The Feasibility of a Multinational Manufacturing Organization - Assignment Example

The Feasibility of a Multinational Manufacturing Organization in Setting up a New Plant Table of Contents Research Methodology 8 Data Collection Methods 9 Methods of Analysis 11 Problem Statement There is need for factual information in order to have a clear picture of what the new market requires. In such a case, it is always important to undertake a marketing analysis effectively in order to have an understanding of what customer wants, the existing market demand, existing level of competition and existing distribution channels etc.  The current information (if any) is not up-to-date and thus there is the need for such information to be updated on a regularly as businesses operate in a dynamic environment which is influenced by factors which include changes in technology in the production of new products and production processes in addition to changes in customer tastes and preferences (Argyrous 2005). Further, when competitor products change, there is also the need to change. Change in economic conditions is also a very important aspect which calls for new methods of production and new products. Such information helps the organization in gaining deeper understanding of consumer needs and preferences and thus reducing the risk of product failure. Also, such information assists the organization in coming up with future forecasts and trends which are beneficial (Saunders and Thornhill 2003). Aims and Objectives This market research study will employ the use of 1000 participants. The findings from the respondents will help the organization to develop strategies which will be based on factual data and which will assist in influencing decisions, justifying actions and providing deeper explanations on why certain decisions have been made. The market study will, thus, aim at putting together information and supporting data aimed at; Evaluating marketing opportunities by establishing the proportions of persons using same products, the reasons for using them (or reasons for changing from one product to the other); Establishing the average consumptions, the likelihood of future spending and consumer tastes and preferences; Analyzing market segments which will again assist in the selection of target markets, identification of potential customers and those that plan to consume the proposed products and why they have been using them; Getting more information on consumers who are likely to adopt the products and why they are likely; Planning the implementation of a marketing mix and coming up with products which will satisfy customer needs; Gaining a deeper understanding of the promotion methods used and which target and appeal the perceived market segment. The level of education if very important since the readership of the various print media if key as it will determine the level of promotion and the most appealing promotion methods; Determining the adequacy and effectiveness of the existing dealership in the planned location is very important. This should inform the management whether another dealership should be developed; Analyzing marketing performance to assist in determining whether customer expectations in terms of service are being met and whether the quality and the aesthetic appeal of the products is realistic; and Making comparisons on whether the perceived performance and service quality are comparable with customer expectations and with those offered by other companies. This will go a long way in formulating strategies that can assist in the development of products which meets customer expectations. Justification In management, it is always important develop strategies which will be based on factual data and which will assist in influencing decisions, justifying actions and providing deeper explanations on why certain decisions have been made (Creswell 2006). Such policies if developed without the actual information and supporting data will amount to a waste of resources (Maxwell 1996). The internet has a lot of information although its applicability is dependent on many other factors including locality, market segments, economic development in the locality and cultural orientation. However, availability of information is not the main problem but its applicability with success. In this case, this organization is carrying out the feasibility on the possibility of a multinational setting up a manufacturing organization plant in a new country. This will require factual information about the country, the market, competitors, pricing etc. In some cases, such information is shared although the level of trust is different. Further, given this is a multinomial company, shared information is lopsided and may not be aimed at maintain a strong customer base. In this case, such information cannot be shared and thus first hand information will be required. According to Maxwell (1996), more often companies make their decisions without prior information which is made available by carrying out a market research and the number of organizations that employ the use of formal market research in formulating strategies is very small. To him, the perceived huge investment in carrying out a market research is deemed not necessary. Internal information can be of importance and can make the organization not to invest so much if the information is considered reliable and valid. Literature Review Market analysis is very important and should be based on factual data. According to Marczyk, (2005), lack of factual information means that the decisions to be made are not tangible. The internet has a lot of information whose applicability is dependent on many factors which include the business locality, market segments, economic development of the locality and cultural orientation. Marczyk assertions are supported by Arnold and Myers (2005) who argue that availability of information is not the main problem but its applicability with success. This organization is carrying out the feasibility on the possibility of a multinational setting up a manufacturing organization plant in a new country will require factual information about the