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CINDY ELVINA - 2201737601
ANTONIO AMADEUS WIDJAJA - 2201741920
GEMINTANG ADHITYATAMA - 2201752136
SALMA SHABRINA LEONITA - 2201765800
AMANDA PUTERI ROZYANTI - 2201783186
JUAN PETER AWUY - 2201788180
MELIA BUDIMAN - 2201795072
CLIFFORD ADRIEL HARTONO - 2201797903

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1. Local Customization & Consumer Sophistication and Expectations (Toyota)
Toyota customized both its products and operations in each country. It takes up a lot of expenses for the realization as technologies used may be different and finding new adaptive and innovative employees may not easy. However, such expenses result in enhancing consumer sophistication where Toyota could offer advanced technology such as Yaris 1999 with greater safety, roomier interiors, and better fuel efficiency to match with European customers' expectations.
Coordination needed to reduce trade-offs:
Coordination between employees from the parent company and local employees from the subsidiary is highly needed to come up with new innovation, new marketing, and new supply chains to exceed each country's expectations.
(https://hbr.org/2008/06/the-contradictions-that-drive-toyotas-success)

2.  Adaptation Through Collaboration And Innovation (McDonald)

The company’s marketing research is exhaustive, providing it with all the means to engage and embrace a wide variety of cultures while still maintaining its strong brand image. McDonald’s Golden Arches logo is easily identifiable wherever you go.
It’s very interesting how it adapts to different cultures, which is a valuable lesson in marketing. Here are some examples:
GERMANY

Because Germans love to eat meat, its burgers combine Nürnberger sausages with beef. And it’s a known fact that Germans love their beer with food, so McDonald’s outlets in Germany also serve beer.
INDONESIA

The majority of the population in Indonesia is Muslim, therefore, McDonald’s adapted to the eating needs of the population by replacing pork with fish. McDonald’s outlets in Indonesia are Halal and since Indonesians prefer rice over bread, they serve rice as well, together with some spicy meals that locals prefer
INDIA

India has a very large consumer base and McDonald’s adapted its menu to cater to the locals’ tastes and preferences. Beef is replaced with chicken. The Maharaja Mac is the local version of the standard Big Mac. To cater to vegetarian consumers, McDonald’s in India offers Masala Grilled Veggie Burger, McAllo Tikki and McVeggie. In 2013, the company opened its first vegetarian restaurant to cater to the local vegetarian consumers. One of McDonald’s India’s features is the McCurry Pan, a baked menu item with curried vegetables.

Coordination needed to reduce trade-offs:
because every choice, McDonald want results in picking it over something else . Opportunity means choosing the better one of few ideas. There will always be an alternative, what could have happened instead if doing the same
( https://www.daytranslations.com/blog/how-mcdonalds-adapts-around-the-world/#:~:text=McDonald's%20is%20able%20to%20adapt,additional%20items%20for%20their%20menu )

3. Vertical Integration Strategy (Zara)
Vertical integration is a strategy in which a company owns or controls its distributors, suppliers, or retail locations to control its supply chain. Companies with this strategy will benefit by allowing them to control process, reduce costs and improve efficiencies. Rather than renting factory space in another location/country for less money and with greater production assurances, Zara manufacturers its own products (manages design, production, shipment, display, promotion, sales, and feedback itself) mainly in Europe, where its headquarter is located and costs are the greatest. Zara's operations outside of Europe, such as Asia and America, use outsourcing (but only diminutive) which also require high costs.

Coordination needed to reduce trade-offs:
As outsourcing to Asia and other continents are expensive, keeping Zara's manufacturing at home will enable Zara to circumnavigate those costs (majority clothing retailers can't replicate this because they highly rely on cheap manufacturing labors from Asia). Control over design and manufacturing by keeping manufacturing processes close to headquarter (management) also makes garments both higher quality and easier to manipulate. Europe's confluence of better capital equipment and more proficient employees results in higher quality garments. In addition, vertical integration and locating manufacturing close to markets allows Zara to manipulate designs and produce new ones swiftly.
*Source: https://toughnickel.com/industries/Business-Operations-of-Clothing-Retailer-Zara

4.  Adapt To The Tastes Of Different Cultures & Managing To Convince Consumers (Starbucks)
The starbuck company conducted an extensive study of the history, culture and taste preferences of the local population before deciding to partner with a locally available coffee company. This is done by starbucks companies so that they can adapt to each country. the strategy undertaken by starbucks is a combination of local products with innovative store designs in each country. That way, it can help starbuck to adapt to the culture at that location
Starbucks maintains 18 design centers worldwide, which work to understand and conceptualize store designs to reflect the local market.
Example:
- Japan : In Japan, local buildings have low roofs and most have indirect references to Shintoism, which is the country's religion. So starbucks hires local designers to create an atmosphere appropriate to the culture in Japan.Starbucks in the country also offers local food and drinks such as frappucino matcha (green tea). Smaller portions and less sweet compared to items sold in American stores
- Saudi Arabia : The starbucks logo is considered pornography because it contains a mermaid image. Later the logo was changed to a crown with waves, predating the mermaid. The shop, located in Saudi Arabia, also has a separate section for men and a section for women who are served in the family section.
- France : In this country, Starbucks serves Vienesse coffee, hot coffee or chocolate served with cream, along with offering continental items, such as foie gras and brioche sandwiches and red fruit cakes.

