...The Process of Expanding a Business into a New Region Author’s Name Institutional Affiliation The Process of Expanding a Business into a New Region Business expansion gets defined as the process of enlarging the operations of an enterprise either by launching new products or building more branches. Each year, thousands of companies consider exploring new markets by expanding their operations into new geographical locations. According to Awe (2006) the drive to enjoy high-profit returns, and economies of scale are some of the primary reasons why companies keep migrating from one region to another. Stiff competition within the domestic markets may also force some firms to seek alternative markets. Given the importance of this process to the future of an expanding company, it is critical for the firm to take into account a number of the factors. This research investigates the importance of political forces, socio-cultural variables, and economic factors in the expansion process. The role of politics in promoting economic growth cannot be overlooked. Kay (2013) compared the economic performance of different countries with their levels of political democracy. The survey established that countries characterized by high degrees of political stability, goodwill, and democracy had better economic development statistics. In particular, the study compared the economic performance of Ukraine (a politically unstable country) and Uzbekistan (a stable country) over the last...
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...The Process of Expansion of the Business into a New Region or Country The business world around the globe is changing fast inspired by globalization. Companies go into new regions or nations with the typical objective of growth and diversification of its activities. In the contemporary business world, many companies are expanding into new-geographic regions or countries with the aim of gaining competitive advantage through overcoming international trade barriers. The process of expanding businesses into a new region involves complex operations, which are not impossible. However, venturing into the international market is not the same as expanding the business into a new town or state. Foreign nations offer an entirely different set of risks as well as other business factors. Organizations that venture into new regions manage to stay ahead of their competitors because they get to enjoy more profits, cheaper labor, new markets for their product and most importantly growth opportunities. Selecting an expansion approach: Martinez (2012) states that expansion of a business into new markets sounds great, but there are some risks involved. An enterprise might be thriving in its domestic market, mainly because the entrepreneur is well-acquainted with the region. The entrance of a business into new regions or nation implies that it will have more workers, new clients to service, as well as new competitors to fight with for the market share. Therefore, it is an excellent idea to approach...
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...its network and business relationships is understandable, given that Delta as Technology Company and Beta as bank. The partnership with foreign IT firms in the case of Delta are significant in delivery IT services such as in Cisco, Infosys and Infosys as one means of achieving its proficiency in IT service delivery. Delta foreign expansion, however, was a result of its technological expertise, business networks with foreign IT firms, business relationships with its large corporate customers, knowledge and experience of the...
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...November 6, 2012 Corporate Level Strategy Organizations utilize corporate-level strategy to find a new domain to succeed in, while still maximizing the utilization of its core competencies. Moonglow Acre’s core competency has always been social responsibility and concern for the environment. They can use this capability to expand into new domains, whether they are related or unrelated. Not only can a change in domain or structure add value, but the culture an organization implements can also positively or negatively affect their value (Jones, 2010). One way that Moonglow could positively utilize a corporate-level strategy would be to take over its supplier or input domain, a display of backward vertical integration, and produce his or her own organic ingredients. By doing this they could decrease the costs incurred by companies that inflate their costs, especially since there are most likely a small number of organic ingredient suppliers. Moonglow already displays a situation where they have expanded into a new related domain by investing in environmental projects, such as reforestation. This strongly supports their organizational culture and is a display of related diversification (Jones, 2010). Another positive of implementing a corporate-level strategy would be utilizing unrelated diversification and bringing Moonglow’s products overseas. This would be entering a new unrelated domain, but could add value to the company by introducing countries, such as France and...
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...Globalization process Process by which global transnational structures, organizations and societies overtake the national structures, organizations and societies Globalism: ideology World market vs national politics and market Ideology belief in superiority of global structures Globality: consequences of globalization: open societies, destruction of closed societies, awareness of other nations, cultures, and values. Underlying forcesfor globality Increase expansion of international trade Rapid expansion of information technology Expansion of global communication and entertaintment Expansion of multinational, trans-national corporations and industries. Expansion of world organization and world politics. Issues of world poverty. Universal demand for human right and democracy. Environmental issues crossing national boundaries. Cultural conflicts. What was local is now global Economic crisis, financial fluctuations, disasters, inventions, politic events, entertainment, sports. Level of globalization impacts National states, organizations, individuals, facilitated by IT What is information technology is? Blurring of boundaries in IT Computer and phone. Computer and digital media Combination of hardware and software. The roles of IT Reduce costs, sources of innovation, improving quality of life, improving services, increasing access to services, increasing access to markets. Effects of IT Usage Individual usage – cohesive society, business usage...
