Tuesday, May 5, 2020

International Business Of The Maldives Industrial Fisheries Company

Question: Discuss about the International Business Of The Maldives Industrial Fisheries Company. Answer: Introduction The report presents a brief overview of the Maldives industrial fisheries company that wants to operate its business activities in India. It explains the various kinds of risk which are faced by the company during the business. It explains the green concept, international selling, and negotiation. The Maldives industrial fisheries company (MIFCO) is a public company which is dealing in fish products. It was founded on 1 November 1993 in Maldives. It is dealing various products such as canned tuna, frozen tuna, katsuobushi, frozen yellowfin tuna, fish meal, and loins etc. Today, the company is expanding its business across the world. Fish is the most demanding products in Sri Lanka to exports in other countries. Now the company has decided to expand its business in India. Therefore, the company has to look for the Indian market and opportunities for aquaculture growth in Indian market. India is the third biggest producer and manufacturer of fish across the world. Fisheries are a very important business for the Indian economy because it provides various employment opportunities to the people. It is the important source of the nutritional food and earning. The fisheries industry contributes approx 1.21 percent of the total gross domestic product and approx 5.37 percent of the GDP from the agriculture industry. It provides various employment opportunities to approx 14 million people. Indian market is very good for the aquaculture business. Thus, if the Maldives industrial fisheries company (MIFCO) wants to expand its market in India then it can take various opportunities in the market. If the company starts a business in India then it can take gain its revenue and profit. India has the developed country to expand the fisheries business in the market (Nagengast Marsh, 2012). Political risk Risk: It is an uncertain situation and event. If it occurs then it affects the goals and objectives of the company. If the MIFCO expand its business in India then it should focus on the various kinds of risk that exist in the market as well as the environment. Political risk: Political risk is faced by the investors, governments, and corporations. It affects the political decisions, conditions, and events that extensively affect the profit and revenue of the business. The company should manage and control the political risk factors (Tucker, 2012). Aquaculture is the sector of huge and immense diversity. Thus, the political risk affects the business of the aquaculture. Lack of water control structure, the company will face many challenges. The company cannot gain the good opportunities due to the inappropriate resources and energy crisis. There are various other reasons that affect the business of fisheries in India. They have been discussing below (Lde, Sutton, Tobin and De Freitas, 2012). There is instability in the Indian government. Secondary, corruption and fraud exist in the Indian government. The financial and economic policies of the government are not good in India for doing aquaculture business. Inadequate water supply and environmental sustainability risk are also a big concern for the company to expand its business in such country. In addition, inefficient and inappropriate administrative system is also a big obstacle to aquaculture growth and development (Saleem and Larimo, 2017). There is lack of trust between Sri Lanka government and the Indian government. Political interference influences the business activities and operations of aquaculture development. The company will face various weak and poor law enforcement issues, labor-related issues. The country does not provide the good wage payment to the employees therefore, various difficulties are faced by the firm. Another side, there is a shortage of qualified and talented manpower in India to expand the business of aquaculture (Ponte, 2012). The company will have to fulfill the entire legal requirement to start up the business in such country. It will have to register the product and company and it needs to complete the various customs requirements. Further, Odessa, Gujarat, and Tamil Nadu presently engage in legal and policy revision process, therefore, this process will affect the business of fisheries industry. The west Bengal policies are not good in regards to aquaculture business. Poor infrastructure is one of the biggest risks to flourish the business of aquaculture in India. The coastal states procedure and the process are not relevant in such country. The retail suppliers do not invest huge amount for the various operations and business activities thus, the company faces various problems. High employee turnover also exists in the Indian market that will affect the business of the association. There are no proper facilities for processing, transport, and freezing, therefore it will affect the business of the orga nization. The country does not maintain the proper quality standards, regulations, and hygiene standards. Tropical and steamy weather conditions are also considered the political risk and it will influence the trade of the fisheries industry. Religious sentiments will also influence the company practices in such country. The customers purchasing power of the country are very low and poor thus, it affects the business