Page 250 - DMGT547_INTERNATIONAL_MARKETING

Unit 14: Global E-Marketing and EDI

Notes

Task Study the office culture and the business ethics followed in Japan.
Self Assessment

Fill in the blanks:
7. Cultural differences causes for kind of problems namely: ........................, Non-verbal
behaviours, ........................, Thinking and decision-making processes.

8. When faced with a ........................ negotiation task, most Westerners divide the large task
up into a series of smaller tasks.
9. Breaking into side conversations in their native languages is considered as ........................

Caselet Dell a Caselet of Intermediation

isintermediation is not a new phenomenon. As far as Dell is concerned it began in
1983 when Michael Dell used the direct sales model, first by telephone and catalogue
Dvia Dell Direct, then, in July 1996, via its electronic site, Dell online. Founder
Michael Dell’s original idea was simple: sell computers directly, bypassing IT distributors.
This disintermediation meant the company could avoid retail margins, make computers
on demand, and lower the costs of stocking the finished product. Cutting the time lapse
between production and delivery to the end customer is an undeniable advantage in an
area where prices for components change rapidly and innovation seems ever present and
exponential. If this new configuration gives Dell a key cost advantage and greater flexibility
in terms of its formula, other factors reinforce its capacity to compete. Dell’s virtual
integration combines the wise use of IT with the systematic subcontracting of low added-
value elements of the business. This combination has enabled it to gain from the dual
advantages of coordination among the links of the value chain and a level of flexibility
that comes with a virtual company.
Dell Computers as a manufacturing company gains efficiency by working closely with
key suppliers to eliminate having to carry any inventory. Dell requires its suppliers of PC
components to locate their inventory within 15 minutes of its factory. Dell also outsources
with third-party warehouses that specialize in running technology driven supply chains.
On the logistics side, Dell links with UPS to store and deliver a specified monitor with the
computer. Dell computer targets large corporate customers that order large quantities of
PCs frequently, and the second and third time buyers of household PCs who do not need
extensive sales information.
Source: http://wps.pearsoned.co.uk/ema_uk_he_hollensen_globalmark_4/64/16425/4204992.cw/
index.html

14.4 The Negotiation Orientations Framework: Defining the
Dimensions

Refinements in the definition of the dimensions in the framework are presented below. Precise
definitions provide the basis of good measurement and the means by which subsequent research
findings can be compared and synthesized?

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