Implementation of Global Strategies

User Generated

fqrhagen7

Business Finance

Description

APA Format

6 Pages in length

At least 4 Sources

Assignment Objectives:

Appraise cultural issues to avoid pitfalls and manage international projects successfully

Compose, prepare and recommend strategies to achieve and sustain a competitive market profile.

Demonstrate the ability to analyze emerging global marketplace for potential growth and opportunity.

Formulate and implement business-level corporate and global strategies.

Assignment Details:

Your work on your strategic global marketing plan is complete. You now have a plan that will implement, manage, and support a global strategy, but it is far from organized. You e-mail Deborah to inform her that you are almost ready and that the initial planning is complete. A little while later, the phone rings and you see Deborah's name on the caller ID.

“Hi, Deborah. What’s up?” you ask.

“I’d like you to present to the advisory board next week,” Deborah says. “They are very curious about your findings and would like to know if globalization is a good opportunity for the company. The board wants to finalize their strategic plan, and this may be a key part of it.”

After you hang up, you begin thinking through the different items that you will need to cover.

As you finalize the marketing plan, complete the following:

  • Is globalization a good move for the company?
  • What is your rationale behind this decision? Synthesize analysis conducted in previous units, including strategic considerations, cultural considerations, competitive analysis and balanced scorecard.
  • What geographic location should be a target for global expansion?
  • What background information can you provide to support this decision?
  • How will this decision support the overall goal of growth and expansion?
  • How would you refute someone with the opposing perspective?

