International Business Strategy
For instance, a company dealing with the daily products can decide to sell its excess beverages and products outside the country, but their main focus is still on the domestic market. The following paper seeks to analyse what international business strategy is all about and its significance for a multinational organization for successful entry into new market frontiers. An analysis of the different aspects that define how better to develop a plan that understands the different market orientations together with the impact of multicultural differences on market segments they choose to venture. A review of an international strategy together with identification of four theories or models that explain the global strategy will be instrumental in setting up the framework for Green Cola Hellas SA venture into Green Cola Ocean Group holding company.
Even though the company has a product of good quality, it behoves the management to set up a strategic plan capable of communicating their product better in the markets that constitute of an intercultural orientation. Sometimes, a company may be experiencing difficulties in the domestic market, and global expansion gives it an opportunity to diversify and increase profitability (Robock, Stefan, Kenneth, 1989, 12 ). Besides, global expansion enables a company to secure resources or take advantage of the availability of low cost of labour in certain countries. Other companies decide to go global as a strategic move to position itself internationally and beat its competitors. From a consumer perspective, global strategy is important in the sense that it leads to low prices for goods and services offered by a company.
The economies of scale as well as the scope that a company derives from the large global base allows a company to sell its products and services at a relatively low cost which is beneficial to the both the consumers and the business (Goerzen, Asmussen and Nielsen 2013, 433). It is a managerial model that incorporates both the primary and secondary stakeholders of a company and serves to ensure that an organization recognises analyses as well as examines both the individual and group characteristics. The reviewed elements of the business are likely to influence or to be influenced by the activities and behaviours of the organization (Mainardes, Alves and Raposo 2012, 1861). The theoretical design identifies three levels in which stakeholder’s theory takes place.
The first level is the identification of stakeholders. Secondly, is the development process in which the company recognizes the needs and interests of each stakeholder? Finally, stakeholder theory establishes a relationship with the stakeholders (Mainardes, Alves and Raposo 2012, 1862). The market is characterized by consumers with different expectations, preferences and attitudes which determines the trajectory of success for an organization. Companies that seek operational excellence focus on delivering their products to customers at a competitive price and minimal inconveniences. Such companies build their entire business around their objectives and stand out from companies that seek other value disciplines. Hamel (1991) explains that it is possible to regard a company as a portfolio of core competencies rather than a portfolio of product market entities.
This is because core competencies contribute in a significant way to the unique functionality of the end products (Hamel 1991, 84). Therefore, a balanced scorecard incorporates operational performance measures which focus on consumer satisfaction, innovation, and learning as well as internal business processes. Green Cola Hellas SA decision to strike an understanding that will see it expand to the Saudi Arabian market defines their desire in creating better results through employing competent intercultural communication. The multinational organization has operates across the world in locations with different cultural orientation which makes it imperative to develop an understanding with local population’s beliefs and experiences. The last strategy model for analysis is the Porter's Generic Strategy. The strategy is further divided into three strategies which include product and services differentiation strategy, cost leadership strategy as well as focus strategy.
Besides, Green Cola Hellas SA can reduce the cost of production which translates to high profits even when the company sells at a standard price. Secondly, technology allows consumers to have access to information on different prices offered by different companies in the market (Teece 2010, 174). That way they can choose the best products that fits their needs and whose prices match their pockets. When a company applies differentiation strategy, it creates an additional barrier for new ventures into the industry (Tanwar 2013, 16). Finally, Green Cola Hellas SA through the application of focus strategy benefits from specialization and decreased investments in terms of resources. An effective communication model between the stakeholders and entity despite hailing from different cultural orientations is significant when it comes to developing better intercultural engagement.
Green Cola Hellas SA should place its stakeholders in the order of priority. The investors hold the highest priority while the suppliers hold the least priority. However, all groups of stakeholders are essential in the decision-making process of the company. The organization should have three financial perspective objectives which include increasing revenues to assets, increasing revenues to employees and increasing return on investment (Timilsina 2015, 15). On the other hand, Porter's generic strategies analyses how a company can gain a competitive advantage over its rivals in the industry. Finally, a balanced scorecard looks into the key performance measures in a company which includes financial perspectives, consumer perspectives, internal process perspective as well as learning and growth perspective. An analysis of different market segment, it is evident that Green Cola Hellas SA as a global leader in the beverage manufacture applies the four strategies on review for better intercultural communication.
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