20523
http://www.usaid.gov
Customs and Border Protection 1300 Pennsylvania Ave. NW Room 6.3D
Washington, DC 20229 www.cbp.gov
416 Part 4 STRATEGY
Department of Agriculture
12th Street and Jefferson Drive SW Washington, DC 20250
http://www.usda.gov Department of Commerce
Herbert C. Hoover Building
14th Street and Constitution Avenue NW Washington, DC 20230
http://www.commerce.gov
Department of Homeland Security http://www.whitehouse.gov/homeland Department of State
2201 C Street NW Washington, DC 20520 http://www.state.gov
Department of the Treasury
15th Street and Pennsylvania Avenue NW Washington, DC 20220
http://www.ustreas.gov Federal Trade Commission
6th Street and Pennsylvania Avenue NW Washington, DC 20580
http://www.ftc.gov
International Trade Commission 500 E Street NW
Washington, DC 20436 http://www.usitc.gov
Small Business Administration 409 Third Street SW
Washington, DC 20416 http://www.sbaonline.sba.gov Trade Information Center
International Trade Administration U.S. Department of Commerce Washington, D.C. 20230 www.export.gov/exportbasics
U.S. Trade and Development Agency 1621 North Kent Street
Rosslyn, VA 22209 http://www.tda.gov
World Trade Centers Association 60 East 42nd Street, Suite 1901 New York, NY 10169
world.wtca.org
Council of Economic Advisers—http://www.
whitehouse.gov/cea
Department of Defense—http://www.dod.gov Department of Energy—http://www.osti.gov Department of Interior—http://www.doi.gov Department of Labor—http://www.dol.gov Department of Transportation—
http://www.dot.gov
Environmental Protection Agency—
http://www.epa.gov
NationalTradeDataBank—http://www.stat-usa.gov National Economic Council—http://www.white
house.gov/nec
Office of the U.S. Trade Representative—http://
www.ustr.gov
Office of Management and Budget—http://www .whitehouse.gov/omb
Overseas Private Investment Corporation—
http://www.opic.gov
SELECTED ORGANIZATIONS American Bankers Association
1120 Connecticut Avenue NW Washington, DC 20036 http://www.aba.com American Bar Association
750 N. Lake Shore Drive Chicago, IL 60611 and
1800 M Street NW Washington, DC 20036
http://www.abanet.org/intlaw/home.html American Management Association
440 First Street NW Washington, DC 20001 http://www.amanet.org
American Marketing Association 311 S. Wacker Drive, Suite 5800 Chicago, IL 60606
http://www.marketingpower.com American Petroleum Institute
1220 L Street NW Washington, DC 20005 http://www.api.org
Asia-Pacific Economic Cooperation Secretariat 438 Alexandra Road
#41-00, Alexandra Road Singapore 119958 http://www.apecsec.org.sg
The International Business Imperative Appendix 417
Asian Development Bank 2330 Roxas Boulevard Pasay City, Philippines http://www.adb.org
Association of Southeast Asian Nations (ASEAN)
Publication Office
c/o The ASEAN Secretariat 70A, Jalan Sisingamangaraja Jakarta 11210
Indonesia
www.aseansec.org Canadian Market Data
http://www.strategis.ic.gc.ca
Chamber of Commerce of the United States 1615 H Street NW
Washington, DC 20062 http://www.uschamber.org
Commission of the European Communities to the United States
2100 M Street NW Suite 707
Washington, DC 20037 http://www.eurunion.org Conference Board
845 Third Avenue New York, NY 10022 and
1755 Massachusetts Avenue NW Suite 312
Washington, DC 20036
http://www.conference-board.org Deutsche Bundesbank
Wilhelm-Epstein-Str. 14 P.O.B. 10 06 02
D-60006 Frankfurt am Main http://www.bundesbank.de Electronic Industries Alliance
2001 Pennsylvania Avenue NW Washington, DC 20004
http://www.eia.org
Export-Import Bank of the United States 811 Vermont Avenue NW
Washington, DC 20571 http://www.exim.gov
Federal Reserve Bank of New York 33 Liberty Street
New York, NY 10045 http://www.ny.frb.org
The Federation of International Trade Associations
11800 Sunrise Valley Drive, Suite 210 Reston, VA 20191
http://www.fita.org
