Business Plan On Multinational Business

Published: 2021-06-22 00:02:12
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Category: Business, Market, Marketing, World, Company, Customers, Solar Energy

Type of paper: Essay

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Question 1
Many customers for Abercrombie and Fitch who would consume their products in Kuwait are unpredictable and they hesitate to buy a product that they little know about. This is in not only Abercrombie and Fitch but also everywhere, since it is very risky to buy a product that you little know about especially from a foreign country. This company needs many changes for it to enter the Kuwait market. it needs to change its culture and nature of doing things. If a company has a new product in a new market, it is always good to create good awareness to the target audience who in this case are the consumers.
Abercrombie and Fitch will have to do if it considers entering in Kuwait, which is a very new market. This is possible through advertisements and marketing trade fares. Creation of marketing campaigns is a great way to deal with the problem and emphasize on the value and quality of the products giving it the need to compete in bases of industry factors of success.
Incases where consumers buy products they little know about and products turn out to be bad, it is wise for them to return and the company there on takes the initiative to explain the product to the customer. The business will have to adapt to and change the way it does business in other countries especially having in mind that businesses set up in Kuwait are multinational companies thus great standards. In Abercrombie and Fitch, employees will have to stand strategically on the shelves to explain to customers about the new products therefore creating awareness. It will also require it to give free samples if need be for the customers to get a chance of testing their new products. The result of this change of boosting the consumer confidence translates more on the cash register since customers have confidence. After having these changes, the company in its new market and it will be a long-term advantage for the business in Kuwait, and that is why Abercrombie and Fitch has grown and stretched to all over the world. Another way of glimmering interest for products as a change for Abercrombie and Fitch if it goes to Kuwait is conducting campaigns intended for promotion of products in the many ways as possible. This change will be very close to boosting customer confidence and most of the time they go together. It might have to Brand public vehicles and pout stickers on taxis as way of creating awareness and it will enable the Kuwaitis public know and familiarize themselves with the products. The more the people know about the products, the more they look for the store with the products and the more the returns for the store. This will see Abercrombie and Fitch make a lot of money considering the money it uses on creating the awareness is not close to what they make per financial calendar. Entering Kuwait therefore and making the mentioned changes would not keep the company from being profitable; instead, it will increase the sales thus more profits and this could enable them dominate the Kuwait market.
Question 2
The industry of PV spends a lot of time discussing the company’s merits, prospects of the firm, for example the firms that cover the spirited background and weaknesses. To remain on top of the industry, first solar must work a lot on the motivations and structures. With motivations, there is the triple A’s, which abbreviate namely adaptation, aggregation and arbitrage. As for structures, there is home base, hub, portfolio, mandate and platform. If well used, the two could boost the multinational business strategy for the next 10 years or so. The AAA triangle helps managers as it serves them like a map of strategy. These two will market the company fully and increase its market share globally. For adaptation and aggregation, I noted that the first solar kicked off with an adaptation strategy. Uncertain attempts at aggregation had a very strong competitive power as it uses some tactics to ensure its products are different. The corporation also maintains its geographic market development for the purposes of cost leadership and below is what it does to be where it is.
First solar should ensure there is low manufacturing cost per watt and we all know this one. Cost per watt remains the most competitive ingredient in the manufacture of PV. First solar borrowed this from the Chinese giants who are very competitive. It also ensures there is total efficiency in conversion. It has a big and strong bankability power where it is able to finance big projects. This in other terms means it has enough capital making it comfortable in terms of financial freedom hence well balanced and stiff in competition. Bankability for example made Dow will face challenges deploying solar shingles.
In contrast to first solar, Procter and gamble targets a balance between arbitrage and aggregation. For the purposes of obtaining aggregation benefits without losing the traditional arbitrage advantage of competition it has always possessed, there has been placement of great emphasis on model of power delivery. Technology differentiation being a performance related and keeps first power moving. It is able to offer technology differently in a cheap way and at the same time making sure that, it has big profits internationally. This risks a lot in the line of discussion as it could term it redundant. If not well managed, it is a big challenge like Solyndra faces today. All these meet the local market circumstances. First solar standardizes its products to adapt.
As for arbitrage and adaptation first solar enjoys a ready for action plus which mainly because it is able to manufacture more efficient and powerful cells in the whole world. It should take a different approach and emphasize arbitrage as well as adaptation by heavily investing in a market locally depending on occasions. This alone will give the company the edge over other competitors. First power should stop following both stakeholder and stakeholder approach and invest in motivations and structures. Reason being it grew as a private company and on becoming successful, other shareholders joined in and bought shares thus will keep it going for the next 10 years.
