Since 2000, Greece has been facing serious Sovereign Debt Crisis due to huge, potentially unsustainable public debt levels. The country had borrowed funds from International Monetary fund (IMF) and other European countries to avoid defaulting on their debt but has remained in budget crisis, unemployment and recession crisis. Greece has a history of high public debt which exceeds its political ideology (Bradley, 2005). This is because of state-led development projects that are implemented via public sector enterprises that advocate for high fixed capital investment in public buildings, hospitals and infrastructure (Cateora, & Graham, 2007). Sovereign Debt Crisis in Greece was experience beginning from 2009. By the end of 2010, the country’s debt crisis had consolidated and stood at EUR 350 billion.
Firm’s Global Marketing Strategies (GMS)
International marketing is a vital component of firm’s marketing strategy which is a positive influence on the performance in global market. Various firms in Greece have begun applying international marketing strategies in order to mitigate the effects of sovereign debt crisis (Sun, Pollard, & Stewart, 2011). The global marketing strategies (GMS) used by companies such as Ellaktor SA in Greece includes corporate governance. Ellaktor SA Company have used corporate governance in Greece in order to increase global competition and upgrading its capital market (Bradley, 2005). In addition, the recent financial scandals and corporate failures due to effects of sovereign debt crisis have influenced its global marketing strategies including corporate governance (Cateora, & Graham, 2007). Greece capital market is faced with challenges related to market transparency and poor investor’s confidence hence corporate governance is necessary to improve its global marketing strategies during Global Financial crisis.
Case Study: Use of Corporate Governance to promote Global Marketing
Corporate governance refers to the way in which financial suppliers to corporation guarantee sufficient returns on their investments. Marketing Megatheory is applicable in corporate governance. Corporate governance has substantial effects on the prospects of company’s growth (Doyle, & Stern, 2006). In addition, good corporate governance practices reduce the investment’s risks, attract capital investment and promote corporate performance (Bradley, 2005). Moreover, CG has become an important element in increasing company’s global competiveness. The environment in Greece is challenging hence Ellaktor SA Company have adopted a rule-based system in order to increase efficiency and reduce financial wastage (Cateora, & Graham, 2007). Moreover, the board of directors helps to promote the company’s international marketing strategies.
Increasing effort to develop corporate governance in Ellaktor SA Company in Greece is from the aspiration to develop an integrated European capital market. This was aimed to increase degree of transparency and develop common rules that will facilitate adoption of global marketing strategies (Czinkota, & Ronkainen, 2007). Greek economy for a long time has been faced with monetary and fiscal imbalances. The government has developed tight policies with the aim of establishing price stability and financial discipline (Michaluk, 2007). Prior to 2005, the GDP of Greece