Inter-American Development Bank 1300 New York Avenue NW Washington, DC 20577 http://www.iadb.org
International Bank for Reconstruction and Development (World Bank)
1818 H Street NW Washington, DC 20433 http://www.worldbank.org International Monetary Fund
700 19th Street NW Washington, DC 20431 http://www.imf.org
International Chamber of Commerce 38, Cours Albert ler
7800 Paris, France http://www.iccwbo.org
International Telecommunication Union Place des Nations
Ch-1211 Geneva 20 Switzerland
http://www.itu.int
International Trade Law Monitor http://lexmercatoria.org
Michigan State University Center for International Business Education and Research
http://www.globaledge.msu.edu Marketing Research Society
111 E. Wacker Drive, Suite 600 Chicago, IL 60601
National Association of Manufacturers 1331 Pennsylvania Avenue
Suite 1500
Washington, DC 20004 http://www.nam.org
418 Part 4 STRATEGY
National Federation of Independent Business 600 Maryland Avenue SW
Suite 700
Washington, DC 20024 http://www.nfib.org
Organization for Economic Cooperation and Development
2 rue Andre Pascal
75775 Paris Cedex Ko, France and
2001 L Street NW, Suite 700 Washington, DC 20036 http://www.oecd.org
Organization of American States 17th and Constitution Avenue NW Washington, DC 20006
http://www.oas.org
Society for International Development 1401 New York Avenue NW
Suite 1100
Washington, DC 20005 http://www.sidint.org Transparency International
Otto-Suhr-Allee 97-99 D-10585 Berlin Germany
http://www.transparency.de INDEXES TO LITERATURE
Business Periodical Index H.W. Wilson Co.
950 University Avenue Bronx, NY 10452 New York Times Index
University Microfilms International 300 N. Zeeb Road
Ann Arbor, MI 48106 http://www.nytimes.com
Reader’s Guide to Periodical Literature H.W. Wilson Co.
950 University Avenue Bronx, NY 10452
http://www.tulane.edu/horn/rdg.html Wall Street Journal Index
University Microfilms International
300 N. Zeeb Road Ann Arbor, MI 48106 http://www.wsj.com DIRECTORIES
American Register of Exporters and Importers
38 Park Row
New York, NY 10038 Arabian Year Book
Dar Al-Seuassam Est.
Box 42480 Shuwahk, Kuwait
Directories of American Firms Operating in Foreign Countries
World Trade Academy Press Uniworld Business Publications Inc.
50 E. 42nd Street New York, NY 10017
The Directory of International Sources of Business Information
Pitman 128 Long Acre
London WC2E 9AN, England Encyclopedia of Associations
Gale Research Co.
Book Tower Detroit, MI 48226
Polk’s World Bank Directory R.C. Polk & Co.
2001 Elm Hill Pike P.O. Box 1340 Nashville, TN 37202
Verified Directory of Manufacturer’s Representatives
MacRae’s Blue Book Inc.
817 Broadway New York, NY 10003
World Guide to Trade Associations K.G. Saur & Co.
175 Fifth Avenue New York, NY 10010 Market research Library
http://www.buyusainfo.net
The International Business Imperative Appendix 419
ENCYCLOPEDIAS, HANDBOOKS, AND MISCELLANEOUS
A Basic Guide to Exporting U.S. Government Printing Office Superintendent of Documents Washington, DC 20402 Doing Business In . . . Series
Price Waterhouse
1251 Avenue of the Americas New York, NY 10020
Economic Survey of Europe United Nations Publishing Division 1 United Nations Plaza
Room DC2-0853 New York, NY 10017
Economic Survey of Latin America United Nations Publishing Division 1 United Nations Plaza
Room DC2-0853 New York, NY 10017
Encyclopedia Americana, International Edition Grolier Inc.
Danbury, CT 06816
Encyclopedia of Business Information Sources
Gale Research Co.
Book Tower Detroit, MI 48226 Europa Year Book
Europa Publications Ltd.
18 Bedford Square
London WCIB 3JN, England Export Administration Regulations
U.S. Government Printing Office Superintendent of Documents Washington, DC 20402
Exporters’ Encyclopedia—World Marketing Guide
Dun’s Marketing Services 49 Old Bloomfield Rd.
