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Pierre Lang Expands Into Eastern Europe Discussion

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Module 4 Pierre Lang Expands into Eastern Europe Pgs 581-582 Sara Hartman
Module 4
Pierre Lang Expands
Into Eastern Europe
Pgs. 581-582
By: Sara Hartman

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Module 4 Pierre Lang Expands into Eastern Europe Pgs 581-582 Sara Hartman
Pierre Lang is a jewelry designer in Western Europe. He originally designed his jewelry
and sold it through its 5,500 sales representatives. Lang wanted to expand his operations into
Eastern Europe, but to do this he knew he needed to change the way he did business, to
accommodate all the different obstacles he would face doing business in multiple countries. He
put a lot of thought and study into ways to better control his company’s finances and ways to
improve controls over its ordering process. He finally decided on a systems called mySAP.
Today he uses a Country specific version of mySAP, which handles all the invoicing and tax
language automatically. With these changes Lang has expanded his business worldwide.
1. Why was it necessary for Pierre Lang to look at fundamental changes in its business model and
information systems? In order for Pierre Lang’s company to grow, he had to change the way he
did business. If he would have stayed with just sales representatives, every time they leave the
company, that representative would take their clientele with them, ultimately losing Lang’s
customer base. By only using sales representative he boxes in his growth limits. By having an
online base, he can reach the world, and have better control over his customers.
2. Relate the facts of this case to the CAGE framework discussed in Section 13.8. CAGE stands
for cultural, administration, geography, and economics. CAGE is used to identify areas
that have natural or manmade barriers that would hinder global EC. Because Lang does
E-business all over the world, he has to navigate different cultures and laws. Lang has to
follow each countries laws to the T. If he does not follow each countries laws he can
fined, or even banned from doing business in those countries. That is why Lang invested
in the country specific mySAP program, it handles all the taxes and legal issues per each
different country for him.

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Module 4 Pierre Lang Expands into Eastern Europe Pgs 581-582 Module 4 Pierre Lang Expands Into Eastern Europe Pgs. 581-582 By: Sara Hartman Sara Hartman Module 4 Pierre Lang Expands into Eastern Europe Pgs 581-582 Sara Hartman Pierre Lang is a jewelry designer in Western Europe. He originally designed his jewelry and sold it through its 5,500 sales representatives. Lang wanted to expand his operations into Eastern Europe, but to do this he knew he needed to change the way he did business, to accommodate all the different obstacles he would face doing business in multiple countries. He put a lot of thought and study into ways to better control his company’s finances and ways to improve controls over its ordering process. He finally decided on a systems called mySAP. Today he uses a Country specific version of mySAP, which handles all the invoicing and tax language automatically. With these changes Lang has expanded his business worldwide. 1. Why was it necessary for Pierre Lang to look at fundamental changes in its business model and information systems? In order for Pierre Lang’s company to grow, he had to change the way he did business. If he would have stayed with jus ...
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