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Culture In International Relationship Marketing

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Discuss about the Culture in International Relationship Marketing.



The business operations and the business practices which are executed between the two different nations or economies and the trade which is conducted across the borders is known as international business. These types of business operations are considered under the global context and can be termed as the international business. Global business is the practice or the activities which encompasses all commercial activities which are executed for promoting the exchange of goods and services the available resources, people, and technologies across the national boundaries (Frank Chung 2017). Global business offers benefits to the business environment, for instance the emergence of the concepts such as globalization, modernization etc. The advantages of Successful global organizations perceive the assorted variety of the world commercial center and can adapt to the vulnerabilities and dangers of working together in a persistently changing worldwide market. A business procedure that includes offering products and services in various outside business sectors without changing the attributes of the products and services to suit the social standards or traditions of the different markets can be considered as the international business. The below executed report will be focused on the business development plan of Coles Thailand which is a supermarket brand name in Australia.

The attractiveness of the market structure in which the business entity is operating can be defined by the benefits or the aids which will be gained by the business corporation (Armstrong et al., 2015).  Coles is a supermarket chain and is a well-known brand name and operates the business all over the globe. As mentioned in the presented scenario the business entity is planning for development of the business and the selected market region is Thailand. For presenting the attractiveness of the market for Coles an analysis of some of the external factors can be done:

Thailand has a diversified manufacturing sector which has been considered as an integral contributor in the country’s growth and development (Aydin, 2016). On the basis of the conducted research it has been noted that in 2010, the contribution of the industrial sector was 44.7% of GDP with an increase in the output from THB2.3tn ($53.1bn) in 2002 to THB4.3tn ($119.5bn) in 2010. Moreover, it has also been estimated by Thai chamber of commerce that the recent foods cost the economy $33bn and this can be proven very much beneficial for the business entity. The above presented data proves that the economy is a stable region and developing the business to such a region will be proven beneficial for the entity (Cavusgil et al., 2014). Moreover, the economic condition of the entity is more likely to stimulate the business environment; the factors such as a high level of employment will lead to ensure the entity in hiring potential and skilled workforce. There is no control over these factors but the impacts of the same on the marketing mix can be deep.

According to the survey the survey it has been analyzed that Thailand had a literacy rate of 95.7% for the total population in 2010. The government incurred around 4.3% of GDP on educational sector for the duration 2006-09 (Czinkota & Ronkainen, 2013). And through this it has been concluded that this factor will be proven beneficial for the business entity as the high literacy rate dictates the presence of an educated workforce on a large number. This has been considered as one of the integral factor as the workforce is the most valuable asset for the organization. Moreover, it has also observed that an increase in the contribution of women in the workforce and also the average educational qualification has been found increasing. An increase in the educational qualification will provide the business entity with the potential and skilled workforce. This will enhance the quality and productivity of firm.

Technology and advancement has been considered as one of the main factor which is required to be essentially and effectively adopted by the business entity. This is one of the factors which enable the entity in coping up with the competitive environment and also tackling with the rivals. An upgraded technology also aids the business corporation in the various operations and functionalities. For instance, in case of Coles, the technology will be used by the business entity in maintaining and managing the super markets and the stores (Meiners et al., 2014). The inventory in the warehouses, a proper display of products in the super markets will be made possible. Moreover, cloud computing has been considered as one of the biggest technological up-gradation which can be used by the business entity for storing the data.


Resources and capabilities of Coles

The resources and the capabilities are considered as one of the integral component of the business entity as they assist the corporation in executing all the operations and functionalities. The optimum utilization of all the available resources and capabilities of the workforce will enable the entity in attaining desired growth and success (Morschett, Schramm-Klein & Zentes, 2015). The increased performance level will result in a strong operating system and which will enable the entity to tackle with the rivals. The resources has been segmented in the various divisions and from them the major divisions are tangible and intangible resources which are further segmented in varied range of resources which are available with the business entity. The below pasted is the approach which can be utilized by Coles for presenting the resources and capabilities of the firm.

This approach can be adopted or utilized by the business entity for describing the available resources and capabilities with the firm and which will be further used for attaining the competitive advantage in the business environment (Nahavandi, 2016).

The resource-based view (RBV) can be considered as the approach or the way of viewing the business entity and in turn of approaching strategy. On a very basic level, this hypothesis plans the firm to be a heap of assets (Papadopoulos & Heslop, 2014). It is these assets and how they are joined, which make firms not the same as each other. It is considered as adopting a back to front strategy while dissecting the firm. This implies the beginning stage of the investigation is the inner condition of the association.

