Purpose
of the report is to learn and apply knowledge
gained during the course and in
so doing achieve the following abilities: -
· Be able to analyze
the factors that influence international business operations.
· Be able to
Evaluate strategies for entry into the global market
· Be able to
Recommend strategies for international business operations
The
main report is consisted on following main points:
· Company background: it
included the brief history of the company and current markets and products of
the company.
· Value chain analysis: This
content outlines the strengths and areas the company can improve, in relation
to each element of their Value Chain.
· Country and market analysis: by
using PESTE tool, a table has been developed of two countries for analysis of
the countries and their markets.
· Opportunities for overseas expansion:
There
has been a discussion done on suitability of each of the 4 Strategies that the
company can use to compete international (Global Standardization,
Transnational, International, and Localization), with reference to how firms
can increase profits and the two competitive pressures. Than these have been priorities
in order of appropriateness for the company with justification.
· Markets enter strategy: An
evaluation has been done; how the company can enter the market with minimum
risk strategy. Then there is a decision on which elements of their value chain
should be kept in the home country and which should be carried out in the host
country. It also includes HRM policy should they use.
2.
Company
Background
Sugar
box is pleased to be an Emirati undertaking which was established in 2007 by
Sheikha May Al Qassemi. Sugar box works in baking pastries utilizing just the
freshest fixings. Sugar box's famous natively constructed sweets have brought
about buildup over The United Arab Emirates, and the GCC. The idea unites the
impact of cultures to make a special mix of fixings that will fulfill your
taste buds. From truffles to cakes and modified cupcakes, Sugar box offers a
various determination of both Middle Eastern and global style treats.
Their
point is to give the best quality items and administration to their clients.
Sugar box has some expertise in baking natively constructed treats utilizing
just the freshest excellent fixings. The espresso they serve at Sugar box is of
the most elevated quality nearing specifically from Italy. Each barista they have
has experienced full preparing to keep the guidelines of their espresso. They
serve a wide assortment of hot and chilly beverages furthermore include new
beverages routinely. One of their primary items are their sweet milkshakes made
with globally well known brands like Snickers, Kitkat, Oreo and a lot of people
more. A percentage of the beverages they serve in their shops are as per the
following: Espresso, Cappucino, Latte, Turkish espresso, Fresh squeezes,
milkshakes, Frappucinos and various types of tea.
3.
Value
chain analysis
Value
chain analysis of The Sugar Boxes
|
Activities
|
Element
|
Description
|
Strengths of The Sugar Boxes
|
Improvement Areas for Sugar Boxes
|
|
Primary
|
Inbound
|
Receiving
and warehousing of crude material, and their dispersion to assembling as they
are needed.
|
Warehousing
of raw material
|
Dispersion
of crude material to assembling division
|
|
Operations
|
Procedure
of changing inputs into completed products.
|
|
Procedure
of changing inputs into completed products.
|
|
|
Outbound Logistics
|
Warehousing
and dispersion of completed products.
|
Warehousing
of finished goods.
|
Dispersion
of completed products.
|
|
|
Marketing & Sales
|
Recognizable
proof of client needs and the era of offers.
|
Generation
of sales
|
Recognizable
proof of Customers needs.
|
|
|
Service
|
Backing
of clients after the items is sold to them.
|
|
Backing
of clients when requests are fulfilled.
|
|
|
Supportive
|
Infrastructure
|
Hierarchical
structure, control frameworks, organization society, and so forth.
|
Organizational
structure
|
Control
frameworks, organization society.
|
|
HRM
|
Representative
selecting, enlisting, preparing, improvement, and payment.
|
Training,
development and compensation.
|
Worker
selecting, enlisting
|
|
|
Technology
|
Advances
to help quality making exercises.
|
|
Each
time there is a change in innovation related things so as Sugar Boxes.
|
|
|
Procurement
|
Obtaining
inputs, for example, materials, supplies, and gear.
|
Purchasing
material, supplies
|
Gear
|
4.
