Strategic Direction for ABC Company in New Zealand Market

This report discusses the strategic direction taken by ABC Company to establish their trade in New Zealand. It covers market identification, entry mode, SWOT analysis, HR approach, and more.

Running head: BUSUINESS IN GLOBAL CONTEXT
Business in global context
Name of the student
Name of the university
Author Note:

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BUSUINESS IN GLOBAL CONTEXT
Executive Summary
The following report has been prepared by taking the example of ABC Company which is a
handloom based company of New Zealand. The company has plans to export its quality range of
handloom products from Australia to New Zealand. The report establishes the fact about the
strategic tasks that are performed by the organization to gain a competitive stronghold in the
market. The report starts with a brief introduction of the country and the condition of the market
in that particular place. Apart from this the report also describes the different types of the other
strategic directions like the entry mode, identification of the potential market, the goods and
services and many more as such. The report ends with the Human Resource Approach which will
highlight the process by which the company manages the employees of the organization. Apart
from this a SWOT Analysis has also been performed which has made the report more compact in
nature.

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Table of Contents
Introduction......................................................................................................................................3
Identification of the country............................................................................................................3
Identification of the industry of the company..................................................................................3
Identification of the goods and services that the company offers...................................................4
2*2 strategies to be offered..............................................................................................................4
Entry mode to be suggested for the company..................................................................................4
Choice of the country.......................................................................................................................5
SWOT Analysis...............................................................................................................................6
Concentrated or decentralized manufacturing strategy...................................................................7
Considerations for choosing subsidiaries........................................................................................7
HR approach....................................................................................................................................8
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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Introduction
The following report is based on the strategic direction that is taken up by the different
companies to establish their trade in different countries of the world. A handicraft export
organization has been selected in this particular report to discuss the different elements of the
report in a proper way.
Identification of the country
New Zealand is a country with a population of over 4.6 million and a global ranking of
23 for Gross Domestic Products (GDP) per capita at current rates of exchange. The economy of
the country was worth around pound 140 billion in the years between 2016 and 2017. The
management of ABC handicrafts has selected New Zealand as the start for the business
operations and the ideal location for the expansion of the business in new markets (Hong et al.
2016).
Identification of the industry of the company
There was a time when for many years New Zealand dependent mainly on the production
of farm products like wool, dairy goods and other substitutes. The country has now however kept
the traditional sources of income alive along with the creation of modern and contemporary
sources of business like tourism, wine making, production of films and many other such similar
products (Selvanathan, Selvanathan & Keller, 2016). The handicrafts industry has seen a decent
growth in the mentioned country for some years from now. The use of handicrafts by a vast
majority of people and other industries has helped in the promotion of handicrafts in the country.

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ABC Company wants to take the most advantage of the following growth and establish their
business in the following country to attain revenue (Johnson, 2016).
Identification of the goods and services that the company offers
The management of ABC Company has decided to offer a varied range of handicraft
products for the market of New Zealand. The identification of the goods and services is the
description of the products that are covered in the trademark application. The trademark of ABC
Company limited has to be created and tied with the particular handicrafts that are to be sold in
the New Zealand Market (Daniels, 2017). The application or the implementation of the particular
trademark for the products of the organization will refer to the use of the particular product for
which the trademark has been fixed. The management of the company must make sure to
trademark the different types of the products provided by them in New Zealand. The trade
marking of the different forms of Handicraft products will help the business enterprise to be
successful in the new market (Reiche et al. 2016).
2*2 strategies to be offered
The BCG matrix and the decision making matrix in this particular kind of business
strategy suits the following organization (Kelsey, 2015). This includes the likes of the BCG
Matrix and the decision making matrix.
Entry mode to be suggested for the company
The successful market entry into New Zealand generally consists of three different
strategies. This includes the likes of the;
1. Understanding the strategies

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BUSUINESS IN GLOBAL CONTEXT
2. Selection of the optimal partner
3. Providing the ongoing support to the following market
 The estimation of sales, market share or demand must rely on comprehensive product
or technology specific market research.
 The presence of local support centers in the country is one of the main advantages for
the establishment of the business in the country.
According to, Hong et al., (2016) the management of ABC Company can take the help of
the local business organizations and enter into a strategic alliance with them to start their
operations in New Zealand. The partnership with a local organization will provide the
organization with all the logistics and internal support that will help in the establishment of the
business in New Zealand.
Choice of the country
The management of ABC Company Private Limited has selected New Zealand as its
primary target for expansion. The selection of the particular country was mainly based upon the
internal and the external analysis of the country along with the verification for the ease of doing
business in the particular country (Murray, Skene & Haynes, 2017).
SWOT Analysis
STRENGTHS WEAKNESSESS
 The presence of highly skilled
labors
 The presence of leading local
support centers
 English as the common
language
 The locational disadvantage
of New Zealand is one of the
main weakness that can be
faced by the organization
 The low level of interest from
the stakeholders

