Craftsmen Industries: How Local Responsiveness Is Applied in Practice

2014
Craftsmen Industries:
How Local Responsiveness is
Applied in Practice
Caitlin A. Bighem
International Management
The American College of Greece
April 6th, 2014
How Local Responsiveness is Applied in Practice
TABLE OF CONTENTS
Chapter 1: Local Responsiveness 3
1.1 Introduction 3
1.2 Academic Relevance ..3
1.3 Industry/Practical Relevance ..4
1.4 Project Outline .4
Chapter 2: Local Responsiveness, Past Performance, & Craftsmens Success 5
2.1 Definition of Local Responsiveness & Global Integration..5
2.2 Characteristics of Local Responsiveness & Global Integration ..5
2.3 Advantages and Disadvantages of Local Responsiveness & Global Integration.6
2.4 Challenges of Local Responsiveness & Global Integration..8
2.5 Global Integration vs. National Responsiveness...9
Chapter 3: Field Research Information..11
3.1 Data Collection Methods.....11
3.2 Company from which the Data was Collected....11
3.3 The Research Instrument.....12
3.4 Limitations...........................12
Chapter 4: Field Research Findings...13
4.1 Company Success Factors ...13
4.1.1 Past Performance.....13
4.1.2 Craftsmens Success........13
Caitlin Bighem
Page 1
4.2 Company Strategy Models and Approaches...14

4.2.1 Strategy Approach....14
4.2.2 Strategy Models....16
4.3 Craftsmen Industries Benefits & Difficulties of Local Responsiveness 17

4.4 Local Responsiveness Impact on Success...18
Chapter 5: Conclusions..............20
5.1 Introduction..........................20
Research Goal................20
5.2 Answers to Research Questions...20
5.2.1 What is the difference between global integration and local responsiveness?............................................20
5.2.2 What are the benefits Craftsmen provides through local responsiveness?..................................................21
5.2.3 What are the drawbacks of both global integration and local responsiveness?........................................... 21
5.2.4 Are there aspects of a specific strategy? If so, which one? .21
5.3 Overall Conclusions.............22

5.4 Contribution to Theory and Recommendations...22
References List...........................23
Appendix ...................................25
Caitlin Bighem
Page 2
Chapter 1: Local Responsiveness

1.1 Introduction
Leading in designing, engineering and building customized vehicles for the experimental
industry, Craftsmen Industries sets an example of how local responsiveness can be used
successfully. Founded in 1982 in St. Louis, Missouri, USA, Craftsmen Industries began by
repairing trailers, customized company vehicles, and experimental mobile marketing. As time
has gone on Craftsmen added aspects to their services, such as large format printing. The
company continued to grow as customers turned to Craftsmen to build customized vehicles, as
well as print professional graphics, and produce custom kiosks.
The following examination of Craftsmen Industries addresses the theory of how local
responsiveness is applied and how it contributes to the success of the company.
Research Goal:
The goal of this research project is aimed at Craftsmen Industries approach to local
responsiveness as it pertains to the companys success.
Research Questions:
1. What is the difference between global integration and local responsiveness?
2. What are the benefits Craftsmen provides through local responsiveness?
3. What are the drawbacks of both global integration and local responsiveness?
4. Are there aspects of a specific strategy? If so, which one?
1.2 Academic Relevance

Whereas most studies would focus on the general aspects and benefits of local
responsiveness, this gives an in depth look at how local responsiveness is implemented, planned
Caitlin Bighem
Page 3
and carried out within a unique and successful company. This research paper also provides
insight into the approach of local responsiveness and therefore, both the benefits and drawbacks
of applying the concept, and how it can contribute to the success of a company.
1.3 Industry / Practical Relevance
This project will try to determine the role of local responsiveness as it applies to
Craftsmen Industries. There is a possibility that this will contribute useful insight and strategy
regarding the creation of future products, therefore attributing to Craftsmens overall success and
effectiveness.
1.4 Project Outline

The outline of this project is as follows:
Chapter 2 consists of the theory of local responsiveness and global integration.
Chapter 3 presents first hand access to the field research, the employees who provided
interviews, methods of research, methods of data collection and research limitations.
Chapter 4 provides the research findings in detail.
Chapter 5 introduces the conclusion and answers the research questions.
Caitlin Bighem
Page 4
Chapter 2: Local Responsiveness & Global Integration

