Marketing and International Business - Term Paper Example

Marketing and International Business (Mineral water and soft drinks processing and selling) Name Institution Date Table of Contents Table of Contents 2 Mineral water and soft drinks processing and selling 3 Introduction 3 Global Strategy and Organization 4 International opportunities 5 Developing and marketing products affecting the company 5 Factors affecting hiring and managing of employees 6 Cross Cultural Business 7 Political, law and business ethics affecting the company 8 International trade affecting the business 9 Foreign direct investments affecting the business 10 Conclusion 11 Mineral water and soft drinks processing and selling Introduction The global consumption of soft drinks and mineral water is increasingly becoming common in most parts of the world. This is due to the perception that most people are placing on their health. Research has shown that the consumption of soft drinks has health benefits and hence its popularity among most of the people. The soft drinks and mineral water manufactured by the company has a lot of health benefits and hence its popularity among the customers. The natural taste of the drinks has also contributed to its increase in demand. The performance of the company in the local; market has been quite good and it has outperformed the other companies in the industry and hence its popularity. On the other hand, it is also important to note that it has received a good response from the tourists who visit the country. This is according to the market survey carried out concerning the products of the company. It is for this reason that going global is important. Since the brand image of the company is already known in the international market, the chances of success are very high for the company in the international market. Going global also requires a lot of investments so as to establish the processing plant in other countries (Hoskisson, 2012). However, due to the good performance of the company in the last decade, the company is financially stable. The capital for investing in the global market is thus available. Abiding by the laws and regulations of doing business in other countries is however an important priority for the company for the purpose of avoiding penalties which has negative impact on the image and profits of the company. Global Strategy and Organization The company intends to invest is South Asia, Europe, North America, South America and Africa. However, the investments will be carried out in specific countries in the continents. The growth and expansion of the business will however be carried out in phases depending on the returns on the investments. The first strategy will be advertising the products of the company aggressively in the countries that it has ventured into. This will create awareness among the global customers regarding the products of the company. On the other hand the company will recruit the managers, supervisors and the other employees locally. This is for the purpose of creating a good image locally and hence establishing a good relation with the local people. Localization will also be applied within the company. This is because of the diversity in terms of laws, culture and economic situation in the different continents (Baylis, et al, 2010). The different branches of the company globally will be permitted to make their own decisions depending on the prevailing situation in the particular country. This is important in terms of ensuring flexibility in the company. However, the major decisions made must be communicated to the head office. The business laws and regulations as applied in the particular countries will also be applied by the company. The use of information technology will also be embraced by the company for the purpose of making the process of coordination easy. Access of the database of the company at any branch will be made possible through the use of information technology. The automation of the production process will be applied in all the branches of the company. These strategies will encourage the growth and development of company in the global market. It will also enable the company to remain competitive in the global scene. International opportunities The products of the company have been increasingly attracting international tourists. This is an indication that the products of the company will attract the international customers. This is because the international tourists represent a customer base for the customers in other countries. On the other hand the availability of raw materials in most of the countries presents an opportunity for the growth and development of the company in the global scene. The availability of the raw materials in the international scene is important in terms of reducing the cost of importing the raw materials. This will reduce the cost of importation of the raw materials. On the other hand, it is also important to note that the labor for the production process is easily available in most of the continents at a lower rate. The availability of cheap labor is an opportunity for the company to increase its production. However, it is also important to note that the cheap labor in some of the continents is not exploitative (Steger, 2010). The labor is cheap due to the living conditions of the countries and the rates set by the governments in those countries. In some countries, it is also important to note that the production of the soft drinks is still low. This is due to the lack of the production techniques in the countries. The company therefore has an opportunity of exploiting the new markets and hence making profits. However, it is also important to note that the levels of competition in some continents are quite high. The products of the company are however superior and hence the opportunity for the company to make profits and exploit the market. Developing and marketing products affecting the company The company has been quite successful in its marketing strategies for the products. This is possible through an aggressive marketing team at the company. On the other hand, advertising has played an important role in marketing the