Entry of The American Clothing Company into China - Essay Example

Company Operation in New Environment Entry of The American Clothing Company into China In recent times, China has become a highly favoured investor destination .Several factors, such as a promising economy have contributed to this phenomena. The Chinese government has on its part sought to put in place factors that enhance business growth to make it suitable for entry and overall operation of these institutions. However, there are several companies that have not considered this step despite their seemingly high capability of expansion into a market like China. One such organization is The American Clothing Company. If this company considered doing business in China successfully, a number of things may be need to be considered. It has been cited that one of the success points of a foreign company seeking to do business in a different environment is that it must be able to resonate the culture and way of living of the people within that locality. Although globalization and modernization in general has greatly harmonized the world to an extent that most things are done in a replica manner, there are still visible differences in the peoples’ way of life. The American Clothing Company for instance, insists that its clothes are designed for the by the American people for American market. From a closer scrutiny, it is deducible that the Chinese market may differ considerably in terms of clothe design from the American market. In view of this fact, The American Clothing Company would need to creatively design clothes that would fit the Chinese market. The company may also consider operating under a different name once it decides to enter China. While doing business, it is very important that the business bears a name that customers can associate with. For this reason, the company may consider adopting a name that reflects with the people of China. Operating under the same name in China would give competitors a higher edge in that other organizations may take pride in being home grown and purport understand the market and the needs of the customers better. The company must thus realize that it is a neck stiff competition that requires strategic planning at all stages. In making this decision, the company must also consider the right entry mode. It may consider going into a merger with a relatively smaller organization, or acquiring another company that is already established but perhaps not doing very well in the market. Further, the company would need to do some internal re-organization in order to find out the necessary personnel who may need to relocate to the other country for managerial purposes. As the new company, it would be in appropriate to rely on the labour force available in China to start up operations. In as a much as this labour would be instrumental in running the business, it would be important that individuals from the US work at the initial stages of establishing the company as this would help to instill the company’s core values, objectives and mission into the new market. For The American Clothing Company, entering China may translate into larger profits .It has been widely established that China is an emerging, and to some extent successful economy. With such a high population and an impressive GDP, the country could be worth giving a trial. However, it is important to put into consideration all the factors that influence the performance of a multinational such as political and social developments in order to make a well informed decision. Nevertheless, China would make a profitable market for any company that utilizes proper entry mechanisms. First Solar’s Multinational Business Context First Solar is among the world’s established solar energy solution providers. Technologically the company has stood out more so for its efforts to continually come up with innovative products that are also competitive. Currently , the thin film semiconductor, cadmium telluride (CdTe), resulting which is accredited with superior energy output under realistic climatic conditions. This ensures that the company is able to operate on a low-cost volume production while maintaining the products’ benefits and the superior environmental performance. The CdTe technology that the company has adopted is highly acclaimed for its superior temperature coefficient. It is said to respond , quite differently to sunlight rays from the common crystalline silicon technologies. It is also said to have less temperature-related losses. This technology does not come easy. It has been achieved so far through research and deliberate efforts to provide the best quality solar panels. This means that the company has heavily invested in research and the right personnel to handle these tasks. Proper utilization of resources to the advantage of the organization is one of the foremost objectives of an organization. An organization has to keenly calculate the benefit that may be accrued from its decisions in view of the resources it intends to utilize. The world is generally very competitive and the solar energy sector is not exceptional. For this reason , the company may be seen to have made the right move by investing in research as this guarantees high quality products that the consumers can enjoy. The company is not limited in its markets thus it is advantaged to have a pool of customers dotted the world over. This being the case, the company must engage in strategies that ensures it maintains its place on the global scene. As a means of motivation, the company will utilize mechanisms such as adaptation to seek business success. This will require the company to adjust in a number of ways to the business environment. To start with, it will seek to partner with like minded organizations. This may include the government or its agents, in implementing profitable and non profitable projects. The industry in which the company operates is sensitive in that it touches on a matter that is constantly gaining public interest- climate change and control. In this regard, the organization may not work alone as it is part of a larger pool of stakeholders. This requires that the company capitalizes on the power of aggregation which is achieved through strategies such as merging. Arbitrage may help the organization considering that the industry is unpredictable to some extent. Stakeholders continue to agitate for energy saving related methods as a way of conserving the environment. Use of solar energy is part of these preferred methods and this favors the organization. For the organization to benefit from these strategies in a period of about ten years, it is recommended that it participates in the formulation of polices, adopts open mindedness in negotiating with like minded partners and more importantly develop products that meet the required standards and that satisfy the consumers. The same ideology must be adopted by the company while dealing with elements of structures such as home base, portfolio, hub, platform, and mandate. Basically, succeeding in the home base requires that the mode o operation adopted by the company is aligned with the needs of that particular environment (Geoffrey, Block 1998). Agreeably, all business environments assume their own characteristics that define the way hey do business. Through proper exploitation of these strategies a business is able to built its customer base, thereby enhancing its portfolio and fulfill its mandate. There is not a single best way that is most commendable to do this as all business will exhibit definite characteristics. However, it is recommendable that a business results to strict adherence to its own objectives, core values and mission. This way, the organization will have reference to a set of short term goals, may be about five years as well as long term goals, a period of about ten years and beyond. This way, the business will keep on relooking at these objectives and measuring its gains while evaluating any other aspects that may arise. Product Value Chain Disaggregation The product chosen for this discussion is provision of logistic solutions by the Wells Fargo Company. Wells Fargo is a world leader in logistic issues and operates in several nations. It has a set of tasks it performs such as provision of security services, acting as a custodian for valuable documents to safe transfer of funds and data through secured vehicles. For this discussion, we will interrogate its courier services. The main activity associated with courier services is transfer of goods fro one place to the other. The company is thus contracted by various clients to undertake this mandate from time to time. A close review of the company’s ability to undertake this mandate indicates that the company mostly uses its own vehicles and personnel for provision of these services. It is also worth underlining that there are several aspects of these services that the company can outsource while still utilizing its inside mechanisms for the successful undertaking of these services. This therefore means that this is an area that has to bee appropriately invested in especially considering the risks involved. First of all , it is necessary to have qualified personnel who understand what these task entails. The basic training that employees may get at school is not enough .This is a field that needs practical experience and the company has to invest time and money to ensure that people handling various aspects of this department are adequately equipped with the necessary skills. By and large there are aspects of this department that the company can relevantly handle through its inner mechanism. This is especially acceptable when the company is dealing with clients at a local level. Here, it is easy to internalize and evaluate what the market demands and point out the capacity to handle the challenges involved adequately or the need to outsource. There may occur a challenge though when it comes to handling goods and services at an international level. At this stage , it is required that the company demonstrates capability in handling goods that may be transported by air, sea and land. For air and sea transport, the company has to outsource the services of specialists. Sea carriage is notably an investment intensive sector that needs a rather high level of specialization. In view of this factor, Wells Fargo may be seen as a company that has specialized in courier services on land, more so on shorter distances. For this reason, it would automatically be expected that it would need to outsource services of specialists when dealing with overseas clients. From this analysis, it may be said that Wells Fargo is in a position to handle some of its services without the need of outsourcing. However, though evaluation and even from obvious outlook, there are services for which it may need to outsource. It is evident that utilizing both strategies where possible would result to a more accurate execution of duties by the company. This is would no doubt have a positive impact on the business. Work Cited Hirt, Geoffrey and Stanley B. Block. Fundamentals of Investment Management. 6th ed. Homewood, IL: Richard D. Irwin, 1998. Read More