He worked as Lab Assistant in the Geology and Mining Department of the Government of Gujarat. In 1969, at the age of 25, Karsan Bhai Patel started a small-scale enterprise. He offered a quality detergent powder, using indigenous technology, at a third of the prevailing price, without compromising on the product. Karsanbhai named the detergent powder Nirma after daughter Nirupama. At that time domestic detergent market was limited only to premium segment and was dominated by MNCs. Karsanbhai Patel started door-to-door selling of Nirma and priced it at Rs. 3 per kg. The next available cheapest brand in the market at that time was Rs.13 per kg. Nirma was made of an innovative formulation, which global detergent giants were later on compelled to emulate, it was phosphate free and hence environment friendly, and the process of manufacturing was labour intensive, which offered large scale employment.

THE FORBES BILLIONAIRES OF 2009

1. William(Bill) Gates III (USA) – Microsoft ( Software). 2. Warren Buffet (USA) – Berkshire Hathaway (Investment Company). 3. Carlos Slim Helu (Mexico) – Telmex (Telecommunication). 4. Lawrence Ellison (USA) - Oracle (Software). 5. Ingvar Kampard (Sweden) – Ikea (Retailing). 6. Karl Albrecht (Germany) – Aldi Sud (Retailing). 7. Mukesh Ambani (India) - Reliance Industries Ltd (Petro Chemicals). 8. Lakshmi. N. Mittal (India) - Arcelor-Mittal Steel (Europe). 9. Amancio Ortega (Spain)- Inditex (Retail). 10. Theo Albrecht (Germany) – Aldi Nord (Retail).

Top 25 Richest Indians as per Forbes List 2009

• 1. Mukesh Ambani – Reliance Industries Ltd (Petro Chemicals)
• 2. Lakshmi Niwas Mittal- Arcelor Mittal (Steel)
• 3. Anil Ambani- Reliance ADAG Group (Energy,Comm., Infrastructure)
• 4. Azim Premji- Wipro ( Infotech, Electricals, BPO, FMCG)
• 5. Shashi & Ravi Ruia- Essar Group ( Telecom, Steel)
• 6. Kushal Pal Singh- DLF (Cement, Construction)
• 7. Savitri Jindal- Jindal Industries (Steel and Power)
• 8. Sunil Bharti Mittal- Bharti Group (Telecom- Airtel, Insurance)
• 9. Kumar Manglam Birla- Birla Group (Hindalco)
• 10. Gautam Adani- Adani Group (Energy and Infrastructure Business)
• 11. Anil Agarwal- Steralite Industries (Metals and Mining)
• 12. Adi Godrej- Godrej Industries
• 13. G.M. Rao- GMR Industries (Infrastructure)
• 14. Dilip Shanghvi- Sun Pharmaceuticals.
• 15. Shiv Nadar- HCL Technologies ( Computers)
• 16. Uday Kotak- Kotak Mahindra Bank
• 17. Malvinder & Shivinder Singh- Religare, Ranbaxy (Now Taken by Japan's Daiichi Sankyo for $2 billion)
• 18. Subhash Chandra- Essel Group (Zee Telefilms, DNA Newspaper)
• 19. Indu Jain- Bennett, Coleman & Co. (Times Group- The Times of India, Economic Times)
• 20. Kalanithi Maran- SUN Networks (Media)
• 21. Anand Burman- Dabur
• 22. Brijmohan Lall Munjal- Hero Group
• 23. Sudhir & Samir Mehta- Torrent Pharma
• 24. Cyrus Poonawalla- Orchid Chemicals (Pharma), Stud Farms, Hotels, Fashion
• 25. Ramesh Chandra- Unitech ( Property,Wireless Communication)

Brand Failures-1

Brand Failures in Indian Markets:- There are numerous brands and companies which have failed in Indian Markets. Mentioned below are a very few of them which may give you food for thought about why brands fail or are considered to be failure. Reasons can range from marketing failure, technology failure, failure to maintain ethical standards, inability to capitalise market share and so on. I would appreciate a debate on reasons through your comments. FMCG - Kellogg’s, Milk Maid, Diet Coke, Sunfill, Gold Spot. Aotomobiles (4 Wheelers) - Fiat Uno, Ambassador, Maruti Gypsy, Zen Aotomobiles (2 Wheelers) - Bajaj Chetak, LML Vespa, Rajdoot, Kinetic Honda Banks- Global Trust Bank, White Goods - Western TV, Onida Candy TV, IFB Washing Machine. Technology Products - iPhone, Windows Vista, Kodak, Polaroid, HMT Watches Airlines- Modi-Luft, Sahara. Chocolates - Amul, Temptations. Organizations - Arthur Andersen, Enron, Daewoo Motors, Electrolux, S.Kumars.

