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Enterprise Ireland is the government organisation responsible for the development and growth of Irish enterprises in world markets - Leaving Cert Business - Question 3 - 2022
Question 3
Enterprise Ireland is the government organisation responsible for the development and growth of Irish enterprises in world markets. It works in partnership with Iris... show full transcript
Worked Solution & Example Answer:Enterprise Ireland is the government organisation responsible for the development and growth of Irish enterprises in world markets - Leaving Cert Business - Question 3 - 2022
Step 1
Outline the challenges of global marketing that an Irish business may face when trading internationally.
Answer
When Irish businesses engage in global marketing, they encounter several challenges:
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Global Product: Businesses need to standardize their products for global markets while considering local preferences. This might require modifications in branding or packaging. For example, a product designed for one market may not appeal to consumers in another due to cultural differences.
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Global Price: Setting prices appropriately is crucial. Companies must navigate varying costs of living, taxation, and exchange rates in different countries, which can complicate pricing strategy and sales.
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Global Place: Distribution channels differ globally. Companies must decide on their mode of export, whether direct or through intermediaries, and contemplate any partnerships to establish a presence in new markets.
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Global Promotion: Marketing communication strategies need to be tailored to local markets. Firms must adapt promotional campaigns to fit cultural nuances, languages, and local regulations.
Step 2
Illustrate, by using an example, your understanding of the term an indigenous business.
Answer
An indigenous business is one that is owned and operated by residents of the country in which it functions.
For example, Dunnes Stores is an indigenous business in Ireland. Established by Irish residents, it has become a prominent retail chain, showcasing how local ownership contributes to understanding and addressing the market's specific needs.
Step 3
Discuss the benefits for large indigenous businesses of exporting to new markets.
Answer
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Increased Sales/Emerging Markets: By tapping into new and emerging markets, indigenous businesses can significantly increase their sales volume. For example, entering markets in Asia or Africa allows them to access a larger customer base, thus boosting revenues.
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Reduced Costs – Achieve Economies of Scale: Exporting in larger volumes can lead to lower production costs by optimizing supply chains and buying raw materials in bulk. This reduction in cost can increase competitive advantage in both domestic and international markets.
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Diversification: Expanding into international markets diversifies business risks. By reducing reliance on domestic sales, businesses can buffer themselves against local economic downturns, making them more resilient overall.