Assignment Paper

In this active learning assignment, you will see the real-world applicability of the content of the international
marketing class. We have learned about the important factors when conducting international marketing. We
have considered various cultural, social, legal, political, and economic environments a company has to
adjust to when going abroad. Yet, even successful companies sometimes fail when going abroad. In this
exercise, I would like you to identify one of those companies and understand the reasons why they failed.
To start, search for information online. You may use a company you enjoy doing business with, such as a
food chain, hotels, grocery or consumer goods stores. See which countries they internationalized to and if
there is one market, they failed in. Companies may be named more than once if they failed in various
countries, but no company-country combination can be repeated (thus, do not use my exact example
below). Once you have found a good example and sufficient information, please write a discussion about
your findings. Please consider political, economic, cultural &social, legal issues which led to the market
entry failure. There are some obvious examples, but maybe you want to dig a bit deeper and find a new
interesting one.Learning Goals: Understand and Apply knowledge about international environments,
conduct market research, write a short discussion. Write in a concise manner.Required Length: 600-700
words strictly enforced (main text; reference list and front page are not included in word count)Font:
Times New Roman, Size 11 double spacedFront Page: Individual Writing Assignment, your name,
company and countrySources/References: APA Format throughout. In-text citations as well as references
list. All sources will need to be acknowledge. I will use turn-it in.com to check for plagiarism.Content: 1)
very brief overview of the company and the market entry, 2) discussion of issues leading to market failure
(main focus of the assignment), 3) suggestions on what company should have done better and what they
can learn from the failure. In short, here is a brief example of a market entry failure (please note that not all
components required for the assignment are discussed here as it is only a brief example of issues; you
cannot use the exact same example): Walmart entered Germany in 1997Walmart exited Germany and its
attractive grocery/retail market after only 9 years in business.Issues:Ethnocentric View (lack of
adjustment to local culture)Labor relations (pro-labor union culture in Germany): Legal/Political
EnvironmentShopping culture (Germans prefer to shop in smaller stores, no bulk
purchasesEnvironmental Issues (Germans are too “green” and oppose the plastic culture)Ethics
(different perceptions of what is considered ethical; such as spying on employees)Differences in
corporate culture (German employees and customers did not buy into the US corporate culture – smiling
)Lack of economies of scale/ High competitive environment in Germany grocery marketStrategy was not
transferrable: Low-cost leader with huge supplier network (shop local is more important in Germany than
the US)Price sensitivity (consumers are already used to local chains with cheap prices but higher quality):
Economic