1. Explain International Market selection process.

Build model for International market

selection? Explain with examples.
The International Marketing Entry Evaluation Process is a five stage process, and
its purpose is to gauge which international market or markets offer the best
opportunities for our products or services to succeed. The five steps are Country
Identification, Preliminary Screening, In-Depth Screening, Final Selection and Direct
Experience.

Step One – Country Identification

The World is your oyster. You can choose any country to go into. So you conduct country
identification – which means that you undertake a general overview of potential new markets.
There might be a simple match – for example two countries might share a similar heritage e.g.
the United Kingdom and Australia, a similar language e.g. the United States and Australia, or
even a similar culture, political ideology or religion e.g. China and Cuba. Often selection at this
stage is more straightforward. For example a country is nearby e.g. Canada and the United
States. Alternatively your export market is in the same trading zone e.g. the European Union.
Again at this point it is very early days and potential export markets could be included or
discarded for any number of reasons.

Step Two – Preliminary Screening

At this second stage one takes a more serious look at those countries remaining after
undergoing preliminary screening. Now you begin to score, weight and rank nations based upon
macro-economic factors such as currency stability, exchange rates, level of domestic
consumption and so on. Now you have the basis to start calculating the nature of market entry
costs. Some countries such as China require that some fraction of the company entering the
market is owned domestically – this would need to be taken into account. There are some
nations that are experiencing political instability and any company entering such a market
would need to be rewarded for the risk that they would take. At this point the marketing
manager could decide upon a shorter list of countries that he or she would wish to enter. Now
in-depth screening can begin.

Step Three – In-Depth Screening

The countries that make it to stage three would all be considered feasible for market entry. So
it is vital that detailed information on the target market is obtained so that marketing decision-
making can be accurate. Now one can deal with not only micro-economic factors but also local
conditions such as marketing research in relation to the marketing mix i.e. what prices can be
charged in the nation? – How does one distribute a product or service such as ours in the
nation? How should we communicate with our target segments in the nation? How does our
product or service need to be adapted for the nation? All of this information will form the basis
of segmentation, targeting and positioning. One could also take into account the value of the
nation’s market, any tariffs or quotas in operation, and similar opportunities or threats to new
entrants.

Step Four – Final Selection

Now a final short-list of potential nations is decided upon. Managers would reflect upon
strategic goals and look for a match in the nations at hand. The company could look at close
competitors or similar domestic companies that have already entered the market to get firmer
costs in relation to market entry. Managers could also look at other nations that it has entered
to see if there are any similarities, or learning that can be used to assist with decision-making in
this instance. A final scoring, ranking and weighting can be undertaken based upon more
focused criteria. After this exercise the marketing manager should probably try to visit the final
handful of nations remaining on the short, short-list.

Step Five – Direct Experience

Personal experience is important. Marketing manager or their representatives should travel to

a particular nation to experience first hand the nation’s culture and business practices. On a
first impressions basis at least one can ascertain in what ways the nation is similar or dissimilar
to your own domestic market or the others in which your company already trades. Now you will
need to be careful in respect of self-referencing. Remember that your experience to date is
based upon your life mainly in your own nation and your expectations will be based upon what
your already know. Try to be flexible and experimental in new nations, and don’t be
judgemental – it’s about what’s best for your company – happy hunting.

2. Explain flowers of service with appropriate examples.

Core and supplementary services are generally referred to as the Flower of Service and can
help firms to improve their service levels and overall client satisfaction – if understood.”
Have you ever experienced any of the following when visiting a service provider? You can’t find
parking, the receptionist is busy and doesn’t acknowledge you, staffs are unfriendly, the
waiting area is “cold” and uncomfortable, the person you are meeting is late, the meeting area
is untidy, feedback is slow or non-existent, the invoice is vague and you don’t really know what
you are paying for? If you answered yes to any of these, you have first-hand experience of a
concept generally referred to in professional services as the Flower of Service.
All professional service providers seek to provide a comprehensive and unique experience for
their client, whether existing or potential, with the primary goal of cementing customer loyalty
and encouraging future purchases. In most cases, we can easily identify the core aspects of the
service (e.g. legal advice, financial advice or accounting services). Core services are the central
component that supplies the principal, problem-solving benefits customers seek. The core
services you provide are, however, the bare minimum a client expects of you to deliver. These
core services are supported (and affected), by a range of supplementary services (e.g. your
hospitality, consultation or invoicing). Supplementary services augment the core service
offering, by facilitating its use and enhancing its value and appeal. It is very often these
supplementary services that make or break the experience clients have with a firm to
differentiate them (or not).