products of the company. However, despite the success of the company in terms of marketing, it has faced some challenges during the marketing process. Some of the challenges are persistent while other challenges have been overcomed by the company. Competition in the local market regarding some of the products of the company is one of the factors that have affected the marketing process. This is because some of the customers are used to some specific products only and hence affecting the marketing process. The laws and regulations with regard to the development and marketing of products also have some negative impacts on the marketing process of the company (Springborg, 2010). This has led to some problems with regard to the development of the products by the company. Locally, some alternative products are also on the rise. This is especially common with the mineral water. This is because the overdependence of the local people to tap water and borehole water is common. This therefore plays a role in influencing the development of the products of the company. It is however important to note that the company has been able to overcome most of the challenges through seeking expert advise regarding the measures to put in place to counter the challenges. The access of some of the local customers to the products of the company is also poor in some parts of the country. This has hindered the development of the products and marketing in those areas. The process thus has some negative impacts on the marketing and development of the products of the company. Factors affecting hiring and managing of employees The company has good policies regarding the hiring and management of the employees. However, some factors hinder the hiring and management of the employees and it may impact negatively on the global operations of the company. The supply and demand of the employees is one of the factors that affect the hiring of the employees. This is because the company in most instances is in need of a number of experts but they are not readily available in the labor market. The labor market on the other hand has some negative impact on the recruitment and hiring of the professional in the company. This is because the number of professionals in the industry is quite low. Most people do not prefer studying for the courses related to the operations of the company. This creates a gap in the market and hence impacting negatively on the company. On the other hand, retaining the employees is becoming a difficult aspect of employee management for the company. This is because most of the employees are increasingly seeking greener pastures in other countries and hence affecting the retention process of the employees. However, the god imager of the company has played an important t role in retaining the employees despite the pressure. The political situation in the country is also stable and supports the management and hiring of the employees and thus dealing with the problem. However, the unemployment rate in the country is low as compared to other countries. This has contributed to the problem of hiring of the employees. This is because the low rate of unemployment results to low number of people seeking employment. However, the global situation is different as unemployment rate is high in some continents and the hiring process will not be affected (Rainnie, et al, 2009). Cross Cultural Business Cross cultural business is common with the issues of globalization (Gesteland, et al, 2010). This is because the people from different continents have different cultures. These cultures determine the way the individuals conduct themselves. The cultures in Europe are different from those in Africa. It is thus important for a business entity to put into consideration the cultural issues. This is for the purpose of ensuring proper communication and interaction with the people from diverse culture. Training of the employees with regard to the cultural issues is thus important. The employees should be trained depending on the countries that they will be posted. This will play an important role in ensuring that the employees are able to relate welt with the members of the diverse culture. It is also important for the employees to learn on the importance of cultural diversity and hence developing respect for the other cultures. All the employees will therefore undergo some training on the cultural issues as well as briefing concerning the cultural practices that they will encounter during their operations in different continents. However, it is also important to note that most of the employees in different continents will be the local people. Only the senior managers will be from the headquarters of the company. The organizational culture of the company will also be taught to the employees. This is for the purpose of ensuring that they are also aware of the culture of the company and hence work in harmony. Although the process of training the employees on the issues of culture may be costly to the company, it is worth it. This will also avoid the issues of communication which has the potential of affecting the operations of the company. Political, law and business ethics affecting the company Despite the success of the company, it has been faced with various issues which are external. The political situation the country is stable and it promotes the growth and development of businesses. The company has thus had little negative impacts from the political issues. However, at one instance, the company suffered losses after it was attacked by protestors who had issues with the government. The company was however compensated for the damages. The laws and regulations in the sector are also for the purpose of maintaining the best standards. However, the laws in the industry keep on changing and hence affecting the strategies of the company. This is because some of the laws are quite costly in terms of implementation. Some of the laws are also strict and thus leading to changes in the operations of the company. However, despite the effects of the laws, the company has been law abiding. It has always implemented all the changes with regard to the laws and regulations. This