Company Biography
In January of 2002, John Ferrer and his wife Deborah started their own corporation, a large custom furniture
manufacturer located in Boston, MA. Their initial accounts were in the Northeastern region of the United States,
and they annually observed a constant profit increase. By March of 2006, they were able to grow the company
enough to go from five distribution and manufacturing plants to 10 to allow shipping to 48 states. Although they
have two retail stores, one located in Phoenix and one in Boston, their primary source of revenue is online catalog
sales. They have 10 manufacturing plants and distribution centers throughout the country.
John and Deborah’s corporation is known throughout the industry for its exceptional customer service and
superior quality. The contemporary designs lend themselves to a younger market, and the customer base is
predominantly upper-middle class because it is one of the highest priced furniture companies in the market. Part
of the appeal of John and Deborah’s brand is their consistent involvement with the local communities to create
green gardens. They have also been a major contributor to organizations that build houses for people in need.
One of their primary strengths is their vertical integration. They have a team of in-house designers saving the
company design costs and allowing the flexibility to rapidly change designs as the market changes. Their products
have been featured on several prominent home design and gardening shows and have been endorsed by several
well-known designers.
Because of the recent housing market sales decline (8% from 2005–2006), home renovations have slowed
significantly. This has impacted the amount of furniture and fixture sales and continues to impact revenue.
Furniture sales in the United States have decreased significantly, and John and Deborah have recently been
discussing the possibility of global expansion.
Another potential threat to their company is that many higher-end brands have been marketing aggressively and
creating lines for popular retail stores. These allow the lower-income consumers to have access to high-end brands
at a much lower price point. So far, these lines have been incredibly successful and have significantly increased
profits for competitors. Many of these competitors have also had great success in the global marketplace with
these lower cost replicas.
John and Deborah know that it is time to seriously consider expanding their business. They want to be able to
make it through the economic crisis and rely on other ways to increase sales and business. They are open to
looking into the global market, but they want to be sure that it is the right move for the business. They have
requested an advisory board meeting next month in which you will present the global marketing strategy. As the
market strategist, you will play a key role in helping the board decide if this is the right move for the company.
The Problem
You are sitting in Deborah Ferrer’s office. After the customary small talk, Deborah sits forward and states, “I am
very impressed with the work that you have done as the strategic marketing manager. Since John and I started this
company in Boston, we have seen continuous growth, but nothing like what we have seen since you started.
However, the housing market is really starting to impact our profits. This last quarter’s numbers were not looking
good.”
You reply, “The crisis has really hit us hard. We have some stiff competition, too, with the other brands creating
retail knock-offs.”
She counters, “We’ve had great success with your strategies in the domestic markets, but we do need to think of a
new approach and strategy. I have complete faith in your abilities to take this company exactly where it needs to
go. I must say that we are really counting on you, and I know that you will follow through.”
“I will make sure that we do well. Do you have any new projects for me?” you ask.
Deborah smiles and says, “You know me well. I do have a new project for you. I sent you an e-mail just before our
meeting. I’m curious if expanding in a global market would be a good move for our company. I would like you to
look into this for me.”
“Our team is definitely up for the challenge,” you say with enthusiasm.
Deborah shakes hands with you warmly, and you make your way out of the meeting. As you drive out of the
parking garage, you think about your success with the company. You cannot wait to get started.
CULTURAL ISSUES AFFECTING INTERNATIONAL PROJECTS
Sometimes success in various business markets is attained through expanding the
company’s brands beyond the home country. This is unlike the prior situation whereby the
company’s success was through the amount of revenue earned in the domestic clam. This
expansion beyond the home country gives the term global marketing. Many businesses that are
lucrative in global marketing have been affected by cultural factors. The cultural issues can
determine whether the company’s operations in the global sector works or fails. My strategy as
the marketing manager will consider this cultural factor.
Language barriers; If you have ever spoken to someone who is using unfamiliar
language, then you should have noticed that it was so difficult to communicate. Here one needs
either an interpreter or learning of the new language. For global marketing to be a success,
unclutter communication is very vital. The first step is to wipe off the communication barriers,
and one can use an expatriate. This is the person living in a foreign country temporarily.
Politics; the political climate in the country to do business with, should be taken into
considerations. Political culture may be adversely faced with rumbustious protests and people
violently opposing.
Technology; Evolution of technology is not similar in different countries. Technology is
a cultural factor that is impacting communication between the international businesses and
domestic ones, thus affecting the global markets (Keyes, 2016). Like where there is a need to use
technology, let’s say video conferencing. Due to insufficient resources in developing countries
technology may not be very advanced.
CULTURAL ISSUES AFFECTING INTERNATIONAL PROJECTS
Religion; In religion, I will look at the religious holidays of the employees, as this may
conflict with the working days of the firm. Here one can consult someone who is proficient with
the local practices before authorizing the work requirements.
Labor demographics; In a case of, a higher rate of retiring than hiring, labor statistics is
vital. Here one need younger employees with entirely different skills.
Collectivistic society; A situation in Mexico, where people are less competitive and are
also very relaxed with time-preference. This people prioritize their focus to friends, their family
or the community at large.
The individualistic cultures; These are people with signs of independence, exemption,
and self-reliance. The common belief here is that one can achieve his/her dreams and overall
goals without any help.
My strategy to help in the continuous growth of John and Deborah’s firm can be broken
down to:
Determining the best and appropriate language you can use.
Changing the adaptation or adjusting of the firm’s product.
Then one can find the right market to target apart from the domestic market.
I will put more emphasis on a cultural issue like the language barrier that will affect
directly impact the strategy of determining the type of language to use. In a given case of
language mix-up, where the communicated message was “I love you,” but the other party got it
wrong like “kill mommy.” This will negatively affect my current scheme.
CULTURAL ISSUES AFFECTING INTERNATIONAL PROJECTS
The cultural issues will negatively affect my current approach, in that, the target group
needs and preferences may be different from the ones in my approach. (Solomon, 2014) When I
think of quality, I may be talking of customized goods and improved customer focus. But the
culture of the new market may be individualistic culture whereby my help may not be
appreciated much.
When I talk about a strategy like online stores and marketing, then this will be affected
by technological culture. The target market away from the home market, maybe in a country
whose development standards do not match the domestic market sophisticated technology.
Innovation needed in my strategy to come up with cost reductions that are effective may
be affected by collectivistic culture, where people are not competitive at all.
In a nutshell, the cultural issues highlighted above will change my approach. This is because if at
one point I will need the customer knowledge, then I will have to deal with a combination of
them. Example; I will need to deal with, religion, labor demographics and the language of the
customer.
CULTURAL ISSUES AFFECTING INTERNATIONAL PROJECTS
References
Deshpande, R., & Webster Jr, F. E. (1989). Organizational culture and marketing: defining the
research agenda. The journal of marketing, 3-15.
Keyes, J. (2016). Implementing the It balanced scorecard: Aligning It with corporate strategy.
Auerbach publications.
Solomon, M. R., Dahl, D. W., White, K., Zaichkowsky, J. L., & Polegato, R. (2014). Consumer
behavior: Buying, having and being (Vol. 10). London: Pearson.
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