The Logical Conclusion of the Profiles of Various Companies - Research Paper Example

Summary The main aspects of undertaken this treatise is a classic case of a person working at a senior level in a British Multinational Company desiring to invest in another countries of familiarity in household goods and furniture including furnishings. In this respect a detailed analysis should be made in various countries where investment opportunities are prevalent suitable for such an industry involving an acquisition or joint venture or technical collaboration that would entail multifarious opportunities of broad basing the companies empire and its range of products. The investment opportunities should be conducive and involve lower costs of production and certain economies like China and Japan are quite favorable in terms of labor cost. With an analysis made on various options of China, United States of America and Japan the options of tying up with leading companies like Samsung or with Whirlpool Corporation or IKEA would prove profitable and capable of withstanding pressures of marketing. The conclusion also would prove a view point to the effect that the British Company can come out from all forms of jeopardy and evolve ways and means of combating competitors with an emphasis of augmentation of turnover as well as improving the market share from year after year. The point to be noted and the most wise decision involves an emphatic study of the profiles of all the suggested, their technological competence, their prowess in terms of marketing and financial superiority in terms of values and strategic initiatives. In light of the above facts it is advisable that ultimate recommendation would be to tie up with companies such as Samsung or Whirlpool Corporation in Asia or in United States of America that would prove to be profitable and also understand the cultures prevailing in Japan, China and United States of America and assess their impact. Ultimately a subtle balance and adept as well as shrewd control on human resources management and marketing would prove to be beneficial with an element of desired tact. Before embarking on an investment proposal the British Multinational Company should organize project reports based on the profiles of Samsung and Whirlpool Corporation including financial projections. The analysis of competitions perfect, imperfect and monopolistic should be clearly analyzed within the framework of actual operations in the industry for blending the exercise from the angle of practical applications for a better internal rate of return. The better internal rate of return is the project would not only be successful but also extremely profitable. While assessing the level of profitability there is a sound concept of marketing and conversion of capital recommended by leading management wizard Philip Kotler. Principles of four P’s (product, price, promotion and place) are essential. Within the context of the industry in question the element of after sales service is extremely essential for giving a thrust for deriving long term customer loyalty and satisfaction. The procedures are laid down by the federal government as well as the British Companies Act and the advice of their chartered secretaries giving information to their board in United Kingdom about such procedures for eliciting the levels of investment in terms of percentage in United States of America, China or Japan. Sound financial advice from Solomon Smith Barney and Meryl Lynch would enable floatation of ADRs and GDRs for raising funds for the purposes of listing in leading stock exchanges of the world. Introduction The relativity of international business in light of most of the companies trying to ensure global presence for maximization of business and profitability based on exchange differentials that augment the possibilities of making higher turnover as well as profitability. The capacity to enrich the quality of products to make them competitive in an international environment and arena is made plausible by the efforts of research and development as well as astute sharpening of features of product lines that look very sleek for various customers to desire and take them. The international business should be analyzed in light of the need of growing competition internationally and making more companies to ensure their presence globally for protecting them from the perils of competition, leadership as well as price leadership. The quality and a price when balanced internationally after making an analysis of the United States of America consumer pattern, that is to say, the need fulfillment in the country of investment and the purpose of achievement of returns on investments for emboldening the company to co-exist in the global markets. The background to the problem necessitates giving an impetus for global presence to derive advantages of exchange realizations based on differentiates from the angles of policies of the government in UK and various other countries within the European Union. The objective of the governments involve more building up of foreign exchange reserves, invitation for influx of foreign direct investment as well as infusion of superior technology after analysis of political, economic, social and technological factors that are important for maintaining supremacy in various fronts of marketing, finance, technology and taking full leverage of governmental measures including sops for contribution as much as possible to the national exchequer. The moot point is the achievement of company growth and ensuring growth in employment opportunities more contribution to the national exchequer keeping a control on price level and also deriving full advantages of economies of scale would be welcomed in all the countries and economies would also prosper. Such a philosophy from professional angles would save the company giving an opportunity to express its views formally by presentation of facts to the government through the medium of chambers of commerce and industry. Whether or not the governments of China where communism prevails or United States of America, capitalist