Country
Market analysis
PESTE
tool analysis - India
|
4.1
|
Political
& Legal
|
Political: Being one of
the biggest democracy rule governments on the planet, India runs on an
elected federal government. It is steady popular government. The tax
framework is generally created and a few costs, for example, pay duty,
administrations expense and deals assessment is forced by the Union
Government. Different duties, for example, octroi and utilities, are dealt
with by neighborhood bodies. Privatization is likewise affected and the
legislature energizes free business through an assortment of projects.
Legal: In the later past, various
lawful changes have been executed in India, for example, reusing, the lowest
pay permitted by law increment and handicap separation, which has
specifically influenced organizations there.
|
|
4.2
|
Economic
|
The
economy of India has been essentially steady, since the presentation of the
modern change approaches in 1991. According to the approach, decreases in
modern permitting, liberalization of remote capital, development of FIBP et
cetera, has brought about a consistent change of India's monetary
surroundings. The nation enrolled a GDP of $5.07 trillion in 2013 after a
further enhanced GDP development rate of 5% in 2014 as contrasted with 4.35%
in 2013. GNP: 4.99 trillion and GNI:
$4,000
|
|
4.3
|
Socio-Cultural
|
The
ascent in India's maturing populace is bringing about an impressive climb in
annuity expenses and increment in the business of more established
specialists. India has a populace of more than 1.2 billion individuals with
around 70% between the ages of 15 and 65. In this manner, there are
structures with rates as per age. These structures contain fluctuating
adaptability, in instruction, work disposition, wage dissemination, etc.
|
|
4.4
|
Technological
|
India
is presented with both 3g and 4g innovation which has encouraged a few of
their mechanical undertakings. Besides, the nation additionally has one of
the strongest IT divisions on the planet, advancing consistent IT
advancement, programming redesigns and other mechanical headways. As of late,
India has likewise endeavored to dispatch their satellites into space.
|
|
4.5
|
Environmental
|
The
nature of air in India has been antagonistically influenced by
industrialization and urbanization, likewise bringing about wellbeing issues.
As an issue, there have been foundations of natural weight gatherings, clamor
controls, and regulations on waste control and transfer.
|
PESTE
tool analysis - Turkey
|
4.1
|
Political
& Legal
|
Political: Turkey is supporters
of liberal exchange and speculation approaches which permit open exchange
between distinctive nations in the EU. Fares have been climbing by and large
at a rate of 10% consistently. One of the current political difficulties in
Turkey is the arrangement of brutal terrorist assaults that have happened in
the nation because of Islamic fanatic, Kurdish radicals, Turkish activists
that may have join with Al-Qaeda. Legitimate: In the later past, various lawful changes have been executed in India, for example, reusing, the lowest pay permitted by law increment and inability segregation, which has specifically influenced organizations there. |
|
4.2
|
Economic
|
One
of the current financial qualities in Turkey is that there is a high stream
of outside venture originating from abroad. The cash created from remote
venture will be utilized for extending the foundation of the nation.
The
Gross Domestic Product (GDP) in Turkey was worth 820.21 billion US dollars in
2013. The GDP estimation of Turkey speaks to 1.32 percent of the world
economy. Gross domestic product in Turkey arrived at the midpoint of 197.27
USD Billion from 1960 until 2013, arriving at an untouched high of 820.21 USD
Billion in 2013 and a record low of 8 USD Billion in 1961. Gross domestic
product in Turkey is accounted for by the World Bank Group.
|
|
4.3
|
Socio-Cultural
|
One of the social framework qualities in Turkey is that they have becoming
extent of adolescent populace as they have more than a large portion of the
populace being matured beneath 30. This will permit Turkey to expand their
job rate by getting the most out of the adolescent work energy. One of the
social framework challenges in Turkey is unemployment. |
|
4.4
|
Technological
|
One of the Technological quality's in Turkey is the noteworthy improvement
in the ICT part. Turkey's ICT business sector arrived at $34billion and in
the earlier year it arrived at $31 billion so this demonstrates that in a
space of one year the business developed by $3 billion which is an extremely
considerable measure of cash.. |
|
4.5
|
Environmental
|
There is different enactment for assurance of environment. The
organizations need to strictly follow the rules and regulations. |
5. Opportunities
for overseas expansion
Given below are advantages and
disadvantages related to different strategies for Sugar Boxes.