Attachments: Company Details and Previous Assignment


Unformatted Attachment Preview

Company Biography In January of 2002, John Ferrer and his wife Deborah started their own corporation, a large custom furniture manufacturer located in Boston, MA. Their initial accounts were in the Northeastern region of the United States, and they annually observed a constant profit increase. By March of 2006, they were able to grow the company enough to go from five distribution and manufacturing plants to 10 to allow shipping to 48 states. Although they have two retail stores, one located in Phoenix and one in Boston, their primary source of revenue is online catalog sales. They have 10 manufacturing plants and distribution centers throughout the country. John and Deborah’s corporation is known throughout the industry for its exceptional customer service and superior quality. The contemporary designs lend themselves to a younger market, and the customer base is predominantly upper-middle class because it is one of the highest priced furniture companies in the market. Part of the appeal of John and Deborah’s brand is their consistent involvement with the local communities to create green gardens. They have also been a major contributor to organizations that build houses for people in need. One of their primary strengths is their vertical integration. They have a team of in-house designers saving the company design costs and allowing the flexibility to rapidly change designs as the market changes. Their products have been featured on several prominent home design and gardening shows and have been endorsed by several well-known designers. Because of the recent housing market sales decline (8% from 2005–2006), home renovations have slowed significantly. This has impacted the amount of furniture and fixture sales and continues to impact revenue. Furniture sales in the United States have decreased significantly, and John and Deborah have recently been discussing the possibility of global expansion. Another potential threat to their company is that many higher-end brands have been marketing aggressively and creating lines for popular retail stores. These allow the lower-income consumers to have access to high-end brands at a much lower price point. So far, these lines have been incredibly successful and have significantly increased profits for competitors. Many of these competitors have also had great success in the global marketplace with these lower cost replicas. John and Deborah know that it is time to seriously consider expanding their business. They want to be able to make it through the economic crisis and rely on other ways to increase sales and business. They are open to looking into the global market, but they want to be sure that it is the right move for the business. They have requested an advisory board meeting next month in which you will present the global marketing strategy. As the market strategist, you will play a key role in helping the board decide if this is the right move for the company. The Problem You are sitting in Deborah Ferrer’s office. After the customary small talk, Deborah sits forward and states, “I am very impressed with the work that you have done as the strategic marketing manager. Since John and I started this company in Boston, we have seen continuous growth, but nothing like what we have seen since you started. However, the housing market is really starting to impact our profits. This last quarter’s numbers were not looking good.” You reply, “The crisis has really hit us hard. We have some stiff competition, too, with the other brands creating retail knock-offs.” She counters, “We’ve had great success with your strategies in the domestic markets, but we do need to think of a new approach and strategy. I have complete faith in your abilities to take this company exactly where it needs to go. I must say that we are really counting on you, and I know that you will follow through.” “I will make sure that we do well. Do you have any new projects for me?” you ask. Deborah smiles and says, “You know me well. I do have a new project for you. I sent you an e-mail just before our meeting. I’m curious if expanding in a global market would be a good move for our company. I would like you to look into this for me.” “Our team is definitely up for the challenge,” you say with enthusiasm. Deborah shakes hands with you warmly, and you make your way out of the meeting. As you drive out of the parking garage, you think about your success with the company. You cannot wait to get started. CULTURAL CONSIDERATIONS Balanced Score-Card Perspectives Financial Customer Objectives To Improve Generated Income To Improve Customer Satisfaction Through Originality Internal Business Process | Efficiency in Business | Working Communications System | Control System Learning, Growth and Expansion Improve Employee’s Knowledge Strategic map plan of the Jane and Deborah furniture organization. Financial strategy; The organization has been doing well except recently. To generate more finances, the company has to start investing in marketing strategies. Making of commercial advertisement will help create a strong brand against our competitors. The retail shops should be expanded into the global market. The potential threat from competitors will be eliminated once the company begin doing advertisements and marketing having edged them in quality provision (Hohenthal, Johanson & Johanson, 2015). Customer satisfaction strategy; Although the company has been doing well in the past years in customer satisfaction and quality. A new plan will be adopted. The new marketing BUSINESS MANAGEMENT 2 strategy will target individuals from a new culture. An advertisement must, therefore, be diverse cultural and the furniture designs should embrace a different cultural background, this will help get new customers and satisfy them even further. The mission of the company too is to always remain co-operative and respectful to customers. Internal business process; Has to be achieved in three strategies. Business efficiency will be achieved through all the department of the organization joining to undertake all projects. These ensure faster delivery and no failed projects. The communication strategy should be centralized from the top employees to the bottom. However, each employee is free to communicate their ideas through the mail. Customer communication will be taken seriously. Learning growth and expansion: The business is going global, breaking through the worldwide market. This calls for more commitment as the organization will be dealing with new culture and new customers. The strategy for new customers will be believing and investing in our unique quality while embracing the new religion. Advertisements will help in reaching out to the new religion. Edging out our competitors will be more comfortable when we sell out quality. What are the considerations that you need to be aware of to remain competitive? Pricing The prices of the furniture have always been pocket-friendly. The customers have not complained about the costs. Going into the global market, the new market might see the company increase prices to accommodate the new financial strategies, but hopefully, that should, not change the perspective of most customers about the products since they show value for every product. BUSINESS MANAGEMENT 3 Marketing and advertisement The new global market operates on a different culture; it is essential that our market stay while our products remain relevant to the new market. We can only achieve this through proper marketing and advertisement. The company, therefore, therefore, has to be first to market into the culture with other different. The success of marketing will be based on getting the lead to understand the market leader. Once we hit the market leader, then every single dollar spent on advertisement and marketing will help dictate the competitive playing field and remain a top competitor (Benmehaia & Brabez, 2016). Personnel In the new market, the staff will be very crucial. The best company talents should be distributed to all the retail shops and outlet. This strategy will ensure customer satisfaction and therefore selling the brand positively. We need to identify the personnel demands of customers, and the HR department picks talents that can serve these personal demands. That way it is easier to win the customer trust, especially in the global market (Bahner, Stevenson & Zwygart, 2015). Based on the research and analysis that you have done, can you compete in the market that you have chosen? Why or why not? With vertical integration being the company’s strongest advantage over the other, the company can compete favorably in the new market. Most of the companies employ vertical integration as an alternative and not as a main venture. Our company introducing this style to the market will give the advantage needed to hit the new market (Penrose, 2017). What primary factors led you to this decision? It, therefore, goes that there would be an increased supply chain and reduced cost to the advantage of our organization, while other competitors employ horizontal integration at the same BUSINESS MANAGEMENT 4 part of the supply chain. The cut of the middleman builds customer trust, as clients are served directly by talented employees. With the influence of middle-men, the customers in the global new market do not like the horizontal integration due to trust issues. Our strategy will, therefore, do well in the new market (Johanson & Mattsson, 2015). The reduction in cost that comes with the direct supply of chain will make the customers and client believe in our product. It is the easier to get the brand selling off to the new market. What would you say to someone who would dispute your position? Like it has been working in the local market, it will work for the foreign exchange. The commotions that come with external disruptions on labor rules and laws are not likely to apply to our organization if we imply the vertical integration like we have been doing except marketing of the product will be equally important. Since we are looking to control the market and having a stronger demand than our competitors. Through vertical integration, there is a possibility of dictating terms of the market power, an edge over other competitors (Penrose, 2017). How do you plan on evaluating the global marketplace in the future? Evergreen potential. After the first stage of the implementation of global marketing. We will determine the evaluation of how much we need to put into consideration to continue operating in the new market. Are there better places that might require the resources and energy that we will be applying in the current foreign exchange? Answers to all these questions will be the perfect form of evaluation (Penrose, 2017) BUSINESS MANAGEMENT 5 References Bahner, I., Stevenson, F., & Zwygart, K. (2015). Vertical integration of basic science: returning the basic sciences to the final medical school year using individuated, career-specific short courses. Medical Science Educator, 25(4), 481-482. Benmehaia, A. M., & Brabez, F. (2016). The Empirical Factors Determining Vertical Integration in Algerian Food Manufacturing Sector. European Scientific Journal, ESJ, 12(28). Hohenthal, J., Johanson, J., & Johanson, M. (2015). Network knowledge and businessrelationship value in the foreign market. In Knowledge, Networks and Power (pp. 187224). Palgrave Macmillan, London. Johanson, J., & Mattsson, L. G. (2015). Internationalisation in industrial systems—a network approach. In Knowledge, networks and power (pp. 111-132). Palgrave Macmillan, London. Penrose, E. T. (2017). Foreign Investment and the Growth of the Firm 1. In International Business (pp. 33-48). Routledge.
Purchase answer to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

What's good? 😁...


Anonymous
This is great! Exactly what I wanted.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Related Tags