of fisherman. Further, politicians do not take interest in general public so they do not prefer the fisheries business in the market. Rapid and hasty changes in the politically nominated authorities in the government will affect the stability and sustainability of the company. In India. There is a shortage of clean and hygiene water thus it influences the trade activities and operations of the fisheries industry. The Regional and district disparities among the various states such as Jharkhand, Bihar, and Orissa also which also influence the company business activities a nd operations (Wheelen and Hunger, 2011). On the other hand, globalization, culture, nature, tastes, preferences of the Indians are also considered the political risk that affects the entire business of aquaculture. In India, many people do not like to eat non vegetarian food so it will affect the fisherman trade negatively. Many people prefer only vegetarian food (Yang and Gabrielsson, 2017). Sometimes, the government gives extra money to the food authorities therefore, the firm is not able to import the good quality of fish in the market. It will affect the health of the people and will become the excellent reason of various health diseases. The operational risk will occur due to the inadequate and insufficient processes, procedures, policies and systems thus, it will disrupt the business process and procedure in the market. The company will also face the various market risks due to the various competitors are existed in the market. The company also deals with financial risk due t o unavailability of huge investment. Sometimes, food companies are failed to invest the huge amount in such business across the world. Due to the inadequate financial risk and operations costs, the company also faces various challenges in the market. If the company wants to start its operations and business activities in India then various transfer risk, production risk, andmarketing risk will be faced by the company. It will influence the aquaculture business adversely (Mohamed et al, 2012). Green concept and issues It is related to the positive environmental changes that are existed in the company. The concept focuses on finding the solutions to societys problems. The Company checks the environment of the employees and management and take actions on the problems which are faced by the organization. The company must be well aware of the environmental needs. The strategies planned for trading should be in favor of the company. It is a B2B concept, one has to meet the requirements of other business. This concept majorly focuses on the green issues of the business. Before trading in the company, Maldives will have to look after the type of material quality that is used by India to make the product (Rutaisire, Nandi Sundaray, 2017). It is necessary for them to use the good quality of material in making any fisheries product. The materials are also an another problem in the aquaculture industry. There should be more use of renewable resources so that the product can be utilized for the further purpo se. Renewable resources are the resources that can be renewed and can be used again. The products utilization must be of the by-products. By-products are the already used by the company to flourish its business activities. The company should make the products in such a way that it should be used for a long time. There should be a long life of the products so that it can have optimum utilization. The product's design should make it worth purchasing to the customer. As being a fish product it should be fresh, well packed and hygienic. The packaging should be bio-degradable. The company should focus on the hygiene and biodegradable issues. Fish is an eating product thus, it should be packed properly with biodegradability. Maldives has to focus on such things before making its trade business in India. These green issues must be kept in mind because these are the techniques through the company can easily make a growth in Indian market. These are the strategic plans that will be helpful f or Sri Lanka. These green issues are related to the societal needs. It is necessary for the company to meet the demands of society for earning future profits (Murphy, 2010). International selling Sales: Giving goods and services and taking money in return is called selling. In general, a product is sold to a customer and the customer pays the amount relating to that product. The product is given in exchange for money. It focuses on two individuals, the buyer, and the seller. The buyer is the one who gets the product and the seller is the one who exchanges the product with a buyer for money (Sovacool, 2012). International selling: International selling is done with outside countries. This means one company joins hands with the other companies. The purpose of buying and selling the commodities to expand the business globally. This also helps is making good contacts with the companys prevailing all over the world. International selling is a B2B concept. Companies tie up with other companies to generate profits from a larger level. It is done outside the boundaries of the home country. Maldives industry has to put a lot of efforts and has to face many challenges while flourishing its trade business in India. It is not very easy to trade in a India (Wheelen Hunger, 2011) Search for the company for a new business Before indulging in the trade business with other countries, it