This report was written to advise the manufacturing company Alvernian on the various strategies required in order to succeed in a foreign market. Hong Kong will be highly efficient for business processes and is strongly recommended as the prime location for Alvernian due to its economic viability and success. Therefore, geographic position will maximise opportunity for capital advancement and establish strong national and international business networks. Extensive research has been conducted on various strategies, elements and methods required to work internationally in Hong Kong. The information this report supplies will give Alvernian a comprehensive framework necessary for conducting business successfully and productively in a foreign market.
Exporting to Hong Kong is essential for the expansion of your business. Not only will it increase capital and promote the Alvernian business name, but it will also boost Australian economy through creating more jobs as well as boosting tourism.
STRATEGIES FOR MANAGING HONG KONG BUSINESS
Incorporating Marketing, Operational, Financial and Human Resource strategies into a business model is vital for any successful venture. These are foundational strategic processes which must be incorporated into any international business plan. During this process, the business environment will be analysed and the best ways for achieving business goals will be identified.
MARKETING MANAGEMENT
A market entry strategy is the planned method of delivering goods or services to the target market within Hong Kong and distributing them from there. This range of interrelated activities involve identifying consumer needs, providing products to meet these specific needs, advertising and selling (Mylonas, A...
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...g Kong culture and expect to be asked personal questions. (Cyborlink, 2012).
RECCOMENDATIONS
Therefore, it is highly recommended that Alvernian operate internationally in Hong Kong. It is suggested that Alvernian enters the international market through the method of Exporting as resources and wages are much cheaper in comparison to Australian prices and will significantly increase profits. Profits will further be increased as Alvernian is able to purchase resources through economies of scale. It is not suggested that manufacturing occurs in Hong Kong however, due to the high market for land and the cost of production. This is used to Alvernian’s advantage as total quality management and supervision can take place where standards and processes are clear.
CONCLUSION
Every company has internal and external forces that effect how they operate within the community in which they are located and also within their own walls. These internal and external forces play a strong impact on the company’s profitability and success. These forces have an effect on what consumers they attract or ignore and how they are perceived by those who have the buying power. A mistake any analyzing and implementing measures to assist with these factors could greatly affects a company’s bottom line and success. This is why any company wanting to grow and be successful will need to take all of these forces; sociocultural, technological, economic, environmental and political-legal into consideration in creating their strategic plan.
Businesses reach a particular point in their operations when redeveloping their business model becomes essential for their continued success. A business model consists of four meshing elements, which work in harmony to create and provide value. The elements include customer value proposition, profit formula, key resources and essential processes (Johnson, Clayton and Kaggerman 60). The customer value proposition elements involve the companies coming up with a particular way of creating value for the customers by providing solutions to certain problems. The element is particularly evident when a company develops a new product of services to address some of the customer needs in a convenient or satisfactory manner.
Globalisation is having a significant impact on marketing. This is because a business, by distributing itself across international borders makes its product more readily available to international customers and creates employment opportunities in the country it has moved to. To understand the impacts, globalisation, marketing (particularly market segmentation), global marketing strategies and general history of Qantas need to be examined.
Selecting a business strategy that details valuable resources and distinctive competencies, strategizing all resources and capabilities and ensuring they are all employed and exploited, and building and regenerating valuable resources and distinctive competencies is key. The analysis of resources, capabilities and core competencies describes the external environment which is subject to change quickly. Based off this information a firm has to be prepared and know its internal resources and capabilities and offer a more secure strategy. Furthermore, resources and capabilities are the primary source of profitability. Resources entail intangible, tangible, and human resources. Capabilities describe environment and strategic environment. Core competencies include knowledge and technical capability. In this section we will attempt to describe in detail the three segments which are resources, capabilities, and core competencies.
In conclusion, the idea of globalisation, the process where companies develop themselves internationally is one of the current issues of our generation. Globalisation has been caused because of many factors, such as reduced protection, the reduction of tariffs and quotas and new developments in information and transportation technology. Consequently these factors that cause the globalisation of Australian businesses also result in many costs and benefits. The key costs and benefits are free trade, the result of removing trade barriers and the environmental costs that are caused by pollution from factories. Overall, a positive outcome will arise if the globalisation of Australian business continues.
