Understanding Emerging Markets

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CKR Cavusgil Knight Riesenberger
Management Skill Builder©
Learning About and Assessing Emerging Markets
Emerging markets are rapidly industrializing and dynamic economies. When companies decide to
do business in emerging markets, the first important step is to identify the most attractive countries to enter. This
involves comparing almost 30 countries across various criteria.
AACSB: Reflective Thinking, Analytical Skills
Managerial Challenge
Each emerging market has its own distinctive characteristics.
Managers must determine which markets to
enter and learn about the characteristics of those markets.
Such knowledge helps managers to avoid wasting
organizational resources, and to maximize the firm’s
profits and competitive advantages.
Background
Emerging market countries have transformed their
economies into dynamic and progressive markets. Among
other things, we witness in these countries: robust private
sector activity and entrepreneurship, liberalization of trade
and investment, rapidly improving living standards, and a
growing middle class with rising economic aspirations.
Dynamic changes in these societies also make it difficult
for the manager to assess their current market potential.
Managerial Skills You Will Gain
In this C/K/R Management Skill Builder©, as a
prospective manager, you will:
2. Learn about critical factors to consider when targeting
emerging markets.
3. Access key information sources related to emerging
markets.
4. Analyze disparate data to arrive at recommendations.
Your Task
Assume that you are a product manager of a firm that
makes and markets cordless telephones. Your task is to
analyze factors in leading emerging markets and
choose the best one to target with exports of your product.
You may also investigate information sources on
the evolving status of emerging markets.
Go to the C/K/R Knowledge Portal©
www.prenhall.com/cavusgil
Proceed to the C/K/R Knowledge Portal© to obtain the
expanded background information, your task and
methodology, suggested resources for this exercise, and
the presentation template.
1. Learn how to increase prospects for enhancing
company performance by targeting an important
group of foreign markets—emerging markets.
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