is necessary to check through which countries can fulfill the demand of the company. Maldives will have to be very specific in searching a profitable Indian company for its fisheries business. In India, there is a whole hub of small and big markets selling fishes. So it is not comparatively easy to find a relevant company Maldives can tie up with. Such businesses are also run by larger companies who ask them to do so. Hence, it will become difficult to search for the best company. Arrange telephonic contacts Once the company is selected the next approach should be to contact the company telephonically. Reaching directly to the company is not a good option. It can be the waste of resources if the company does not turn out to be relevant (Thomas and Peterson, 2017). Through telephonic conversation, one make out what strategy will be needed to convince the company to trade in India. Same way, the company can also converse by video conferencing. In todays world, networking has become very easy for everyone. But sometimes contacting outside the boundaries of the home country it becomes difficult to make a direct contact. It is mandatory to have a proper network system. The company not only has to look for the basic amenities but also have to flourish with the fast-growing technological environment. Since Maldives fisheries is a big company, it is easy for them to make such conversations (Temple et al, 2017). Fixing up meetings The company should tie up with the other companies. When the company is finally decided then it is necessary to meet them and know about them. Fixing up meetings is a great way of dealing with the firm. It helps in knowing the company in a better way. It is a professional way of expanding the business in India. Fixing the meeting with India it will not be a tough task for Maldives. Maldives will have to look after the policies and strategies of the country (Pan, Minling, 2014). Identifying companys requirements The company should know its needs for easy business. It must fulfill the requirements of the other country. If the companys needs and requirements are satisfied it becomes easier to the work. Maldives has become the large-scale company of fisheries. Sri Lanka will have to fulfill their financial demands, their work must give good results in the market. Maldives will have to follow the demands. In a business, it is necessary to satisfy company needs and requirements (Tfoli et al., 2016). Strategic planning- A proper way of planning which can generate profits and good results is known as strategic planning. Strategic planning is an important feature of the business. Maldives should plan according to the requirements. The strategy should impress the Indian company. The planning has to be impactful and it should be easy in expanding. A good strategy becomes the the result of good outcomes and profits. Maldives has to put efforts in making a strategy. It should fulfill the needs of the market. The profits should be earned in a large amount (Papadopoulos and Heslop, 2014). Presentation- A good presentation reflects the companys reputation and type of functioning. A good plan is only expected from one who is experienced. Hence, the presentation has to be professional and accurate. The idea must impress the minds of the companys authority. Maldives should make the effective strategies to explore the business in India. India is a country where people need good quality of the products at lesser price (Nunes Ghermandi, 2013). Hofstedes concept Greet Hofstede introduced a psychological concept which took into consideration the cross-cultural communication, i.e. how the culture affects the values and the behavior of the natives. Therefore, it was an invention to bring across the interweaving between various cultures through communication and exchange of values. The approach has been divided into three parts that have been discussed below. Inequality of power According to this dimension proposed by Hofstede, the power is unequally divided among the working class. This results into the authority of the ruling class over the working class. Lack of unity Another key term proposed by him is Individualism. The company should follow and maintain the unity and teamwork in the organization. Overshadow of men over women It is the essential dimension that influences the business performance and efficiency of the workers Though women are competitive and have achieved the targets and soared heights, Although it is considered as a taboo. In a male-dominated society, women are still confined to the social spheres of life which surround them with household chores, caring nature, and submissiveness. On the other hand, men are the center of attraction and the heroes of all the times (Czinkota Ronkainen, 2013). The major drawback of this concept is the inconsistency which is criticized by famous critics. This concept has been used to determine cultural values by the analysts (Tucker Jr, 2012). Uncertainty and Avoidance It is a dimension which depicts the uncertainty and ambiguity of people in a society which is unfulfilled by the company. Short-term versus long-term This dimension is dictated by the truth. When it exercises higher degree it leads to the adoption of values. When on a lower index it leads to variation in thoughts and actions (Nagengast Marsh, 2012). Self-Reference Criterion The SRC (Self Reference Criterion) gives the information about the cultural values, the experiences, and