If you’re a woman with big dreams you may want to move there

A recent study released by the International Labor Organization (ILO) and published by the Washington Post shows that nearly a third of all businesses around the world are now owned or managed by women. Additionally, women now hold roughly 40 percent of jobs around the globe. While these numbers may seem encouraging, there is still a long way to go. For example, in the United States, women hold less than 20 percent of all corporate board seats. In most developed countries, women are underrepresented on the boards of large corporations.

In developing countries, however, women seem to have more opportunity. Jamaica reigns supreme with close to 60 percent women managers. Colombia and Saint Lucia rank next with 53 and 52 percent respectively. Beyond these three, the Philippines comes in fourth with just under 48 percent female managers.

The countries with the lowest number of employed women managers are Yemen, Pakistan, and Algeria with 4.9, 3, and 2.1 percent of women bosses. The rest of the bottom ten are from countries in the Middle East and North Africa.

Women Employment2

Read the full report here: http://www.washingtonpost.com/blogs/wonkblog/wp/2015/01/13/the-three-countries-where-your-boss-is-more-likely-to-be-a-woman/

Oreo: how a global brand adapted to local tastes

oreoOreo is the world’s favorite cookie in more than 100 countries worldwide. The Nabisco division of Mondelez International had more than $2 billion in global annual revenues for its Oreo brand. In 2012, Oreo celebrated its 100th birthday. While the cookie continues to be the most popular in the United States, new exotic flavors are sweeping the globe. Oreo’s Facebook page has more than 38 million followers from around the globe.

Mondelez’s ability to adapt to local tastes is important as it continues to look for overseas growth. In 2014, Mondelez’s international revenues more than doubled compared to its U.S. revenues. Oreo’s biggest markets ranking in order are United States, China, Venezuela, Canada, Indonesia, Mexico, Spain, Central America and the Caribbean, United Kingdom and Argentina.

Global companies face a critical question when considering to enter a new market: how far should they go to localize their offerings to appeal to the local consumer? Mondelez introduced Oreo cookies to Central and Latin America in 1928 and then to Canada in 1949. In 2006, Mondelez offered a wafer cookie to Chinese consumers to familiarize them with the brand. Three years later, Mondelez worked with a Chinese consumer panel to determine the right combination of color, crunchiness, and bitterness to appeal to their tastes. The company re-engineered the traditional Oreo to be smaller and not so sweet. When Mondelez noticed their sales lagging, they introduced a green tea Oreo flavor in China that evokes eating ice cream by featuring a cooling sensation in the cream. Oreo is now the top-selling cookie in China with a market share of 13 percent.

Asia also has fruit duo Oreo cream fillings which include the side-by-side flavors of oreo chineseraspberry, blueberry, orange, mango, peach, and grape. In Indonesia, Oreo offers a chocolate and strawberry duo cookie. Meanwhile in Argentina, Oreo has introduced cookies with dulce de leche and banana cream filling. In Mexico, Oreo has three different combinations of chocolate with different chocolate flavored wafers as well as a cocoa cream filling.

This is an excerpt from the book by: Michael R Czinkota, Ilkka A Ronkainen, and Michael H. Moffett. Fundamentals of International Business (New York: Wessex, 2015), 19.  

2014-15 Global Competitiveness Ranking

The Global Competitiveness Report that is published by the World Economic Forum looks at the competitive landscape of 144 economies in terms of the institutions, policies, and factors that determine the productivity and long-term growth of a country. Sectors such as a country’s infrastructure, macroeconomic environment, health, education, job market, financial development, and technological readiness are all considered.

Key Findings:

  • Switzerland and Singapore retain their position as first and second respectively. The United States moves to third from fifth place last year.
  • Those countries in Europe such as Spain, Portugal, and Greece are effectively implementing reforms and remain highly competitive. Whereas, the other half of Europe is lagging behind including France and Italy.
  • Most improved region belongs to Southeast Asia where Malaysia (20th), Thailand (31st), Indonesia (34th), Philippines and Vietnam (68th) have all progressed in their rankings. The Philippines is the most improved economy since 2010 jumping from 85 to 52.
  • Emerging market economies such as Brazil (from 57 to 56) and India (from 60 to 71) lost their competitiveness. But Russia (from 64 to 53) and China (from 29 to 28) climbed in global rankings.
  • Most Latin American economies need to address their productivity challenges in order to keep the momentum of their growth in the past years.
  • Due to geopolitical instability in the Middle East and North Africa, the region depicts a mixed picture. United Arab Emirates takes the lead in 12th place. Sub-Saharan Africa continues to pose impressive growth rates of 5 percent.

Global Rank2Are the rankings useful to you? Any surprises? Tell us what you think.

Source:

Innovation in Developing Economies

by Michael Czinkota and Ilkka Ronkainen

Innovation in developing economies is evolving rapidly, but still can improve in terms of marketing. Businesses in emerging economies can make profits and can positively affect the livelihoods of people. In the next generation, multinational corporations can expand to vast un- and underserved consumer groups in developing countries. Executives need to redefine their roles and relationships across companies and radically depart from traditional business models through new partnerships and structures.