Mountain Lake, NJ 07046 Stat-USA
www.Stat-Usa.gov
Export-Import Bank of the United States Annual Report
U.S. Government Printing Office Superintendent of Documents Washington, DC 20402
Exporting for the Small Business U.S. Government Printing Office Superintendent of Documents Washington, DC 20402 Exporting to the United States
U.S. Government Printing Office Superintendent of Documents Washington, DC 20402 Export Shipping Manual
U.S. Government Printing Office Superintendent of Documents Washington, DC 20402
Foreign Business Practices: Materials on Practical Aspects of Exporting, International Licensing, and Investing
U.S. Government Printing Office Superintendent of Documents Washington, DC 20402 A Guide to Financing Exports
U.S. Government Printing Office Superintendent of Documents Washington, DC 20402
Handbook of Marketing Research McGraw-Hill Book Co.
1221 Avenue of the Americas New York, NY 10020
PERIODIC REPORTS, NEWSPAPERS, MAGAZINES
Advertising Age
Crain Communications Inc.
740 N. Rush Street Chicago, IL 60611 http://www.adage.com Advertising World
Directories International Inc.
150 Fifth Avenue, Suite 610 New York, NY 10011
http://advertising.utexas.edu/world/
Agricultural Outlook
U.S. Department of Agriculture Economic Research Service
420 Part 4 STRATEGY
http://www.ers.usda.gov/publications/AgOutlook/
Archives/
Arab Report and Record 84 Chancery Lane
London WC2A 1DL, England Barron’s
University Microfilms International 300 N. Zeeb Road
Ann Arbor, MI 48106 http://www.barrons.com Business America
U.S. Department of Commerce
14th Street and Constitution Avenue NW Washington, DC 20230
http://www.doc.gov Business International
Business International Corp.
One Dag Hammarskjold Plaza New York, NY 10017
BusinessWeek
McGraw-Hill Publications Co.
1221 Avenue of the Americas New York, NY 10020
http://www.businessweek.com Commodity Trade Statistics
United Nations Publications 1 United Nations Plaza Room DC2-0853 New York, NY 10017 Conference Board Record
Conference Board Inc.
845 Third Avenue New York, NY 10022
http://www.conference-board.org Customs Bulletin
U.S. Customs Service
1301 Constitution Avenue NW Washington, DC 20229
The Economist
Economist Newspaper Ltd.
25 St. James Street
London SWIA 1HG, England http://www.economist.com The Financial Times
Bracken House
10 Cannon Street
London EC4P 4BY, England www.ft.com
Forbes Forbes Inc.
60 Fifth Avenue New York, NY 10011 http://www.forbes.com Fortune
Time Inc.
Time & Life Building
1271 Avenue of the Americas New York, NY 10020
http://www.fortune.com
International Financial Statistics International Monetary Fund Publications Unit
700 19th Street NW Washington, DC 20431 www.imfstatistics.org Investor’s Business Daily
Box 25970
Los Angeles, CA 90025 Journal of Commerce 110 Wall Street New York, NY 10005 http://www.investors.com Journal of Commerce
100 Wall Street New York, NY 10005 http://www.joc.com
Sales and Marketing Management Bill Communications Inc.
633 Third Avenue New York, NY 10017 Wall Street Journal
Dow Jones & Company 200 Liberty Street New York, NY 10281 http://www.wsj.com Pergamon Press Inc.
Journals Division Maxwell House Fairview Park Elmsford, NY 10523
The International Business Imperative Appendix 421
World Trade Center Association (WTCA) Directory
World Trade Centers Association 60 East 42nd Street, Suite 1901 New York, NY 10169
International Encyclopedia of the Social Sciences
Macmillan and the Free Press 866 Third Avenue
New York, NY 10022
Marketing and Communications Media Dictionary
Media Horizons Inc.
50 W. 25th Street New York, NY 10010 Market Share Reports
U.S. Government Printing Office Superintendent of Documents Washington, DC 20402 http://www.access.gpo.gov
Media Guide International: Business/
Professional Publications
Directories International Inc.