country, the market, competitors, pricing, economic development of the country and customer expectations. In this case, a marketing research has been commissioned by the management aimed at helping the organization to identify and evaluate marketing opportunities through the establishment of the proportions of persons using certain products and the reasons for using the said products or reasons for changing from one product to the other. Further, evaluation of opportunities will tell the researcher the average consumptions on the said products and how much the consumers are likely to spend on the products (Wrenn et al. 2001; Bansal and Voyer 2003). The other important thing is tastes and preferences of the consumers which are likely to be identified during the analysis. To Wrenn et al. (2001), market research will assist the organization to analyze market segments which will again assist in the selection of target markets. This will enable them identify the potential customers and those that have been consuming/or plan to consume, the proposed products and why they have been using them. Further, the management will get more information on consumers who are likely to adopt their products and why they are likely. Lastly, the management will be able to understand the different market segments in terms of tastes, preferences and income. Through a market research, the management will be able to plan the implementation of a marketing mix which will assist the in coming up with products which will satisfy customer needs (Wrenn et al. 2001). The prices offered by competitors and how they are likely to affect the new product prices are of importance. Further, the management will be interested in gaining a deeper understanding of the promotion methods used and which target and appeal the perceived market segment. The level of education if very important since the readership of the various print media if key as it will determine the level of promotion and the most appealing promotion methods. According to Soong (1997), the existing dealership in the planned location is very important. This should inform the management whether another dealership should be developed. What product features the market segment looks for in such products is important and the management should be aware of such information. A market research will further help in analyzing marketing performance. This will assist in determining whether customer expectations in terms of service are being met and whether the quality and the aesthetic appeal of the products is realistic (Hill 1992). It is also important for the management to compare whether the perceived performance and service quality are comparable with customer expectations and with those offered by other companies. This will go a long way in formulating strategies that can assist in the development of products which meets customer expectations. To Baker (2002), a multi-national should differentiate the marketing environment it is operating in. if a foreign market is defined as the domestic one, the management has insufficient information and acts without putting the operating real differences into consideration. Bothe regional and local needs should be addressed taking into account the changes that exist in the different localities. In support of Baker’s assertions, Parcon (2007) argues that, there is need for the multinational to come up with strategy which are global and which takes care of the organizations overall goals on one hand and flexibility in adapting expectations in other regions/countries. According to Parcon (2007), if an organization defines a narrow market, the opportunities presented in a broader picture are lost. Opportunities in other markets give the company a wider view and the fact that regional markets are at times better than local ones in terms of returns. However, it is always important to realize that a company has to be fully accepted in the local market before going international. This is so because all international markets are viewed as one and products and services are produced according to needs of the different markets. This approach of marketing is beneficial and helps the company establish strongholds in different countries. Research Design Research Methodology The proposed market research study will employ the use of sample to draw inferences about the whole population in the country. 1000 participants will be listed to participate in the research study. The study will get responses from the participants on importance of business locality, existing market segments, economic development of the locality and cultural orientation in order to come up with tangible recommendations to assist the organization in setting up the company. The proposed market research study aims at measuring and also obtaining deep insights meant to understand consumer behaviour in the said new location, why they behave and act as they do. Such insights are not possible by using large samples; rather, they are made possible through the use of structured interviews and from focus group discussions. Interviews and focused group discussions are flexible research design methods although they rely entirely on the prowess of the researcher to get more information through motivation (Francis et al 1993; Colwell 2006). Qualitative research design methods are more inclined towards quality and not quantity information due to its exploratory nature and the use of unstructured techniques for data collection which are often based on small samples. Such techniques help in determining what people like/dislike about a new product/service/ advert in addition to reasons for their feelings. Data collected using qualitative methods are inform responses from the participants’. Qualitative research designs are never used in cases where the researcher is interested in determining the proportions of a population/ market segment that behave or act certain way. Since this is one of the market research study objectives, quantitative research, which is more concerned with numbers in order to obtain a robust measurement, comes into play. Such numbers require a structured questionnaire as the