INTERNATIONAL BUSINESS MANAGEMENT
Metricum is now a well established international small medium enterprise; it is founded 28 years ago .Will Hatton is the C.E.O of the company. It is based in the east of London, Metricum manufacture materials in handling equipment and intelligent handling solution. Metricum exporting to over 40 different countries, and their first manufacturing facility was established in Sweden. Over the years, with a increase in the competition, particularly with china. So metricum consider collaboration with china rather than competition. Now their international activities are complex with manufacturing in Sweden and china and a wholly owned subsidiary in Romania from where they source many of their raw materials. Today about 25% of all production is based in china.
As we know that Metricum need to improve their ability to assess and understand the unfamiliar international market. However to assess and understand the unfamiliar international markets the company have to do
In competition Analysis Company have to assess the competitor's current and future objectives, competitor's current strategies and their future strategies.
COMPRTITOR'S CURRENT AND FUTURE OBJECTIVES.
The company has to understand the competitor's current and future objectives, because it gives the guidance to the company on how to make their strategy development according to their plans and actions.
COMPETITOR'S CURRENT STRATEGIES.
Assessing the competitor's current strategies involves the basic question that what the competitors are exactly trying to do. This will help the company that at what strategies they will focus? What marketing mix do they use? and How they pursue their target market. All these steps help the company to run their business efficiently and effectively.
COMPETITOR'S FUTURE STRATEGIES.
The company has to assess the competitor's future strategies i.e what they like to do in the future. So that it will help the company to evaluating their strategies according to their course of action.
As we know that company is required to gather the information about their customer, which can be grouped into current and future information. So metricum should understand the critical issues concerning current and future customer in Ukraine. As Ukraine has a huge market opportunity, so metricum have to do critical analyze the customer needs and preference, so that they can make their strategies according to that.
So, metricum have to concern with the critical issues of current and future customers
- How can we serve the customer better?
- How can we bring the customer closer?
- How will customers and their need and requirements change.
- Which new customer should we pursue and how we pursue them.
Metricum have to considered these political factors before entering the market, so that they can put their strategies according to
- The political system and its features like nature of the political system, Ideological forces of the political parties and sentries of power
- The political structure, its goals and stability
- Political process like party systems, elections, funding of elections and Legislation in economic and industrial matters and regulations
- Political philosophy, role of government in business and its policy approach towards the economic and business development.
As, in Ukraine there is a different kind of relationship between the Ukraine government and the business in Ukraine. This is the biggest obstacle to run the business effectively and efficiently. Historically, different types of corruption have flourished in Ukraine, and companies are forced to seek personal relationships with officers of government for their safety and access to information. In most western countries are usually not critical to the success of companies in person to have good contacts in government agencies. In Ukraine it is. This situation often seems threatening and dangerous for Westerners, and it's really hard to adjust.
Newer technology always has a major impact on particular aspects of marketing. To be in competition the company have always related with technological changes in the market environment. To do this the company have to considered the following factors
- Source of technology like company, external and foreign sources, cost of technology acquisition, collaboration and transfer of technology.
- Technological development, rate of change of technology and research and development.
- Impact of technology on human beings, the man-machine system and the environmental effects of technology.
- Communication, infrastructure and managerial technology.
As, In Ukraine companies are using older technology, but looking to upgrade the status of art. So, metricum have to upgrade their technology as required in The Ukraine.
Culture is likely to have important implications for marketing management. To operate a business in an unfamiliar market, the company has to analyze their culture properly. So, that they run their business effectively and efficiently without any obstacles.
As, Doing business in Ukraine is different from business in other countries including the USA, England, Germany and other northern and central European countries. So, metricum has to understand the culture of Ukraine, before entering into the market. Culture of Ukraine are naturally very oriented production, and may not be the easiest place to do business, but Ukraine has other virtues - for example, is a great place to make friends, meet interesting people, and have fun.
Foreigners from the West will find some different styles of leadership in Ukrainian organizations. The Ukrainians do not take personal responsibility so easily and west of society which prepares them for leadership roles from kindergarten up. After becoming a leader, many Ukrainians become more authoritarian and change their attitude towards their colleagues, who themselves have an ingrained subservient attitude toward authority - a well known feature of Ukrainians, especially the Russians.
Among the Western entrepreneurs, democratic and fair leadership style is definitely more common, and leaders are more likely to delegate. In Ukraine, the leaders tend to focus more decision-making in the hands of their faith and allegiance to demand their employees in conjunction with work-related skills. In the new capitalist Ukraine, many employers resort to exhaustive and aggressive interrogation techniques designed to weed out "weak" potential employees who can not take the heat or pressure dislike
AFTER assessing and understanding the Ukraine market. The next step of metricum is to develop an appropriate market entry strategy. i.e what entry mode should metricum take to assess the market potential properly. According to me, metricum have gone to joint venture with the local enterprise. Its rationale might that the local partner will help to the company to establish operations in the unfamiliar environment and this will also help the company to win the government contracts and this is the main reason to do joint-venture because in Ukraine there is a different kind of relationship between company and the government and this is biggest obstacle to operate the business properly. But now a day's joint-venture is considered one of the most powerful strategic tool to enter into an unfamiliar market. There are some other reasons why joint-venture is good mode of entry for metricum to enter in the Ukraine market
Through joint-venture it is easy to assess the local partner's knowledge. As, we know that metricum is lacking in the local knowledge, so joint-venture is a great way to dip its toe into the market. It will also help the company to understand the local customer's needs and wants? I.e. how they bring more customer in the business and what the customer wants. As, the local enterprise is fully familiar with the local customer and market that in which areas the company has to operate their business, while checking out the purchasing power of the customer. It will also help to know about the environmental stability of the market.
