Sustainability in Global Context - Research Paper Example

?Sustainability in global context Executive summary Longevity of a business is a basic objective to most managers. An entrepreneurmust employ effective operational features to safeguard both the longevity and the profitability of the business. As a wind turbine manufacturer, VESTAS must determine appropriate ways of sustaining its market share thus sustaining its longevity. In projecting the company’s future, the research will analyze the nature of the market in order to determine the opportunities and the possible threats that the company may face as it strives to stay consequential and maintains its market share for the next fifty years. The research seeks to develop effective decisions that will foster the growth and expansion of the business for the next fifty years. After an effective analysis of the market vis-a-vis thee operational features of the company, the research will determine appropriate management decisions capable of steering the company’s growth. The conclusions and the recommendations sections of the paper will therefore include the thoughts of the researcher and the decisions, which will likely safeguard the company’s sustained profitability through the fifty years. Table of Contents Executive summary 2 Table of Contents 3 Introduction 4 References 10 Appendices 11 For positive reception and effective formulation of reputation, the business must launch an efficient type of social responsible investing. 11 Introduction Marketing refers to a management role concerned with the determination and satisfaction of the customer demands. Any company must have an effective marketing department in order to either maintain or increase its market shares. By either increasing or maintaining an appropriate market share, the company maintains its profitability thus sustains its continued operations. Profitability and longevity of the business are two fundamental features of a business that must influence the operational decisions that managers make. Sustainability in business refers to the ability of a business to maintain operations over a period. By maintaining operations, the business must maintain a specific level of profitability in order to sustain its operations within the period (Kotler & Fox, 2002). In making operational decisions, managers must therefore consider the strengths and weaknesses of the business. VESTAS, a wind turbine manufacturer seeks to last for more than fifty years a time within which the company seeks to maintain an appropriate level of profitability in order to afford its operational requirements. VESTAS is a new company but seeks to last for more than the next fifty years. The company requires radical yet harmonized production. The production process must tally with the recommendations from the marketing department. This implies that the marketing department is among the most fundamental management departments in the organizations. The department should carry out effective market researches and ensure that every of its decision originates from the prevailing market features. As a manager, the first and the most appropriate action to take is to develop an effective marketing department in the company. This will require the allocation of sufficient financial resources and the employment of the best brains in the industry. The marketing department determines the profitability of the company. The department controls all the operations of the company and influences the relationship between the company and its specific market. An effective marketing department will therefore sustain the profitability objective of the company thus fostering both the growth and longevity for the next fifty years. An efficient marketing department will determine the most cost effective means of productions in the company. The department remains proactive and carries out effective market research in order to determine a sustainable production process. The marketing department is a fundamental aspect of the management that if handled effectively will safeguard the sustainability of both the production at the company and the management of other features of the company thus earning the company the life it deserves. The marketing department must consider the strengths and weaknesses of the business. In doing this, the department will determine the opportunities in the market thus influence the manufacture of effective products that address the demands from the market. Additionally, the department will also determine the operational threats that the company is likely to face in the production and sale of some of its products. The appropriate determination of the threats the market presents to the products manufactured by the company will influence the production by advising the abolition of the production of such turbines. This way, the marketing department thus remains one of the most important determinant of the nature of production in the company. The company managers must therefore develop an effective marketing department in the company. In developing an appropriate marketing department, the company must provide as much resources to the department as possible and hire the best marketing brains in the industry. By developing an efficient and practical marketing departments, VESTAS will safeguard its future since the department will cushion the company from incurring loses. The company’s strength lies on the nature of its products. Many consumers prefer wind turbines owing to their cost effectiveness. They produce green energy an operational feature that makes them desirable and preferred by many globally. This implies that the company has an assured future since its products will forever remain relevant in the society. The special category of the company’s products earns the company a place in the future. The company must therefore determine the most appropriate ways of remaining relevant throughout the times. Additionally, the company targets the global market. This implies that it has a wide physical market and will therefore require more resources to facilitate an effective market research. It is costly to carry out an effective market research in a global platform. The company will have to determine the windy environments and therefore target such regions. After a factual determination of the products and the specific possible markets, the company concentrates on the features of the products. By considering the strengths and weaknesses of the product, the marketing department will determine their performance in the market thus influencing the production process in order to initiate and sustain the production of appropriate products. The products must for example meet the market demands. This makes them relevant to the consumers. The marketing department