Resources of the firm can incorporate all advantages, abilities, hierarchical procedures, firm traits, data and information. In short resources can be considered as sources of info that encourage the association to play out its exercises (Samaha, Beck & Palmatier, 2014). All assets that an association has might not have key pertinence. An association's asset ought to have four credits to give the possibility to upper hand. The below presented are the VRIN characteristics which are described for the resources which are strategically significant for the entity:

Valuable: When resources are considered as liable in bringing value to the organization then they can be considered as the source for attaining the competitive advantage (Turnbull & Valla, 2013).

Rare: The resources are required to be utilized in a manner that they deliver or assist in development of a unique strategy for providing competitive advantage to the business organization. In some cases there are some resources which are valuable and are present with then competitors as well. Such a resource is not rare to provide the competitive advantage to the firm.

Inimitable: Resources can be wellsprings of maintained upper hand if contending firms can't get them (Wild, Wild & Han, 2014). For instance, a scenario can be considered where a resource is significant and uncommon however the contending associations can duplicate them effectively. Such assets likewise can't be wellsprings of upper hand


Non-substitutable: Resources ought not to have the capacity to be supplanted by some other deliberately proportional significant resources (Cavusgil et al., 2014). On the off chance that two resources can be used independently to execute a similar technique then they are deliberately comparable. Such resources are substitutable as are not wellsprings of supported upper hand.

The VRIO analysis can be put to use for further depth and knowing the resources and capabilities and also the advantages which will assist in sustaining in the competitive environment. The below presented is the description of VRIO analysis for Coles super markets for getting aware about the resources and capabilities:

Ordinary low costs: Cole’s Super market has everlastingly had the solid acknowledgment from their motto, 'I M Free”. The importance of this trademark is that Coles Super market offers the most focused costs, and if a consumer comes to them with a superior value (Beamish, 2013), Coles Super market will coordinate this cost. This has been a significant asset and has enabled Coles Super market to accomplish the biggest share of the overall industry in the markdown retail industry. This trademark is likewise an irregularity inside the business. In any case, we find that this technique is effortlessly repeated. Coles Super market is presently sorted out to completely abuse this asset (Dinnie, 2015).

Grocery Retail: Cole’s Super market right now offers staple retail inside their stores; this is an important asset that enables them to hold substantial benefits (Forsgren & Johanson, 2014). This isn't an uncommon trait in light of the fact that there is other rivalry that has a similar advertising. This could be effectively imitated however Coles Super market is completely fit for misusing this asset.

Greeters: Cole’s Super market is the main markdown retail location that offers greeters when clients enter the store (Enderwick, 2013). This is a profitable asset since it gives the purchaser an inviting vibe when they enter. This is additionally an uncommon property inside the business. Any organization that endeavored to impersonate this would confront huge costs (expanded workers = increment cost). Coles Super market is completely able to sort out this ascribe and adventure it further bolstering its fullest good fortune.

MIS System: Cole’s Super market is known for having the cutting edge MIS framework that enables them to keep stock costs low (Moran, Abramson & Moran, 2014). No other retailer inside the business has possessed the capacity to arrange and abuse this asset. This is an uncommon, significant asset and couldn't be effortlessly imitated.


Institutional factors affecting firm’s ability

The below presented are the institutional factors which are held liable in stimulating the firm’s ability and performance:

The above mentioned are the factors which comprise of the most integral components which can be considered as responsible in stimulating the business environment of Coles super markets in Thailand (Ferraro & Briody, 2017). Political factor includes the political stability of the region or the economy, the nature of the governing bodies .i.e. the government is supportive by nature or not etc. Whereas the economical factor comprise of the elements such as the interest rates charged, the tax rates or the economic stability of the economy. These all the factors are required to be positive as they play a crucial role in influencing the business environment. For instance, if the governing authorities are not supportive in Thailand then Coles will have to face number of issues for developing the business in the region. Also the tax rates and interest rates will be affecting the business operations. Economic and political instability can be considered as an integral reason and can also come-up as a threat on Cole’s super market in Thailand. For instance, a downturn in the economic conditions, the business entity can also face a decrease in the number of customers. And this will affect the income and revenues of the super market.

Society is one of the most empirical factors which play a significant role in influencing the ability of the business corporation. Social factors are the elements which comprise of the consumers, the lifestyle of the consumers, their perception and buying patterns for the products their beliefs and thoughts etc. These all are the factors which are considered as very much liable in influencing the performance of the business organization (Nahavandi, 2016). For instance, the beliefs and perception of the consumers dictates the demand and supply of the products and services and which will surely affect the performance and ability of the entity.  The consumers prefer less to wander here and there for shopping. The super markets allow them to shop all the products or the requirements at one place and this convenience will positively affect the performance level of the business corporation (Wach & Wehrman, 2014).

