Bus. App & Str Module 2 Discussions Costco pg 141 questions 2 PDF

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Module 2 Discussions pg 141 questions 2 & 4 Costco Plans to Grow Its International Markets

2. How did Costco attempt to avoid, ethnocentric, polycentric, or geocentric attitudes? Provide examples to support your conclusions. Costco attempted to avoid ethnocentric attitudes by embracing international countries and not thinking that the US was superior. They did this by operating about 700 warehouses across the US and abroad. Costco did what they had to do by adapting to their warehouses' local environment. In Australia they :    

Changed selling practices Abandoned use of coupons to draw in customers (Australians rarely uses coupons) Costco cards as a form of payment were dropped Gave Australians flexibility when it came to payment methods

4.What are the most important lessons to be learned about global management from this case? Discuss. The most important lesson to be learned about global management in the Costco case is that they did what was necessary to make each international warehouse fit within the country it operates from and not to be like the US. Costco represented the attitude of a geocentric manager rather than an ethnocentric or polycentric manager. They accepted that each country has their differences and similarities between them and tried to understand, learn, and make everyone comfortable. In Spain they:   

Used local employees to run operations Made sure that the products they were selling met the local needs, and taste Provided Spanish specialties in the meat section (depending on the season)

By Costco doing these things in Australia and Spain to ensure that the employees, customers receive what they want and need, they show what global management entails....