2.1 Definition of Local Responsiveness & Global Integration
Local responsiveness is defined as the commitment of resources to customize products or
services in response to primarily local competition or customer tastes and preferences (Bogun,
2008). Though it is one of the more costly forms of customization (Julius H. Johnson, 1995), it is
primarily determined by customer tastes and preferences, local traditions, familiar business
practices, as well as host government regulations. In some cases of local responsiveness,
customization may be influenced and dictated by local manufacturing requirements, along with
varying health and safety standards (Peng & Lin, 2008). All of these regulations vary by country
and are specific to that particular region of the world.
Global integration is the manufacturing of products and services of a standardized type
and quality worldwide (Luthans & Doh, 2012). It generates economies of scale, taking advantage
of their large size, and capitalizes on lowering unit costs as a firm moves into worldwide markets
(Luthans & Doh, 2012).
Alternatively, according to Berchtold, Pricher, and Sadler (2010, p.3), one interpretation
would see local adaptation and global integration as two ends of a continuum. This suggests that
they are distantly related, meaning that they are dependent on each other on some level. It is
thought that they do not exclude each other but can be achieved at the same time by
emphasizing different aspects of an organizational practice (Berchtold, Pricher, & Stadler,
2010).
2.2 Characteristics of Local Responsiveness and Global Integration

Certain features can help to discern traits of local responsiveness, such as it draws on a
philosophy of all business is local and aims for high level local adaptation of products and
processes by allowing subsidiaries freedom to make its own sales decisions in the local markets
(Meyer & Estrin, 2014). This means a product is adapted to the local tastes and preferences
recommended by local subsidiaries. Unfortunately, this process does not come cheap, which is
Caitlin Bighem
Page 5
also a well-known fact of local responsiveness. Such local customization is not costless; it
involves changes to products and internal processes (Meyer & Estrin, 2014, p. 3).
Now, since local responsiveness depends on local tastes and preferences, cooperation of
participating company and local party is essential. Therefore, local responsiveness requires
communication between the company and the subsidiary as they work out how core competences
can be exploited while adapting processes and products to local conditions (Meyer & Estrin,
2014). There is also cultural distance, which plays a role in the level of local responsiveness
because foreigners from distant places may be expected to need more responsiveness to match
local requirements (Meyer & Estrin, 2014).
Global integration also has characteristics. A key objective is efficiency and how much it
is needed to succeed. Another component of efficiency is the advancing technology, this will
allow a company to increase global manufacturing, which will produce more standardized
products.
As defined by Luthans and Doh (2012, p. 277) global integration is the production and
distribution of products and services of a homogeneous type and quality on a worldwide basis.
This then contributes to international consumerism, a mass sharing in tastes and preferences.
However, research suggests that the defining characteristic is the advancement of technology.
Also that global integration has a standardized product or process that can be successful around
the world.
2.3 Advantages and Disadvantages of Local Responsiveness & Global Integration

There are many advantages of local responsiveness, like modifying products to local
tastes, the foreign entrant is expected to compete effectively in local labor markets (Kramer,
Evans, Pucik, & Barsoux, 2004). Essentially, the more a product fits a consumers needs, the
more likely that product will be successful. There are also external advantages such as a
company is more receptive to local trends, emerging needs, and productive designs, and do not
miss market opportunities (Kramer, Evans, Pucik, & Barsoux, 2004).
When a client is involved in creating their own product, it leads to greater rewards. This
provides a sense of pride and accomplishment with the finished product, therefore if a client is
involved in the creative process, it may prove to be just as valuable as the finished product
Caitlin Bighem
Page 6
(Malecki, 2010). Another advantage includes the product being delivered on time; especially
with a mass produced product regarding back orders overflowing the manufacturer. With local
responsiveness, products are made customarily and delivered on schedule to their customers.
Waiting lists are rare and potentially nonexistent for local responsiveness. Along with a
creatively satisfied customer, it is a crucial way to ensure true customer value, therefore gaining
an significant competitive advantage (Hvam, Mortensen, & Riis, 2008).
Also in regards to local responsiveness, there are two primary approaches to customizing
products. The first of these methods is to specifically design and manufacture products for a
particular customers requirements by using a job shop manufacturing system. These products
are designed and produced from scratch for each customer, in other words, the needed resources
are used differently to a great extent for each specific product (Blecker, Friedrich, Kaluza,
Abdelkafi, & Kreutler, 2005). The second approach however, is to apply a mass customization
system in which the goal is to link both advantages of mass production and customization.
(Blecker, Friedrich, Kaluza, Abdelkafi, & Kreutler, 2005).
Of course, there are a few disadvantages to local responsiveness. Such as a certain
amount of difficulty in comparing products among competitors, because each product is unique,
not every variation of the product will be the same. It is also unlikely that competitors would
offer the same features in a product as their rivals. Another example is higher prices because a
specially made product would be one of a kind and have a higher value.
Among advanced technology; this includes productivity, creativity and transforming
processes. It is about how the services are delivered, businesses processes are conducted,
companies are managed, and knowledge is transferred. It is about creating a product effectively
and efficiently, by being truly innovated (Collings, 2013).
Not to mention the development of business, economy, transportation and
communication. With these improvements it becomes possible for existing businesses to cross
over border lines more easily. Resulting in companies becoming more productive and efficient,
also raising the quality of their products and services (Collings, 2013). Also, it offers
opportunities for tapping into unexplored foreign markets. Another advantage is expanding,
especially into poor countries, that will bring more money into emerging economies (Collings,
2013). This in turn, encourages trade among participating countries, which leads to a rise in the
standard of living, higher education and health standard in third world countries. Accompanying
Caitlin Bighem
Page 7
these advantages is international travel, allowing for a broadening experience of countries, and
cultures. However, the most charitable advantage is that friendly and cooperating countries can
work together to aid in natural disasters.
Regrettably there are disadvantages like an increase in the crime rate, pollution and
global warming. Due to expansion of global integration crime syndicates can set up operations in
multiple countries. Now doing international business leads to cultural assimilation. A cultural
assimilator is a tool used to integrate a foreigner into a new society or culture (Luthans & Doh,
2012). There is also a possibility that developed countries will use their power and influence to
take advantage of developing nations. One important consequence of such a global integration
is changes in the spillover mechanism across countries (Fukuda, Kimura, Sudo, & Ugai, 2013).
Of course, unemployment is because of outsourcing jobs overseas. Foreign workers bear
substantial cost in the form of job losses and job insecurity. Global integration weakens labor and
environmental standards; including sweatshops, child labor, and unsafe working conditions
(Fuso, 2011). Global integration, according to Fuso (2011, p. 4), poses a threat to economic
prosperity and political sovereignty in developing countries. Since some developing countries
have delicate economic and political situations, global integration may not be beneficial.
2.4 Challenges of Local Responsiveness & Global Integration

