Text: Better Business - Pearson Education



Video Title: Management Company Cases - MINI- Globalization

Length: 7:13

Classroom Application: Instructors will find this case study useful as a springboard for opening up discussions about globalization from a business standpoint. The Mini Cooper is a fine example for students to consider because of the way it had to be presented to the American market, since the car initially did not seem like a good fit. Students can use the Mini Cooper example as a starting point for thinking about how they could adapt hypothetical products to other global markets.

Synopsis

This management case study presents the example of the Mini Cooper and how it is marketed on a global basis. The video gives an overview of the Mini Cooper’s sales performance in the United States versus in the global market. Jim McDowell and Dave Duncan, who both work for Mini USA, share their expertise regarding the Mini Cooper’s re-entry into the U.S. market and discuss their customer base.

Discussion Questions

1. What challenge did Mini Cooper first fact when approaching the U.S. market?

For Americans, as Jim McDowell points out, the bigger a product is—particularly a car—the more expensive it appears to be. A smaller object, particularly a vehicle, may come off as inexpensive and therefore less desirable. Mini Cooper thus faced the challenge of redirecting that American mindset to appreciate a product that worked against traditional standards.

2. According to Dave Duncan, what must global companies be aware of when distributing their products to international markets?

Duncan states that global companies should be aware of specific cultural standards in each market, and cognizant of the fact that each market will have specific cultural attributes that influence how its consumers select their purchases. Just as the same advertising material may not work across cultures, the same product may not be equally desirable to all cultural groups.

3. If Americans think that bigger is better, what other products might encounter challenges when their companies try to enter U.S. markets?

This open-ended question could result in a variety of interesting answers. Students should bring up examples of products that acquire value according to criteria other than size: efficiency, beauty, or durability, for example. Corporations would then have to stress these particular values while advertising their products in the American market, in hopes of generating more sales.

Quiz

1. In what year did Mini Cooper return to selling products in the United States?

a. 1960

b. 1988

c. 2002

d. 2004

Answer: c

Explanation: While Mini Coopers were first sold in America during the 1960s, they were withdrawn due to poor sales. The company returned its product to the United States in 2002 and since then, as Jim McDowell states, they have done very well in this market.

2. Which of the following historic events led to the creation of Mini Coopers?

a. the Cold War

b. the Suez Canal Crisis

c. the Cuban Missile Crisis

d. the second World War

Answer: b

Explanation: Mini Coopers were created in response to the Suez Canal Crisis.

3. How does Duncan characterize American consumers?

a. as people who make purchases spontaneously

b. as people who make purchases after careful consideration

c. as people who make purchases based on popular trends

d. as people who make purchases according to advertising

Answer: a

Explanation: According to Duncan, most Americans make their purchases based on gut feelings in the moment. Unlike people in other cultures, Americans are less likely to reflect and compare price points. They are more likely to buy products as a result of feeling certain impulses.

4. Which of the following is NOT one of the challenges Dave Duncan and Jim McDowell say Mini Cooper faced when launching in the United States?

a. The consumer base is too diverse to reach efficiently.

b. The consumer base didn’t recognize the company name.

c. The consumer base was not used to buying smaller cars.

d. The consumer base was not used to buying foreign cars.

Answer: d

Explanation: With the exception of the United States, most global markets recognized the Mini Cooper company name and preferred to buy smaller cars. Duncan and McDowell do not address the issue of the foreign element of this brand.

5. According to the information in the video, which of the following hypothetical customers would be MOST LIKELY to purchase a Mini?

a. Someone living in a city who has limited space.

b. Someone who has a moderate budget but luxury taste.

c. Someone living in a rural area who needs storage.

d. Someone who follows the trends and buys accordingly.

Answer: a

Explanation: According to the video, the Mini Cooper is most attractive to consumers who live in areas like cities, where the population is dense, but still require cars for transportation. Because their space is limited, they are drawn to small cars like the Mini Cooper. As a result, it would not be surprising to discover that Mini Cooper advertises greatly in urban areas, because the company might very well be able to reach more consumers in them.

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