MKTG60258 Business Management Global Business Directions

Part 1

Based largely on the content of the speaker presentations which took place during the 3 day Conference, you will need to work in groups to research one question relating to a particular business topic and take part in a Group Debate. Groups will be formed from tutorial groups and must have 4-6 members.   Everyone must contribute to the debate and you should be prepared to answer questions about your individual opinions on the topic.

Time will be facilitated during your GBD sessions to assist with your group presentation. You will need to bring copies of your notes and research to the assessment (presentation) as evidence of your work.

1. With reference to specific case studies, discuss the opportunities and threats to consider when entering a new international market.
2. What are the challenges to brand development and brand management when operating within a competitive domestic market? Please use case studies within your discussion.
3. What factors need to be considered when planning a growth strategy as an SME? Is growth always the best approach to business success?
4. How can organisational culture impact on staff engagement and productivity? Discuss in both negative and positive contexts.
5. Discuss the impact of technology, both positive and negative, on policing in the UK today.
6. ‘People buy People’ – discuss different approaches to sales and relationship building and evaluate which is the most effective.

Answer:

Opportunities and threats to consider when entering a new international market

1. Introduction: 

This particular report has focused to make an in-depth analysis on how business organizations have to face necessary challenges before entering into the new international market. At the same time, it is also undeniable that business organizations are possessed with immense opportunities while spreading their business process in the international market. The number of target customers is enhanced after entering in the international business. In this specific study, the case study of Vauxhall has been selected in order to evaluate on how the business experts of this specific organization had to face innumerable challenges for expanding their entire business process in the International market. The case study evaluates that business managers have decided to make a partnership with I Spy in order to create customer engagement in the international market with the help of social media. Some of the threats that Vauxhall had to face while entering in the new market have also been discussed in the specific study (thedrum.com 2017).

2. Overview of the case study of Vauxhall: 

From the case study of Vauxhall it has been observed that this specific organization had to face innumerable difficulties in enhancing their entire process of business in multinational countries. People belonging to different geographical boundaries are endowed with various needs and demands regarding products and services. Vauxhall being one of the most recognizable car manufacturers occupying a predominant place in the realm of automobile industry in UK has decided to spread their entire business process in the international market (Levy and Murnane 2012). While entering in the market of different countries the business experts have observed that Vauxhall would have to apply new business strategies in order to introduce their cars to the mind of international customers. After making partnership with digital giant I Spy Vauxhall have used the popularity of social media tools to overcome the serious threats (Christensen 2013). At the same time, international market entry is possessed with some of the positive aspects as well. The organization is able to enhance their number of target customers that reflects on the revenue growth of Vauxhall. However, the necessary threats that Vauxhall has to face while entering in the international market include:

• The market strategy and policy of other established car manufacturer belonging to the automobile sector is more effective than Vauxhall
• Lack of appropriate promotional tools that can be used for introducing the brand of Vauxhall to the international customers
• The product designs of Vauxhall is very much classical that can draw the attention of specific number of customers

On the other hand, the opportunities that Vauxhall have faced while expanding the business process in the international market include:

• The number of target group can be increased after expanding the business in different geographical markets
• The organization can enhance the volume of sales growth after the increasing the entire target customers

3. Necessary models for entering in the international market: 

Vauxhall in order to enter in the new international market tends to focus on implementing an effective market and industry analysis. Based on those strategies the business experts decided which particular strategy and policy they should take for fulfilling the needs and demands of target customers. By conducting an effective market analysis Vauxhall would focus to establish their brands and products in the global market.

Porter’s five force analysis in order to analyze the market scope:

Supplier’s power:

As per the global scenario it has been observed that the suppliers’ power in the automobile industry is high. Numerous automobile brands have already established their brand identity in the global market (Tang Atkinson and Zou 2012). Therefore, the powers of the suppliers have become automatically high. Vauxhall therefore would have to set the pricing strategy in such a way that customers from different geographical market can be attracted for purchasing the products and services.

Buyer’s power:

After conducting an effective industry evaluating it has been observed that automobile industry is possessed with large number of organizations who have already gained brand identity. Therefore, the power of the buyers is also very high. Before purchasing a car the international customers get immense options to select their brand (Lu et al. 2013). In this kind of situation, Vauxhall should focus on more effective promotions based on which this particular brand can draw the attention of international customers.

Threat of new entry:

The global automobile brands such as Jaguar, Ford, BMW, Audi, Acura, Aston Martin has already established their reorganization in the international market. In this kind of situation, Vauxhall being a complete new brand in the international market has to face threats from its competitors. In order to overcome these market threats the organization can focus on using more promotional tools (Lourdes Sosa 2013). Use of social media tools is one of the most effective reasons for establishing their brands in the global market.

Threat of the substitute:

It has already been stated that Jaguar, Ford, BMW, Audi, Acura, Aston Martin are the present competitors of Vauxhall. BMW in order to grab the attention of different geographical markets has decided to launch innovative cars with innovative designs (Trimi and Berbegal-Mirabent 2012). In this kind of situation, Vauxhall has to face a major threat as this specific brand has only focused in creating classical products.

Competitive rivalry:

The competitive rivalry structure in the realm of global automobile industry is high. Vauxhall make an effective market survey based on which the organization would get an in-depth overview about the market strategy of its competitors (Grégoire and Shepherd 2012). Based on those strategies the organization like Vauxhall would be able to form new business strategies for drawing the attention of target customers.

