Impact of Global Environment on

International Marketing Strategy

Introduction
The global market acts as a channel for creative entrepreneurs to acquire foreign
revenues outside their country of operation. However, the dynamic business environment,
coupled with intense competition, poses a significant challenge for enterprises that wants to
venture into international trade. By definition, global marketing refers to the transfer of goods
and services across the boarders for the satisfaction of peoples’ needs and desires (Agwu and
Onwuegbuzie, 2018). Notably, the degree of a company’s involvement globally is a function of
its commitment to the chase of international markets. Various variables such as culture,
technology, the legal, economic, and political environment, serve as a determinant element in
the success of businesses in the global arena. Studies posit that global businesspersons are not
only sensitive to the diverse marketing ecosystems but also in harmonizing business moves
internationally to attain optimum output for their entities. Many ways exist that can be used to
enter the global market, and they include joint investment, export, international partnerships,
and foreign direct investment (Menon, 2014). Equally, firms can integrate its international
marketing mix to deliver glocalized merchandise by using standardized marketing techniques
across the marketing regions.

Company Overview
Established in the U.S in the year 1940, McDonald’s is among the global food retailer
serving over 35000 eateries across 120 nations spread worldwide, with more than 50 million
daily consumers. Founded as a barbecue restaurant by Richard and Maurice, the company
restructured its entity as a hamburger by incorporating the production line principle. McDonald's
objective is to offer high-quality products and services to attract and increase its customer base
(Ahmed et al., 2016). Furthermore, the syndicate aims at building a good relationship with its
clients to help enhance brand loyalty and to develop goodwill among themselves. Notably, other
products provided by the company include sandwiches, breakfast items, chicken, burgers, soft
drinks, candy, and fries. Marketing communication strategies like campaigns and
advertisements are used to generate the colors, designs, and pictures that offer the brand its
identifiable image. At McDonald's, this is manifested through its known logo, “the Golden
Arche.” In all its business areas, McDonald's receives significant competition from different
enterprises, which tend to threaten its competitive position in the international market. Equally,
elements such as economic, social, technological, and environment influence McDonald’s
performance (Gerhardt, Hazen and Lewis, 2014). However, the syndicate has mastered the art
of glocalized products, and this has contributed massively to its success.

Impact of the Global Environment upon the Development of an International Marketing

Strategy and Selection of Appropriate Market Entry Approach
Governments across the globe are in support of the trans-border trade, mainly exports to
increase the country’s wealth and enhance the global competitiveness of the nation’s economy.
In the past years, cross-border businesses have become a widespread phenomenon, with the
majority of the local firms venturing into the international market (Agwu and Onwuegbuzie,
2018). Previously, multinational companies were responsible for the movement of goods and
services globally, including foreign direct investment, which are the driving elements of
globalization. The reason for venturing in the international market varies between organizations,
with most enterprises pursuing the global arena due to the inadequacy of the economies of
scale and numerous opportunities presented in the foreign exchange. The electric paradigm
model (EPM) states that companies that consider entering the global market have both
competitive and ownership advantages compared to their rivals in the local and international
markets. As such, the competitive and ownership edge can be utilized by stationing the entity in
nations that present location benefits (Azuayi, 2016). EPM concentrates on the gains resulting
from the geographical area of the country in which the firm targets to operate. The business
strategy theory (BST) deduces that syndicates create tradeoffs between some factors in the
verdicts to internationalize, including the techniques they will adopt during the process.
Numerous global marketing entry techniques exist, such as direct exporting, licensing,
franchising, foreign direct investment, and international partnership. According to studies,
McDonald uses both direct investment and franchising approach when venturing into emerging
markets (Gerhardt, Hazen and Lewis, 2014). With franchising McDonald allows restaurants to
use its logo and manage its operations under their brand name. Equally, direct investment
entails the firm building its production and operational plants in a new national location.
Investing in foreign markets bring numerous scopes for the business since it enables the entity
to diversify risk across the country of operations. Furthermore, operating an enterprise both
locally and globally leads to the maximization of proceeds, and it provides an opportunity for
global expansion primarily to prolong the merchandise life cycle. Broadening a company’s
activities lowers the overall cost of the commodity, and the incorporation of essential functions
contributes to prime economies of scale (Azuayi, 2016). Through the process of sharing
knowledge and resource with syndicates from other nations, the industry can gain core
competencies, which increase their performance and competitive position.
According to studies, cross-border operations such as exports are essentials ways
through which new entities can build value to enhance their growth, and access current
technologies and informative materials. Notably, the internalization of small businesses is
accelerating at a faster pace; thus, they are likely to add to a significant number of economic
players venturing in overseas markets (Ehikwe, 2013). However, numerous processes and
challenges limit the capability of these syndicates to implement global marketing programs.
Elements such as economic volatility of some countries, which relate to factors like poor
communication and production amenities, can make it difficult for such organizations to surge
their operations. Therefore, this can result in financial losses, which will impact firm
performance. Moreover, customers in different nations undergo various problems that influence
the promotion of commodities and services at the times of population explosion. This can affect
their purchasing power, which in turn causes a reduction in business sales. Laws and
regulations governing enterprise operations in a given nation determine the degree and success
of the syndicate’s transaction (Ehikwe, 2013). For instance, some countries have rules that
protect local industries from competition by foreign companies, and this can act as a deterrence
for international firms to effectively operate in that region. As with the case of McDonald's, the
restaurant strives to conform to a country’s policies that control direct investment and
franchising, thus, enabling it to invest in emerging markets easily.
By definition, trading bloc refers to an association of nations that reduces intra-regional
barricades that prevent the free exchange of goods and services, capital investment, and labor.
The regional trade agreements (RTA) are unique in size, membership, and the technique to
trade regulation. Examples of RTA include the Trans-Pacific Partnership (TPP), the Trans-
Atlantic Trade and Investment Partnership (TTIP) whereas other trade blocks comprise of
European Union and the World Trade Organization (WTO) (Palit, 2014). These associations can
have a significant impact on international industries since they restrict the exchange of
commodities to countries in which the firm’s parent nation is a member. Equally, other RTA can
impose higher tariffs on imports to non-member states, and this can have a significant
repercussion on the syndicate’s operating cost. However, with the invention of information
technology such as the internet, organizations have developed online stores that allow
consumers to purchase products over the internet. This has played a substantial role in
promoting cross-border business and has helped to remove specific barriers that might affect
trade.