Technology and up-gradation has been considered as one of the most essential requirement for the business organization which is utilized by the entity in all the operations and functionalities. This factor aids the entity in coping up with the modernization and changing trends in the market. In case of Cole’s super market technology plays a significant role in developing and attaining a high level of success and growth (Pudelko, Tenzer & Harzing, 2014). For instance, the super markets should have CCTV cameras which will be installed for maintaining a sense of security and safety, cloud computing system should be used by the business entity for storing the data to a single system. These are some of the examples which will bring improvements and advancements to the performance and ability of the firm.


Effects on entry decision

The political and economic factor is considered as very much liable in stimulating the business operations and functionalities of Cole’s. For instance, the business entity will have a smooth and flawless working environment if the entity is obeying and following all the guidelines and norms which are levied by the political or the governing bodies within the economy. The consumers are the king of the market and are one of the most integral part of the society and are liable in stimulating the business. As their perceptions, life style and beliefs will affect the demand and which will be reflected in the sales and profits of the firm. The entity should be coping-up with the changing trends and technological up-gradations and which will aid the firm in dealing and tackling the competitive environment within the economy (Hill, Cronk & Wickramasekera, 2013).

All these above mentioned are the factors are positively affecting the entry decision for the business entity in the new region for the purpose of business development of Cole’s in Thailand. 


In the limelight of the above executed analysis it has been concluded that Cole’s super market is a multinational brand name in the sector of super-market and has been expecting for business development in Thailand. The above report has been made focused on the business development plan which is analyzing number of factors which will be stimulating the business environment and operations of the entity. The report comprises of the analysis of the description of the market of Cole’s super market which comprises of the positive factor which are affecting the business environment of the organization. Further, the analysis comprise of the development of the awareness of the resources and capabilities which will be utilized by the business corporation for competing with the rivals. The next are the institutional factor which are stimulating the performance of the firm and also impacts of the same are described.



Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction. Pearson Education.

Aydin, R. (2016). An integrated marketing and engineering approach to product line design with consideration of remanufactured products (Doctoral dissertation, The Hong Kong Polytechnic University).

Beamish, P. (2013). Multinational joint ventures in developing countries (RLE International Business). Routledge.

Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L. (2014). International business. Pearson Australia.

Czinkota, M. R., & Ronkainen, I. A. (2013). International marketing. Cengage Learning.

Enderwick, P. (Ed.). (2013). Multinational Service Firms (RLE International Business). Routledge.

Ferraro, G. P., & Briody, E. K. (2017). The cultural dimension of global business. Taylor & Francis.

Forsgren, M., & Johanson, J. (2014). Managing networks in international business. Routledge.

Frank Chung. (2017). Coles focuses on service with I’m free. Retrieved on 22nd October 2017. From

Meiners, R. E., Ringleb, A. H., & Edwards, F. L. (2014). The legal environment of business. Cengage Learning.

Moran, R. T., Abramson, N. R., & Moran, S. V. (2014). Managing cultural differences. Routledge.

Morschett, D., Schramm-Klein, H., & Zentes, J. (2015). Strategic international management. Springer.

Papadopoulos, N., & Heslop, L. A. (2014). Product-country images: Impact and role in international marketing. Routledge.

Pudelko, M., Tenzer, H., & Harzing, A. W. (2014). Cross-cultural management and language studies within international business research: past and present paradigms and suggestions for future research. Routledge companion to crosscultural management. London: Routledge.

Samaha, S. A., Beck, J. T., & Palmatier, R. W. (2014). The role of culture in international relationship marketing. Journal of Marketing, 78(5), 78-98.

Turnbull, P. W., & Valla, J. P. (Eds.). (2013). Strategies for international industrial marketing. Routledge.

Wild, J. J., Wild, K. L., & Han, J. C. (2014). International business. Pearson Education Limited.

Hill, C. W., Cronk, T., & Wickramasekera, R. (2013). Global business today. McGraw-Hill Education (Australia).

Wach, K., & Wehrman, C. (2014). Entrepreneurship in International Business: International Entrepreneurship as the Intersection of Two Fields. International Entrepreneurship and Corporate Growth in Visegrad Countries, 9-22.

Dinnie, K. (2015). Nation branding: Concepts, issues, practice. Routledge.


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