Core and supplementary services are generally referred to as the Flower of Service and can
help firms to improve their service levels and overall client satisfaction – if understood. Client
service therefore not only relates to the core services, but also the supplementary services and
we find that satisfaction with both core and supplementary services is important for loyal
customers. First-time clients often tend to focus mostly on core service satisfaction when
evaluating service levels, whereas repeat buyers and more loyal clients focus much more on the
supplementary services. The bottom line is that firms should focus on their clients’ full
experience. Let us look at two types of supplementary services and how they add value to the
core service offering:
Supplementary services that facilitate service delivery:
Facilitating supplementary services are the services that are needed for service delivery. They
are:
 Information: Information provides the client with peace of mind, as well as guidance
and understanding of pricing, conditions of sales, usage, etc. Without information, clients
are very often left unsure.
 Invoicing: Clients want to be clear on what they are paying for, when they have to pay
and how to pay. An invoice needs to be on-time, accurate and clear.
 Feedback: Clients want feedback on the progress, status of their transaction, enquiry or
problem. Slow or no feedback often causes the most frustration amongst clients.
Supplementary services that enhancing service delivery:
Enhancing services does exactly that – it enhances the value and appeal of the firm and its
services. Enhancing services include:
 Consultation: Clients want customized advice and personal counseling. They “buy” your
knowledge and expertise.
 Hospitality: Includes making clients feel welcome, offering refreshments, clean toilets
and comfortable waiting areas.
 Empathy: Refers to good communication, customer understanding and easy accessibility
– Empathy reflects your ability and willingness to listen to a client’s needs and relate to
their problem, needs or frustrations.
 Courtesy: Refers to consistent friendliness and professionalism of staff – whether in
person, telephonically or via email.
 Availability: You should be accessible via telephone or email to give feedback,
information or advice.
 Tangibles and appearances: Refers to the appearance and physical elements of your
business, e.g. availability of parking, reception or waiting areas, consultation or meeting
areas, marketing material (e.g. business cards, brochures).
 Reliability: Refers to dependable and accurate performance, like getting back to clients
and doing what you say you will do. Reliability is a key part of a trust relationship.
 Safekeeping: Safekeeping relates to keeping clients’ records safe, private and
confidential. If you are unable to do this, clients will completely loose trust in you and your
staff.
A firm can therefore create a significant competitive advantage by focusing on the service
quality of their supporting services and by adding value to the core service. Just make sure you
do it better than the competition.

3. Draw flow chart of:

i. People processing

ii. Information processing.

iii. Possession processing.

 iv. Mental stimulus processing.

4. What do you mean by Business Impact Analysis? Explain in detail. Justify the statement
with examples.

BIA is essential to business continuity planning and facilitates long-term business operation
strategies. This analysis examines and builds upon interconnectedness – the idea that all parts of a
company’s operations rely on each other.

Analysts use BIAs to reveal companies’ vulnerabilities and help businesses prepare for potential
setbacks. They compute the financial and logistical costs of undesirable events and assign
probabilities to various scenarios. With this information, corporate leaders can design and
implement risk-management strategies.

BIAs for Risk Assessment

Say, for example, you run a tea shop/climbing gym and want to understand your risks. Your
customers love to get hyper-caffeinated and push themselves to the limit on your rotating “endless”
climbing wall – and you wonder about their safety.
To alleviate your concerns, you ask an analyst to conduct a BIA on your business. She reports a 1 in a
million chance of customer illness from caffeine overdose and a 1 in a thousand chance of injury
from getting their clothing caught in your climbing wall’s gears and pulleys. Let’s assume both types
of injuries have a likely medical/legal cost of $100,000.

Probability x Cost = Risk

(0.000001 x $100k) = $0.10

(0.001 x $100k) = $100

Obviously, you should pay more attention to preventing the more likely event. You can work with
your analyst and your insurance agent to balance your liabilities and your insurance costs.

(Of course, real-life analysts consider many more factors than I did in this simple example. They
examine a wide range of potential short- and long-range costs – across many potential disasters.)

5. “Importance of Patent as tools of innovation as well as reduction in Business”.

A patent provides its owner with the right to exclude others from exploiting the patented
technology, including, for example, making, using, or selling the patented invention. This
“exclusive right” enables the patent owner to recoup development costs and obtain a return of
investment in the development of the patented technology. Effective patent protection
stimulates research and is a key requirement for raising venture capital. It is also crucial to
overall economic growth. A company that decides to file patent applications should adopt a
strategic approach that obtains value from patents while minimizing costs associated with
obtaining the patents.

Value from patents

Patents provide a wide range of value to their owners, some of which may be more applicable
to one business or another. First, patents provide freedom of movement in the company’s
field. For many companies, this freedom of movement can be very valuable, especially in a
crowded field with many competitors or in a field dominated by one player. Filing patent
applications early helps limit the risk that someone else has obtained (or will obtain) a patent
on the same idea. This early mover position provides the company with greater assurance that
it will not have to license technology from a patent holder. Indeed, the sooner patents are
applied for, the better the chance that someone else will not be first.