economy or Japan with the tinge of communism, creating the above norms of running a company without jeopardizing employment opportunities and fair remuneration to the labor force based on inflation are acceptable. The aim of the workforce as well as their intentions should be under such circumstances to augment profitability from year to year keeping in line with budgets. The report of the employee of British Multinational to the line manager is significant from the angles of exuding understanding comprehensively various proposals of investment that are beneficial to the company. The exercise not only would elicit interest but also the appreciation of numerous benefits that the company would be able to enjoy in terms of higher revenues, global presence as well as higher profitability and value creation. Hence, the significance of this report should be viewed from the point of view of augmentation of revenues and profitability for enrichment of all economies that emerge including efficiencies of cost management and marketing, distribution, production as well as finance. The structure of the report includes summary, introduction, main body, recommendations and conclusion. In this treatise the coverage has already been completed on summary as well as introduction except to the extent of covering main body, recommendations and conclusions. The detailed presentation of the main body as well as other parts of the structure of the report would be analyzed in the following paragraphs in accordance with the requirements of presentation in an agreed format. Comprehensive Analysis of Problems on Cultural fronts, PEST Factors and HRM/Marketing in International Business Context An analysis of problems as well as conflict in cultural fronts from theoretical point of view is to understand the policies, objectives, practices of business administration, public relations, customer consuming pattern during times for festivals including New Year and Christmas. Their timings of buying such products should be understood and policies should be formulated based on projections that should be made accordingly on a conservative basis. Based on consumer buying patterns a strategic shift towards those segments where buying pattern is more during festival times when a particular segment does not prefer buying such products. A blend of segments and ensuring budgeted levels of sales and marketing in line with the policies of the company should be geared to meet budgeted levels of turnover. It is essential that there should be an element of preparation of objectives slightly higher than the marketing targets to ensure their better performance to avoid adverse variances. Hence, an understanding of languages (at very senior levels take the help of interpreters who will able to make the task easier for conclusion of various understandings) is essential. This would enable formulation of policies and conclusion to enable the company in UK to formulate a policy in line with the company such as Whirlpool Corporation or Samsung. This is purported to balance the cultural differences and generate better administration in terms of policies as well as procedures palatable to the foreign counterparts. In multinational corporations top level persons or managers may be from UK, USA, Japan, and China, India or other countries. There may be a conflict initially in terms of executions of work but they would get used to by mutually understanding after the execution of work to express or manifest through their appreciation all those people to enable them to feel motivated and top level persons coming from various countries also are able to resolve issues from time to time based on the corporate policy. Hence, the understanding of language, communication as well as constant gaining of knowledge of various countries’ cultures, business administration practices as well as understanding of the economies of various countries are essential elements for success of mitigating the impact of culture on international business environment (Becker, 2000). The analysis of international human resources management would involve the exercise of simulations of an understanding of various cultures and their environment and formulate policies for the development and growth of manpower with global presence. This exercise is very beneficial for the developments of manpower training in international business context and keeping up the morale of employees for the purposes of ensuring better performance. The policies should also be balanced within the framework of international MNC policies. Hence, an understanding of various other aspects of human resources management such as organizing recruitment and training and systems of performance reviews based on job evaluation and merit rating as well as motivational policies should be carefully reviewed in line with international business environment. With all the understanding of cultural differences the human resources management policies in other countries of investment can be formulated effectively and expansion plans can be organized with a thrust on development of business and its growth. Various leading executive search companies can also be engaged for the purposes of recruitment of talent in multinational companies in other investment companies such as Egon Zhender. The capabilities of manpower can be further developed over a period of time by human counseling sessions as well as training and development for the furtherance of their career growth with the growth of the company in international business environment (Briscoe et al., 2008). Marketing management involves planning, controlling, organizing, pricing, merchandising, and implementing policies as well as procedures for bringing about customer loyalty and satisfaction by giving them value for money received for a product of utility. The capabilities of marketing in international business environment depend on the understanding of the market and the needs of customers with specific reference to air conditioners and furniture including furnishings. The trend of the progress of the industry should