When it comes to doing business internationally the decision making is more complex. There are many interactions between each country that need to be addressed. In order for a business to be successful in the international market they need to examine and analyze all the facets of their company. They need
Over the last 30 years the world has seen drastic changes in the Chinese way of making business. Nowadays, China has opened its businesses to the rest of the world, especially America and Europe (Teagarden & Cai, 2009). As a result, their economy has increased and the evolution of the companies have changed to be from closed doors to be international and multinational (Teagarden & Cai, 2009). This essay will analyze, first of all, how some Chinese companies have had success abroad, looking at the strategy that they applied to expand and to improve their products. Furthermore, this essay will show examples of successful Chinese firms, such as Lenovo and TCL Group, and how they achieve it.
Investing or venturing into the international market involves critical analysis of the internal and external environment in which the company operates. Usually, a company will decide to venture internationally due to a saturated market or fierce competition in the current country of operation. The demand for a company’s products may have diminished as a result of an economic crisis thus the company will target a foreign market to sustain its sales. In other words, the firms expand internationally to seek new customers for its products. For example, the current Euro zone crisis led to low demand in Europe and many companies extended their businesses to emerging markets where demand was high. A company may also venture in the international market to enhance the cost-effectiveness of its operations especially for manufacturing companies that will benefit from low costs of production in developing world. Global expansion is a long term project as it involves demanding logistics to be successful. Thorough research must be undertaken to ensure that the expansion will create value for share...
The objective of this research is to help a company or an entrepreneur understand the business environment better as well as customers’ needs and, therefore, make better business decisions.
...he market and lack of an all-round business plan covering all aspects. For the company’s discussed it will be very easy to achieve the goals and be one of the successful company’s in the country and global wise.
The dramatical change to pro-business policies attracted more and more foreign investors to create or move its manufacturing plant to Malaysia, result in its export being larger than that of import into the country.
Our economic development will forever be defined as our ability to succeed internationally. PwC forecasts India’s real annual GDP growth until 2050 at 8.9 percent, Vietnam’s at 8.8 percent, and China’s at 5.9 percent. The list of fast-growing emerging markets goes on and on. The U.S. forecast is a meager 2.4 percent, comparable with most Western economies. The domestic companies that are likely to see incremental growth in the coming decades are those that are not only doing business internationally, but that are developing the strategic skill set to master doing business across cultures. Cross-cultural core competence is at the crux of today’s sustainable competitive advantage. For example, political environment will tell us, as to how and why political leaders control, whether and how of international business. Legal environment, both national and international will tell us about many kinds of laws by which business firms must work. The cultural environment will tell us about attitudes, beliefs and opinions important to business people. Economic environment will tell us about the economic system being followed by the host country, which may or may not be different from home country. It will also explain the variables such as level of development, human resources, Gross Domestic Per Capita and consumption patterns that determine a firm’s ability to do business. Geography will tell us about location, quantity, and quality of the world’s resources.
Expansion across seas can be very advantageous and lucrative for many companies; however, there are many risks associated with doing business overseas, and companies that intend to expand internationally should be careful and strategic when doing so. Not only do companies run the risk of experiencing a product fail due to differences in cultures, they also face severe political and economic risks as well.
The international business development has heightened the importance of international market selection (IMS) of companies, especially for their exporting strategy. However, not many companies really comprehend the geographical, social, economic characteristics of foreign countries in comparison with their home countries (Cavusgil, 1985). This fact has challenged many studies to create the optimal approach for IMS. The major question is: Which foreign market should a company enter? Thus, this report focuses on providing a practical consultancy to evaluate and determine its most appropriate foreign markets.
The business plan will also be useful in facilitating the adoption of a strategy that will help the business prosper in the modern market. The plan will be a critical tool that will help in the production of a reliable strategy for attaining the goals and objectives. The proposed business plan will be implemented in three years time. Within the first three years, the business i...