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...Selecting REDB Activities and Initiatives What is Community Economic Development? Community Economic Development is a community-informed, place-based, strategicallyfocused, collaborative approach to creating new enterprises, stabilizing existing enterprises, growing existing enterprises, attracting new enterprises and / or creating the conditions where these advances can occur. Why do we focus on initiatives and activities? There is a big difference between hoping for something and making it happen. We focus on initiatives and activities because they are the ONLY means of positively impacting the regional context in which we operate. Without execution, our planning amounts to little more than wishful thinking. Initiatives and activities that are strategically-focused, properly-prioritized, well-planned, and well-executed bring strategic plans to fruition. How do we ensure that we undertake the best initiatives and activities possible? It is a difficult challenge. One size does not fit all. What works for one region will not necessarily work for another. There are desired states called ‘outcomes’ that we are trying to achieve. We undertake activities and initiatives that will produce products or services called ‘outputs’ that will contribute to achieving our desired outcomes. We control the outputs we produce but not the outcomes we hope to influence. We use opportunity management processes to ensure that the initiatives and activities we undertake are those most...
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...and 8.5% are in manufacturing, design, logistics, and distribution. The remaining 11.5% are part of the corporate headquarters of Inditex, which is located in the region of Spain called Galicia. The role of the corporate center at Inditex’s headquarters is that of a “strategic controller” only, and is involved in setting the corporate strategy, approving the business strategies of the individual chains, and controlling their overall performance rather than as an “operator” functionally involved in running the chains. This gives Zara autonomy to operate independently and be responsible for its own strategy, product design, sourcing & manufacturing, distribution, image, personnel and financial results. With this freedom, Zara was able to make major investments in manufacturing, logistics, and IT, including establishment of a just-in-time manufacturing system and a 130,000 square meter warehouse close to its corporate headquarters. Zara manufactured its most fashion-sensitive products internally and its designers continuously tracked customer preferences and placed orders with internal and external suppliers based on this information. Due to its unique needs, Zara chose to internally develop its business systems. Zara is now able to originate a design and have finished goods in stores within weeks for entirely new designs and take...
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...and 8.5% are in manufacturing, design, logistics, and distribution. The remaining 11.5% are part of the corporate headquarters of Inditex, which is located in the region of Spain called Galicia. The role of the corporate center at Inditex’s headquarters is that of a “strategic controller” only, and is involved in setting the corporate strategy, approving the business strategies of the individual chains, and controlling their overall performance rather than as an “operator” functionally involved in running the chains. This gives Zara autonomy to operate independently and be responsible for its own strategy, product design, sourcing & manufacturing, distribution, image, personnel and financial results. With this freedom, Zara was able to make major investments in manufacturing, logistics, and IT, including establishment of a just-in-time manufacturing system and a 130,000 square meter warehouse close to its corporate headquarters. Zara manufactured its most fashion-sensitive products internally and its designers continuously tracked customer preferences and placed orders with internal and external suppliers based on this information. Due to its unique needs, Zara chose to internally develop its business systems. Zara is now able to originate a design and have finished goods in stores within weeks for entirely new designs and take...
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...8.5% are in manufacturing, design, logistics, and distribution. The remaining 11.5% are part of the corporate headquarters of Inditex, which is located in the region of Spain called Galicia. The role of the corporate center at Inditex’s headquarters is that of a “strategic controller” only, and is involved in setting the corporate strategy, approving the business strategies of the individual chains, and controlling their overall performance rather than as an “operator” functionally involved in running the chains. This gives Zara autonomy to operate independently and be responsible for its own strategy, product design, sourcing & manufacturing, distribution, image, personnel and financial results. With this freedom, Zara was able to make major investments in manufacturing, logistics, and IT, including establishment of a just-in-time manufacturing system and a 130,000 square meter warehouse close to its corporate headquarters. Zara manufactured its most fashion-sensitive products internally and its designers continuously tracked customer preferences and placed orders with internal and external suppliers based on this information. Due to its unique needs, Zara chose to internally develop its business systems. Zara is now able to originate a design and have finished goods in stores within weeks for entirely new designs and take...
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...and 8.5% are in manufacturing, design, logistics, and distribution. The remaining 11.5% are part of the corporate headquarters of Inditex, which is located in the region of Spain called Galicia. The role of the corporate center at Inditex’s headquarters is that of a “strategic controller” only, and is involved in setting the corporate strategy, approving the business strategies of the individual chains, and controlling their overall performance rather than as an “operator” functionally involved in running the chains. This gives Zara autonomy to operate independently and be responsible for its own strategy, product design, sourcing & manufacturing, distribution, image, personnel and financial results. With this freedom, Zara was able to make major investments in manufacturing, logistics, and IT, including establishment of a just-in-time manufacturing system and a 130,000 square meter warehouse close to its corporate headquarters. Zara manufactured its most fashion-sensitive products internally and its designers continuously tracked customer preferences and placed orders with internal and external suppliers based on this information. Due to its unique needs, Zara chose to internally develop its business systems. Zara is now able to originate a design and have finished goods in stores within weeks for entirely new designs and take...