data collection tool. The questionnaire should have both open and closed questions. In order to ensure future use of the same information, even though localities are different, the researcher will sample the population for participants using stratified sampling since the population is not homogenous to warrant a simple random sample (Denzin and Lincoln 2005). Strata will be developed based on the age groups and income. In order to obtain valid and reliable data, restrictions will be placed on the sample. Participants will be required to have been residing in that country for not less than 2 years and have used same products as the proposed. Data Collection Methods The researcher will use both primary and secondary data. According to Szmigin et al. (2005), a researcher’s decision to use either secondary or primary data is always based on; The accuracy and reliability required; How quickly the information is required-how fast are the decisions required by the organization; and Financial implications arising from the decisions to be made-if a small implication is perceived, then the organization can consider a small investment and use the available information to make the decisions. In this case, secondary data will be gathered from the internet and by using past sales data while primary data will be gathered using both quantitative and qualitative data collection methods since the research design has both qualitative and quantitative techniques. The use of qualitative data collection methods will be used in the proposed research study design since they detach the researcher from the collected data. Since the proposed market research study aims at measuring and obtaining deep insights meant to understand consumer behaviour, the use of structured interviews and focused group discussions will be used. Interviews and focused group discussions are flexible data collection methods although they rely entirely on the prowess of the researcher to get more information through motivation and reading the body language of the participants. Qualitative data collection methods are more inclined towards quality as they employ the use of exploratory designs and are often based on small samples (Haskins et al. 1996; Gore and Altman 1992). Data collected using these methods will help in determining what people like/dislike about a new product/service/ advert in addition to reasons for their feelings. Qualitative data will be informed by responses from the participants’. Since the researcher will be interested in determining the proportions of a population/ market segment that behave or act certain way, quantitative methods, which is more concerned with numbers in order to obtain a robust measurement, will be used. A structured questionnaire will be used as the data collection tool. The questionnaire will have both open and closed questions. Both primary and secondary data will be used for the study. Primary data will be collected using a questionnaire while the secondary data will be downloaded from the websites and from the listings. Both open ended and closed questions will be used. Further, the researcher should have the necessary information on the kinds of data available and their usability. As puts it, secondary data is mainly used in the early stages of the research study process and is aimed at creating a better understanding of the situation at hand before embarking on the primary research. Secondary data supports primary data in the determination of sample size, research design, data collection and analysis methods. Methods of Analysis In order to get a clear understanding and evaluate market opportunities by establishing the proportions of persons using same products, the reasons for using them (or reasons for changing from one product to the other and analyze market segments which will again assist in the selection of target markets, identification of potential customers and those that plan to consume the proposed products and why they have been using them, the following analyses will be done using SPSS. The data collected will be tested for normality, linearity, collinearity, heteroscedasticity etc. this are tests meant to differentiate between parametric ad non-parametric tests. If normality fails, then non-parametric tests will be the key consideration and vice versa (Bishop et al. 1975; Dobson 1990); Gender and other binary variables will be tested for equal representation using the binomial tests. This is a key consideration if the research findings are to be replicated (Green and Salkind 2008); Chi-square test will determine association and independence of the participants and their behaviours in relation to age, income and readability levels; Analysis of variance will be used to determine the differences in purchasing behaviour between the different segments and companies. Multiple comparisons will come in hardy in explaining this phenomenon; The analyses will be performed 5% level of significance. P-values will determine significance and decisions of the researcher; and Tabulations, graphs and charts will be used to represent the data as they are easy to understand. Ethical Considerations To Szmigin et al. (2005), research ethics demands that certain considerations, often referred to as norms, are adhered to so as to make the process, the findings and the recommendations credible. Curran and Perecman (2006) in support argues that, for any research findings work to have a sound backing then, the norms should act as the guiding light. Since this is a research done on human beings, the researcher in this research study will seek to uphold the following; Handling participants’ information with the required confidentiality. The researcher will assure them that the given information will not be shared or divulged at all; All participants will be treated equally without any form of discrimination; The researcher will duly inform the participants of the research study benefits as well as the risks involved; and The elements of beneficence will be upheld. The researcher will aim at maximizing the research study benefits and minimizing the risks. The risks will be transferred to the researcher while