influences the features of the products the company manufactures. The department carries out extensive market researches with the view of determining the demands of the market. By producing such products as those demanded by the market, the company maintains its relevance and the relevance of its products among its target market thus lasting the time stipulated. As discussed earlier, a global market presents the company with several operational challenges that require effective considerations. Among such are the demographic factors of each region. Some regions such as the developed economies have reliable and cheaper electric power; the company products may not therefore obtain as much profitability from such regions. However, the region constitutes a reliable market since the citizens in such countries have the financial might capable of buying the products. Some other regions such as Africa and parts of Asia have unreliable supply of electricity thus necessitating the installation of the wind turbines. This implies that such regions provide substantial markets but the economies are poor. By considering such fundamental production features, the company determines appropriate products that address the specific needs of the diverse markets thus sustaining the operations of the company. By considering the demographic factors in the different regions globally, the company begins manipulating the features of the product thus safeguarding their profitability. Price and product quality are some of the most fundamental marketing features that influence the profitability of a company. VISTAS will for example target both government institutions and private consumers. Each of the market category has unique requirements and poses different financial abilities. Additionally, the company will target such regions as Africa and Europe. Each of the regions has different financial potentials a feature that will influence the production of different products and attribute different prices to the products. The product prices must remain different and portray the difference in the different regions. Products sold in Africa must cost cheaper than those sold in Europe must. However, to validate the price difference the company must manufacture different quality products. Outsourcing is a feature that the company enjoys since it operates on an international platform. This refers to the acquisition of such operational resources as labor in different parts of the world. The company through its marketing department will carry out researches in order to determine the countries that offer cheaper operational costs. Such countries as India and China are providers of cheaper labor. Additionally, the low energy costs in a country such as China make the cost of doing business relatively cheaper than those in either Europe or Africa do. The company can therefore set up manufacturing plants in China and manufacture products of different qualities for sale in other parts of the world. This way the company minimizes operational costs. However, the company will incur additional transportation costs as it exports the products to other parts of the world. Through market researches, the company will determine the most appropriate ways of manufacturing and selling its products throughout the world. Considering the locations to set up the manufacturing plants remains one of the most essential operational features that the company will have to consider in order to remain competitive in the global market (Aaker & Aaker, 2010). The global market also makes the company susceptible to influence by different political factors in the numerous countries it seeks to operate. Politics is major influencers of the market since governments formulates and implement policies that influence the operations of companies. VESTAS must therefore streamline its operations in the numerous countries to the prevailing political factors in the country. To achieve such, the company must avoid any involvement with the local politics but deal directly with the governments. As stated earlier, governments are often among the leading clients to the company as it seeks to install large capacity power plants in different countries. By avoiding local party politics, the company remains integral and retains its interactions with the government. Petty internal party politics in a nation may cost the company its markets, as the local leaders will possible possess different political interests. Additionally, the company must comply with the local policies as set by the governments. Compliance with such laws minimizes operational frictions thus earning the company a seamless operation as it exploits the local market. Technological changes are yet other fundamental features that will influence both the operations and productions of the company. The company must spear head research in order to determine the most appropriate means of manufacturing their products. Changes in technology will influence the means of production. The technology is likely to change within the next fifty years. It thus remains paramount that the company streamlines its operations to the prevailing technology. This way, it safeguards the relevance of its products to the demands of the market at the different times. Additionally, the changing technology will definitely influence the cost of manufacture thus influence the cost of doing business. VESTAS must therefore ensure that it maintains its relevance to its target market by spearheading scientific research into the changing manufacturing technologies among other technologies that are likely to influence the consumption of its products (Abrams & Eugene, 2003). In retrospect, in order for the company to remain both relevant and profitable for the next fifty years, the management must carry out extensive market research with the view of harmonizing the operations of the company to the changing nature of the market. In doing this, the company must consider the technological, political and social factors that may include the cost of doing business and therefore affect both the company’s longevity and profitability. To safeguard such, the company must develop an effective marketing department to carry out periodic effective market researches thus influencing the production of products. References Aaker, D. A., & Aaker, D. A. (2010). Marketing research. Hoboken, NJ: John Wiley. Abrams, R.& Eugene K. (2003). The Successful Business Plan: Secrets & Strategies. 4th ed. Palo Alto, Calif: The Planning shop. Kotler, P., & Fox, K. F. A. (2002). Strategic marketing for educational institutions. Upper Saddle River, NJ: Prentice-Hall. Appendices For positive reception and effective formulation of reputation, the business must launch an efficient type of social responsible investing. Read More