Research

Businesses need to understand the needs, aspirations, and habits of target populations. For most emerging-market consumers, price is not the determining factor, but the total purchase cost (including transportation cost, time, the burden of carrying purchases, and storage availability). Large U.S. chocolate companies established only a marginal presence in Latin America with their standard American large chocolate bars. In contrast, Arcor and Nacional de Chocolates have grown their businesses by selling more affordable bite-sized chocolates that are available in remote rural stores.

Digital Technology

Due to the economic and physical isolation of poor communities, businesses that provide access to digital technology have the potential to thrive. Cisco partners with a range of global and local partners to sell, lease, or donate $300 million worth of computer products and services to markets worldwide. In Bangladesh, where the average annual income is $200, GrameenPhone Ltd. leases access to wireless phones to villagers. Every phone is used by an average of 100 people and generates $90 in revenue per month—two or three times the revenue generated by wealthier users who own a phone in urban areas. This program has been replicated in other countries, including Uganda and Rwanda.

Financial Services

Microfinance programs have allowed consumers to borrow sums averaging $100 to make purchases without using collateral. The mission of microfinance is to let the poor access financial services and improve their living standards. For example, Te Creemos developed a complete electronic payment solution in Mexico by partnering with MasterCard, which affords small and medium-sized enterprises a micro-business card and a low cost payment method.

Local Solutions

Many emerging consumers do not shop at supermarkets. Nestlé employs local residents with pushcarts who take small quantities of merchandise to kiosks. Unilever is rolling out similar strategies in Kenya, Indonesia, Vietnam and other countries offering five-peso “starter packs” in the Philippines. Others reach out to beachcombers via bicycles. Innovations can start in developing countries first, and disseminate via a trickle up approach.. Pepsi snacks like Kurkure and Aliva from India have attracted attention from the United Kingdom and the United States.

Distribution

In the past, underdeveloped and monopolistic distributing networks of developing countries saw their primary jobs as distributing sales literature, cutting through red tape, and charging invariably high fees. Today, outside competition has forced distributors to add value to what they do. If local conditions do not measure up, companies are willing to use outside captive distribution systems or to appoint their own people in place. Eveready has an extensive network of associates and 15 distributors who support its business in East.

Multinational Commitments

Businesses, governments, and civil societies can join together in a common cause to help the aspiring poor to join the world economy. Lifting billions of people from poverty may help avert social decay, political chaos, terrorism, and environmental deterioration. For example, Procter & Gamble has a Safe Drinking Water program in Kenya through their water-purifying brand PUR that improves access to safe drinking water.  Coca-Cola funds “Slingshot”, a water purification system for communities in need.  Multinational companies can envision a world empowered by equal access to life’s basic needs.

Challenge to Existing Business

Marketers need to convert innovation opportunities in developing countries. Historically, what worked for a peasant in rural Kenya or Colombia had little interest for a sophisticated urban consumer in the West. Now, these opportunities may provide new platforms for growth even in post-industrialized markets. Africa’s prospects have proved alluring to Wal-Mart, which has agreed to pay roughly $2.4 billion to buy 51% of South Africa’s Massmart Holdings, with plans to use the discount retailer for continental expansion. Yum Brands recently said it wants to double its KFC outlets in emerging countries over the next few years to 1,200. Rising consumption will increase the demand for local products, and, given proper support, will trigger domestic growth and lift developing countries and their consumers up to greater economic opportunity and a better life.

Ilkka A. Ronkainen Georgetown School of Business faculty.

World Cup Brazil Will Generate $4 Billion for FIFA, 66% More Than 2010 Tournament

World Cup Brazil will generate $4 billion in total revenue for FIFA, or 66% more than the previous tournament in South Africa in 2010. The vast majority of the money will come from the sale of television and marketing rights. The World Cup generates more revenue for its association than any other sports tournament, save the Olympics (based on revenue per-event-day, the NFL’s Super Bowl reigns supreme). FIFA’s profit for the Brazil World Cup: $2 billion.

Almost all of the revenue FIFA generates comes from television rights ($1.7 billion) and marketing rights ($1.35 billion) from corporate partners like Adidas Emirates, Sony , Visa V+0.87%, Hyundai and Coca-Cola . Blue chip companies love to throw money at the World Cup because it is followed passionately throughout most of the world.

FIFA research, which took a year to produce after the 2010 World Cup in South Africa, said 909 million television viewers tuned in to at least one minute of the 2010 final at home. Some 619.7 million people also watched at least 20 consecutive minutes of Spain’s 1-0 extra-time win over the Netherlands in Johannesburg. More than 3.2 billion people watched live coverage of the 2010 tournament for a minimum of one minute. The average official rating was 188.4 million for each match.

The 2010 Men’s World Cup drew the most US viewers ever for the tournament. ESPN announced that broadcasts averaged a 2.1 rating (2.29 million households and 3.26 million viewers), a 31% increase over 2006. The final between the Netherlands and Spain was the most-watched men’s World Cup game with 15.6 million viewers.

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