YAHOO! and Google

YAHOO!:- Yahoo! (spelled with an exclamation mark) is short for "Yet Another Hierarchical Officious Oracle". This odd and rather long name was coined in 1994 by two electrical engineering Ph.D candidates at Stanford University: David Filo and Jerry young. The Yahoo! domain was created on January 18, 1995. The term "hierarchical" described how the Yahoo! database was arranged in directory layers. The term "oracle" was intended to mean "source of truth and wisdom". And "officious" described the many office workers who would use the Yahoo! database while surfing from work. Google:- The name "Google" originated from a misspelling of the word “googol” which refers to the number represented by a 1 followed by one hundred zeros. Google was founded by Larry Page and Sergey Brin while they were students at Stanford University. .Com:- A ".com" web address does not mean "communication". And no, it does not mean "computer" either. Interestingly enough, .com describes that a web site has some kind of "commercial" intent.

Pesticide Issue of Coke and Pepsi

Advent of Pepsi and Return of Coke in India:- Coca-Cola was India's leading soft drink until 1977 when it left India after a new Janta party led government ordered The Coca-Cola Company to turn over its secret formula for Coke and dilute its stake in its Indian unit as required by the Foreign Exchange Regulation Act (FERA). In 1988, PepsiCo gained entry to India by creating a joint venture with the Punjab government-owned Punjab Agro Industrial Corporation(PAIC) and Voltas . This joint venture marketed and sold Lehar Pepsi until 1991 when the use of foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994. In 1993, The Coca-Cola Company returned in pursuance of India's Liberalisation policy. The Pesticide Issue of Pepsi and Coke in India:- In 2003, the Centre for Science and Environment (CSE), a non-governmental organisation in New Delhi, said aerated waters produced by soft drinks manufacturers in India, including multinational giants Pepsico and Coca-Cola, contained toxins including Lindane, DDT, Malathion and Chlorpyrifos- pesticides that can contribute to cancer and a breakdown of the immune system. Tested products included Coke, Pepsi, and several other soft drinks ( 7 UP, Mirinda, Fanta, Thums Up, Limca and Sprite), many produced by The Coca-Cola Company. CSE found that the Indian produced Pepsi's soft drink products had 36 times the level of pesticide residues permitted under European Union regulations; Coca Cola's 30 times. CSE said it had tested the same products in the US and found no such residues. Coca-Cola and PepsiCo angrily denied allegations that their products manufactured in India contained toxin levels far above the norms permitted in the developed world. In 2004, an Indian parliamentary committee backed up CSE's findings, and a government-appointed committee was tasked with developing the world's first pesticide standards for soft drinks. Coke and PepsiCo oppose the move, arguing that lab tests aren't reliable enough to detect minute traces of pesticides in complex drinks like soda. The Coca-Cola Company responded that its plants filter water to remove potential contaminants and that its products are tested for pesticides and agreed that it must meet minimum health standards before they are distributed. Coca-Cola had registered an 11 percent drop in sales after the pesticide allegations were made in 2003.Coke and Pepsi together hold 95% market share of soft-drink sales in India. In 2006, Kerala banned the sale and production of Coca-Cola, along with other soft drinks, due to concerns of high levels of pesticide residue. In 2006, the High Court in Kerala overturned the Kerala ban ruling that only the central government can ban food products.

