Chapter ObjectivesI. International and Domestic ResearchCHAPTER 10BUILDING THE KNOWLEDGE BASEChapter 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 systemsChapter OutlineI. INTERNATIONAL AND DOMESTIC RESEARCHA. New Parameters1. Duties2. Foreign currencies3. Different transportation4. International documentation5. Different modes of operatingB. New Environmental Factors1. Cultural differences2. Political and legal differences3. Level of technologyC. The Number of Factors Involved1. Difficult to coordinate all that is involved2. Comparison of results across countries must be done3. Determining how to apply what is learned in one country in anotherD. Broader Definition of Competition1. Greater variety of competition2. Labor market may affect cost and pricing strategyII. Recognizing the Need for International ResearchA. Often very little research is done1. Lack of sensitivity to differences in culture, consumer tastes, and market demands2. Limited appreciation for different environments3. Lack of familiarity with national and international data sources4. Companies get involved gradually and use experience as substitute for researchB. Research allows management to identify and develop international strategiesIII. Determining Research ObjectivesA. Going International--Exporting1. Foreign market opportunity analysisa. Begin with cursory analysis of general variables pertaining to the countryb. Information on each country for preliminary evaluationc. Select markets for in-depth evaluation2. Competitive assessment to match corporate strengths with marketsB. Going International—Importing1. 1. Find details on foreign supplier2. Find out about source country laws and rules3. Understand domestic restrictions and legislationC. Market Expansion1. Find more detailed information for expansion2. Monitor political climate3. Evaluate new business partners4. Assess new technologyIV. Conducting Secondary ResearchA. Identifying Sources of Data (Table 10.1, page 319)1. Governments2. International Organizationsa. U.N.b. WTOc. Organization for Economic Cooperation and Development (OECD)d. IMFe. World Bank3. Service Organizations (banks, accounting firms, freight forwarders, airlines, consultants, research firms, publishing houses)4. Trade Associations—chambers of commerce5. Directories and Newsletters (usually by industry)6. Electronic Information Servicesa. International online computer database servicesb. National Trade Data Bank (NTDB)B. Selection of Secondary Data based on quality, recency, and relevanceC. Interpretation and Analysis of Secondary DataD. Data Privacy1. Social view of sharing data2. Legal restrictions may existFocus on EthicsTo 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 needsA. Industrial versus Consumer Sources of Data must be decidedB. Determining the Research Technique1. Depends on objective of research2. Qualitative Techniquesa. Interviewsb. Focus Groupsc. ObservationFocus on CultureCheck 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.3. Quantitative Techniquesa. Surveys1) Mail2) Telephone3) Personalb. Web Technology1) web-based research2) eMail-based surveysVI. The International Information System to provide data for ongoing decisionsA. The systematic and continuous gathering, analysis, and reporting of data for decision-making purposesB. Positive system attributes1. Relevant information2. Timely information3. Flexible information—in the form needed by management4. Accurate information5. Reasonably exhaustive information6. Consistent collection and processing of informationC. Export complaint system—allows customers to contact supplier to inquire about products, make suggestions or present complaintsD. Environmental Scanning—provide continuous information on political, social, and economic affair1. Obtaining factual input2. Content analysis uses print medial to track evolution of trendsE. Delphi Studies—aggregate the judgments of experts who cannot come together physically using input solicitation and feedback repetitivelyF. Scenario Building—development of a series of plausible scenarios from trends