Distance implies higher costs of responsiveness (Meyer & Estrin, 2014, p. 14). The
farther the product is sent, the timelier and expensive it is because of shipping prices, travel and
delivery. Persuading employees to take on international assignments is also difficult (Collings,
2013). Most employees that meet the requirements have families and responsibilities at home
that they are not willing to leave. The challenge is also how to organize and manage external
networks, utilizing local independent R&D to maximize learning and apply specific knowledge
(Malecki, 2010).
Difficulties of global integration of business and cross-border trading and investment:
emerging markets, changing markets, technological obsolescence, government regulations, legal
systems, mode of entry, currency exchanges, international accounting concerns, and many
others (Wang, Solan, & Bo, 2013, p. 1). Another concern is new product development (NPD)
and marketing across borders; developing new products keeps a firm competitive. The NPD
Caitlin Bighem
Page 8
process requires the combination of divisions within the company, especially R&D, marketing,
and manufacturing (Wang, Solan, & Bo, 2013).
NPD needs effective cross-functional integration within the corporate structure. To
maximize efficiency and immediately react to the market, companies locate various divisions in
different countries (Wang, Solan, & Bo, 2013). Regarding the integration-responsiveness
framework two limitations were identified. First, failure to include an important set of
environmental pressures. Second, lack of formality and unclear stance on decisiveness make it
hard to incorporate decisions correctly (Devinney, Midgley, & Venaik , 2000). The challenge
for firms is to produce new products and services by coordinating and managing the knowledge
of people (Malecki, 2010, p. 5).
2.5 Global Integration vs. National Responsiveness
Regarding global integration vs. local responsiveness, the Global Integration vs. National
Responsiveness Matrix (Luthans & Doh, 2012) helps to determine the best strategy for a
company. This figure portrays four situations in relation to the level of global integration versus
national responsiveness (Luthans & Doh, 2012).
National responsiveness refers to the need to understand the different consumer tastes in
separate local markets and respond to different national standards and regulations imposed by
independent governments (Luthans & Doh, 2012). The vertical axis measures global integration.
Movement up the axis results in a higher level of economic integration (Luthans & Doh, 2012).
The horizontal axis measures the multinationals necessary to respond to national responsiveness
or differentiation (Luthans & Doh, 2012).
Caitlin Bighem
Page 9
A transnational strategy combines both global integration and local responsiveness.

