Celestial Seasoning in Romania - Case Study Example

First Study level: of the Assignment of the MEMO: Topic: Celestial Seasoning – Romania Consultant CEO/ President of Celestial Seasoning – Romania RE: Successful International Venture Purpose and goal: The purpose of this memo is to demonstrate a practical implementation of the idea of Global operational matters. The goal is to show specific understanding of how the global issues relate to Celestial Seasoning being medium-sized enterprises and is in the process of seeking a joint business with a developing nation, Singapore. Celestial Seasoning is able to integrate the matters into creative thinking that can be used in real-life situation systems that Celestial Seasoning applies. Section 2: Main Section Having been granted the contract by Celestial Seasoning, Romania and being in the capacity of global business consultant, we are pleased to have been assigned several tasks by the company. We are interested in the task of re-aligning the business operation to the strategic objectives of the company. We have listed the activities that we are going to be involved in. First, our company will be restructuring the internal operation strategy for Celestial Seasoning, taking into consideration the effects that the new global business enterprise in Singapore will have on the current internal operation strategies of Celestial Seasoning, Romania. Secondly, our company will make use of the existing and the past historical profile of Celestial Seasoning to implement them in optimizing the new global business venture. This optimization will enable your company to have specific and realistic strategic business objectives. Therefore, we would like to inform the Chief executive Officer of the specific procedure that needs to be followed in the implementation of the company’s internal structure and control, to ensure that the international business enterprise succeeds. We wish to address certain critical issues in relation to international venture, which have direct impact to the performance of Celestial Seasoning. We have decided to categorize the issues into two groups: The Country issues and the Company issues. Country Issues It is uniquely coincidental that in Celestial Seasoning, Romania, the Chief Executive Officer intends to have let the company conduct business and develop trade relations to Singapore. This is the country that we have been assigned the consultancy tasks, and is the country of our choice. This is a boosting factor that will provide adequate convenience in doing international trade, and save on the cost of official travelling. Company issues We wish to advise your company and provide vital information that your company ought to have prior to venturing into the nature of international business activities in the regions around Singapore. This is a region that deals with production and exportation of electronic and heavy machinery including mechanical equipment and supply of parts of automobile and electronic appliances. Singapore deals with combustion engines used in automobile production industries and servicing. Your company can thrive well if you together with the members of your board decide to venture into the same lines of businesses in the global coverage. Strategy The best strategy according to our studies is that Celestial Seasoning can begin with imports of the electronic and mechanical products from Singapore while still based in Romania. Later on, Celestial Seasoning can then establish subsidiaries in Singapore and probably other parts of the region including India, China, Japan and Pakistan. The Immediate plan is therefore to concentrate on establishing the Singapore subsidiary. Celestial Seasoning Can begin with smaller quantities of Stock, with the plan to increase the stock later on depending on the costs incurred in the process of conducting international trade across the region including import duties and customs duties. Operational losses have to be taken into consideration to determine the gains that Celestial Seasoning makes from the global venture. From the gains or losses, Celestial Seasoning will be able to make further decisions on whether to enter into the global arena or to decline. Form of international business it will pursue Celestial Seasoning intends to diversify and expand its business operations all over the regions in the Eastern and Southern parts of Asia (Paul 43). Presently, Celestial Seasoning intends to focus on operating as a hospitality company offering international hotel services. It has hotels in Romania, and entertainment areas where recreation and sports activities take place. It intends to broaden the focus by venturing into Real estate businesses in Romania and the regions around Romania. Real Estate is a lucrative business in the region, but has several constrains to overcome for successful results. Such Constrains include International policies and taxation limits across international borders. Organization of the company Celestial Seasoning has its head office in Romania. There are a few branches in Romania, in which Celestial seasoning offers services to its many clients. The head of the company is the Chief Executive Officer, who oversees every work that takes place in Celestial Seasoning, Romania. The Next in line is the deputy CEO and the board of directors. The deputy and the directors are in charge of every department (Coade 68). The next line of business is the senior managers of Romanian Celestial Seasoning Company (Neelankavil 39). After the senior managers, there are assistant managers, in charge of every working unit of Celestial Seasoning. Marketing strategies the company will adopt and implement The company has been using normal advertisement and sales promotion of its products locally in Romania. The other marketing strategy that it has adopted so far is internet marketing through their corporate website. The next potential marketing strategy is the use of social media for networking with corporate clients. As it proceeds into the international trade arena, social networking is the way to go for Celestial Seasoning. It also intends to improve its marketing through the internet to attain the global standard of electronic commerce Global manufacturing strategies Celestial seasoning has been focusing on the local services and products within Romania. It has not begun to conduct manufacturing functions. The next strategy on manufacturing is in the area of real estate, where Celestial Seasoning will be able to design, construct and sell the real estate