be understood to strategize the further accentuation of the improvement in market share for bringing about consistency in withstanding competition in such an environment. It is advisable to note such trends from various standard publications in business magazines as well as economic newspapers such as Wall street journal, Harvard business reviews as well as various other business magazines and evolve strategies for the augmentation of MNCs turnover. Once the presence of other countries has been achieved a thrust can be made for the development of exports as well as generating revenues globally by relying on technological superiority, market edge as well as palatability in the environment of United Kingdom. The point to be noted here is that a company desiring to invest from UK can succeed in the environment of United Kingdom as well as other countries and exports not only from United Kingdom but also from other companies where presence has been achieved by virtue of investment for either acquisition or joint venture or forging a technical collaboration. These are the requisites including cultural understanding for the betterment in success of functions such as human resources management and marketing management in an international business environment. It is to be ensured that the market prevailing in the country of Samsung or Whirlpool Corporation should be understood and policies as well as strategies should be framed for the furtherance of business growth of the entire group of companies. This is considered to be the modality by also involving innovative pricing and creating advertising strategies and roping in the best of advertising agencies for the formulation of strength in advertisement and publicity. Furthermore, new trends and compulsions of competition would be further geared up for bringing about minor modifications in the strategies of advertising and publicity. Wherever required within the framework of the perceptions of top management and broad MNC policy, media coverage should also be utilized for giving further impetus towards brand building. Brand building like many other leading companies is plausible and review of customer feedbacks on all the functional aspects including satisfaction from the quality of products can be accentuated from the further analysis of conceptual clarity on the function of marketing management with practicable solutions. The aspect of product development and upgrading should also be concentrated from a strategic point of view. Cultural conflict might arise in human resources management and marketing management and whenever it is needed through the medium of behavioral psychology the possibilities of bringing about reconciliations of such differences and dispense with such conflicts for a long time to enable the company to withstand pressures of industrial vicissitudes (Dewan & Sudarshan, 2003). The organization structure in foreign context in human resources management and marketing management is based on the levels of managers, senior managers, general managers, vice presidents (in marketing for heading a group of business), senior vice president, president and the Board of Directors. In human resources and marketing management functions in the country where British Multinational Corporation has invested for bringing about augmentation of business and revenues. The above organization structure would enable acceptability as it would suit the environment of United States of America as well as other countries where the company was evaluating investment opportunities (Cherunilam, 2007). The findings of the problem can be briefly summarized in the following paragraphs. The British MNC evaluated the investment opportunities in Samsung and Whirlpool Corporation based on the figures of the following projections quoted in terms of dollars. Sales Year Value Units 2011 $4.92 million 12000 Air conditioners 2012 $9.84 million 24000 Air conditioners 2013 $2 billion 36000 Air conditioners 2014 $4 billion 72000 Air conditioners 2015 $8 billion 144000 air conditioners The above analysis is based on pricing an air conditioner at $406 per unit. The basis of calculation is dollar equivalent for a pound in United Kingdom. Expenditure and Costs including Taxes Year Value Units 2011 $2.46 million 12000 Air conditioners 2012 $4.92 million 24000 Air conditioners 2013 $1 billion 36000 Air conditioners 2014 $2 billion 72000 Air conditioners 2015 $4 billion 144000 air conditioners The expenditure and the projections involve a realization based on generating a desirable net profit levels that would be attractive for making investments in other countries and create a growth pattern for the British Multinational Corporation. Net Profits Year Value Board Discretion Level Dividend 2011 $2.46 million 20% 2012 $4.92 million 30% 2013 $1 billion 40% 2014 $2 billion 45% 2015 $4 billion 50% The emphasis is made on the plausibility of creation of abundance of retained earnings for the purposes of expansion plans as well as creating value to the stakeholders including proposals of bonus shares in future. Hence, on the assimilation of the projections based on considerations of political, economic, social and technology factors based on profiles of Samsung and Whirlpool Corporation as well as Westinghouse and general electric including Fedders Lloyd Corporation in United States of America for air conditioners as well as Whirlpool washing machines, dish washers and other companies for furniture and furnishings. Hence, the decision for investment in other countries of the aforementioned companies is favorable for the betterment of global presence. Political factors involve changes in leadership of the government due to the elections after tenure of leadership as president and involve various angles of mindset on various policies concerning issues relating to the company. This is meant for its better performance such as tax, monetary measures as well as an attempt to improvise performance standards. Various policies relating to dignity and division of labor are also to be considered in the angle of turmoil prevailing amongst labor