(Luthans & Doh, 2012). According to Luthans & Doh (2012, p. 279) integration and
differentiation are required for a transnational strategy, along with higher requirements for
regional differentiation in marketing (Luthans & Doh, 2012). Cultural challenges associated with
localizing a global focus are considered most challenging (Luthans & Doh, 2012). A
transnational strategy should be pursued when there are high cost pressures and high demands
for local responsiveness. (Luthans & Doh, 2012, p. 280). However, pressures for cost reduction
and local responsiveness are contradictory because localized products increase cost (Luthans &
Doh, 2012).
For a transnational company to achieve their profit goals and still fulfill the requirements,
they adapt to multifaceted strategies to provide a product with an acceptable amount of cost
efficiency and responsiveness. The goal is to find new ways to differentiate its product to best fit
the local market (Luthans & Doh, 2012).
Caitlin Bighem
Page 10
Chapter 3: Field Research Information

3.1 Data Collection Methods
The method of data collection in this projects is a semi-structured interview. A semistructured interview is more stress-free and flexible than a structured interview, it allows the
interviewee to follow a flow of information that they may think of spontaneously. Instead of a
strict line of questioning, this interview follows a general guideline of questions, allowing for the
possibility of new information.
3.2 Company from which the Data was Collected
Craftsmen Industries has been chosen to be the subject of this projects field research.
This company is a marketing company specializing in custom built mobile media vehicles. They
work with media and advertising companies creating, designing and building unique advertising
pieces that draw customers in and make a lasting impression.
Craftsmen Industries was founded in 1982 in St. Louis, Missouri. The company started
repairing trailers, customizing vehicles for an industry, and experiential mobile marketing.
Craftsmen began a total in-house solution by investing in large format printing. Bringing all the
elements of design, engineering, fabrication, printing, and installation in-house was necessary to
be the best. By doing this, Craftsmen could control quality, manage deadlines and deliver within
budget. Customers throughout the early 1990s were calling on Craftsmen to build and customize
their vehicles, as well as print graphics and fabricate custom kiosks. The company continued to
grow (Company, 2014).
By 1993 Craftsmen moved to larger facilities in St. Charles, Missouri. In January 2000,
the company built a new facility combining manufacturing and office space. In 2000, a 3D
fiberglass department was added to service the needs of the companys growing mobile
marketing clients. In 2011, Craftsmen continued to expand into new markets (Company, 2014).
Caitlin Bighem
Page 11
3.3 The Research Instrument

The research instrument consists of a questionnaire comprising fifteen interview
questions. The Craftsmen employees who participated were a, Director of Engineering, Director
of Estimating, Director of Marketing and Mobile Display Sales Associate.
These questions were built around Craftsmen Industries use of local responsiveness
within the company and focused on the aspects regarding their international business.
The objective of this questionnaire is to gain insight into Craftsmen Industries uses and
implementation of local responsiveness. Another goal is to gather information regarding their
difficulties through local responsiveness and how they overcame them. The questionnaire was
conducted via Skype, took no longer than thirty minutes per interview and each participant was
helpful and pleasant. Follow-ups were also conducted via email.
3.4 Limitations
The most significant limitation of this research was that Craftsmen Industries is located in
the United States with a vast time difference. Therefore, only Skype interviews were possible.
There was one small issue of client confidentiality, however, no sensitive information regarding
past, present or future products at Craftsmen Industries has been divulged in this research
project.
Caitlin Bighem
Page 12
Chapter 4: Field Research Findings