Question 3
Abercrombie and Fitch
In 2004, a key revelation of an analysis showed that there was an urgent transformation need in all areas of Abercrombie and Fitch. The main operation of Abercrombie and Fitch is to supply and that it why it has a big supply chain. Similar to stores in the US, the company provides excellent services to its customers leaving every one of them satisfied. It makes sure that the prices in all outlets are affordable by the many middle class families. The company has different structured outlets making it fit for all customer’s desires, customs and wants. Abercrombie and Fitch has over 75% of international stores operating under its name all with a common goal of living better through saving people’s money. Its operations all over the world are on basis of good services to customers and clients. It is because of this that Abercrombie and Fitch should keep its activities within the company.
While conducting its daily operations, Abercrombie and Fitch has a systematic approach giving it, the ability to understand problems and issues meant for study. This is a clear indication that the company should keep activities within the company and not outsource any of its activities. For the purposes of supporting the latter argument, it is also able to understand measures of establishment concerning performance. The company should adapt its own transportation process apart from relying on UPS and FedEx who do their transportation and logistics. There is the use of analytical and scientific tools when developing solutions that are efficient and effective to problems at hand. There is need for human resources and marketing finance incorporation to operations to all organizations regardless of nature and the performed activities. Abercrombie and Fitch use the conversion process in its operation forming the basic functions and they are mutually interactive a clear indication that it has the ability to keep its activities at home country and not offshore particular activities to other countries.
When it comes to keeping all Abercrombie and Fitch activities in its home country, it should ensure that all its Operations come at the central part and this helps in binding all its functional areas together in one country. An efficient operation’s system is what determines efficiency and productivity in Abercrombie and Fitch. Operations therefore should form a very important workflow process in home country meaning it will not have any cases of troubled marriage. The fact that it will not have a bounded new start means that its Operational strategies will come after corporate level strategies and the translation is systematic.
Functions of operation management will include development and product design if it chooses not to offshore as well as layout of facilities and location, design of process, planning of capacity, control and production planning, forecasting, supply chain management, management of maintenance as well as improvement continuity in operations. Activities transform input to useful outputs making sure that there is value added to certain entities. This is the primary activity to not only for Abercrombie and Fitch but also to all organizations that choose to keep all activities in home country because it translates to self-efficiency. It is central to professional people’s activities and organizations.
Endnotes
Theyel G 2012 “Global Technology Diffusion and Industry Emergence: Global Wind Industry”
Pankaj Ghemawat & fariborz Ghadar, the dubious logic of global megamergers. Harvard: Harvard business Review
Thiqel, Jassim. GCC Considers Establishment of Confederation." Daily Pakistan Observer.N.p., n.d. Web. 02 Nov. 2012
Luque & Stephen, handbook of photovoltaic science and engineering, Hobboken,NJ: Wiley, 2003
Mendoca, M, feed-in Tariffs: accelerating the deployment of renewable energy, London: earth scan, 2007
Pankaj, Ghemawat, regional strategies fro global leadership, Harvard: Harvard business review, 2003
Dossani, R. and Kenney, M. (2007). ‘The next wave of globalization? Relocation of service provision to India’. World Development, 35, 772–91.
Dunning, J. H. (1993).Multinational Enterprises and the Global Economy. Reading, MA: Addison Wesley.
Ernst, D. and Kim, L. (2002). ‘Global production networks, knowledge diffusion, and local capability formation’. Research Policy, 31, 1417–29.
Farrell, D. (2006). ‘Smarter offshoring’. Harvard Business Review , 84, 85–92.
Flores, R. G. and Aguilera, R. V. (2007). ‘Globalization and location choice: an analysis of US multinational firms in 1998 and 2000’.Journal of International Business Studies, 38, 1187–210.
Florida, R. (2005). The Flight of the Creative Class: The New Global Competition for Talent. New York: Harper Collins.
Works cited
McWilliams, John. New England's crises and cultural memory. New York: University Press, 2004.
Theyel, George. Global Technology Diffusion and Industry Emergence. Global Wind Industry. New York: University Press, 2004
Pankaj Ghemawat & fariborz Ghadar, the dubious logic of global megamergers. Harvard: Harvard business Review, 2002
Thiqel, Jassim. GCC Considers Establishment of Confederation. Daily Pakistan Observer. New York: University Press, 2004.
Luque, Stephen. handbook of photovoltaic science and engineering, Hobboken,NJ: Wiley, 2003
Mendoca, Martin. Feed-in Tariffs: accelerating the deployment of renewable energy. London: earth scan, 2007
Pankaj, Ghemawat. Regional strategies fro global leadership, Harvard: Harvard business review, 2003
Dossani, R. and Kenney, M. ‘The next wave of globalization? Relocation of service provision to India’. World Development, Harvard: Harvard business review 2007.
Dunning, John. Multinational Enterprises and the Global Economy. Reading, MA: Addison Wesley, 1993.
Ernst, Kim. Global production networks, knowledge diffusion, and local capability
formation. Research Policy, Harvard: Harvard business review 2003.
Farrell, Daniel. Smarter offshoring. Harvard: Harvard business review 2003.
Flores, Aguilera. Globalization and location choice: an analysis of US multinational
firms in 1998 and 2000’.Journal of International Business Studies, 38, 1187–210.
Florida, Right. The Flight of the Creative Class: The New Global Competition for Talent. New York: Harper Collins, 2007.

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