Figure 1: Porter’s five forces

(Source: Muerza et al. 2014)

Ansoff matrix:

As per the article by Muerza et al. (2014), Ansoff matrix reflects a strategic marketing tool that allows senior management to develop future growth strategies. Illustration of Ansoff matrix for Vauxhall is as follows:

Market penetration:

Vauxhall need to focus on developing effective market penetration strategy for maximizing the sales volume in the market. For that reason, Vauxhall need to provide discounts or special offers to the customers along with aggressive marketing strategies for inducing customers to develop favourable purchasing decisions.

Product development:

Increasing competition in the car-manufacturing sector has provided lot of alternative options for all the customers. Therefore, Vauxhall will have to focus on utilizing unique and innovative design for providing value added services to all the potential customers (Jussani et al. 2015). It also will have to focus on including the additional features like best quality music system and mobile holders for enhancing the present utility level in an effective way.

Market development:

Vauxhall also need to focus on increasing the reach in the global market for maximizing the sales volume in the market. In order to establish the business in the global market, Vauxhall will have to target social media and digital platforms, as it will help to reach maximum number of customers on global market (Oh, Cho and Kim 2015). In addition, Vauxhall will also have to focus on conducting in-depth marketing research for understanding the needs of the customers effectively.

Diversification:

Product diversification is important for providing maximum alternatives to the customers at the time of purchasing any cars. For that reason, Vauxhall will have to focus on launching new line of cars with some added facilities in order to establish its presence in the global market.

Figure 2: Ansoff Matrix

(Source: Jussani et al. 2015)

Recommendation:

The above illustration has highlighted the fact that Vauxhall needs to focus on specific areas for creating desired impact with the business procedure. Firstly, Vauxhall will have to focus on increasing its popularity outside the UK market. Historically, the organization has not made too much effort on international business expansion perspective, which has limited the revenue level significantly. Therefore, it will have to focus on identifying the best possible way to enter into different geographical location. Secondly, all the present marketing activities of Vauxhall has primarily focused on following the trend created by other prime competitors. As a result, it has failed to create desired impact with the initiated marketing activities. For that reason, Vauxhall will have to focus on developing unique marketing strategies in order to ensure that it can grab the attention of the customers easily. Moreover, effective utilization of marketing activities will allow Vauxhall to position the brand uniquely in the market. Thirdly, Vauxhall also needs to focus on developing cars with innovative designs so that it can offer something new to the customers. Market trend has highlighted the fact that people are looking to receive something extra at the time of purchasing a car. Therefore, providing effective comfort and mileage will not be enough for Vauxhall to create desired amount of impact on the global market.

Conclusion: 

The entire study has provided detailed overview about the necessary opportunities and threats for Vauxhall in entering a new international market. After conducting the case study on Vauxhall, it has been observed that this particular organization is having some of the major limitations in flourishing their business process in the international market. In this kind of situation, Vauxhall has focused to form new business strategies in order to overcome the threats in expanding business in the international market.  

Reference:

Christensen, C., 2013. The innovator's dilemma: when new technologies cause great firms to fail. Harvard Business Review Press.

De Villa, M.A., Rajwani, T. and Lawton, T., 2015. Market entry modes in a multipolar world: Untangling the moderating effect of the political environment. International Business Review, 24(3), pp.419-429.

Grégoire, D.A. and Shepherd, D.A., 2012. Technology-market combinations and the identification of entrepreneurial opportunities: An investigation of the opportunity-individual nexus. Academy of Management Journal, 55(4), pp.753-785.

Jussani, A.C., Heer, A., Ibusuki, U. and de Moura Côrtes, C., 2015. Electric car and Porter’s five Forces: Marketing Positioning in the Automotive Industry (No. 2015-36-0486). SAE Technical Paper.

Levy, F. and Murnane, R.J., 2012. The new division of labor: How computers are creating the next job market. Princeton University Press.

Lourdes Sosa, M., 2013. Decoupling market incumbency from organizational prehistory: Locating the real sources of competitive advantage in R&D for radical innovation. Strategic Management Journal, 34(2), pp.245-255.

Lu, W., Ye, K., Flanagan, R. and Jewell, C., 2013. Developing construction professional services in the international market: SWOT analysis of China. Journal of Management in Engineering, 29(3), pp.302-313.

Muerza, V., de Arcocha, D., Larrodé, E. and Moreno-Jiménez, J.M., 2014. The multicriteria selection of products in technological diversification strategies: an application to the Spanish automotive industry based on AHP. Production Planning & Control, 25(8), pp.715-728.

Oh, C., Cho, Y. and Kim, W., 2015. The effect of a firm's strategic innovation decisions on its market performance. Technology Analysis & Strategic Management, 27(1), pp.39-53.

Tang, L.C., Atkinson, B. and Zou, R.R., 2012. An entropy-based SWOT evaluation process of critical success factors for international market entry: A case study of a medium-sized consulting company. Construction Management and Economics, 30(10), pp.821-834.

thedrum.com., 2017. Case study: How Vauxhall drove engagement with consumers through natural search and social media. [online] Available at: https://www.thedrum.com/news/2012/06/22/case-study-how-vauxhall-drove-engagement-customers-through-natural-search-and-social [Accessed 3 May 2017].

Trimi, S. and Berbegal-Mirabent, J., 2012. Business model innovation in entrepreneurship. International Entrepreneurship and Management Journal, 8(4), pp.449-465.