Ø
Global Standardization
The worldwide standardization procedure
concentrates on expanding gainfulness and benefit development by procuring the
expense decreases that originate from economies of scale, learning impacts, and
area economies. The key objective is to seek after an ease method on a
worldwide scale. The worldwide standardization procedure bodes well when: there
are solid weights for expense diminishments, requests for nearby responsiveness
are insignificant. The generation, promoting & R&D exercises of firms
seeking after a worldwide standardization are moved in a couple of positive
areas.
Ø Transnational
A
transnational technique joins worldwide achieve, coordination of operations and
leveraging one of kind points of interest of neighborhood markets to drive
deals, piece of the overall industry and benefit development. The transnational
technique tries to at the same time, accomplish low expenses through area
economies, economies of scale, and learning impacts; separate the item offering
crosswise over geographic markets to record for neighborhood contrasts;
cultivate a multi-directional stream of abilities between distinctive backups
in the organizations worldwide system of operations.
Ø International
The
International technique bodes well when there are minimal effort weights; low
weights for neighborhood responsiveness. Venture has a tendency to unify item
improvement capacities, for example, R& D at home nation. They may attempt
some neighborhood customization of item offering advertising procedure, in has
a tendency to be fairly in extension.
Ø Localization
The localization methodology concentrates on expanding
benefit by tweaking the organizations merchandise or administrations. The
limitation system bodes well when there are generous contrasts crosswise over
countries with respect to buyer tastes and inclination, where expense weights
are not very serious.
Company
can enter the market with minimum risk by evaluating the different entrance
strategies. Different entrance strategies with their advantages and
disadvantages are given in the table below.
|
Mode
|
Advantages
|
Disadvantages
|
|
Exporting
|
Minimizes danger and venture.
Velocity of passage
Boosts scale; uses existing
offices.
|
Exchange hindrances & duties
add to expenses.
Transport costs
Limits access to neighborhood data
Organization saw as an untouchable
|
|
Licensing
|
Minimizes danger and venture.
Rate of section
Ready to bypass exchange
obstructions
High ROI
|
Absence of control over
utilization of benefits.
Licensee may get to be contender.
Learning overflows
Permit period is constrained
|
|
Joint Ventures
|
Overcomes possession limitations
and social separation
Joins assets of 2 organizations.
Potential for learning
Seen as insider
Less investment required
|
Hard to oversee
Weakening of control
More serious danger than trading a
& permitting
Learning overflows
Accomplice may turn into a
contender.
|
|
Direct Investment
|
More prominent learning of nearby
market
Can better apply particular
aptitudes
Minimizes learning overflow
Can be seen as an insider
|
Higher danger than different modes
Requires more assets and
responsibility
May be hard to deal with the
neighborhood assets.
|
Ø Value Chain
Firms attempt to improve
their generation forms by spotting the different stages crosswise over diverse
locales. The previous decades have seen a solid pattern towards the universal
scattering of worth chain exercises, for example, outline, creation, showcasing,
appropriation, and so on.
According to me firm should
retain design in the home country and rest of the elements to the host country.
Ø HRM staffing strategy
Fundamental
HRM staffing arrangements are given beneath:
· Ethnocentric Staffing
This
policy includes staffing the most vital positions in outside backups with
exiles from the organization's nation of origin.
· Polycentric Staffing
In
polycentric staffing, an organization will contract host-nation nationals for
positions in the organization from mail room agents the distance up to the
official suites
· Regiocentric Staffing
Regiocentric
staffing is a great deal like polycentric staffing in that have nation nationals’
staff every outside backup to a high degree. In any case, organization business
locales and offices are gathered into areas and function as an issue unit with
a reasonable level of independence from the home base camp.
To
me Ethnocentric strategy is more suitable as ostracizes are regularly accepted
to better speak to the diversions of the home office and guarantee that the
remote business locales are adjusted to home base camp. Actually, numerous
ostracizes are chosen from the organization's present representatives and are
basically exchanged to a remote auxiliary. Ethnocentric staffing is the
arrangement of investments and point of view of the home office with all remote
backups abroad. Correspondence is additionally less demanding on the grounds
that there ought to be no dialect and social obstructions. The organization
might likewise have the capacity to exchange representatives with an agreeable
execution record that will give some level of consistency.
References