knowledge on the basis of decisions being made. It relates to something where people have their own opinion in their own company, the culture followed by them or the strategies planned for doing the things. The company accepts the demand of the market which makes it easier to work with international marketing. This results in a successful international marketing. It is important for international marketing as it deals with the foreign and domestic market. This makes company cope up with the company within and outside the market. This minimizes the effects and maximises the profits. In todays world, due to the expanding of the market and the number of products, international marketing has to suffer from the issues prevailing with the cross-cultural techniques. Many marketing researchers explain that the criteria of self-reference have now become an important feature to understand the cultural views of the market (Herna Octavia Damayanti, Indah Susilowati Herry Boesono, 2017). Self-reference criterion is an application of a cultural viewpoint. The Self-reference criterion goes parallel to ethnocentrism. The essential aspect of trading in the other country is to identify and address the differences that before placing it on the levels of foreign marketing. This leads to a successful business planning (Shyam, Shridhar and Fernandez, 2017). The strategies made at such level will result in good outcomes. The differences are cleared and company meets the requirements of the market. Many firms believe that after selling a particular product with great success, the company will now flourish in the market. This becomes the major drawback for the company. Such things will affect the growth of the business. Success in a foreign market is not that easy. The company should put hard labor at every stage. In this way, looking at the aspect of SRC it is not easy to expand the trade. Self-reference criterion, therefore, becomes a hurdle in trading with international marke t (Guttormsen et al, 2011). It gives the information about the cultural values, the experiences, and knowledge on the basis of decisions being made. It relates to something where people have their own opinion in their own company, the culture followed by them or the strategies planned for doing things. For example, it is possible that the company can make decisions according to their own requirements. This will affect the expansion and development of the business. It also goes parallel with what is being done in the foreign market will be done in the foreign market. It will be suitable and profitable for the company. This makes the checking of product irrelevant. It reflects the opinion of human psychology, consciously or unconsciously. It is a standard way of knowing others opinion with the cultural aspect. According to Hofstede, many Americans follow the traditional aspects in the foreign market. they have a backward societal approach and unmotivated approach. This creates a drawback for the firm as they lack in following technological approach (Gunakar, Jadhav Bhatta, 2017). Maldives before trading in the company has to taje care the type of technology being used by the Indian fisheries business companies. They have to check whether the methods used while making the business are old used methods or they also follow the business on an advanced level. In India, the fisheries trading do not majorly follow the technology for functioning. This will make it difficult for Sri Lanka in its trade (Sovacool, 2012). Sri Lanka has to trade with the mindset followed by Americans as mentioned in the Hofstede's concept of self-criterion backward and unmotivated. Business negotiation Business negotiation is an important leadership technique and skill of the management. It negotiates effectively with a large range with respect to business, making deals, discussing the strategies with employees, working with the opinion of authorities, with proper decision-making, handling disputes. Business negotiation is a creative way for starting and negotiating in business. Business negotiation strategies include making the bigger problems of the company easy by breaking them into smaller parts, accepting even the least important deals and making it efficient, and showing the creativity by presenting new ideas (Russell et al, 2014). Maldives, Sri Lanka has to follow such strategies to flourish its market in India. Business negotiation has to be a major concept accepted them. The decisions made in planning strategies should not create disputes. It should be the teamwork. Working with this strategy Sri Lanka will easily be able to expand its trade and operations in India. It should use its subconscious state of mind which follows the concept of Hofstede (Fukui Motomura, 2016). Inter-cultural business negotiation Inter-cultural negotiation means dealing with people having different cultures. The company works according to the demographic culture of the other country. It looks for the type of requirements, peoples needs, their demands, type of quality and the ranges (Gummesson Gummesson, 2017). Hofstedes concept used when engaging in personal Personnel approach In terms of personal approach to the Hofstede, concept plays a vital role in business to business activities. Sri Lanka, the assumed country for research has a much more individualistic approach. Their main motive is self-growth rather than a group as a whole. They are rational in their approach and