has however had some negative impact on the planning as well as cost for the company. The business ethics has also been the guiding factor for the success of most companies (Czinkota, 2009). High ethical standards have been set by the management and should be observed by all the employees. The employees who do not observe the business ethics are usually dismissed immediately. Training is usually conducted for the employees on issues regarding ethics. Although the training has some impacts on the revenue of the company, it plays an important role. During the recruitment of the employees, it is usually a must for the employees to be tested on the ethical issues. This is for the purpose of ensuring that the company has ethical employees who will promote the good image of the company. International trade affecting the business The international trade has been on the increase in most of the countries of the European Union. This is due to the profits that the international trade has as well as the ability to bring in new products and services. The international trade has impacts on the company as the soft drink processing industry has continued to develop. Most of the international company exports their soft drinks as well as the mineral water in the country. Some of the companies are prominent multinationals that enjoy worldwide support. The exportation of the products to the domestic market has led to the increase in competition in the industry. This has played a role in affecting the sales of the company. Although the company is still strong despite the competition, it is evident that the competition from the international trade has some impacts on the profits of the company. On the other hand, the international trade also has impacts on the operations of the company. This is mainly in terms of the production process. The company had to embrace the use of information technology for the purpose of increasing its production capacity. The automation of services was thus necessary for the company in order to ensure that its stock is always in the market. The lack of the commodities of the company in the market has negative impacts on the company as most of the customers will end up purchasing the products from the international company. The international trade therefore has an impact on the production rate of a company as well as the competition (Trebilcock, 2012). Foreign direct investments affecting the business The foreign investments also have impacts on the growth and development of a company (Davidson, 2011). Most of the multinational corporations have invested in the country and are aggressive in their operations. Direct foreign investments are evident in the country as the number of multinationals are on the increase. The soft drinks processing plants have been established in most of the major cities in the country by multinationals. Some of the multinationals are well known worldwide and hence the popularity of their products. This has led to the increase in competition for the company and hence impacting negatively on the sales. The market share of the company has also been impacted negatively by the foreign investments. On the other hand, some of the foreign companies have invested in the industry through partnership with the local companies in the industry. This has boosted the profile of most of the local companies and hence increasing the rate of competition in the market. The foreign investors have also found the country quite conducive in terms of doing business. This has seen the increase in the number of foreign investors in the country. The competition is thus on the increase. However the company has always been able to beat the competitors in the local market due to its popularity and good quality of goods. Conclusion In conclusion, the prospects of the company are quite good. This is due to the support and popularity that it enjoys. The good quality of the products that the company produces also plays an important role in terms of ensuring the growth of the company. The company has a high chance of success in the international market. This is due to the strategies that the company intends to put in place. The company also has enough money to invest in the international market and thus the ability to deal wit the challenges that may come with the international market. However it is also evident that the company will be face with issues of diversity in terms of the culture. This is due to the cultural diversity in most parts of the world. However, the company has put in place measures that will counter the challenges. In the local scene, the company is also facing a lot of competition despite its success. The increase in the international trade has impacted negatively on the sales of the company. This is due to the rise in alternative products from the international trade. On the other hand, it is also evident that the foreign investment has led to the increase in competition in the local scene. This has impacted negatively on the market share of the company in the local scene. References Baylis, J. et al. (2010). The globalization of world politics: An introduction to international relations. Oxford: Oxford University Press. Czinkota, M. R. (2009). International business. Birmingham: Dryden Press, (Vol. 4). Davidson, W. H. (2011). The location of foreign direct investment activity: Country characteristics and experience effects. Beijing: McMillan Publishers Gesteland, R. et al. (2010). India-Cross-cultural Business Behavior: For Business People, Expatriates and Scholars. Copenhagen: Copenhagen Business School Press. Hoskisson, R. E. (2012). Strategic Management Cases: Competitiveness and Globalization. South-Western Pub. Rainnie, A. et al. (2009). Frontline employees' views on organizational factors that affect the delivery of service quality in call centers. Journal of Services marketing, 23(5), 326-337. Steger, M. (2010). Globalization. NY: Sterling Publishing Company, Inc.. Springborg, R. (2010). Globalization and the Politics of Development in the Middle East (Vol. 1). Cambridge: Cambridge University Press. Trebilcock, M. (2012). The regulation of international trade. London: Routledge Read More