the benefits will lean mostly towards the participants. This will be made possible by giving the participants all the necessary information on their participation and freedom of choice based on an informed consent. The researcher will require that all participants are given a consent form with all the research information, objectives, in order to make an informed consent. Further, the researcher will ensure that the report findings are shared with the participants by organizing a debriefing meeting. Limitations It is expected that the accurate and up-to-date data/information which will be obtained from the proposed study will be of huge value to the organization. However, several reasons may affect the potential gains and include budgetary limitations since development of the research protocol, data gathering and processing data is expensive and the organization may lack such expertise and thus resulting to outsource (Bryman 2008). Further, the organization may have a problem balancing the need for a detailed customer needs assessment and the increased desire to have valid and reliable decisions made as quickly as possible. In such cases, the urge for profits and market niche are the driving forces. The design of the research tools can further lead to compromised data if there are leading questions. However, efforts to ensure accuracy, representative samples and selection bias will be employed. Failure to adhere to research ethical norms is another limitation. According to Punch (2005), the Data Protection Act of 1998 lists some of the norms which include confidentiality and security. The researcher is therefore committed to ensuring all research ethical requirements are followed to the later. Timescale   W1 W2 W3 W4 W5 W6 W7 Formulation of Research Tools               Piloting the Tools               Data Collection, Entry and Quality               Data Analysis               Debriefing Report Writing               Report Dissemination               Budget S/No. Activity US $ 1 Formulation of Research Tools 8,500 2 Piloting the Tools 2,875 3 Data Collection, Entry and Quality 1,500 4 Data Analysis 4,375 5 Debriefing 8,750 6 Report Writing 9,375 7 Report Dissemination 1,000 Total 36,375 Conclusions Even through the research has several limitations, it is expected that the findings will enable in the evaluation of marketing opportunities by establishing the proportions of persons using same products, the reasons for using them (or reasons for changing from one product to the other). Further, the findings are expected to lead in the establishment of the average consumptions, the likelihood of future spending and consumer tastes and preferences. This will go a long way in analyzing market segments which will again assist in the selection of target markets, identification of potential customers and those that plan to consume the proposed products and why they have been using them. It is the prayer of every marketer to gain deeply through the aggregation of more information on consumers who are likely to adopt the products and why they are likely in order to plan the implementation of a marketing mix and coming up with products which will satisfy customer needs. Further, gaining a deeper understanding of the promotion methods used and which target and appeal the perceived market segment is key and the findings are expected to achieve this. The level of education if very important since the readership of the various print media if key as it will determine the level of promotion and the most appealing promotion methods. Determining the adequacy and effectiveness of the existing dealership in the planned location is very important. This should inform the management whether another dealership should be developed while analyzing marketing performance is expected to assist in determining whether customer expectations in terms of service are being met and whether the quality and the aesthetic appeal of the products is realistic. Again, making comparisons on whether the perceived performance and service quality are comparable with customer expectations and with those offered by other companies is critical in marketing. This will go a long way in formulating strategies that can assist in the development of products which meets customer expectations. With proper adherence to the set norms, all the above expectations will be realized. References Argyrous, G. (2005). Statistics for Research: With a Guide to SPSS. 2nd ed. London: Sage. Arnold, D.W. and Myers, J.L (2005). 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Chapman and Hall. Francis, B. J et al (1993). The Statistical System for Generalized Linear Interactive Modeling. Oxford University Press. Green, S.B. & Salkind, N.J. (2008). Using SPSS for Windows and Macintosh: Analyzing and Understanding Data. Pearson international ed., 5th ed. London: Pearson Prentice Hall. Gore, S.M. & Altman, D.G. (1992). Statistics in Practice. London: British Medical Association New York: Wiley Haskins, M. E et al. (1996). International Financial Reporting and Analysis. A Contextual Emphasis, Chicago, IL: Irwin Hill, M. (1992), The Panel Study of Income Dynamics: A user’s guide, Newbury Park, California: Sage Publications. Parcon, P (2007). Develop Your Decision Making Skills, Lotus Press. Postmodern Perspective, Oxford University Press, Oxford. Marczyk, G.R (2005).Essentials of Research Design and Methodology (Essentials of Behavioural Science). Sage Maxwell, J.A (1996).Qualitative Research Design: An Interactive Approach (Applied Social Research Methods). Sage Publications Punch, K. (2005). Introduction to Social Research: Quantitative and Qualitative Approaches. 2nd ed. London: Sage. Saunders, M, Lewis, P & Thornhill, A (2003). Research Methods for Business Students, 3rd edn, Prentice Hall Financial Times, London. Soong, R. (1997). Consumer Confidence and Spending Behaviour. [Online] Available from: http://www.zonalatina.com/Zldata24.htm Szmigin, I et al. (2005). Ethics and International Marketing: Research Background and Challenges. International Marketing Review, Vol. 22 No. 5 Wrenn, B. et al. (2001). Marketing Research: Text and Cases. Routledge Read More