Coordination needed to reduce trade-offs:
What Starbucks can do is adapt every cultural difference in each country to be accepted by local consumers without reducing Starbucks standards and continuing to make new innovations.
(https://www.daytranslations.com/blog/how-starbucks-expands-abroad/)

5. Distribution and Global Adaptation : Coca Cola

With the rise in global demand for Coca Cola the company has had to adapt its product and marketing techniques to the countries that they want to sell their product in. Coca Cola has done this in a number of different methods without hurting their initial brand image. An example of The Coca - Cola Company's adaptability is in parts of Africa where infrastructure is not highly developed. To counter this problem The Coca - Cola Company has distributed its products to vendors in small amounts because most distributors have a financial inability to buy large stocks of the product. The company has also used local transportation methods such as paddling canoes up rivers to distribute their products to remote villages. Coca Cola also adapts to the climate that it is selling its products in. For example in Africa where the climate is warm and humid Coca Cola uses solar panels on their coolers. Because Coca Cola sells products in some poverty-torn places they also use glass bottles that are recycled up to 70 times. Coca Cola has also stated that consumers pay for the liquid and not the packaging of the liquid to ensure that more people can purchase their products.

Coordination needed to reduce trade – offs :

Coca Cola manages to connect brands with sentiments that they can easily adapt to cultural ideas. The way Coca Cola adapts to different country situations is what makes the global market so successful.

Source : https://cocacolageoassignment.weebly.com/distribution-and-global-adaptation.html

6.Value proposition is to provide good design and function at a low price (IKEA)
Consider IKEA, the Swedish home furnishings giant. IKEA’s value proposition is to provide good design and function at a low price. Its target customer is what IKEA calls the person “with a thin wallet.” In choosing its particular kind of value and the activities needed to deliver it, IKEA has accepted a set of limits: it does not meet all the needs of all customers.
In every major value-adding step in the process of creating and selling home furnishing, IKEA has made different choices from the “traditional” home furnishings retailer.

Coordination needed to reduce trade-offs:

IKEA finally accepts and listens to their customers' voices and creates products that meet customer needs.

Source:
https://www.isc.hbs.edu/strategy/creating-a-successful-strategy/Pages/making-strategic-trade-offs.aspx

7. Changing the basic materials used in order to reduce the negative impact on the environment (Nike & Walmart)
Trade-offs, conflicts and challenges, however, can be sources of innovation and transformation. Companies can develop explicit and coherent plans for dealing with the tensions created by the exchange.  Walmart and Nike, show how well-known organizations with multiple stakeholders manage exchanges. By changing its material.

Coordination needed to reduce trade-offs:
Coping with stakeholder will forced Nike to come up with less toxic glues and more environmentally friendly materials for its shoes and Walmart to pressure suppliers to change both products and their packaging to reduce waste and the environmental effects of shipping. But sometimes environmentally friendly materials will reduce the quality of the product therefore they must first consider the ideas of the stakeholders.

8. Reducing warehouse and logistic cost to decrease loss expenses (XiaoMi)
Xiaomi is a well known company that sells high quality tech for a lower price than their competitor, by statistic Xiaomi placed 4th on the most popular phone in the world standing next to Samsung and Apple (an older and known brand). The fact that they can compete against their competitor by having the same quality and performance but still selling it half their prices is truly remarkable. this company can achieve their low selling price by compensating on other things such as not using a single advertisement for their product, prefer selling their product via online, and decreased the amount needed to use a warehouse and shipping.

Coordination needed to reduce trade-offs:
By having to sell their product at a cheap price while maintaining their quality. XiaoMi needs to be careful with their expenses in order to gain profit rather than to loose one. One of their method to compensate with their low price is to decrease the use of warehouse and logistic cost. by this the company sells smartphone via Flash Sale, which means it only produces and ship limited number of smartphones giving them less expenses needed to store or shipped their product.

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Give trade-off examples in other companies and explain coordination needed to reduce trade-offs!

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Give trade-off examples in other companies and explain coordination needed to reduce trade-offs!