150 Fifth Avenue, Suite 610 New York, NY 10011 Overseas Business Reports
U.S Government Printing Office Superintendent of Documents Washington, DC 20402 http://www.access.gpo.gov
Sales and Marketing Management http://www.salesandmarketing.com Trade Finance
U.S. Department of Commerce International Trade Administration Washington, DC 20230
http://www.commerce.gov
World Economic Conditions in Relation to Agricultural Trade
U.S. Government Printing Office Superintendent of Documents Washington, DC 20402 http://www.access.gpo.gov
422 Part 4 STRATEGY
A P P E N D I X 1 2 B
The Structure of a Country Commercial Guide
Country Commercial Guide for Austria
TABLE OF CONTENTS
Chapter 1 Introduction to the Austrian Market A. Market Overview
B. Market Challenges C. Market Opportunities D. Market Entry Strategy
Chapter 2 The Political and Economic Environment in Austria
(Link to U.S. Department of State Background Notes, http://www.state.gov/r/pa/ei/bgn)
Chapter 3 Selling U.S. Products and Services in Austria
A. Using an Agent or Distributor B. Establishing an Office
C. Franchising D. Direct Marketing
Processing Customer Data E. Distance Selling Rules
Distance and Door-to-Door Sales
Distance Selling of Financial Services
Direct Marketing Over the Internet F. Joint Ventures and Licensing
G. Selling to the Government H. Distribution and Sales Channels
I. Selling Factors and Techniques J. Electronic Commerce
K. Trade Promotion and Advertising
General EU Legislation
Medicine
Food
Food Supplements
Tobacco L. Pricing
M. Sales Service and Customer Support
Product Liability
Product Safety
Legal Warranties and After-sales Service N. Protecting Your Intellectual Property
Copyright
Patents
Trademarks
Designs
Trademark Exhaustion O.Due Diligence
P. Local Professional Services Q.Web Resources
Chapter 4 Leading Sectors for U.S. Exports and Investment
A.Agricultural Sectors
Agricultural Fish and Forestry Sector Total
Dried Fruits and Nuts
Wine
Fish and Seafood B.Commercial Sectors
Computer Software and Services (CSP)
Drugs and Pharmaceuticals (DRG)
Medical Devices (MED)
Aircraft and Parts (AIR)
Computers and Peripherals (CPT)
Dental Equipment (DNT)
Audiovisual Equipment (AV)
Electrical Power Systems (ELP)
Oil and Gas Field Equipment (OGM)
Chapter 5 Trade Regulations, Customs, and Standards A.Import Tariffs
B.Trade Barriers
C.Import Requirements and Documentation
Import Licenses
Import Documentation
423
D. U.S. Export Controls E. Temporary Entry
F. Labeling and Marking Requirements G. Prohibited and Restricted Imports H. Customs Regulations and Contact
Information I. Standards
J. Standard Organizations K. Conformity Assessment
L. Product Certification M. Accreditation
N. Labeling and Marking
The Eco-label O. Contact Information
P. Trade Agreements Q. Web Resources
Chapter 6 The Investment Climate in Austria A. Introduction
B. Openness to Foreign Investment C. Conversion and Transfer Policies D. Expropriation and Compensation
E. Dispute Settlement
F. Performance Requirements/Incentives
G. Right to Private Ownership and Establishment H. Protection of Property Rights
I. Transparency of the Regulatory System J. Efficient Capital Markets and Portfolio
Investment K. Political Violence
L. Corruption
M. Bilateral Investment Agreements
N. OPIC and Other Investment Insurance Programs O. Labor
P. Foreign Trade Zones/Free Ports Q. Foreign Direct Investment Statistics R. List of Major Foreign Investors:
S. Web Resources
Chapter 7 Trade and Project Financing A. How do I get paid? (Method of Payment)
B. How does the banking system operate?
C. Foreign-Exchange Controls
D. U.S. Banks and Local Correspondent Banks
Commercial and private
Corporate and investment banking—no retail services
Consumer financial services
E. Austrian Banks with Subsidiaries in the U.S.
Erste Bank der oesterreichischen Sparkassen AG
Raiffeisen Zentralbank AG F. Project Financing
Tendering for European public procurement contracts
G.Web Resources
Chapter 8 Business Travel A.Business Customs B. Tipping
C. Travel Advisory D.Electrical voltage
E. Safety
F. Arrival at Vienna International Airport G.Visa Requirements
H. Telecommunication
Direct Long Distance
Internet Calling
Call-Back Long Distance Services
Cellular phones
Internet I. Transportation J. Language K. Health
Water
Emergencies
Pharmacies
L. Local Time, Business Hours, and Holidays M. Temporary Entry of Materials and Personal
Belongings N. Web Resources
Chapter 9 Contacts, Market Research, and Trade Events A.Contacts
Austrian Government Agencies
Austrian Trade Associations/Chambers of Commerce
Austrian Commercial Banks/Branch Offices of Austrian Banks in the U.S.
