Copenhagen Bicycles

Int’l Practicum 2019 – Pre-Trip Take Home Exam

(Due back by March 1st @ 11:59pm)

Note: two pages maximum, single-spaced, Times New Roman, 12 point font

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1. What is the difference between a Global vs. Multinational Marketing Strategy?

A Global strategy is based on the idea of one message throughout the entire organization regardless of where it is located. If the business is retail stores, then almost every single retail store across the globe will look exactly the same and have the same marketing. On the other hand, Multinational strategy has a customized approach based on the marketing conditions in that environment.

1. To what does the 10% presumption in the Semi-Globalization article refer?

The levels of internationalization among companies is right around 10% in each category. This is saying that most companies, although global are semi-global in that 10% is international investment.

1. In the Apple article, which entity extracts most of the value in the value chain? Why?

The country of origin extracts most of the value from the value chain. The country of origin creates brand value and value with the story it creates. For example, Apple uses the idea of being designed in California but does not mention where it is manufactured. The parts itself only carry about 10% value of the products that high-tech companies sell. The research, development, and design are all created in the country of origin and create higher value than the manufactured parts.

1. Please summarize the Ikea case as follows:

1. Key expansion initiatives?
2. What prompted these expansion goals?
3. What are some of the key issues/problems with expanding the brand?

Ikea was looking to grow sales by significant amount especially in emerging markets where they were just starting to gain market share. The best way they thought that they could gain market share and exponentially increase revenue was by almost doubling the number of stores that they already had.

Quickly expanding at the pace that they are planning also created several challenges though. As a brand, they focused on sustainability with their products and resources. It was clear that the population would quickly exceed the resources required to meet the supply of the population without creating sustainable practice. Ikea started creating higher standards on their resources and where they originated from. The Ikea-Way provided a culture that started from the executive members down and was a crucial part in how they conducted business.