CHAPTER 10

BUILDING THE KNOWLEDGE BASE

Chapter Objectives

  • To gain an understanding of the need for research
  • To explore the differences between domestic and international research
  • To learn where to find and how to use sources of secondary information
  • To gain insight into the gathering of primary data
  • To examine the need for international management information systems

Chapter Outline

I.International and Domestic Research

  1. New Parameters
  2. Duties
  3. Foreign currencies
  4. Different transportation
  5. International documentation
  6. Different modes of operating
  7. New Environmental Factors
  8. Cultural differences
  9. Political and legal differences
  10. Level of technology
  11. The Number of Factors Involved
  12. Difficult to coordinate all that is involved
  13. Comparison of results across countries must be done
  14. Determining how to apply what is learned in one country in another
  15. Broader Definition of Competition
  16. Greater variety of competition
  17. Labor market may affect cost and pricing strategy

II.Recognizing the Need for International Research

  1. Often very little research is done
  2. Lack of sensitivity to differences in culture, consumer tastes, and market demands
  3. Limited appreciation for different environments
  4. Lack of familiarity with national and international data sources
  5. Companies get involved gradually and use experience as substitute for research
  6. Research allows management to identify and develop international strategies

III.Determining Research Objectives

  1. Going International--Exporting
  2. Foreign market opportunity analysis
  3. Begin with cursory analysis of general variables pertaining to the country
  4. Information on each country for preliminary evaluation
  5. Select markets for in-depth evaluation
  6. Competitive assessment to match corporate strengths with markets
  7. Going International—Importing
  8. 1. Find details on foreign supplier
  9. Find out about source country laws and rules
  10. Understand domestic restrictions and legislation
  11. Market Expansion
  12. Find more detailed information for expansion
  13. Monitor political climate
  14. Evaluate new business partners
  15. Assess new technology

IV.Conducting Secondary Research

  1. Identifying Sources of Data (Table 10.1, page 319)
  2. Governments
  3. International Organizations
  4. U.N.
  5. WTO
  6. Organization for Economic Cooperation and Development (OECD)
  7. IMF
  8. World Bank
  9. Service Organizations (banks, accounting firms, freight forwarders, airlines, consultants, research firms, publishing houses)
  10. Trade Associations—chambers of commerce
  11. Directories and Newsletters (usually by industry)
  12. Electronic Information Services
  13. International online computer database services
  14. National Trade Data Bank (NTDB)
  15. Selection of Secondary Data based on quality, recency, and relevance
  16. Interpretation and Analysis of Secondary Data
  17. Data Privacy
  18. Social view of sharing data
  19. Legal restrictions may exist

Focus on Ethics
To Share Research or Not to Share Research?
Summary:
This vignette points out how the free flow and exchange of information about biological and chemical advancements can be a terrorist threat to the country.

V.Conducting Primary Research—obtained by firm for specific information needs

  1. Industrial versus Consumer Sources of Data must be decided
  2. Determining the Research Technique
  3. Depends on objective of research
  4. Qualitative Techniques
  5. Interviews
  6. Focus Groups
  7. Observation

Focus on Culture
Check Your Translations!
Summary:
This case expands the usual translation errors in advertising to those made in research instruments. Some of the translations are very amusing.
  1. Quantitative Techniques
  2. Surveys

1)Mail

2)Telephone

3)Personal

  1. Web Technology

1)web-based research

2)eMail-based surveys

VI.The International Information System to provide data for ongoing decisions

  1. The systematic and continuous gathering, analysis, and reporting of data for decision-making purposes
  2. Positive system attributes
  3. Relevant information
  4. Timely information
  5. Flexible information—in the form needed by management
  6. Accurate information
  7. Reasonably exhaustive information
  8. Consistent collection and processing of information
  9. Export complaint system—allows customers to contact supplier to inquire about products, make suggestions or present complaints
  10. Environmental Scanning—provide continuous information on political, social, and economic affair
  11. Obtaining factual input
  12. Content analysis uses print medial to track evolution of trends
  13. Delphi Studies—aggregate the judgments of experts who cannot come together physically using input solicitation and feedback repetitively
  14. ScenarioBuilding—development of a series of plausible scenarios from trends observed