U.S. Commercial Service
U.S.-based Associations
Washington-based U.S. Government Contacts B. Market Research
C. Trade Events
Chapter 10 Guide to Our Services
The U.S. Commercial Service offers customized solu- tions to help your business enter and succeed in markets worldwide. Our global network of trade specialists will
424 Part 4 STRATEGY
work one-on-one with you through every step of the exporting process, helping you to:
Target the best markets with our world-class research.
Promote your products and services to qualified buyers.
Meet the best distributors and agents for your products and services.
Overcome potential challenges or trade barriers.
For more information on the services the U.S. Com- mercial Service offers U.S. businesses, please see http://
www.buyusa.gov/austria/en/
Chapter 11 Tariffs and Other Barriers to Trade Austria is a member of the European Union (EU), thus the Austrian customs regime is based on the ‘‘TARIC’’
(integrated tariff of the EU), determined in Brussels.
EU Import tariffs vary depending on the product, however, for most U.S. exports the tariffs are relatively low. In fact, over half of all products from non-EU coun- tries enter without any tariff.
Tariff inquiries online are available at http://europa .eu.int/comm/taxation_customs/dds/en/tarhome.htm.
Chapter 12 Frequently Asked Questions A. REACH FAQs
B. WEEE/RoHS C. Pharmaceuticals
Chapter 13 Finding Business Partners in Austria A. Gold Key Matching Service
B. International Partner Search C. Contact List
D. Feature Your Company on Our Website E. Platinum Key Service
Chapter 14 Promote Your Company in Austria A. Single Company Promotion
B. Promotional Seminars
C. Feature Your Company on Our Website
Chapter 15 Market Research on Austria
Chapter 16 Austrian Business Service Providers A.Business Consulting (4)
B.Hotels and Meeting Facilities (1) C.Human Resources (2)
D.Legal Services (5)
E. Marketing, Public Relations and Sales (1) F. Real Estate Services (1)
G.Regional Economic Development (1) H. Relocation services (4)
I. Translation and Interpretation (1)
J. Transportation, Freight Forwarder and Storage Services (4)
K.Other Business Services (1) Chapter 17 Contact Us
A.Staff Directory Chapter 18 Links
A.U.S. Embassy
B.State Department Information
C.CITRA: Center for International Regulatory Assistance
D.American Chamber of Commerce E. Austrian Federal Economic Chamber F. Austrian Trade Commission
G.Austrian Federal Association of Independent Commercial Agents and Negotiators
H. Virtual Vienna
I. Austrian Press and Information Service J. Rechtsfreund
Chapter 19 Events
Source:U.S. Department of Commerce, The Commercial Service, Washington, DC, 2009, http://www.buyusa.gov/austria/en/
The International Business Imperative Appendix 425
C H A P T E R 1 3
Entry and Expansion
C H A P T E R C O N T E N T S & L E A R N I N G O B J E C T I V E S THE ROLE OF MANAGEMENT
1. To learn how firms gradually progress through an internationalization process
MOTIVATIONS TO GO ABROAD
2. To understand the strategic effects of internationalization on the firm STRATEGIC EFFECTS OF GOING INTERNATIONAL
3. To study the various modes of entering international markets ENTRY AND DEVELOPMENT STRATEGIES
4. To understand the role and functions of international intermediaries INTERNATIONAL INTERMEDIARIES
5. To learn about the opportunities and challenges of cooperative market development
LOCAL PRESENCE
6. To understand how firms can overcome market barriers by either build- ing competitive capabilities abroad from scratch or acquiring them from local owners.
A COMPREHENSIVE VIEW OF INTERNATIONAL EXPANSION
7. To observe a model linking managerial commitment, international expansion and corporate concerns
426
An Accidental Exporter
In 2005, two former co-workers––Sab Jhooti and Robin Parker––tried to start their own business, streaming home closed-circuit television (CCTV) footage. It did not do well.
However, in the process of researching this venture, the partners developed the idea of marketing helmets with built-in cameras for adventure sport enthusiasts. It turned out to be extremely profitable.
Jhooti and Parker established their new company, Ac- tion Cameras, in January 2006. A month later, it had already gone international. This caught the newly minted entrepre- neurs by surprise. According to Jhooti,‘‘We ran the business from my bedroom, and on one day we were shipping goods to the U.S., Israel, South Africa, and Australia. We’d done no marketing but they were coming to us.’’