Second, patents provide licensing opportunities with companies inside and sometimes even
outside a company’s field. An active patent program can generate revenue from the licensing of
patents which cover technology or business processes that are not practiced by the company.
Patents allow individual inventors and small businesses the option of obtaining licenses or
selling rights to others who may be in a better technical and/or financial position to bring the
ideas to market. Rambous, Qualcomm, and other technology companies are among those that
no longer manufacture products but rather focus on technology innovation and
licensing. Some companies license the intellectual property on technology used by the
company to competitors, forcing the company to constantly innovate and re-invent itself. Other
companies regularly patent technology which they never commercially practice, but instead sell
to others that do.
Thirdly, patents provide increased overall corporate value. Corporate valuation relies greatly on
a company’s intellectual assets, such as, patents. Today, the capital assets of Fortune 500
companies account for only 15% of the company’s value, whereas intellectual assets account
for 85% of the company’s value. Fourthly, patents provide for the generation of prior art to
protect the company from patent infringement suits. An active patent program provides a
reservoir of prior art which prevents others from receiving patents which may exclude a
company from practicing important technology and processes.
Patent application process

To obtain a patent, a patent application has to be filed, describing the invention in technical
terms detailed enough to enable a person of skill in the particular field to understand the
invention well enough that he or she could “practice” the invention. The application has to
meet certain legal requirements. The Patent Office of the country in which the patent
application is filed “examines” the invention described in the patent application for novelty and
inventiveness. The examination may take two or more years.
A patent in a country can be granted based on a patent application filed directly in that country.
For example, a U.S. patent can be granted based on a patent application filed with the U.S.
Patent and Trademark Office, and a German patent can be granted based on a patent
application filed with the German Patent Office. A patent can also be granted based on a patent
application filed first in one foreign country and then within 12 months filed in a second
country with a claim of “priority” to the filing in the first foreign country. For example, a
German patent can be based off of a German patent application filed 12 months after a U.S.
patent application to which it claims priority.
The Patent Cooperation Treaty (PCT) offers a simplified patent application procedure for over
100 countries worldwide. It enables inventors to file a single international application
designating many countries, instead of having to file separately for national or regional patents.
In the “international” phase, an international search and preliminary examination are
performed. In the “national” or “regional” phase, the patent granting procedure is then carried
out by the relevant national or regional patent offices. Most frequently, the PCT application is
filed 12 months from the filing of a patent application filed directly in the patent office one of
the member countries, such as the U.S. or U.K.
To identify and realize the full potential of value from patents, companies should define a
strategy for assessing and protecting their intellectual assets. Part of this strategy includes the
development of a patent program by which new technology is identified, assessed, and
included in patent applications. Further, the strategy should identify ways to maximize the
value of patents while reducing costs associated with them. The value-cost assessment is
particularly important with international patenting.
Strategic considerations for international patent filing

Figure.1 depicts a relative comparison of costs and economic importance for obtaining patents
in various countries. This diagram is a general comparison. Economic importance in certain
countries may be different based on the type of technology. For example, a pharmaceutical for
treatment of malaria may have far greater economic importance in Brazil than an electric circuit
for controlling machine tool equipment. Furthermore, as discussed below, there are ways to
reduce the costs associated with different countries based on specific patent laws and fees for
the particular country. An up-to-date knowledge of the patent rules and regulations in several
countries is very valuable to reducing costs of patenting.
As depicted in Figure 1, costs for obtaining patents in Japan are much greater relative to costs
for obtaining patents in Canada. The value, though, in relative economic terms of having a
patent in Japan is greater than having a patent in Canada.

Figure 1: Importance vs. patent costs for various countries

An important consideration in the strategic approach to filing international patent applications

is consideration for different rules and fee structures of different patent systems. For example,
some countries allow multiple inventions to be included in one patent application, while others
require that one patent application be used for each invention. The U.S., for example, requires
that separate inventions be filed in separate patent applications. Depending on the country, it
may be possible to combine patent applications that are filed separately in some countries and
avoid filing costs of multiple applications in some countries.

