Organizations Are International Business †Myassignmenthelp.Com

Question: Discuss About The Organizations Are Known As International Business? Answer: Introduction A planning which is structured for guiding the commercial transactions and trade which is executed between two entities and that too of different nations. These plans and strategies hence developed by the business organizations are known as International business strategy. In general these plans are executed majorly in the case of private companies rather than government governed entities. The term global strategy is a narrowed concept, which mainly includes the areas such as global, multinational and international strategies. These plans and tactics are designed and developed by the business entity so as to attain the organizational objectives and goals on an international level. While developing a global strategy, it is recommended that if a business entity distinguishes between the three forms of international expansion, that are the coming out of the available resources, capability and current position of the company then it will be proven beneficial for the business corporation (Allenby 2017). The below executed analysis has been furnished after conducting a detailed research on the international strategies of Mountain Goat beer which is a brewery in the region of Richmond,Victoria,Australia. The business entity launched its first brew .i.e. Hightale Ale' amber ale, was released in October 1997. Global scan and audit analysis Mountain Goat beer has been planning to expand the business operations to global boundaries of India and Brazil (Bayne, Schepis and Purchase, 2017). For the same the management and the marketing team are planning and are also held responsible for evaluating risks and opportunities in the selected destinations. And hence the further report has been segmented on the following divisions. The below presented is the evaluation of the potential market of Mountain Goat beer for the above presented destinations: Indian Markets In order to make establishments and expansion in the foreign markets the business entity is expected to conduct global scan on the risk and the available opportunities. These opportunities and risks are the variables which are held responsible for stimulating the marketing conditions for the business entity (Boutabba, 2014). On the basis of a detailed survey the management and marketing team has found out number of opportunities within Indian markets. Moreover, the teams have also conducted analysis over the business environment of the markets so as to set-up wine shops and liquor shops in the Indian markets. The above conducted analysis will aid the business entity in evaluating factors which are considered as very much significant in the performance of the business corporation. On the basis of the conducted survey it has been noted that there has been an increase in the scope for the establishment of liquor shops in the Indian economy. As the Indian economy has shown a hike in the GDP and also there are number of trends which has been observed. For instance, a rise in the purchasing power due to an increasing income level has been noticed for the past years (Cappelli et al., 2015). Moreover, the current GDP of the economy is $2.454 trillion and the hike observed in the GDP is recorded at 7.2% as compared to that of the last year. Prior to this, it has been noticed that Agriculture was the sector which generated the maximum share of the revenue for the Indian economy. But a change in the trend was experienced, after the emergence of industrialization and modernization within the economy. Due to globalization number of foreign countries showed their interest in investments and which brought a rapid boost to the GDP (Tradingeconomics 2017). Moreover, there was other sector which contributed largely towards the development of the economy. For instance, service sector was observed to be the biggest contributor and which made huge positive impacts over the economy. Also the governing bodies within the economy promoted the youth in order to make utilization of the available resources within the economy. Further the government also implemented number of policies and norms so as to provide financial support to the required one, and on the basis of the analysis it has been observed that the business entity will not face any kind of issues while expanding the business operations in the Indian markets (Das Nair and Dube, 2017). Figure 1Indian Beer Consumption (Source: Indian beer consumption, 2017) Brazil markets Brazil has been considered as the third largest nation in the beer consumption all over the globe. On the basis of the survey it has been noted that the consumption of beer on the basis of per capita has been recorded at 61 liters in 2016. After reviewing these points, Mountain Goat beer have great opportunities as compared to India in terms of expanding the business operations. Moreover, the tax system within the economy may come-up with some barriers for the business entity while they are entering into the Brazilian market (De Mooij, 2013). The business entity will have to develop number of strategies and plans for the adoption of the policies and norms which are levied by the governing authorities so as to get an entry pass into the Brazilian markets. The sector is held liable for providing of 2% from the GDP. Additionally this sector provides employment to more than 2,7 million individuals, both direct and indirect employments, and does not stop to get new speculations. These day s there are around 300 breweries in Brazil, in which the greatest 10 breweries have 99% of the manufacturing. Premium and super-premium brews developed generously, utilization of super-premium lagers have been expanded 15% every year, it is driven by learning of the purchasers because of a more globalized world. Indeed with the development the top notch lager spoke to just 5% of every 2014. High consumption of liquor has been considered as one of the major factor for Mountain Goat beer to attain growth and success after expansion (Fang, 2014). As there will increase in demand for the products due to high consumption expanding business to Brazilian markets will be proven beneficial for the business entity. Cultural and market fit The evaluation of the business factors which are considered as very much empirical for the success and growth of the business entity in the Indian and Brazilian markets and this is to be done while stepping towards the international markets (Frynas and Mellahi, 2015). There are varied cultural factors which are liable in affecting the performance level and business environment of Mountain Goat Beer. While expanding the business in the international market, along with the issues of cross-border, the factors such as cross-culture etc. are considered relevant which have affects the business operations. Societal factors such as influence of individuals which affects the purchasing power, acceptance of the brand by the society, communication strategies, etc. For instance the Indian public has a tendency to buy from local shops and grocery stores so as to get the products at low rates. The below mentioned are the cultural factors present in the markets of India and in Brazil: Attitudes and Styles: Bargaining has been considered as one of the significant factors of the buying process but it has been observed that this practice is not exercised in the Brazilian markets and in case of liquor and beer shops of Mountain Goat beer the same can be experienced (Gereffi and Luo, 2015). So according to this behaviour of consumers the business entity will have to develop some discount schemes and offers over the purchase made on, Brazilian markets are free from the issue, which are