4.1 Company Success Factors
A Director of Engineering, Director of Estimating, Director of Marketing and Mobile
Display Sales Associate at Craftsmen Industries were asked why local responsiveness appeals to
their clients. Given the differences in departments represented in the research, that the responses
were similar. Each interviewee agreed on the following points: their clients standing out among
their competition and in todays economy is a strong competitive advantage. Customers
essentially want a product that will stand out and captivate their desired target market. Craftsmen
Industries is also excellent at completing a project on time because most need a product for a
specific event that cannot be rescheduled.
4.1.1 Past Performance
Craftsmen Industries has been recognized by the industry over the years for the work they
have produced. It is important to acknowledge that they do not claim to do the creative, concept,
marketing programs or graphics that go into and on the vehicles and event elements; this is the
clients responsibility. Craftsmen Industries executes the clients work and brings their vision to
life (Awards, 2014).
Craftsmen has received a variety of acknowledgements from EX Awards such as 2009
Gold winner for Best Vehicle Design with Lane Furniture, 2010 Silver award for Best Nightlife
Marketing campaign with Bacardi, 2011 EX Award for Best Vehicle Design in the 18 wheels
category with Boy Scouts of America and 2011 Silver winner for Best Mobile Marketing
Vehicle Category with Puratos.
4.1.2 Craftsmens Success
With local responsiveness incorporated into their everyday operations Craftsmen
Industries has become a key player in mobile marketing. Despite difficulties and delays they
accommodate both the clients product specifications and budget. However they also provide
additional services including the ability to complete a product entirely in-house, meaning that no
outside vendors are needed to meet the requirements that the client has requested.
Caitlin Bighem
Page 13
Another example of Craftsmens success is the awards they received for their work
requiring difficult engineering and creativity. Along with the response that their clients have
received in regards to their well-planned mobile marketing vehicles.
4.2 Company Strategy Models and Approaches
4.2.1 Strategy Approach
When asked if Craftsmen Industries applied a different strategy for each client, their
answer was a unanimous Yes.
According to the Director of Engineering:
Its a little different with each client. Some clients are more demanding and they can
require a little more management. Its different for each project and not each client because some
of the projects will require more engineering because they will be more unique and therefore
require more engineering and time and work (Belk, 2014).
The Director of Marketing stated:
Our strategy is to give the customer what he wants, when he needs it, and for a price
where we can make a profit (Salozzo, 2014).
In regards to the Director of Marketing, though correct, as the product progresses, what
the client wants, and/or needs, and price, are constantly changing.
When asked what strategic plans Craftsmen Industries has for the future, the following
goals were presented. Craftsmen intends to:
Maintain their domestic business
Increase their domestic business
Expand their international business
Widen their services of local responsiveness
Caitlin Bighem
Page 14
From interpreting these aims, it is evident that Craftsmen intends to continue to be the
leading manufacturer of custom made experimental mobile marketing vehicles along with the
other aspects of their services.
Regarding international business, each Director was questioned about the different
countries that Craftsmen Industries has done business with in the past. Each Director gave the
following countries: England, Germany, China, the Middle East, and other European countries.
It is apparent from the above information that Craftsmen Industries maintains a healthy
international clientele.
Finally, when the Directors were questioned regarding Craftsmen Industries services that
were more important or used than others, each responded with the same following conclusion:
The Director of Engineering responded:
We are capable of taking a completely manufacturing a trailer or a project in house from
start to finish. We do not have to use other vendors because we have such a wide array of tools to
offer our customers. We need very little help from outside the company in order to produce a
product (Belk, 2014).
To quote the Director of Marketing:
By having almost all customization in-house we can control quality and most
importantly the deadline for the project. If we vended our capabilities out we would be at the
mercy of the vendors to get our job right and on time (Salozzo, 2014).
Finally, the Director of Estimating stated:
Probably the primary benefit is that they are a one stop shop. Everything is in-house.
Because most of our competitors have to sublet and outsource (Henthorn, 2014).
As a result of the Directors answers, it is obvious that Craftsmen Industries implements a
transnational strategy, which combines global integration and local responsiveness in their
strategy. A transnational strategy should be pursued when there are high cost pressures and high
Caitlin Bighem
Page 15
demands for local responsiveness. (Luthans & Doh, 2012, p. 280). The goal is to find new ways
to differentiate its product to best fit the local market (Luthans & Doh, 2012).
4.2.2 Strategy Models
Based on the information provided from the semi-structured interviews of each
employee, we will use characteristics given Craftsmen Industries demonstrates aspects of their
strategy. Some examples from the companys monthly newsletter include a statement from the
recently appointed President and CEO, John Dolan, In my new role I intend to broaden the
range of services offered. Because of the breadth of capabilities and expertise the Craftsmen
facility and employees possess, we will grow our current market segments and go after some
new ones (Nikodym, 2014, p. 1).
Further goals consist of the increase in the scope of Craftsmen Industries fabrication
resources to encompass, for the graphics business, important graphical brand standards for color
management and quality control (Nikodym, 2014, p. 1). Additionally, Craftsmen will be
incorporating digital technologies into their fabrication of marketing displays.
When requested to describe the process of creating a strategy with a new client, the
directors explained:
The process was described as starting off as one of the following two scenarios. The first
scenario consists of the client knowing precisely what they want and need. Often they will then
bring Craftsmen a drawing or rendering package. There is a difference in the example given
because a drawing is a 2-D line drawing, whereas a rendering primarily shows a 3-D look of
what is being requested. Obviously the 3-D rendering is more costly for the client. Therefore that
usually indicates they are serious about working with Craftsmen Industries to produce this
product (Henthorn, 2014).
The second scenario involves a bit more work in the creativity department, essentially
because the client will bring only an idea with no indicators as to what the finished product will
look like. This is where the creative process starts; Craftsmen will then put together a drawing or
spend the money and hire an outside source to provide a rendering. This is an investment on
Craftsmens part and is only done if the idea is predicted to be a success. Then the drawing or
Caitlin Bighem
Page 16
rendering goes back to the client to tweak and make changes according to their preferences.
Once both Craftsmen and the client agree that the visual component is what they want,
Craftsmen brings in an Estimator that prices the costs of the product. After that, a proposal is
compiled for the client, occasionally there are other cost options provided, which are often
improvements on materials or features (Belk, 2014).
Given the information provided, established that Craftsmen Industries employs a
transnational strategy.
4.3 Craftsmen Industries Benefits & Difficulties of Local Responsiveness
Advantages of local responsiveness within Craftsmen Industries include the customers
opportunity to contribute to the creative process. However, the objective for Craftsmen is
meeting the exact needs and wants of an individual are available at affordable prices.
Craftsmen Industries approach is never the exact same twice. When asked about the
benefits that Craftsmen provides through local responsiveness, the Directors stated:
To quote the Director of Estimating:
Most of our customers are in marketing and because in marketing they want to be
unique and different from everyone else, they need something custom done because thats the
only way they can get the unique product out there (Henthorn, 2014).
According to the Director of Engineering:
A lot of our business is driven by marketing and designers and companies that want to
be unique when they approach their customers that pay their bills. They want to have a unique
product that draws their customers in. Its what captivates people (Belk, 2014).
As shown above, Craftsmen provides a unique, captivating marketing product through
their approach to local responsiveness.
There were also some drawbacks that each Director had personal experience with, this
question asked them to describe their difficulties regarding local responsiveness.
Caitlin Bighem
Page 17
The Director of Marketing stated:

Not having the expertise you may need for a very specialized solution. An example
would be software needed to play a game at an event. We can build the kiosk but the software to
run the program may need to be developed by a different vendor (Salozzo, 2014).
For the most part, everything we do is different so that every vehicle is basically a
prototype. So if you think about when a car manufacturer or someone that has a production type
unit, they spend sometimes years in the prototype phase developing a unit working it out and
getting out all the flaws and when they put the final unit out. But with us everything unique and a
prototype and we havent had time to work out bugs if something goes wrong (Henthorn, 2014).
As stated by the Director of Engineering:
Some of the concepts that we get from our customers are beyond crazy for us to even
think about building. We have to go in and basically negotiate with them about how we can build
something based on their concepts and that we are still able to build. Negotiate on the best way
to build stuff. Make it possible; make it safe, and mobile. With our products being mobile, its
harder to manufacture. Working with our customers to compromise with them to maintain their
ideas and still keep the mobility and safety in play (Belk, 2014).
4.4 Local Responsiveness Impact on Success
As evidence to Craftsmen Industries successful use of local responsiveness, the Directors
of Engineering, Marketing and Estimating were asked: How and why does local responsiveness
appeal to your customers?
According to the Director of Marketing:
They can get what they want to separate them from their competitors and to embellish
their leadership in the marketplace. Additionally, they can have their project made to meet their
event dates. (Salozzo, 2014).
Caitlin Bighem
Page 18
The way we handle the concepts our clients give us. For example, weve had some stuff
that was going down to smaller islands where the streets were so bad that they couldnt have a
long truck or a long trailer, so they had to be shorter and make shorter turns. We had to have a lot
of insulation in when we sent something up to Canada (Henthorn, 2014).
Caitlin Bighem
Page 19
Chapter 5: Conclusions
5.1 Introduction
Given the growing popularity and implementation of both local responsiveness and
global integration, such successful results found are proof that they are worth the effort. This
project has attempted to study Craftsmen Industries use of local responsiveness and how it has
contributed to the companys success.
Research Goal:
The goal of this research project is aimed at Craftsmen Industries approach to local
responsiveness as it pertains to the companys success.
5.2 Answers to Research Questions
5.2.1 What is the difference between global integration and local responsiveness?
Global integration is the production of products and services similar in type and quality
on a worldwide basis (Luthans & Doh, 2012, p. 277). The point of global integration is to use the
same methods of operation throughout the company, no matter where they are located or how
different the market is. Whereas local responsiveness is the customizing of products and services
in order to provide taste and preferences in different markets. This concept focuses on creating
products based on local traditions or host country government regulations in order to ensure the
customer will relate to the product.
A successful integration strategy requires the participation of subsidiaries. However, local
responsiveness is sensitive to changing in the local economy and the intensity of local market
competition (Meyer & Estrin, 2014). According to Lou (2001), global integration is determined
by internalization necessity from the perspective of corporate headquarters. Local responsiveness
is influenced by situational possibilities at the lower level (Lou, 2001).
Caitlin Bighem
Page 20
5.2.2 What are the benefits Craftsmen provides through local responsiveness?
According to the research, Craftsmen provided benefits through local responsiveness
including, providing customers present a unique product to captivate their audience, they
primarily work with marketing companies, and follow through with their clients ideas and
concepts. Craftsmens best quality is bringing their customers ideas to life, since the client wants
to make sure that their ideas and concepts are used.
Among those benefits includes getting local items faster than ordering them from
overseas. Craftsmen is also a one stop shop, meaning that they provide all of the services
necessary to complete the product entirely at their own facilities. Finally Craftsmen can deliver a
large and costly product by a respectable deadline.
5.2.3 What are the drawbacks of both global integration and local responsiveness?
Resulting from the research, these drawbacks of local responsiveness were discovered:
demanding clients, as they can be indecisive and cause a delay in the production schedule.
Comparing products among competitors is a problem because not every variation of the product
is the same. Along with this is a higher price, which varies depending on features the client has
requested, and is more costly because the product is one of a kind. There is also the restriction
that a company can only tailor different product offerings for different locations, as they will not
have the same appeal in all markets. Another downside is the risk of losing business to local
competitors who can tailor their goods and making efforts to the local population. Along with
rapid expansion, there also comes a rise in crime, pollution and global warming, which is due to
the uptick in industrial work.
There are some disadvantages that are similar, such as the risk that what sells well in one
country may not be as popular in another. Along with this is the concept that there is no onesize-fits-all approach as not ever product will sell successfully in all markets.
5.2.4 Are there aspects of a specific strategy? If so, which one?
Craftsmens strategic objectives include:
Caitlin Bighem
Maintain domestic business
Page 21
Increase domestic business
Expand international business
Widen services of local responsiveness
In regards to their strategic approach as it pertains to each individual client, there is no

