2. Critically analyse and discuss international business strategy.
3. Critically evaluate strategies to support the operations of an international organisation.
This particular study has provided an in-depth understanding about the importance of global business management. A feasibility study has been conducted in this regard. XYZ is one of the most popular fashion houses occupying a predominant place in the field of handbag already. After drawing the attention of a large number if customer, this particular organization has aimed to launch a new brand of Sunglass. Australia has been chosen as the selected market place. Before entering into the market of Australia, this particular organization should conduct an effective feasibility study regarding the strengths and weakness of Australian market. Various possible obstacles for launching these kinds of products like sunglass will be discussed in the detail. XYZ wants to produce high quality sunglasses that would be able to become a threat for the companies like Prada and Oakley. Both these two organizations are well-established fashion houses having a huge market demand throughout the world. Therefore, in order to be a threat for these companies, XYZ should develop their market strategy in an effective way.
Aims and Objectives:
The primary aim of this feasibility study is to provide an in-depth overview about the business plans, policies and strategies. As per the market demand of Australia, the business experts should conduct the market segmentation based on demographical, geographical and psychographic area (Cavusgil et al. 2014). The main objectives of this particular feasibility study are
- To provide a detailed insight about the business strategy of XYZ for entering into the market of Australia with a new product like Sunglass
- To analyze various obstacles and risk factors for entering into Australian market
- To provide necessary recommendations for making more innovative business plans and policies
Consequences of globalization on business
The overarching term globalization on business primarily indicates the changes in business process that occurred within the particular organization. As per the case scenario, it has been observed that XYZ intends to launch high quality sunglasses and expand their business process beyond going the European countries. After launching the new product, this organization has decided to enter into the market of Australia (Ferraro and Brody 2015). Initially, the target consumers of XYZ were very much limited to one particular country that is UK. After expanding their business to Australia, this organization has expanded their target consumers as well. People of various countries come to know their brand. This process of enhancing the business from one country to another is otherwise named as globalization on business.
The consequence of globalization has both of its positive as well as negative effects. Business organizations would be able to sell their products beyond going their home countries. In case of XYZ, the customers of Australia as well would be able to purchase the product of this organization. Due to the increase of target consumer, the organization gets the opportunity to manufacture and design a sufficient number of products for selling to the customers (Hill, Cronk and Wickramasekera 2013). At the same time, the globalization on business is not devoid of some of its negative effectives as well. Along with the business expansion, the organization such as XYZ should increase their internal workforce plan as well. With a limited number of workforces, the service providers would not be able to deal with the customers properly. The employees would not be able to make a balance between supply and demand of the products. An effective customer service system is one of the most important reasons for being a successful business organization like Prada and Oakley. Therefore, while entering into the new market of Australia, XYZ should keep those factors of globalization on business within mind.
The importance of international business strategy
The underlying term international business strategy is primarily constituted with three primary factors including global strategies, multinational strategies and international strategies (Hooper, and Newlands 2012). If a particular organization intends to make their business plans and strategies based on the home country, the target customers become very much restricted and limited as well. On the other hand, international business strategy is aimed at to draw the attention of international consumers beyond going any specific geographical boundary. Therefore, the target customers have not been specialized as per any particular geographical boundary. While dealing with the internal consumers, the products would be promoted in various multinational countries.
In case of XYZ, the business experts have focused to follow international strategy for expanding their business in different countries of Australia (Mellahi and Frynas 2015). The business experts have decided to introduce high quality sunglass to the market of Australia in order to enter into the Australian market and create a market demand like Prada. For drawing the attention of the Australian customers, the company has followed international business strategy beyond going any particular cultural and religious biasness (Mendenhall and Osland 2012). As a result, a large number of consumers would show their interest to use the products and services of XYZ.
Strategies for supporting the operations of an organization
Operation strategy primarily aims to deal with the overall business strategy. One of the most important purposes of business strategy is to enhance the effectiveness of business products. The primary purpose of a business organization is to draw the attention of the customers with the help of quality and products and services (Neeley 2012). However, the strategies that the organization like XYZ intends to follow for supporting the operations of organizations are as follows:
Among the operation strategies, XYZ likes to follow customer driven strategy. Customer driven strategy allows the business experts to fulfill the needs and demands of the target customers. With the changing environment and new trends, the tastes of the people are changing gradually (Stahl et al. 2012). Therefore, the business managers while designing the sunglasses should have a current updates about the trends and tastes of people.
Before forming the business strategy, the marketing managers of XYZ should construct an effective market research in order to know the current strategy of its competitors such as Prada and Oakley. Prada has focused to deal with high customer service system in order to draw the attention of the customers (Voegtlin, Patzer and Scherer 2012). After evaluating the current market strategy of Prada, XYZ as focused to deal with brand value strategy for creating a market demand.
After conducting the entire feasibility study, it can be recommended that the business proposal should also focus on the international business promotion as well. Promotional activity is one of most effective ways to reach the international target consumers. Therefore, by following the seven Ps of marketing mix, the organization like XYZ would be able to create a market demand (Wild, Wild and Han 2014). In addition, effective promotion acts as a strong competitors’ threat in the market. Therefore, the feasibility study should follow marketing mix strategy at the same time before entering into the market of Australia.
The entire study has focused to deal with effectiveness of global business strategy for launching a new product in the market. The company like XYZ has focused to launch sunglasses in the market of Australia. Therefore, a feasibility study has been conducted how the company should enter into the Australian market to create a demand of their products. Various kinds of operation strategies have also been discussed in this particular study. However, the strength of this entire business plan is making operation strategy, global strategy. At the same, in order to follow the entire business strategy, the project has overlooked to discuss on the marketing promotional mix strategy, one of the most important parts of feasibility study.
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