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...Starbucks Case Study Contents Introduction ............................................................................................................................. 3 Background information and industry analysis ........................................................................ 4 Development and expansion strategies .................................................................................... 6 Internal environment analysis ................................................................................................... 8 SWOT analysis ............................................................................................................................ 9 Strengths .............................................................................................................. .... ............... 10 Weaknesses ............................................................................................................................... 11 Opportunities ............................................................................................................................ 11 Threats ....................................................................................................................... . ............. 11 Conclusion .................................................................................................................................. 12 References........................................................................
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...Brief Description of the Organisation – ‘The Luxury Hotel Group [pic] [pic] [pic] The Luxury Hotel Group The Luxury Hotel Group started business with two small boutique style hotels in Melbourne, Australia. The group is owned and financed by a large consortium of international business experts and several large investment companies. It is in a strong financial position for expansion. Over a period of 15 years it has grown to now comprise a chain of 20 hotels across 5 different countries in the Australasian region. This growth was a result of an acquisition of a small hotel chain and establishment of some new properties, mainly in Australia. The group employs cultural specialists and prides itself on its multicultural expertise that assists with its success in welcoming guests from all regions of the World. The Group now employs 1000 staff in full time, part time and casual positions. The Head Office, located in Melbourne, houses the management team for the group. The group is owned and financed by a large consortium of international business people and several large investment companies. It is in a strong financial position for expansion. The vision for the Group is to expand geographically to provide a quality boutique alternative in key locations across the Australasian region, whilst maintaining its reputation for exceptional personalised service. Brief Description of Organisation Structure The Head Office of The Luxury Hotel Group houses...
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...Compensation and benefits curriculum have a considerable amount of influence in a business’ capability to allure and retain workforce. Understanding the company’s goals, attracting experience candidates, and reward the existing employees will expand benefits and compensations to fit the potential position and work environment. By built on a strong working characteristic, respected core benefits package with insurance, and superior compensations Freeley & Driscoll can expand and fill a new position more effectively. In response to Feeley & Driscoll, P.C.’s (the “Company”) operational goal of 10 percent annual revenue growth, a market development and expansion manager position will be created to lead the Company’s expansion into new markets beyond the New England demographic. In order to attract experienced candidates for the position, the compensation and benefits package must include a variety of options to meet the needs of the employee. At the same time, the proposed package should reflect the Company’s expectations for the position, utilizing a combination of fixed and performance-based compensation, and benefits to ensure the candidate is thoroughly invested in the Company’s success. Since its inception, the Company has built its success through the hard work and dedication of its employees. As a result, the Company has rewarded its employees with the highest salaries in its industry and region. The Company believes a mutually beneficial relationship with its employees fosters...
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...PORTFOLIO BUILDER BSBINN601A Manage Organisational Change Candidate Name: | | Company: | | Date of submission: | | Name of Assessor: | | RTO: | Management Consultancy International | Project Overview Part 1 In this project you will be required to work as a senior human resources manager within a fictitious organisation called the International Hotel Group. (If conducting this project in your workplace or in your college or training organisation, work with the relevant staff from that team). You will be required to identify the need for a strategic change and a major operational change and develop, implement and review the change management strategy. In this task you will be required to identify the need for strategic and operational change. * You will need to access information about your organisation’s current strategic directions. * If working in a simulated situation you will be provided with information and a scenario. a) Write a list of possible needs for change. To do this you will need to do some or all of the following: * Review organisation’s strategic plans * Review relevant policies and procedures * Consider any environmental events or trends * Review operational procedures * Consult relevant specialists and experts b) Consult with relevant managers to discuss and prioritise identified change requirements. Prepare a report that outlines the outcomes of this meeting. (If completing this activity...
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...recommendation JetBlue’s expansion goals across the country required addition of new crew members with the continuous increase in new airplanes. However, as the business plan of JetBlue will increase, success of JetBlue through long periods of sustained growth will, eventually, become crucial and a concern. JetBlue decisions and strategy till now has been excellent with their low fair price tickets along with good operational strategy and human resource management. But going ahead, competition in airline industry will rise because of the ability of competitors to imitate the strategy JetBlue is following. Therefore, to remain ahead of the game JetBlue will need a strategy that will help them grow across the country by increasing annual revenue and loyalty. The strategic recommendation I propose for JetBlue is to expand their routes and provide service in other regions such as West Coast. The airline made JFK (New York) as its base. JetBlue was able to purchase departure slots from TWA without going through the usual process of purchasing the slots. Besides, the airline received the exemption to the High Density Rule and started to serve Buffalo, Rochester and Syracuse. With the gradual increase in the number of aircrafts and employees, JetBlue should start services to others regions such as West coast. These transatlantic flights will generate high revenue because business people travel to West Coast regions frequently as the part of their job requirements and business deals. Moreover...
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