one strategy for all of their customers. This is essentially due to the fact that Craftsmen Industries
is a company specializing in local responsiveness, meaning that each of the products they create
is different and unique to one specific client. They tailor to what a client wants, needs and for an
agreeable price.
5.3 Overall Conclusions
The research findings suggest that local responsiveness plays a crucial part in the success
of Craftsmen Industries. As discerned from each interview, Craftsmen has similar approaches to
both the benefits that are provided and the challenges they face. Each scenario and answer that
was given was solved and became successful for both Craftsmen Industries and their client.
Therefore, it is evident that local responsiveness is directly linked to the overall success
of Craftsmen Industries.
5.4 Contribution to Theory and Recommendations
The focus of this research project was the role of local responsiveness within Craftsmen
Industries determined by the success and cooperation from participating employees. Thus, the
goal of this project was to discover if there was a link from Craftsmens use of local
responsiveness to their successful business.
Each Director interviewed contributed their personal experiences, ideals and individual
knowledge in regards to each subject that was discussed. This amount of cooperation allowed for
the project to discern the most accurate and useful information contributed to the theory.
It is recommended that additional research is conducted as it pertains to the relationship
between local responsiveness and the success of Craftsmen Industries. Other similar companies
would be ideal to contribute to the verification of the link of local responsiveness to overall
success of each company.
Caitlin Bighem
Page 22
References List
Works Cited
Awards. (2014, March 15). Retrieved March 15, 2014, from Craftsmen Industries:
http://www.craftsmenind.com/awards.php
Bartlett, C. A., & Ghoshal, S. (2002). Managing Across Borders: The Transnational Solution. Harvard .
Belk, G. (2014, March 17). Director of Engineering. (C. Bighem, Interviewer)
Berchtold, S., Pricher, R., & Stadler, C. (2010). Global integration versus local adaptation: a case study of
Austrian MNCs in Eastern Europe. European Journal of International Management, 1-26.
Blecker, T., Friedrich, G., Kaluza, B., Abdelkafi, N., & Kreutler, G. (2005). Information and Management
Systems for Product Customization. New York: Springer Science + Business Media, Inc.
Bogun, L. A. (2008). Performance and Global or Local Responsiveness Strategy for Multinational
Enterprise. European Journal of Management.
Collings, D. G. (2013). Integrating Global Mobility and Global Talent Management: Exploring the
Challenges and Strategic Opportunities. Journal of World Business, 255.
Company. (2014, March 01). Retrieved March 22, 2014, from Craftsmen Industries:
http://www.craftsmenind.com/company.php
Devinney, T. M., Midgley, D. F., & Venaik , S. (2000). The Optimal Performance of the Global Firm:
Formalizing and Extending the Integration-Responsiveness Framework. Organization Science, 123.
Fukuda, Y., Kimura, Y., Sudo, N., & Ugai, H. (2013). Cross-Country Transmission Effect of the U.S.
Monetary Shock Under Global Integration. Bank of Japan Working Paper Series, 1-56.
Fuso, J. (2011). Sub-Saharan Africa: The Challenge of Integration into the Global Trading System.
Perspectives on Global Development & Technology, 1-13.
Henthorn, M. (2014, March 17). Director of Estimating. (C. Bighem, Interviewer)
Hvam, L., Mortensen, N. H., & Riis, J. (2008). Product Customization.
Julius H. Johnson, J. (1995). An Empirical Analysis of the Integration-Responsiveness Framework: U.S.
Construction Equipment Industry Firms in Global Competition. Journal of International Business
Studies.
Kobrin, S. J. (1991). An Empirical Analysis of the Determinants of Global Integration. Strategic
Management Journal, 1-16.
Caitlin Bighem
Page 23
Kramer, R., Evans, P., Pucik, V., & Barsoux, J.-L. (2004). The Global Challenge: Frameworks for
International Human Resource Management. Asia Pacific Journal of Human Resources, 160-161.
Lou, Y. (2001). Determinants of Local Responsiveness: Perspectives from Foreign Subsidiaries in an
emerging Market. Journal of Management, 1-28.
Luthans, F., & Doh, J. P. (2012). International Management. New York: McGraw-Hill.
Malecki, E. J. (2010). Global Knowledge and Creativity: New Challenges for Firms and Regions. Regional
Studies, 5-6.
Meyer, K. E., & Estrin, S. (2014). Local Context and Global Strategy: Extending the Integration
Responsiveness Framework to Subsidiary Strategy. Global Strategy Journal, 1-19.
Nikodym, J. (2014, March). Newsletters. Retrieved February 04, 2014, from Craftsmen Industries:
http://www.craftsmenind.com/downloads_newsletter.php
Peng, Y.-S., & Lin, S.-S. (2008). Local Responsiveness Pressure, Subsidiary Resources, Green Management
Adoption and Subsidiary's Performance: Evidence From Taiwanese Manufacturers. Journal of
Business Ethics, 1-15.
Salozzo, J. (2014, March 17). Director of Marketing. (C. Bighem, Interviewer)
Testimonials. (2014, March 01). Retrieved March 20, 2014, from Craftsmen Industries:
http://www.craftsmenind.com/testimonials.php
Wang, J., Solan, D., & Bo, X. (2013). Cross-Culture Integration and Global New Product Development.
Review of Business & Finance Studies, 1.
Caitlin Bighem
Page 24
Appendix
Interview Questions:
1. What countries have you done business with in the past?
2. I understand that Craftsmen shipped to Afghanistan. Can you tell me more about that
product?
3. How did Craftsmen come across this opportunity?
a. Such as a referral from another client?
4. How and why does local responsiveness appeal to your customers?
5. Is there an aspect of Craftsmens services that you find more important and/or used than
others?
6. What are the benefits Craftsmen provides through local responsiveness?
7. In your experience what are some difficulties of local responsiveness?
8. Describe the process when first discussing a product for a client.
a. Do you take the clients opinions and ideas into account when designing a
product?
9. What is the main source of income for Craftsmen?
a. Such as: Vehicle customization, vehicle graphics, fabrication, graphics, paint,
environmental graphics, program development, or signage?
10. How are budgets determined and regulated?
11. Do you have a local strategy?
a. Do you create a different strategy for each client?
12. Are there any issues regarding host country or host government regulations?
a. Such as vehicle requirements or permits? Other examples that may come to mind.
13. What are some of the most common problems you face when creating a new product?
14. Do you have any difficulties working with your international clients? If so, please
describe them.
15. Depending on the client and region, how do you accommodate for the physical
challenges? (Such as narrow streets, bad weather, etc.)
Caitlin Bighem
Page 25