properties. The rest of the tangible products will be manufactured in Singapore, from which Celestial seasoning will import them. Celestial seasoning will save cost on the manufacturing function because its part is mainly on importation. However it will have long term plans of establishing manufacturing plants aimed at future expansion. IT and supply chain management issues Celestial seasoning will have a chain of supply of services and products in the global market. There will be need for the company to procure an effective web-based management information System with an integrated portal from which all employees can post and access vital information and electronic resources (Katsioloudes & Hadjidakis 62). The portal will have two access points, the internal modules and the external modules. These two modules will separate users of the system as external users and internal user. External users are mainly potential clients, service providers, suppliers, legal authorities, partner companies and other general guests to the system (Dlabay et al 90). The external users should not be able to access the internal modules. Important Points We advise Celestial seasoning to adopt our recommendation and apply the above areas as the major points of the international business venture (Mitchell 65). They will have an influence on the long-term business objectives and assist in developing the framework of the activities that the board will definitely be interested in. Our purpose is to inform the CEO and the board of directors on the detailed procedure to follow as the company ventures into the global arena of international trading, specifically importing commercial products from Singapore and selling locally, regionally and globally. This guideline enables the CEO and the board to make appropriate changes on internal policies that guides the senior management and the assistants through implementation to achieve a successful international venture. Reasons and justifications for the information International business involves multilateral government policies. It is very expensive considering the various exorbitant rates of taxation between borders. It therefore requires a critical review of the process involved and the entire cost of import and export, of course including the taxes (Goddard 59). The calculations are part of feasibility study upon which the board and the CEO will make decisions. The major decisions expected from this are in the restructuring of the internal processes and the organizational affairs. The internal parameters relate to the exposure of Celestial Seasoning to external risks of losses in the global market. Our objective is to protect Celestial Seasoning from inherent risks by providing control measures to mitigate them (Johnson & Turner 163). Recommendation We wish to advise the board and the CEO to have discussion and contact us in order in any area that needs clarification. Internal structures of the strategic plan are critical in the decision making process. We are aware of the fact that the board of directors and the office of the CEO have the entire discretion to determine the changes in the strategic plan. To That effect, they are our target group in the drafting of this memo. Our Position In this project, we keep our position as the preferred consultants you have chosen and assigned the duty of researching about the entry into the international market (Ball 67). Our task is to advise your company in the right focus to make realistic and measurable decisions. Our qualitative and quantitative researches have ensured that the business venture is feasible, realistic and purely based on the practical position of the company (Neelankavil & Rai 29). We are part of Celestial Seasoning, Romania, by virtue of our consultancy services and we are always approachable, accessible and ready to offer professional services to Celestial Seasoning, Romania. Section 3: Last Section Summary of the issues This memo is based on a qualitative and quantitative research that we have conducted on the internal issues of Celestial Seasoning, Romania, and is a guarantee to a realistic approach in international Business venture. Based on the study of the new market target of the company and the existing marketing strategies, we have confirmed that the Celestial Seasoning, Romania has a long history of quality performance in the hospitality business. The Romanian business environment has proved to be continuously potential, with the progressive profitability indicating an upward trend over the past many years. The issues we have identified will enable Celestial Seasoning, Romania, to prepare adequately for the entry into the global market of international trade with Singapore as the trade destination. All that the CEO and the board of directors ought to do is to implement the changes, which we have recommended on the internal structures of the company in order to attain the desired performance. The management and the entire administration of the company ought to be aware of the risks that are involved in the international trade ventures, and the massive amount of financial losses it can lead to. They ought to conduct a sequential risk assessment on the new market, and a compulsory critical analysis of the strength, weaknesses, Business Opportunities and the threats that exist in the target market. We finally advise Celestial Seasoning, Romania to exercise caution in the speed of implementation, taking care of external forces such as foreign laws and sanctions. Works Cited Ball, Donald. International business: The challenge of global competition. New York: McGraw-Hill/Irwin, 2006. Coade, Neil. Managing International Business. New York: MIB, 1997. Dlabay, Les, Scott, Jim, & Scott James. International Business. Illinois: Cengage Learning, 2010. Goddard, Jason. International Business: Theory and Practice. Netherlands: M.E. Sharpe, 2006. Johnson, Debra, & Turner Colin. International Business: Themes and Issues in the Modern Global Economy. London: Routledge, 2010. Katsioloudes, Marios, & Hadjidakis Spyros. International Business. London: Routledge, 2012. Mitchell, Charles. A Short Course in International Business Culture: Building Your International Business through Cultural Awareness. Washington: World Trade Press, 2008. Neelankavil, James, & Rai Anoop. Basics of International Business. Netherlands: M.E. Sharpe, 2009. Neelankavil, James. International Business Research. Netherlands: M.E. Sharpe, 2007. Paul, Justin. International Business, 4/e. New York: PHI Learning Pvt. Ltd, 2008. Read More