How Might a Firm Adapt its International Marketing Mix to Deliver a Glocalized Product or
Service?
Glocalization refers to the process of offering a universal offer such as brand,
commodity, concept, and services while putting into account the local related variables.
Glocalization can be used to elucidate the failure of some significant marketing techniques due
to the lack of incorporation of cultural diversity in the marketing mix. Notably, glocalization can
also denote the creation of delivery channels for merchandises or services planned for the
international or trans-regional market but made to suit the domestic policies and culture
(Grigorescu and Zaif, 2017). Therefore, to enter a new market, local industries must integrate
their marketing mix to correspond with the laws and culture of the targeted country or populace.
Product
Products are the critical marketing elements of an organization since it is what can be
provided in the market and receive customer attention. Therefore, to develop glocalized
merchandise, companies must understand the culture of the targeted market since this can
determine the success of the commodity in the new location (Išoraitė, 2016). For instance, in
Romania, McDonald developed the local dish McMici, which is a traditional Romanian dish
made from a combination of beef, lamb, and pork coupled with spices.
Price
Notably, price is also a vital marketing factor in the promotion of a product in a new
market. An international company can decide to use high prices to penetrate the market,
whereas others can opt for cheap rates to achieve a glocalized status (Išoraitė, 2016). For
example, McDonald’s commodities are perceived as less expensive within the United States
while in the Indian market, when compared with domestic food, they are considered valuable.
Promotion
Promotion aids in increasing the awareness of the product, thus, contributes to the
higher sales of the commodity and the creation of brand loyalty. As such, promotion refers to a
technique that helps in conveying informative materials; persuade consumers, and impact
customers' purchase decisions (Išoraitė, 2016). International firms need to develop an
appropriate promotional method to help augment product awareness.

Conclusion
Conclusively, the dynamic international business environment characterized by political,
environmental, legal, and economic elements poses a significant challenge to businesses that
want to venture into global marketing. Studies deduce that global entrepreneurs are not only
sensitive to the diverse marketing ecosystems but also in harmonizing business moves
internationally to attain optimum output for their entities. Different techniques exist that can be
used by organizations to enter the global arena, such as foreign investment, franchising, direct
exporting, licensing, and international partnership. Factors like political instability, harsh
economic laws, and socio-cultural differences of the targeted population can influence the
performance of a syndicate. Lastly, RTA and trade blocks also can limit the movement of
commodities between nations due to trade restrictions outlined by each association.
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