faced by the Indian markets due to the high consumption of beer in the economy and this has come-up as the reason for a rapid boost in the foreign direct investment rate in the Brazilian markets. Distribution of information: An increase in the transparency level is required to be developed by business entity between its profits and the cost of goods sold. Positioning of the brands is quite difficult in case of Indian markets and also building trust and gaining a market share (Grant and Jordan, 2015). For instance, Uber is a multinational corporation which offers private taxi service and is established in the United States of America. The business entity moved towards the Indian market and for influencing the customers they introduced attractive. This aided them in gaining trust and brought an increase in the goodwill and market share. Mountain Goat Beers strategic capabilities The business entity has effectively accomplished and fabricates the image in Australia. Besides, the business organization wants to extend the business operations in worldwide markets (Guha et al., 2014). The picked destinations for the expansion plans are India and Brazil and these business sectors are picked as they are the two economies who have the quantity of factor which will be demonstrated valuable for the business entity. Moreover, Brazil is the economy which has been found on the third rank for the consumption of beer and which can be considered as one of the factor which will be aiding the business entity in accomplishment of the desired goals and targets. The below presented are the variables which will demonstrate the strategic capabilities of Mountain Goat beer: Brand Image: Adoption of appropriate strategies is required to be done for establishing brand equity as it is a very crucial task for the business corporation (Gunjal, 2017). The primary components considered as significant in this concept is providing a high quality of products, offering special discounts to the consumers. Moreover, making use of modern or contemporary means and mechanisms for promoting and advertisement etc. are considered as significant for developing the brand image of the company. On the basis of the conducted research it has been observed that the business entity has been adopting number of modern techniques and methodologies which will aid the company in attaining the top position in the retail charts. Financial Position: According to the survey it has been noted that the business entity has been making continuous innovations in the products range. Moreover, the business entity keeps on updating and launching new and improved products that to with enhancement in the quality (Jie, Parton and Chan, 2015). SWOT analysis The below demonstrated is the execution of the SWOT analysis for Mountain Goat beer (Kleinman and Lin, 2013). As the business corporation is planning for expansion of business operations in foreign nations the management of the organization is planning for establishment strategies. These strategies will aid the business corporation in various aspects for setting-up the business in the new markets. Moreover, the below conducted analysis will also enable the organization in recognizing the risks pertaining to the firm in new regions: Strength: The business entity has a strong brand image and the same has been considered as the strength which enables the organization to enjoy trust-worthiness amongst the consumers. Moreover, the brand equity of the firm will also aid the company in building string relations with the consumers, which will enhance the goodwill of the entity (Lee et al., 2015). Also the firm serves good quality of products, which even makes the entitys image stronger in the minds of the consumers. This will also aid the business entity by increasing the market share. Further the focus has been provided towards the strategies which are implemented so as to maintain strong bonds with the consumers. Weakness: Intensification in the competitive environment can be considered as one of the biggest weakness and the same can also be included under the threats for the business entity. Moreover, the Indian markets can be proven a weak factor for the organization while expanding the business, as the consumption of beer and liquor is low as compared (Lynch 2014). Opportunities: According to the conducted analysis it has been observed that expanding the business operations to the foreign markets can be considered as one of the biggest opportunity for the business corporation. This opportunity will be proven very much beneficial for the business entity (Muasa, 2014). Moreover, the business corporation can also plan to establish the market in the virtual world .i.e. business through online websites and applications. Threats: The increasing competitive environment can be considered as the biggest threat for Mountain Goat Beer (Mukherjee, Cuthbertson and Howard, 2014). Moreover, the laws, norms which are imposed by the governing authorities of the new markets and regions will also come-up as a issue and will develop into a threat. Risks involved in the Chinese and Indian markets The following discussion has been executed over the risks which are associated with the markets and the regions in which the business entity is planning to establish and expand the business operations and activities: Legal system: The business corporation is executing the business operating through Australia. And for further expansion the entity has planned to the functioning of business activities in Indian and Brazilian markets. In this the business organization will be facing number of barriers due to the differences in the norms and the laws levied by the governing authorities and followed and adopted by the markets and regions. The changing market trends can also be considered as one of the risk for the expansion process (Dawson, 2013). Moreover the business organization will also face number of risks while expanding business operations in India. For instance, the organization will face many issues due to the cultures and the religions followed, which restricts the consumption of alcohol and also there are some regions in India where consumption and selling of alcoholic products is banned. Tax System: Mountain Goat beer will also face some risks in the business due to the differences found in the tax policies and the norms, which has been imposed by the Australian and Indian governing authorities. There is a huge gap and difference between the Australian tax policies and the exemption of tax policies as compared to that of the Indian as well as Brazil tax system. Recommendation The two chosen destinations for expansion purpose are India and Brazil and due to which the business entity should divert their focus towards the consumers and their satisfaction level. Also Brazil will be proven the most beneficial region as compared to that of the Indian markets for expanding the business as the region has been ranked at the third position in the beer consumption. This will also enhance the performance and the productivity level of the entity. Conclusion In the limelight of the above executed analysis it has been inferred that Mountain Goat Beer is a Brewery from Australia. The company has been planning to expand the business functionalities and for the same India and Brazil are the two destinations chosen by the management and marketing team of the entity. The above presented report has been focused on the global scan and audit analysis of the risks which will be faced by the business entity during the expansion process. References Allenby, T, 2017, Whats happening at mountain goat, Assessed on 12th September 2017, https://www.beerandbrewer.com/whats-happening-mountain-goat/. 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