International Management Related Business Opportunities

Question: Discuss about the International Management for Related Business Opportunities. Answer: Introduction: Welspun Group is an India based conglomerate company. Its year of inception was in (). From its foundation until today, it has experienced a huge growth and expansion in the operation and product line. As discussed by Dunning (2014) globalization and its related opportunities have helped the companies to take some calculated risk and obtain an extensive gain from it. The same thing has happened to Welspun Group. It is now operating 50 countries with clients like Walmart, Target and many more. The strategy of product diversification and geographical expansion can be identified as the major growth strategy of the company. However, with such a huge operation there are a few potential limitations, which can create a threat to the future operation of the business. Discussion: If a close look to the case study can be provided it can easily be noticed that company is experiencing a high market growth by following a number of strategic operational decisions. The strategy of diversification in geography and product profile has helped the company to expand its business to 50 international markets with US$ 3.5 Billion revenue in the year 2013 (Welspun.com 2016). As discussed in the given case study, the company is not exactly suffering some issues, however, the followings can pose huge threat to its organizational success as well as operational abilities. With the help of globalization, the company has established production set up in some foreign countries. It can pose an operational issue to the organization. In many empirical cases, it has been noted that with the changes in the socio-political scenario of those countries, the profitability becomes affected. On the other hand, as mentioned by Verbeke (2013) the companies, which are operating in the global field, come much under the regulations of the international legal frameworks. Hence, the legal boundaries of import and export can be marked as one of the major issues of the companys concern. Moreover, as opined by Tuselmann et al. (2016) with the changes in the price level of the raw materials in the host countries, the company may face issues with its production volume and production cost. The company has established manufacture set up in the foreign countries, which have made them vulnerable to the changes of the price pattern of the resources and consequential effects. On the other hand, with the entrance to the global economy the company has exposed itself to the global competition. Now, the organization has to take its operational decision more strategically and a constant effort has to be made to ensure competitive advantages. As opined by Dunning (2013) the companies, which serve in the global market, have to compete with the organizations, which may have more market potential in the global scenario. In most of the countries the organization is recently operating, the market is well established for the old players. It is demanding a huge level of cost or expenditure for the organization to uphold and establish the brand name. With the changes in the relation with the associate companies may affect the growth level. Moreover, as opined by McFarlin and Sweeney (2014) the limitations of the raw materials and other resources are also capable of posing threat to the future growth of the company. As discussed in the case study, the organization is now operating with big business associates, which is itself a strategy of surviving in the foreign market, can proved to be an acute failure with the fall of the associate company. On the other hand, the company is dealing with multiple products offering which are remotely connected to each other. Hence, it can be speculated that in the future, the company may find it difficult to align all the businesses and suffer loss. Moreover, the company has diversified its product line in multiple sectors, which are not even new to the markets. Therefore, a threat of market failure is always there for the company. In addition to this, with a huge range of products and geographic operation, the organization may find it difficult to manage in the coming future. As opined by Klich (2013) among the growth strategies of the market giants, product diversification can be identified as one of the major risky ones. It involves a number of new production procedure, specialized employees and new customer base. All these, involve a huge range of financial expenditure. The discussed company is also facing this issue. Hence, to overcome these issues the organization can follow the bellow- discussed strategies in the future: Customer service and brand differentiation: The company can opt for creating a brand name regarding the customer service. As opined by Verbeke (2013) a good customer service provides a company a huge level of brand differentiation. As the company is largely supplying the retail houses and organizations, which are in direct contact to the consumers, it takes long for them to build a brand name. As mentioned by Hill et al. (2013) by directly serving the customers and upholding an excellent customer service, the company can nullify the bargaining power of the associate companies. Create demand for new products: In addition to it, the company needs to create demand and market for the product offerings in the new markets they are opting to operate. As discussed by Klich (2013) as the organization has mainly focused on product diversification, creating a demand of the market is needed for them to be successful in reaching the customers. To overcome the price issues and lose of the market, creating a demand of the product can help the organization to excel. Alignment of product diversification: On the other hand, as opined by McFarlin and Sweeney (2014) while opting for a product for the diversification strategy, the companies need to diversify its product line with the related product. For example, as the companys core operation is textile, it may opt for diversify its product line with the clothing accessories or shoes and many others. It will create an all-inclusive operation of the company in a certain industry and it may provide a sustainable growth rate. Creating more business in the Indian market: In addition to this, the company may focus on the ever-growing market of its native land, India. As discussed by Alvstam et al. (2014) India, China, Brazil are some of the nations which should be treated as a priority for new market entrants. However, the organization has an advantage of being native and understanding of the market culture of India. As opined by Cavusgil et al. (2014) the experience of the market will help them to strategically diversify the product line according to the customer demand. Moreover, the organization now can also supply to the national retail chains like Big Bazaar for obtaining sustainability in the market. Moreover, it will help them in increasing the profit count and reducing the dependency over the associates like Walmart, Target and many others. Establishing production houses in India: As opined by Meyer and Peng (2016) by establishing manufacture set up in the foreign lands, the company is losing the advantage of cheap labor and resource prices of India. As mentioned by Ajami et al. (2014) even today, the labor price is far lower in India than any other countries. With establishing the production, houses in this country the company may get an advantage in the production cost. Thus, for gaining a sustainable growth rate in the future market, the company can use these strategic recommendations. However, the organization has a very competent management authority which is capable enough to identify the potential advantages and determine strategies to grab them. Conclusion: Hence, in the conclusion, it can be said that the companys success strategy of diversification and market expansion can be helpful for the companies, which have a strong managerial capability; huge monitory base and the potentiality of identify the needs of the market. with these parameters the companies may follow the growth strategy of the company discussed in this particular case study. However, with the implementation of the calculated but risky decisions, the emergence of globalization and the integration of the global economy can be identified as one of the major factors, which have contributed largely to the companys growth trajectory. It has helped the organization to stretch its operation overseas and serve the demand of the markets outside India. Moreover, with the help of globalization, the organization got the opportunity to tie up their business with the international organization in the Indian market. Hence, it can be said that the globalization has propelled the compan y to obtain a strategy of geographical diversification, and make alterations in the product line to serve the global market. References: Ajami, R., Cool, K., Goddard, J.G. and Khambata, D.M., 2014.International business: Theory and practice. Routledge. Alvstam, C., Dolles, H. and Strom, P. eds., 2014.Asian Inward and Outward FDI: New Challenges in the Global Economy. Springer. Cavusgil, S.T., Knight, G., Riesenberger, J.R., Rammal, H.G. and Rose, E.L., 2014.International business. Pearson Australia. Dunning, J.H., 2013.Multinationals, Technology Competitiveness (RLE International Business)(Vol. 13). Routledge. Dunning, J.H., 2014.The Globalization of Business (Routledge Revivals): The Challenge of the 1990s. Routledge. Hill, C.W., Cronk, T. and Wickramasekera, R., 2013.Global business today. McGraw-Hill Education (Australia). Klich, J., 2013. Editorial: Modern challenges for international business in Europe.Entrepreneurial Business and Economics Review,1(2), pp.5-6. McFarlin, D. and Sweeney, P.D., 2014.International Management: Strategic Opportunities Cultural Challenges. Routledge. Meyer, K. and Peng, M., 2016.International business. Cengage Learning. Tuselmann, H., Buzdugan, S., Cao, Q., Freund, D. and Golesorkhi, S. eds., 2016.Impact of International Business: Challenges and Solutions for Policy and Practice. Springer. 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