Interesting Facts about Coke

INTERESTING FACTS ABOUT COCA-COLA:-

1.COCA-COLA’S INGREDIENTS When launched Coca-Cola's two key ingredients were cocaine (benzoylmethyl ecgonine) and caffeine. The cocaine was derived from the coca leaf and the caffeine from kola nut, leading to the name Coca-Cola (the "K" in Kola was replaced with a "C" for marketing purposes). 2.COCA-COLA’S FORMULAE: The exact formula of Coca-Cola's natural flavourings (but not its other ingredients which are listed on the side of the bottle or can) is a famous trade secret. The original copy of the formula is held in SunTrust Bank's main vault in Atlanta. A popular myth states that only two executives have access to the formula, with each executive having only half the formula.The truth is that while Coca-Cola does have a rule restricting access to only two executives, each knows the entire formula and others, in addition to the prescribed duo, have known the formulation process. 3.COCA-COLA’S MARKETING MODEL: The Coca-Cola Company only produces a syrup concentrate, which it sells to bottlers throughout the world, who hold Coca-Cola franchises for one or more geographical areas. The bottlers produce the final drink by mixing the syrup with filtered water and sweeteners, and then carbonate it before putting it in cans and bottles, which the bottlers then sell and distribute to retail stores, vending machines, restaurants and food service distributors. 4.COCA-COLA’S ORIGIN: The first Coca-Cola recipe was invented in a drugstore in Columbus, Georgia by John Pemberton, originally as a coca-wine called Pemberton's French Wine Coca in 1885. In 1892 Candler incorporated a second company, The Coca-Cola Company (the current corporation). Coca-Cola was sold in bottles for the first time on March 12, 1894.

5-C in Marketing

‘5 -C’ FOR OF MARKET SITUATION ANALYSIS AND STRATEGY DEVELOPMENT. 1.COMPANY:- Product Line, Image in market, Culture, Technology. 2.CUSTOMERS:- Market size and growth, Market segment, Benefits customers are seeking, Motivation to purchase, Where does the customer actually purchase, Consumer information sources, Frequency of purchase, Quality customers are seeking, Trends in Market , 3.COLLABORATORS:- Dealers/Distributors/Retailers, Suppliers, 4.COMPETITORS:- Strengths And Weakness, Market Share, 5.CLIMATE (ENVIRONMENT):- Economic, Cultural/Social, Political/Legal, Technological,

16 Ps in Marketing- Modern Concept

Traditional 4 P's of marketing:- 1.Product 2.Place 3.Price 4.Promotion. Further 3 P's were added to make a range of Seven Ps for service industries:- 5.Physical evidence 6.Process 7.People. Other P's- (Note- Readers lets debate them through Comment) 8.Packaging 9.Positioning of brand/product. 10.Prestige of brand/product. 11.Pace (Speed of launch of product/new brands/advertisement). 12.Profit earning ability of brand/product. 13.Professional approach. 14.Pleasure to work for salesmen. 15.Performance consistency of product. 16.Productivity of sales personnel.

In Search of Excellence by Tom Peters and Robert H. Waterman, Jr..

In Search of Excellence is an international bestselling book written by Tom Peters and Robert H. Waterman, Jr.. First published in 1982 it is one of the biggest selling and most widely read business books ever, selling 3 million copies in its first four years, and being the most widely held library book in the United States from 1989 to 2006 (WorldCat data). The book explores the art and science of management used by leading 1980s companies with records of long-term profitability and continuing innovation Peters and Waterman found eight common themes which they argued were responsible for the success of the chosen corporations. The book devotes one chapter to each theme. 1.A bias for action, active decision making - 'getting on with it'. 2.Close to the customer - learning from the people served by the business. 3.Autonomy and entrepreneurship - fostering innovation and nurturing 'champions'. 4.Productivity through people- treating rank and file employees as a source of quality. 5.Hands-on, value-driven - management philosophy that guides everyday practice - management showing its commitment. 6.Stick to the knitting - stay with the business that you know. 7.Simple form, lean staff - some of the best companies have minimal HQ staff. 8.Simultaneous loose-tight properties - autonomy in shop-floor activities plus centralized values

Thanda Matlab Coke

OF COURSE- THANDA MATLAB COKE

Scratch your Grey Matter

Students of management can creatively think of a product that suits this advertisement. Please post it on comments. Lets have out of the box thinking.

Logo-Nestle

Evolution of Logos of Nestle:

Logos

Logos of Pepsi from 1998 to 1991.

