An Austrian company's tale of groth, globalizition and decline Essay

An Austrian companys tale of groth, globalizition and decline - Essay Example3). Auer went into matured markets, including Egypt, Germany, Italy, and the United States. Hungary might be considered a more of a developing, or emerging, market, which is in line with where the world market is going, in that most of the worlds growth is expected to occur in todays emerging markets (Cavusgil, 2002, p. 1). The factors in choosing these markets include competition, service costs, market characteristics and uncertainty (Davidson, 1982, p. 85). Based upon what you know about Auer Waffelns international expansion into a variety of foreign markets, can you identify distinct details or phases in the entry process? What be the decisions that must be made at all(prenominal) stage? According to Johanson & Wiedersheim-Paul (1975), there are different stages for a firmly when they decide to internationalize, and these stages represent successively higher degrees of internationalization commitment (Johanson & Vahlne, 1977, p. 23). When firms go international, each additional market commitment will happen in incremental steps (Johanson & Vahlne, 1990, p. 211). The firms go through these stages, from a low degree of international participation in Stage 1 to a high degree of international involvement in Stage 4 (Phing & Au, 2001, p. 163). The first stage is where there are no export activities. The second stage is that there is exportation via agents or independent representatives. The third stage is where an overseas sales subsidiary is established. The fourth stage is overseas manufacturing/production units (Johanson & Wiedersheim-Paul, 1975). With his entry into the Middle East, Waffeln conducted direct exportation of his products. This was the first stage of his entry into the market, and one of the biggest decisions that needed to be made when conducting the export barter is how to circumvent, so to speak, the unique cultural challenges that exporting directly to the Midd le East presents. ethnic challenges is one of the major barriers that internalizing firms face, and it is necessary to understand the cultural differences between the firm and the clientele (Copeland & Griggs, 1985, p. 52). Cultural shapes business practices and processes in widely varying ways (Caslione & Thomas, 2002, p. 24). Negotiating these cultural differences is considered to be one of the most important skills for the international manager (Brooke, 1986, p. 225). Cultural competency is one of the most important factors in gaining a competitive edge (Elashmawi, 2001, p. xvi). How managers interpret and respond to strategic issues is dependent upon the surrounding culture (Becker, 2000, p. 90). grow can be spread across six different cultural dimensions how does the ordering look at the nature of people how does society look at the relationship between a person and nature how does society look at the relationship between people what is the primary mode of activity in socie ty (accepting status quo or changing things to make them better) what is the conception of space in a given society (are meetings held in private or public) and what is the society