Craftsmen Industries: How Local Responsiveness Is Applied in Practice

Caricato da

Informazioni sul documento

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Craftsmen Industries: How Local Responsiveness Is Applied in Practice

Caricato da

Copyright:

Formati disponibili

2014

April 6th, 2014

4.2 Company Strategy Models and Approaches...14

4.3 Craftsmen Industries Benefits & Difficulties of Local Responsiveness 17

5.3 Overall Conclusions.............22

Chapter 1: Local Responsiveness

2. What are the benefits Craftsmen provides through local responsiveness?

4. Are there aspects of a specific strategy? If so, which one?

1.2 Academic Relevance

1.4 Project Outline

Chapter 2: Local Responsiveness & Global Integration

2.2 Characteristics of Local Responsiveness and Global Integration

2.3 Advantages and Disadvantages of Local Responsiveness & Global Integration

2.4 Challenges of Local Responsiveness & Global Integration

A transnational strategy combines both global integration and local responsiveness.

Chapter 3: Field Research Information

3.3 The Research Instrument

Chapter 4: Field Research Findings

Maintain their domestic business

Increase their domestic business

Expand their international business

Widen their services of local responsiveness

The Director of Marketing stated:

Maintain domestic business

Increase domestic business

Expand international business

Widen services of local responsiveness

In regards to their strategic approach as it pertains to each individual client, there is no

Potrebbero piacerti anche