"Asli Swaad Zindgi ka"

Cadbury has changed its positioning in recent years with " Kuch khaas hai hum sabhi mai" and "Kuch mitha ho jaye". If you have forgotten this advertisement of " Asli Swaad Zindgi ka", watch it, this advertisement still remains a everlasting memory. (Please note that it will take appx. 4 minutes for video to download)

Raymonds :The Complete Man

Raymonds : The Complete Man,is one of the most successful campaign in history of advertising. This is my favourite.

Banned Advertisement of Horlicks on British television

ERRORS IN INTERNATIONAL MAKTETING. An advert claiming that Horlicks makes children "taller, stronger and sharper" has been banned after it mistakenly was screened on British television.It meant to air in Bangladesh, but appeared in Britain on NTV as part of a rebroadcast deal. The ASA said they were misleading and broke the UK's strict industry code. GlaxoSmithKline, maker of Horlicks, said the adverts were never meant to be shown in the UK. PLEASE NOTE THAT THE VIDEO WILL TAKE SOME TIME TO DOWNLOAD.

Amazing Advertisement

Amazing Advertisement

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Analyse the advertisement and comment. Advertisement of Karate School of martial Arts

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Analyse this and comment:

INTERNATIONAL BUSINESS: AN OVERVIEW

INTERNATIONAL BUSINESS ENVIRONMENT Notes to students of MBA 1st Sem. Prof. Akhilesh Mittal, Peoples Institute of Management and Research, Bhopal Mob: 09893448588 INTERNATIONAL BUSINESS: AN OVERVIEW Majority of large enterprises as well as certain medium and small enterprises operate internationally, thus an awareness of the major issues in international business is a valuable asset for any manager in a company that deals with suppliers, customers, contractors, licensees, etc., in other countries. The study of international business helps an individual to supplement the knowledge of general business functions (accounting and finance, personnel, marketing, etc.) through examining issues, practices, problems and solutions relating to these functions in foreign states. Also, it develops a person’s sensitivity to foreign cultures, values and social norms, thus improves his or her overall managerial efficiency. Study of international business helps a manager to operate in multifaceted, multicultural environments.

CONCEPT OF INTERNATIONAL BUSINESS: International business involves business and commercial activities that cross national frontiers. It is concerned with the international movement of goods, capital, services, employees and technology. International business also includes Importing and exporting,cross-border transactions in intellectual property (patents, trademarks, know-how, copyright materials, etc.) via licensing and franchising, investments in physical and financial assets in foreign countries, contract manufacturing or assembly of goods abroad for local sale and export to other nations, buying and selling in foreign countries, and establishment of warehousing and distribution system in foreign country. International business not only involves two or more companies, regions or states but also stringent rules and regulations and other limitations in which the business operates within more than two nations.Limiting itself to national boundaries may place constraints on growth and expansion of an organisation. These constraints may evolve due to many reasons. One of the most important consideration evolves around limited market available to the organisation. The organisation has to look beyond the borders for expansion opportunities. Expansion beyond borders is not an easy option. There are various constraints and threats in going international. Various social, political, economic, and legal constraints are present. Situations however differ from country to country. For instance, a firm in USA or Europe, would like to go international can be for achieving economics of scale. Taking another example of a firm in Japan, internationalisation may mean extending reach of their product or services where they are not available, or if available, they are not of required quality. For Indian firms the motive may be different. In India and other third world countries, the firm may be given incentives for exports.International operations in a business enterprise are undertaken due to varied reasons like increasing sales, resources mobilization from foreign countries, optimal utilization of own resources, diversify their activities and so on. Specific reasons for doing business abroad include- the saturation of domestic markets (the supply in domestic market exceeds demand); the need to procure raw materials, products or technologies not available in the home nation; desires to expand the volume of a firm’s operations in order to obtain economies of scale; or the need to find an outlet for surplus production. In domestic marketing as well as in international marketing, success depends upon satisfying the needs of the customers. This involves finding out what the buyers want and meeting their needs accordingly. It is necessary to build goodwill both in the domestic market as well as in the international market. If a firm has been able to develop goodwill of the consumers, its task of marketing will be much simpler. Research and development for product improvement and adaptation is necessary both for international marketing and domestic marketing. International marketing involves the exchange process. The countries that provide goods abroad also earn exchange whether in cash or on credit basis depending upon the terms. Research work and surveys are an integral part of international business. A company before entering into international business has to conduct research in many important aspects like -what are the tastes and preferences of the people, -what should be the right market, -what is the consumer behaviour, -how to segment the market, -how to fix the target market etc. For all this, research work and survey are inevitable. Companies in international business have to plan comprehensively so that the entire activity is based on a well formed programme.