Different countries also charge varying fees for the patent application filing depending on the
number of claims included in the patent application. Claims are the legal section that define the
scope of the patented invention. Some countries base the patent application fees based on the
number of pages of the patent application while others base fees on the number of claims in
the patent application. It is relatively common practice for companies to file identical patent
applications in multiple countries. However, doing so increases the costs of the filings. With
patent applications in Japan, for example, there are dramatic cost savings by reducing the
number of patent claims. A company that files a patent application in the U.S. with 20 claims
can achieve great savings by reducing the number of those claims. For instance, we often limit
the number of claims in Japanese applications to three or less. The remaining claims from the
original U.S. patent application are incorporated into the text of the Japanese patent
application. If needed, these removed claims can be used to further limit the claims if the
patent is challenged. The cost savings over the life of the Japanese patent is approximately
$20,000 per patent in annuities alone, with further cost savings during prosecution (the
proceedings through which the application is examined by the patent office).

CREATE Act
One recently-adopted law in the U.S. illustrates the importance of having an understanding of
different country’s patent laws. The Cooperative Research and Technology Enhancement
(CREATE) Act affects what qualifies as prior art in the U.S. Patent Office. Prior art is used to
prevent patents from being granted or invalidate the patents after they are granted. Before the
CREATE Act, if a university and a company developed technology as part of a joint research
agreement, work done before the joint research by one of the two could be used as prior art to
the work done jointly. The CREATE Act aims to disqualify certain activities by parties that later
become participants in a joint research agreement. Despite the change in the law, though, the
CREATE Act has several limitations that must be addressed in the joint research agreement as
well as the patent application. Furthermore, the CREATE Act treats prior art very differently
than how prior art is handled according to the patent laws in Europe and Japan.

Conclusion

Patents can provide individuals and companies with great value and increased return on the
investment made in developing a new technology. Patenting should be done with an intelligent
strategy that aligns business interests for implementing the technology with a wide range of
options in how, where, and when patents are sought. As an example, with attention paid to
international considerations and the rules in specific countries, it is possible for a company to
achieve significant savings and improve the rights obtained using patents.

6. How Innovation focuses on Manufacturing Networking? Explain form global

Perspectives.
Innovation can be defined simply as a "new idea, device or method". However,
innovation is often also viewed as the application of better solutions that meet new
requirements, articulated needs, or existing market needs. Such innovation takes place
through the provision of more-effective products, processes, services, technologies, or
business models that are made available to markets, governments and society. The term
"innovation" can be defined as something original and more effective and, as a
consequence, new, that "breaks into" the market or society. Innovation is related to, but
not the same as, invention. innovation is more apt to involve the practical implementation
of an invention (i.e. new/improved ability) to make a meaningful impact in the market or
society and not all innovations require an invention. Innovation often manifests itself via the
engineering process, when the problem being solved is of a technical or scientific nature.
What companies come to mind when you think of innovation? Samsung? Apple? Google? Their
success is not by accident. They all have innovation strategies in place. Following their examples
could take your innovation in manufacturing from idea to reality.

What it takes to launch an innovation.

Companies that successfully launch innovations in manufacturing – from concept to customer –

share common characteristics. They have an innovation strategy and a culture that nurtures
and encourages innovations from all ranks – not just the executive team.

In the June 2015 issue of Harvard Business Review, Gary P. Pisano wrote about the importance
of having a plan. “Without an innovation strategy, different parts of an organization can easily
wind up pursuing conflicting priorities – even if there’s a clear business strategy.”

Companies that get innovation right.

Innovative companies such as Samsung, Apple, and Google are getting it right. They structure
their organizations to meet the challenge of taking innovations from idea to implementation.

Samsung’s innovation model:

In Forbes, innovation expert Haydn Shaughnessy explains the five elements of Samsung’s
innovation model:
1.Developing a creative elite within the company based on innovation training
2.Pursuing and circumventing patents of competitors
3.Consistent, replicable companywide innovation methodology
4.Relying on external expertise for fundamental breakthrough science
5.A conglomerate approach

Samsung created the Samsung Strategy and Innovation Center (SSIC) within its Device Solutions
division. This center focuses on identifying and nurturing new technologies in health and
wellness, cloud infrastructure, mobile privacy, Internet of Things, and other related areas.

Google’s recipe for innovation success:

Google reinvented management in order to continuously innovate in fast-changing industries.

Its management model is based on six principles:
1.Dynamic capabilities
2.A continuously changing organization
3.A people-centric approach
4.An ambidextrous organization
5.An open organization that networks with its surroundings
6.A systems approach
In her book, The Google Model Managing Continuous Innovation in a Rapidly Changing World,
Annika Steiber writes, “Google has challenged conventional management thinking and may well
be the present day counterpart to GM in the 1920s and Toyota in the 1980s with regard to
management innovation.”

Google’s nine rules for innovation:

1.Innovation comes from anywhere
2.Focus on the user
3.Aim to be 10 times better
4.Bet on technical insights
5.Ship and iterate
6.Give employees 20 percent time
7.Default to open processes
8.Fail well
9.Have a mission that matter