communicate for self-attainment. It rejects to both the concept of inequality of power, which nurtures lack of communication. The communication is direct and precise in its tone rather than lengthy conversations. E.g. In the Sri Lankan scenario, people are highly individualistic in terms of communication and have low distance power (Beugelsdijk, Kostova and Roth, 2017). Face to face This concept accepts communication from various walks of life. It also acts as a medium to convey our thoughts through a platform directly, unlike personal concept where it is more constrained communication centered. This involves discussion, planning, innovation of ideas and lot more. It might become conflicting at certain points. Therefore, personal concept or individualistic concept dominates the International concept of communication and culture. Moreover, Sri Lanka does not abide by the concept of face to face communication (Devinney Hohberger, 2017). Sri Lanka in comparison to other countries lies at a higher index in terms of individualistic concept because of the constrained communication and lack of exercising among the group. Other than Sri Lanka, countries like America, UK, and Europe fall in the same category. Though the masculinity and feminine discrimination index are comparatively low, still there are areas where males dominate over females. Similar is the case in modern countries such as Japan, China, Korea, and Europe. Where Germany has the highest avoidance index rate, Sri Lanka is the lowest because of the cautious nature of the people (Chen, 2017). Conclusion The report talks about the how Sri Lanka can expand its trade in the another country like India. It has to go through several challenges. It has to plan the strategies and manage the concepts. There is a lot of hard labor a company has to out while expanding its growth in international marketing. It is not very easy to trade outside the boundaries of the home country. The needs are to be fulfilled, the meeting has to be made, and a step by step approach international sailing is to be done. In international business negotiation company has to check all the aspects of business while planning strategies. The company must follow the Hofstede's concept of presenting cultural ideas with the unconscious mind. In the report, there is face to face negotiations and personal negotiation are faced while working with the Hofstede's concept. International marketing is a business to business (B2B) concept. The report talks about the influence of international marketing across the world. WIf talks a bout the Sri Lanka in comparison to other countries, it lies at a higher index in terms of individualistic concept because of the constrained communication and lack of exercising among the group. Another side many countries such as Sri Lanka, countries like America, UK, and Europe fall in the same category. Maldives before trading in the company has to look after the type of technology being used by the Indian fisheries business companies. They have to check whether the methods used while making the business are old used methods or they also follow the business on an advanced level. The company also deals with financial risk due to unavailability of huge investment. Sometimes, food companies are failed to invest the huge amount in such business across the world. Due to the inadequate financial risk and operations costs, the company also faces various challenges in the market. If the company wants to start its operations and business activities in India then various transfer risk, pr oduction risk, and marketing risk will be faced by the company. It will influence the aquaculture business adversely. According to Hofstede's concept of Self-reference criterion, it is an application of a cultural viewpoint while planning the strategies before using them for trade in another country. Self-reference criterion goes parallel to ethnocentrism. The essential aspect of trading in the other country is to identify and address the differences that before placing it on the levels of foreign marketing. This leads to a successful business planning. The strategies made at such level will result in good outcomes. The differences are cleared and company meets the requirements of the market. In todays world networking has become very easy. But sometimes contacting outside the boundaries of the home country it becomes difficult to make a direct contact. It is mandatory to have a proper network system. The company not only has to look for the basic amenities but also have to flourish with the fast-growing technological environment. Since Maldives fisheries is a big company, it is easy for them to make such conversations. The report gives the proofreading of how international marketing works. Maldives entering into India for its fisheries trade is difficult as India faces certain difficulties. India is the third biggest producer and manufacturer of fish across the world. Fisheries are a very important business for the Indian economy because it provides various employment opportunities to the people. Maldives industrial fisheries company (MIFCO) wants to expand its market in India then it can take various opportunities in the market. If the company starts a business in India then it can take gain its revenue and profit. India has the developed country to expand the fisheries business in the market. References Anon, 2014. 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