INTERNATIONALIZATION OF INDIAN FIRMS

Internationalization of Indian firms did not take place from 1950’s to 1970’s. There were many reasons for it, few of them are :-

1. After independence industry and business were operated in a highly protected environment, Indian firms were not concerned with size and expansion as the protected environment made such considerations redundant.

2. The market in practically every industry was not realised and the firms perceived adequate opportunity within the country.

3. Indian firms did not posses sufficient resources, particularly financial resources to venture outside. They did not posses adequate technology to produce quality products of international standard.

4. Indian entrepreneurs did not have vision to perceive benefits of business beyond borders.

5. Management practices adopted by Indian firms were also not of highest standards.

6. The government policies did not favor and facilitate internationalization.

In 1980’s several internal and external factors in combination caused motivation to Indian firms to go international and adopt international strategies.

Some of them are mentioned below:

1. Forces of globalization forced the government policies to change. Therefore, there was increasing awareness and incentives for an organization to adopt international strategies.

2. The trade policies of Indian government forced Indian firms to earn foreign exchange. Earning foreign exchange was compulsory for importing raw materials, spare parts and components by Indian industry.

3. The domestic consumption of goods increased. This made the Indian firms competitive. With increasing number of firms competing in domestic markets, the Indian industry expanded to International market for selling their goods and utilising the surplus production.

4. Unleashing of entrepreneurial sprit among the Indian industrialists made them look beyond national borders. A new generation of entrepreneur emerged between 1980’s 1990’s. The Indian organizations transformed themselves into professionally managed organizations giving impetus to competitiveness in terms of production quality and other factors.

5. The success of service sector like information technology industry in 1990’s and BPO business in 2000’s provided motivation and confidence to Indian manufacturing industry. The growth of IT companies like Infosys, Satyam and Wipro set the momentum for Indian firms to venture abroad for business.

SCOPE OF INTERNATIONAL BUSINESS:

The scope of International Business essentially includes exporting of goods and services in foreign markets. The exporter performs various activities other than exporting the good services. These activities are:-

Establishing a branch: - Establishing a branch in foreign market for processing, packaging or assembling the goods according to the needs of the markets.

Technical and Managerial Know-how: The scope of International Business also includes the technical and managerial know-how provided by the exporting company to the importing company. The technicians and managerial personnel of the exporting companies guide the technicians and managers of the importing company.

Joint Ventures & Collaborations: International Business includes establishing joint ventures and collaborations in foreign countries with some foreign firms for manufacturing and for marketing the product. The company works in collaborations with the foreign firm in order to exploit the foreign markets.

Licensing Arrangements: The Company establishes licensing arrangements with the foreign firm whereby foreign enterprises are granted the right to use the exporting company’s know-how, like patents, processes or trademarks according to the terms of agreement with or without financial investment.

Consultancy Services: The exporting co. Offers consultancy services by undertaking turnkey projects in foreign countries. For this purpose, the exporting company sends its consultants and experts in foreign countries who guide and direct the manufacturing activities on the spot.

SIGNIFICANCE AND IMPORTANCE OF INTERNATIONAL BUSINESS: -

International Business has been the reason for growth and prosperity of most developed countries. International Business can be an excellent source of revenues especially for developing countries as it has been for developed countries for long. More and more countries are switching to international trade and commerce for rapid progress. The more they trade with other countries the more they become competent in the world market. International Business leads to the overall growth of a country in monetary or other terms. The significance of international business for many nations and organizations can be highlighted by following:

Risk reduction in business: Business in international market reduces risk in business as the commercial risk can be spread across several countries. When sales in one nation decreases, its impact on overall performance of organisation is offset by increase in sales of its products in other nation.

Enhancement of employment opportunities: As the business of a nation crosses national boundaries, the business activities expand. More and more people get opportunities for jobs in related areas like production of goods, financial operations, public relations ,advertising, human resource development, export import documentation etc.

