7BSP0355-0901 International Business Strategy Assignment Sample
Introduction (100- 150 words)
In the course work, I have learned about the business plan that the organizations are implementing in their daily business environment. The core purpose of the report is to discuss the learning of each week regarding the business strategy and business environment. Due to globalization and digitization, the marketing strategy of businesses is changing rapidly (Akpoviroro & Owotutu, 2018). Therefore, analyzing different factors of the business environments help the firms to take precautionary measures and plan a future strategy to beat the competitors. The importance of Pest analysis, macroeconomic cycles and strategic approach, yip globalisation factors clearly defined in the course work which is beneficial for the business to intervene in the international market. Nestle is the chosen company for the report.
Main body (3 paragraphs of between 200- 250words per paragraph)
Strategic management is a process of making procedure and setting that makes an organisation more competitive (Saukkonen and Kirjavainen, 2019). Mostly, strategic management is beneficial for improving the overall performance of the organisation, which is helpful for achieving long term objectives. The businesses considered various factors to intervene in the new market. Such factors are competitors, industry trends, customers, suppliers, and industry trends. Therefore, analysis of political, economical, social, and technical factors is beneficial for gaining competitive advantage. Additionally, the macroeconomic cycle is beneficial for influencing investment, diversification, and finance, which make the organisation most efficient.
Implementing the business plan is the most important for the international organisations which are intervening in the new market (Shahzadi et al., 2018). There are four types of international company strategies, which are highly followed by multinational companies such as transnational strategy, global strategy, multi-domestic strategies, international strategies. Firms, which are considering international strategies are avoiding the cultural factors and cost factors. The organisations are selling their product with little or no change. For instance, Harley Davidson products are sold at a high price. In addition, in Belgium chocolate producers never lower their product prices while selling those products in the USA market (Istan & Fahlevi, 2020). In addition to that, Rolex and Starbucks are valuable brands that follow international strategies. Multi-domestic strategies focus on the demand of the local customers. In this strategy, the organisations most prefer the local customers. The targeted customers so NESTLE is working professionals, and kids. Therefore, Nestle has to take a separate strategy for targeting local regions and making loyal customers. The transactional strategy is a combination of global strategy and multidomestic strategy. Such firms fully focus on both the efficiency and cost factors.
Paragraph 1: (Summarise you key learning from weeks 1& 2 here) e.g. what is strategy? Megatrends & the macro environment etc.
Paragraph: (Summarise you key learning from weeks 3 &4 here, for example industry and the firm’s internal environment. Refer to weeks 3& 4)
In the third and fourth weeks, I have learned that firms’ internal environment analysis is beneficial for better competition. I also learned about the industry life cycle, which is completed in different stages such as introduction, growing stage, maturity stage and declining stage. The industry life cycle fluctuates in different stages, which is clearly understood through this process (Pati et al., 2018). This life cycle helps to identify the opportunities and challenges of the organisation.
Apart from the profitability, Nestle has to make the product in such a way that it meets the society’s needs and requirements. It helps in improving the organisations’ goodwill that is beneficial for competing in the international market. I also learned about the Yip’s globalisation factors such as government drivers, cost drivers, market drivers, and competitive drivers, which is crucial for international businesses (Barrera-Ramírez et al., 2021). For instance, the cost drivers help Nestle to get cost-effectiveness and reduce the cost of goods. Similarly, competitive drivers are beneficial for understanding the marketing strategy of the competitors and adopting the best policy suitable for specific regions (Cherunilam, 2021). The government imposes various tariffs, rules and regulations to different countries, which makes it difficult for organisations to operate a business in foreign countries. In week four I have learned about the external environment of a business that needs to be considered by Nestle when focusing on the international market.
In week 5 I have gained knowledge about the difference between the stakeholders and shareholders. Stakeholders are the persons who assist and support the business in their daily operations. It is not necessary for the stakeholders to have a profit motive with the organisation. Therefore, all the people who are directly or indirectly related to Nestle are considered stakeholders. On the other hand, shareholders are the owners of the organisations (Lin & Yang, 2021). Shareholders have the power to make decisions as per the company’s situation. Therefore, the shareholders of Nestle are more powerful than the stakeholders. However, Nestle has to consider both the stakeholders and shareholders to gain a competitive advantage. Similarly, corporate social responsibility is another important factor for Nestel to get a competitive advantage in the international market. CSR is effective for improving brand recognition, gaining customer loyalty and saving operational costs. Besides, the CSR policy brings customer satisfaction, which is necessary for Nestle to beat the competitors. It is beneficial for attracting investors and better collection of funds. CSR is beneficial for the long term sustainability of Nestle. The difference between responsibility and profitability has been discussed this week. Profitability is the term that ensures the maximum amount whereas liability acts as the interest of others (Cheba et al., 2021).
Paragraph 3: (Summarise you key learning from weeks 5& 6 here, for example stakeholders analysis, and SWOT & TOWS. Refer to weeks 5& 6)
From the above discussion, it can be concluded that Nestle has to consider both the external and internal business environment analysis, which are necessary for gaining a competitive edge. The industry life cycle helps Nestle to figure out the loopholes and focus on those factors which help in mitigating future challenges. Nestle has to consider a six months action plan to evaluate the internal and external business environment. Porter’s five forces are beneficial for external business analysis. Therefore it helps Nestle to make a strategic future plan based on the risk of competitive rivalry, the threat of new entrance, suppliers buying power, customers buying power. Besides, government policies, capital need, distribution channels are other important factors for Nestle. Therefore, Nestle can apply the industry life cycle for taking strategic positions in the business and improving profitability.
Conclusion
So what are your key takeaways from the module so far and suggest a brief action plan for how you plan to use your learning in future. Provide a short action plan in the appendix
Cheba, K., Kiba-Janiak, M., Baraniecka, A., & Kołakowski, T. (2021). Impact of external factors on e-commerce market in cities and its implications on environment. Sustainable Cities and Society, 72, 103032.https://fardapaper.ir/mohavaha/uploads/2021/12/3-Impact-of-external-factors-on-e-commerce-market.pdf
Lin, F., & Yang, K. (2021, December). The External and Internal Factors of Academic Burnout. In 2021 4th International Conference on Humanities Education and Social Sciences (ICHESS 2021) (pp. 1815-1821). Atlantis Press.https://www.atlantis-press.com/article/125967076.pdf
Pati, R.K., Nandakumar, M.K., Ghobadian, A., Ireland, R.D. and O’Regan, N., 2018. Business model design–performance relationship under external and internal contingencies: Evidence from SMEs in an emerging economy. Long Range Planning, 51(5), pp.750-769.https://www.emerald.com/insight/content/doi/10.1108/AJAR-08-2018-0023/full/pdf
Saukkonen, N. and Kirjavainen, J., 2019. Business environment-emerging external and internal pressures for sustainable production. Responsible consumption and production.