Through joint-venture Merticum shares developmental costs and risks, the cost of set up a new business is very high in new country but by doing joint venture with local company the metricum saves cost of establishments. In Ukraine the Market development and entry costs are generally high, and long-term strategy is necessary when there is a huge opportunities in the market. So, joint-venture with some experienced consultant with experience in the interest of business.
And the risk is very high if you are entering in a new country as you don't know the customer requirements if customers ignores the product or product is not upto the expectation of customer you want to launch, In that case Metricum will suffer heavy loss.
Through joint-ventures when considering entry into an unfamiliar country with a track record for discriminating against foreign-owned enterprises when awarding government contracts, a firm might favor a joint venture with a local enterprise. Its rational might be that the local partner will help it establish operations in an unfamiliar environment and will help the company to win the government contracts. As, in Ukraine there is too much of political interference with the companies. In that case joint-venture is an easier option because the local enterprise has personal relationships with officers of government for their safety and access to information. This will help the company to operate their business properly without any hurdles.
Business culture in Ukraine differs from other countries. The Culture of Ukraine are naturally very oriented production, and may not be the easiest place to do business, As metricum is totally unknown to the culture of the Ukraine market. So, Joint-venture helps the company to understand the culture of the country. Because the local enterprise with which the metrcum merged have deep understanding of the market of their own country. This will help the company to operate their business operations effectively.
After assessing and develop the entry strategy into the market, the Company has to build up their internal skills and knowledge base to operate or to do all these things effectively and efficiently. The Company internal skills and knowledge are as follows
The company has to devote their considerable strength and attention to its core areas in handling equipment and intelligent handling solution. At the same time the company has to hire the local managers as they are more familiar to the market condition and support them with a operational experiments. So, that they can put the company strategies in a proper way, where the company want to.
The company has to focus on that market, where the company has a good growth potential.
As, the company decide joint-venture as an entry mode. So, the company has to teamed up or venture with the good companies, which has a deep understanding of the market in which the company is participating.
The company has to hire the local employees to sell the company product and to set up their sales activity in the company, as they are more familiar to the condition of the market and they are more likely to have a much better ideas of how to sell the product in their own market.
The company has a proper distribution network, because distribution network itself can be a major asset for the company. For e.g. in the united kingdom, the post office found its distribution system a major asset in offering new postal services to potential customer when deregulation permitted increased competition from other parcel carriers.
The company has to provide superior product and services or they has to believe that they are better in some way. I.e. what the product and services is company giving is cheaper, more stylish, better quality and up to date than the competitors. This will be the marketing asset for the company.
The company has to assess the marketing resources of the country and their utilization. For this the company has to marketing audit .This should also help to identify the distinctive competitors of the organization and their core weaknesses in its operation.
The company has to assess the marketing capabilities to operate their business. Marketing capabilities can be assessed as follows
- STRATEGIC MARKET CAPABILITIES.
- FUNCTIONAL MARKET CAPABILITIES
- OPERATIONAL MARKET CAPABILITIES.
STRATEGIC MARKET CAPABILITY.
MARKET SENSING CAPABILITIES.
In the company has to understand what is happening in the external environment with respect to demand, customers, competitors and macro-environment change. There are some special capabilities which include the ability to undertake marketing research and competitor analysis and efficiently to disseminate the resulting information throughout the organization as a basis for making decision making.
MARKET TARGETING AND POSITIONING CAPABILITIES.
The company has to identify the alternative opportunities and then select appropriate market targets, where the company resources and capabilities are aligned for the best effect. In aligning the current resources and capabilities with changing market, Market targeting also involve the competencies of top management and several function as well as marketing.
FUNCTIONAL MARKET CAPABILITIES
CUSTOMER RELATIONSHIP MANAGEMENT.
The company has to acquire, retain, and expand. Key account management skills are becoming increasingly important, together with the increased focus in many markets on the relationship building through customer service.
The company has to be capable to innovate and develop the next generation of goods and services with the change in the technological environment. If the company did not make innovation of new types of goods and services according to the change in the Market, then it become very difficult for the company to compete with their competitors and to survive in the market.
CUSTOMER ACCESS CAPABILITIES.
The company has to employ existing channels and develop new distribution methods. So, that the company can serve to more customers.
OPERATIONAL MARKET CAPABILITIES.
The company has to implement the marketing activities such as promotions, personal selling, public relation, price deals and so on.