Increased production and productivity : International Business is considered to increase productivity. It is for large-scale research and development and highly efficient technology which in turn is responsible for greater productivity in the country and to meet the world demand, the firms had to go for increased production.

Optimum Utilization of Resources : International business enhances the need for more production thus enabling the countries to have an optimum utilization of their resources.

Growth : Sometimes the countries do not possess the technology to exploit the resources in a proper way so they have to import them. Now they can be in a position to export, what they were importing so far due to the lack of technology.

Development of international relations: The representatives of one country go to another leading country, for the promotion of mutual relationships. Even if the two countries are not on the terms politically, the inevitable trade between them plays a good role in maintaining peace to a great extent.

Development of technology and facing competition: When the countries are involved in international business they are forced to develop competing technology that can make their products acceptable globally.

Increased exposure to business activities: The firm’s management is exposed to fresh ideas and different approaches to solving problems. Individual executives develop their general management skills and personal effectiveness; become innovative and adopt broader horizons. All these factors can give a firm a competitive edge in its home country.

Domestic competition: There might be intense competition in the home market but little in certain foreign countries.

Overall strategies and plans: A company’s overall strategies and plans can be anchored against a wider range of (international) opportunities. Sudden collapses in market demand in some countries may be offset by expansions elsewhere.

Due to improved infrastructure facilities in world: Cross – border trade is today much easier to organise than in the past. International telephone and fax facilities are much better than before and facilities for international business travel are more extensive. Hence it is simpler to visit potential foreign customers, partners and / or suppliers, to select the best locations for operations, and therefore to control international activities. International Business enables different countries to come close to one another. This way people get exposure and they come to know about markets important facts about which they had been ignorant so far. Exposure has a great role to play in uplifting the standards of living.

Expansion of Markets & Business : In this era of competition, firms have to widen its business and make a move to expand its markets where it can have wider prospects and sound business opportunities.

Realisation & Exploitation of Resources: Working in an international environment means proper utillisation of resources.Boost to Small Industries: The development of international business has an indirect effect whose interests have been greatly overlooked for long.

Inflow of Foreign Exchange : It goes for its productive activity on the strength of sufficient foreign exchange possessed by it. The imports of the country basically depend upon foreign exchange.

Facilitating Exports : Developing countries give special facilities to those exporters who bring in a considerable amount of contribution in their export earnings. For eg : - they can be allowed to impart certain essential products on the basis of their exports.

Updating Products : By plugging into international business, countries get an excellent chance to keep their products up to date through increased creativity and innovation because customers in different countries have different expectations from the same product. Updating and modifications are regular features in exports.

Incentives on Exports: Certain countries provide special incentives to their exporters so that they can be encouraged for greater contribution. The incentives can be in the form of lower interest rates, duty free imports of items required to manufacture goods exemption from tax etc.

Growth of Overseas Markets: Developing countries, in spite of economic and marketing problems, are excellent markets. Countries of Latin America & Asia / Pacific are experiencing the strongest economic growth. Survival : Many countries like Japan, Singapore, Switzerland are small in terms of market size, resources and opportunities, the companies of these countries must trade with others to survive.

Sales & Profit: Foreign markets constitute a large share of the total business of many firms that have wisely cultivated markets abroad. Many large U.S. companies have done very well because of their overseas customers. For eg :- IBM,Coca-Cola, Nestle, Philips have major portions of sales and profit from international operations.

CHALLENGES IN INTERNATIONAL BUSINESS: All the basic tools and concepts of domestic business management are relevant to international business. However, certain challenges arise in international business not normally experienced when trading or manufacturing at home. Few of them are mentioned below:

Ø International business involves dealing in foreign languages and under foreign laws, foreign customers and foreign regulations. An international marketer often encounters problems arising out of the difference in the languages. Even when the same language is used in different countries, the same words or terms may have different meanings or connotations. The language problem, however, is not something peculiar to international marketing. The multiplicity of languages in India is an example.

Ø International business may involve extensive market research. Information on foreign countries needed by a particular firm may be difficult to obtain.Ø International business involves dealing in foreign currency. Exchange rate variations can be very wide and create many problems for any firm in international business.

Ø Numerous cultural differences may have to be taken into account when trading in other nations. Cultural differences pose one of the most difficult problems in international marketing.