More and more orders were coming in from overseas.
A large percentage of them were from French-speaking cus- tomers. Concerned about losing them to local competitors, Jhooti and Parker decided to create a French language web site. The company also established a public presence in France, advertising at extreme sports events, such as the French Moto GP. This turned out to be an extremely profit- able decision. By 2009, sales generated by the French- language web site accounted for a quarter of Action Camera’s total revenue.
Jhooti and Parker know their consumers well. Most adventure sports aficionados are young and tech-savvy.
In addition to translating their web site, (which has since been replicated in Spanish, Portuguese, and Italian) the partners have engaged in other forms of e-marketing, including the use of social networking sites. For example, Action Cameras has its own Facebook page with an ever-growing number of‘‘friends.’’However, savvy adver- tising alone cannot account for international success. It needs to be based on product quality and technological innovation. Over the past three years, nearly every model of helmet camera sold in Europe was pioneered by Action Cameras. They have provided camera systems to Formula 1 teams, Red Bull air racers, Super Bike teams, Rally Teams, production companies, the BBC, and thou- sands of action sports enthusiasts across Europe.
In the world of the Internet, where word-of-mouth adver- tising can be amplified many-fold through weblogs, social networking sites, and consumer reviews, any company that identifies a promising market niche, provides a quality prod- uct, and maintains a technological lead on its competitors could find itself in the position of an international firm engaged in exporting.
Sources:Jamie Oliver,‘‘Trade Month: Exports Click for Action Cameras after a Shaky Start in France,’’The Telegraph, October 5, 2009; Action Cameras company web site, http://www.actioncameras.
co.uk/, accessed October 10, 2009.
427
International business holds out the promise of large new market areas, yet firms can- not simply jump into the international marketplace and expect to be successful. They must adjust to needs and opportunities abroad, have quality products, understand their customers, and do their homework to comprehend the vagaries of international markets. The rapid globalization of markets, however, reduces the time available to adjust to new market realities.
This chapter is concerned with firms preparing to enter international markets and companies expanding their current international activities. Initial emphasis is placed on export activities with a focus on the role of management in starting up international operations and a description of the basic stimuli for international activ- ities. Entry modes for the international arena are highlighted, and the problems and benefits of each mode are discussed. The roles of facilitators and intermediaries in international business are described. Finally, alternatives that involve a local pres- ence by the firm are presented.
THE ROLE OF MANAGEMENT
1.To learn how firms gradually progress through an internationalization process
Management dynamism and commitment are crucial to a firm’s first steps toward in- ternational operations. Managers of firms with a strong international performance typ- ically are active, aggressive, and display a high degree of international orientation.1 Such an orientation is indicated by substantial global awareness and cultural sensitiv- ity.2Conversely, the managers of firms that are unsuccessful or inactive internation- ally usually exhibit a lack of determination or devotion to international business.
The issue ofmanagerial commitmentis a critical one because foreign market penetration requires a vast amount of market development activity, sensitivity toward foreign environments, research, and innovation. Regardless of what the firm produces or where it does business internationally, managerial commitment is crucial for enduring stagnation and sometimes even setbacks and failure. After all, it is top management that determines the willingness to take risk, to introduce new products, to seek new solutions to problems, and to continuously strive to succeed abroad.3To achieve such a commitment, it is important to involve all levels of management early on in the international planning process and to impress on all players that the effort will only succeed with a commitment that is companywide.4
Initiating international business activities takes the firm in an entirely new di- rection, quite different from adding a product line or hiring a few more people. Going international means that a fundamental strategic change is taking place. Companies that initiate international expansion efforts and succeed with them, typically begin to enjoy operational improvements—such as positioning strengths in competition—
long before financial improvements appear.5
The decision to export usually comes from the highest levels of management, typically the owner, president, chairman, or vice president of marketing.6The carry- ing out of the decision—that is, the implementation of international business trans- actions—is then the primary responsibility of marketing personnel. It is important to establish an organizational structure in which someone has the specific responsibility for international activities. Without such a responsibility center, the focus necessary for success can easily be lost. Such a center need not be large. For example, just one person assigned part time to international activities can begin exploring and entering international markets.
The first step in developing international commitment is to become aware of international business opportunities. Management must then determine the
managerial commitment The desire and drive on the part of management to act on an idea and to support it in the long run.
428 Part 4 STRATEGY