force. Economic factors involve monetary measures of international monetary fund and World Bank including bank of England and federal bank for the purposes of keeping a control on interest rates on borrowings and infusion of capital for the purposes of coughing up resources for business expansions. It also involves an analysis for the purposes of ensuring necessary sops for the companies’ product lines based on higher imposts of taxation and duties on various product lines. It also involves many a times certain reductions in such components for enhancing or reducing the price accordingly for the purposes of augmentation of turnover. It should be noted that economic indicators and policies bring about an effect on net realization that sometimes improves and sometimes is pruned down due to the variations in such economic factors. Social factors would cover the socio-economic environment that involves human behavior and culture involving and understanding of diversities in this context driving a comprehension of the limitations of the society. It is advisable to understand the society for the development of policies and making them palatable for the development of industries that affect all factions of society fragmented by way of a few segments for making all plausible efforts for the purposes of development and growth. It is essential to understand and appreciate as well as reconcile the cultural differences for deriving better performance and better profitability. Technological factors would involve an appreciation of technology prevalent in similar companies in the industry. The more of production are manufacturing and its processes are evaluated with a prevalent technology by the infusion of better technology after thorough understanding of the improvised process and mode of production. The capabilities would also involve absorption of such a technology by way of payout in technical knowhow fees and royalty that would create an edge of the superiority of the product lines after the infusion of technology. An assessment on production lines by reviewing the processes of assembly and blended with process of production would be able to generate a considered opinion on superiority of technology over and above the prevalent technology can be taken (Worthington & Britton, 2009). Conclusion The logical conclusion based on investigation of the profiles of various companies that have been considered as well as the facts and figures based on evidence of favorable climate for investment, it is advisable to moot the proposal for investment of British Multinational in other countries such as Japan, United States of America and China. It is further concluded that the proposal based on projections of financial angles of sales, expenditure, net profits should be reviewed from time to time and policies as well as strategies should be formulated for maintenance of a steady performance in line with the projections of the aforementioned figures. Based on the analysis of various other PEST factors also the investment proposal has been recommended and global presence of British multinational can be ensured within a reasonable span of time in line with many other companies as a process of competing globally. The conclusion should also be made on the lines of reconciliations suggested on mitigating cultural differences and their impact by measures of avoidance of conflicts would enable further enhancement of motivation and performance. This is of course with due adherence of legal regulations that is the objective of multinational corporations (Feldman & Santangelo, 2008). It is recommended that investment proposals may be effected for investment in household goods industry and home furnishings and furniture industry in selected appropriate companies such as Samsung, Whirl Pool Corporation as well as IKEA USA for carrying out acquisitions or joint ventures or bringing about technical collaborations for the development of markets globally by ensuring global presence. The accent on the manufacture of furniture, air conditioners as well as washing machines including trade in furnishings could be made by tying up with appropriate companies for suitability of product lines. It is desirable for bringing about not only global presence but also sustain the pressures of market in international business scenario for the augmentation of development of revenues and driving growth opportunities. The recommendation also includes analysis minutely of political, social, economic and technology factors that would create a basis for the development of supremacy on the lines of establishment of growth and development of further augmentation of multinational corporation performance. The need for bringing about multinational corporation acquisitions and creation of subsidiaries for ensuring global presence and control of the group as a whole for engineering growth in turnover as well as profitability. The opportunity for technological superiority would also further emerge by making investments in such multinationals with expertise in the desired product lines would further enhance the prospects and probabilities of parameters spontaneously triggering growth manifold. The significance in light of international business is considered and recommendation is made for global presence based on values and market gut feeling including aggressive strategies evolved for advertising and publicity within the framework multinational corporation policies as well as norms. References Becker, K. (2000). Culture and international business. NY: International Business Press Briscoe, D. R., Schuler, R. S. & Claus, L. M. (2008). International Human Resource Management. New York: Taylor & Francis. Cherunilam, F. (2007). International business: text and cases. PHI Learning Pvt. Ltd. Dewan, J.M., & Sudarshan, K.N. (2003). International Marketing Management. New Delhi: Discovery Publishing House Feldman, M. P. & Santangelo, G. D. (2008). New perspectives in international business research. UK: Emerald Group Publishing. Worthington, I. & Britton, C. (2009).Business Environment. Ontario: Pearson Education Read More