Global Business Environment

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GlobalBusiness Environment

GlobalBusiness Environment

Simulation5

Thecompany’s philosophy, “healthy diet leads to healthy life”,might not be pleasing to the people of India given the fact thecountry is a third world where people are still struggling to makeends meet. On the issue of environmental and social impact, thecompany does not need to focus so much on this because of the natureof the Indian society, which is simply concerned with the prices ofproducts and their capabilities to satisfy their needs. In the thirdworld markets, focus should be on improving the standard of living byoffering the affordable product while at the same time promoting theeconomy, which means other things are not main factors to consider.Looking at the market size, India is one of the most populatedcountries in the world and the company is expected to perform, but onone condition: offer affordable products. The first step in analyzingthe market size is acquiring data from trade associations in thecountry, accessing government data on the most populated town, andconducting a study on customer survey. One of the distinctivefeatures of the Indian population is the desire to access cheaperproducts. Regarding the market size, the company does not have anyproblem accessing a very large market even though the purchasingpower among customers is very low. The company should considerlocating its business in the country’s headquarters because it iscompromised of the middle class who might be interested in thecompany’s products (Morrison, 2011).

Importswill have a negative effect on the company’s products, especiallythe cheap products from China and other Asian countries that haveaccess to cheaper raw materials and readily available labour (Heizer,&amp Render, 2014). The company might face several challenges tryingto compete with these regional companies because they also enjoypreferential treatment in terms of quotas. Therefore, the beststrategy to employ in order to keep pace with these Asian companiesis to source labour locally because it is cheaper as compared tobringing in people from the US. Again, the raw materials must beacquired locally or from the Asian region instead of interring intocontracts with Australian, Canadian, or American suppliers who mightbe selling their products at higher rates. The global megatrend iscustomer service where the company should consider offering somethingspecial, such as delivering the product to the customer’s doorstep.This will help in developing trust between the customers and thecompany. On the issue of income, the Indians are not superior ascompared to Americans and their spending is regulated because of theharsh economic environment in the country(Maugans, 2015).

Customershave their preferences that force the company to initiate research tounderstand them if it is to survive in this market. Customers caremost about prices given their low incomes, even though they will alsodemand for top quality service where products are delivered in time.Religion has never been an issue to the Indian people when it comesto buying products, but it has to be remembered that technology playsa greater role in the modern business practice. Competition is stiffin the cereal business in the Indian economy, but the company islikely to penetrate easily because it enjoys the economies of scale.Just as the US, the supply chain works in the same way in India eventhough the use of wholesalers is common.The only major source ofbusiness intelligence is research because it is credible and has beenused in India for quite some time in diagnosing the problems facingindustries and companies. Experts who offer professional servicesfacilitate marketing assistance. The country is a member of commonwealth hence it would not restrict the US Company from operating. TheWTO agreement gives the United States and other member countries achance to engage in trade freely. However, the company will have topay taxes as usual.

Simulation3

Eachorganization globally, including H&ampH Co. Ltd, wishes to expand byopening new branches and subsidiaries in other countries. However,the organization has to develop a specific strategy because poorentry plan may result in losses because the company may fail to takeoff as expected. In the provided case, the company seems aware of thecurrent market, especially the expectations of customers. The companyis reported to enjoy strong sales and its brand in the market is thestrongest implying that it is the right time for it to launchventures abroad. The first step towards committing funds todevelopment abroad is commitment where the company has to establishthe customers it is targeting (Morrison, 2011). Many companies may beincited to capture a larger market, but this is not safe becauseconcentrating on a smaller market for start is advisable tounderstand exactly the demands and wishes of customers. The companymust work with a clear timetable to ensure the desired goals andobjectives are achieved appropriately. The second step is identifyingthe entry points and this is undertaken after identifying clearly thetargeted market. The aim here is to minimize initial investment whileat the same time maximizing future revenues.

Theentry points are usually many, but the company has to engage in aform of study to weigh the pros and cons of each. In this regard ,definition of a market entry strategy is critical whereby the firstis to set the price of the product and the management has to strikebalance between affordability and feasibility. This means thetargeted customers must be in a position to acquire the product whileat the same time the company has to make sufficient profits tosustain its operations in foreign country (Chase, Jacobs, Aquilano,2007). Since the company is new in the market, it has to associateitself with something that customers will always recognize it easily.In this regard, customer perceptions are taken into consideration.Therefore, the company has to strengthen its communication strategiesto ensure customers understand its missions, visions, and objectivesclearly. The views of influencers, decision-makers, the media, andusers must be incorporated into the company strategy. Anotherimportant strategy is assemble plan whereby the strategies put inplace need to be appraised by developing a detailed action plan. Thehigh-level plan is converted into an on-ground implementationsolution for the company. Under this strategy, the organizationdevelops marketing plans, timelines, and campaign plans to ensure thenew products are popular in the new market. The fifth strategyentails research, which must be constant thing in the organizationright of inception to operation. Before introducing products on alarge-scale, testing is important and it has to be undertaken as apilot project. Ramping up is the seventh strategy and it happensafter the company is fully prepared to roll out operations in the newmarket. However, any organization might be prepared for both successand failure hence the need to set up an exit strategy.

Simulation4

Emissionof carbon gases is one of the global challenges that states arefocused on reducing. The recent environmental conference held inParis, France was aimed at deliberating on the way forward given thefact the rates of emission are reaching the uncontrollable heights inthe near future. MJM Company understands the megatrend where globalenvironmental concern is the role of each person and organization. Inthe logistics environment, issues of emissions crop up from timebecause the railway transport is the one of the major emitters.Therefore, the company should think of using other sources of energy,such as developing electric trains, which will definitely reducecarbon emission. Other global issues facing logistics is the issue ofphysical security where vandalism, highway robbery, and terrorismcome out strongly (Morrison, 2011). Insurance companies are reluctantto insure products against terrorism because its magnitude is unknownhence setting the premiums is difficult. While transporting goods totheir desired destinations, terrorists may hijack the truck,aeroplane. This leads to delays because they often demand for ransom,which might be unavailable at the time of request. The release of thehijacked cargo takes long and the products might go bad in case theywere perishable in some way. The process liberating the cargo oncehijacked has to follow a procedure because governments will have tointervene. Terrorism is one of the major threats to the logisticsindustry.

References

Chase,R.B., Jacobs, F.R. Aquilano, L. (2007). OperationsManagement for Competitive Advantage.New York: McGraw-Hill.

Heizer,J. H., &amp Render, B. (2014). Principlesof operations management: Sustainability and supply chain management.New York: McGraw.

Maugans,C. (2015). &quot21St Century Human Resources: Employee Advocate,Business Partner, or Both?&quot CornellHR Review,1(4), 1-21

Morrison,J. (2011). GlobalBusiness Environment.New York: PalgraveMacmillan

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