Ø Risk levels might be higher in foreign markets. The risks of international business include political risks (of foreign governments, of war or revolution interfering with trade, or of the imposition of restrictions on importers to pay for imports), commercial risks (market failure, products or advertisements not appealing to foreign customers, etc.) and financial risks (of adverse movements in exchange rates, tax changes, high rates of inflation reducing the real value of a company’s foreign working capital).

Ø International managers require a broader range of management skills than the managers who are concerned only with domestic problems. Large amounts of important work might have to be left to intermediaries, consultants and advisers

Ø There is difference in political, legal and economic systems in each country. The firm in international business has to adapt to them.Ø Trade restrictions, particularly import controls, are very major problem, which an international marketer faces.

Ø The availability and nature of marketing facilities available in different countries may vary widely. For example, an advertising medium very effective in one market may not be available, or may be underdeveloped, in another market

Ø It is more difficult to observe and monitor trends and activities (including competitors’ activities) in foreign countries.Ø Differences in the Currency Unit: The currency unit varies from nation to nation. This may sometimes cause problems of currency convertibility, besides the problems of exchange rate fluctuations. The monetary system and regulations may also differ.

Ø Differences in the Marketing Infrastructure: The availability and nature of marketing facilities available in different countries may vary widely. For example, an advertising medium very effective in one market may not be available, or may be underdeveloped, in another market.

Ø Trade Restrictions: Trade restrictions, particularly import controls, is a very important problem, which an international marketer faces.

Ø High transportant costs due to larger distance: When the markets are far removed by distance, the transport cost becomes high and the time required for affecting the delivery tends to become longer. Distance tends to increase certain other costs, also.

DIFFERENCE BETWEEN INTERNATIONAL MARKETING AND DOMESTIC MARKETING:

There are certain aspects of international marketing which are different from domestic marketing:

1. Dealing with different Political Entities: International business has to deal with goods and services moving across national boundaries. As a result, they may have to face a number of restrictions. These restriction can be in form of Tariffs or Customs Duties, Quantitative Restrictions, Exchange Controls, Local Taxes etc.

(i) Tariffs or Customs Duties : These only make the goods expensive and are not intended to ban entry of foreign goods completely. In the postwar period, there has been a significant reduction in tariffs both globally, due to the efforts of General Agreement on Tariff and Trade (GATT) and on a regional basis, due to the emergence of regional economic groupings. (ii) Quantitative Restrictions : These are mainly intended to restrict trade in the specific commodities subject to restrictions, the major objective being protection of domestic industries.(iii) Exchange Controls : In some cases, though the entry of goods is not banned, importers may not be allowed the necessary foreign exchange for payment of the goods due to the existence of exchange controls. But in many cases, quantitative controls have been coupled with exchanged control and the grant of an import license automatically involves the grant of foreign exchanges.(iv) Local Taxes: One of the objectives is to make the foreign goods comparatively costlier than domestic goods.

2. Different Legal System: Each country has its own legal system and very often the legal systems operated by different countries differ from each other.

3. Different Monetary Systems: Each country has its own monetary system and the exchange value of each country’s currency is different from that of the other. For some time under the rules framed by the International Monetary Fund, exchange rates were more or less fixed. However, since 1973 the exchange rates are fluctuating and are being determined by forces of supply and demand. Some countries also operate what are known as multiple exchange rates, each exchange rate applying to a certain set of transactions.

4. Lower Mobility of Factor of Production: Factors of production are less mobile as between nations than in the country itself. However, due to the advent of air transport, mobility of labor is now increasing. Due to the development of international banking, capital is also becoming more mobile. However, in spite of these, the fact remains that mobility of labor and capital is much less between different countries than it is within the country itself. 5.Differences in Market Characteristics: Each country has a separate market having its own demand pattern, channels of distribution, methods of promotion, etc. The differences are accentuated due to the existence of government controls and regulations. However, that is a difference of degree only. Even in one single country there may be differences in demand characteristics in different parts of the county. This is especially so for bigger countries like India and the USA where the demand pattern differ from State to State 6. Differences in Procedures and Documentation: Each country has its own procedures and documentary requirements and traders have to comply with these regulations if they want to export or import goods from foreign countries. Prof. Akhilesh Mittal, Peoples Institute of Management and Research, Bhopal. Mobile: 09893448588