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OPPORTUNITIES THREATS
 The presence of natural sea
ports enables for easy export
 The huge demand for the
handicrafts is an added
advantage for ABC
Corporation limited
 Increasing interest towards
other machine made artifacts
 Absence of proper stores to
display and sell the products
SWOT Analysis
 Strengths- The presence of highly skilled labors in New Zealand along with the presence
of highly skilled and technologically advanced local support centers is a huge strength for
ABC Corporation Limited (Selvanathan, Selvanathan & Keller, 2016). The presence of
the local support centers provides the adequate logistical support for the Company and
also helps them in various other works. On the other hand, English being the local
language of the country is one of the biggest strength of the company as the workforce as
well as the management will be able to communicate with each other and the local
population much easily.
 Weaknesses- The locational disadvantage of New Zealand is one of the main weaknesses
of the organization. The location of New Zealand at the extreme south of the world
makes it a difficult place to access (Schaper et al. 2014). Apart from this the low level of
interest from the stakeholders is another main weakness for the organization. Opportunities- The Huge demand for the handicrafts is one of the main opportunities for
the business. While the presence of different kinds of natural sea ports is essential for the
import and export of goods and other raw materials with ease.

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 Threats- The increase in the demand for machine made artifacts have reduced the
demand of the handicrafts. The absence of proper stores is another major blow to the
large scale ambitions of the management of ABC Company in the near future.
Concentrated or decentralized manufacturing strategy
The management of ABC Company will be choosing the decentralized manufacturing
strategy for the establishment of business in New Zealand. The choice of the decentralized
strategy is mainly due to a variety of reasons. The benefits will include;
1. Better forecasting of the market
2. Lower material costs
3. Consistent production
4. More amount of local jobs
5. The much more effective use of the local resources that will be useful to produce
handicrafts
Considerations for choosing subsidiaries
Some of the main consideration for the choice of subsidiaries includes the likes of;
1. Security of the place must be considered
2. Accessibility of the place must be considered. The particular place must be easily
accessible for the facilitation of the easy transport
3. Competition in the market

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4. Business rates are one of the most important considerations. The management of the
company must make sure to research the business rates including rent, utility bills, taxes
and other types of financial analysis.
5. The skill base in the area must be considered by the management of the mentioned
business. It will be easier for the business to locate their subsidiaries in areas of highly
skilled artisans.
HR approach
Human Resource in the modern day market is a huge challenge for the industry and the
more better the Human Resource, the more better the chance for the establishment of the
business. The main considerations for the HR department of the business include;
a. The human resource of the company must manage the different rules and regulations
in an effective manner
b. The technological solutions of the business must be controlled in a better way to make
the most out of the business
c. The employees must follow the ethics of the industry properly
Conclusion
The following business report is one of the best examples that has highlighted the key
strategic elements of the industry. The report has provided all the detailed strategic initiatives
along with the marketing initiatives of the business. The thorough analysis of the report will help
the readers to gain an efficient understanding of the different business strategies and the steps

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that are undertaken by them to attain quality success in a new market. Overall the report has been
able to achieve the pre fixed aims and objectives.

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References
Daniels, J. (2017). and Strategy in the Global Context. MAD Ñ KHLAPEIFM Ñ A.
Hong, S., Oxley, L., McCann, P., & Le, T. (2016). Why firm size matters: investigating the
drivers of innovation and economic performance in New Zealand using the Business
Operations Survey. Applied Economics, 48(55), 5379-5395.
Johnson, G. (2016). Exploring strategy: text and cases. Pearson Education.
Kelsey, J. (2015). Reclaiming the future: New Zealand and the global economy. Bridget
Williams Books.
Murray, A., Skene, K., & Haynes, K. (2017). The circular economy: an interdisciplinary
exploration of the concept and application in a global context. Journal of Business
Ethics, 140(3), 369-380.
Reiche, B. S., Stahl, G. K., Mendenhall, M. E., & Oddou, G. R. (Eds.). (2016). Readings and
cases in international human resource management. Taylor & Francis.
Schaper, M. T., Volery, T., Weber, P. C., & Gibson, B. (2014). Entrepreneurship and small
business.
Selvanathan, E. A., Selvanathan, S., & Keller, G. (2016). Business Statistics: Australia New
Zealand with Student Resource Access for 12 Months. Cengage AU.
Tsui, W. H. K., Balli, F., Tan, D. T. W., Lau, O., & Hasan, M. (2017). New Zealand business
tourism: Exploring the impact of economic policy uncertainties. Tourism Economics,
1354816617731387.

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Tung, R. L. (2016). New perspectives on human resource management in a global
context. Journal of World Business, 51(1), 142-152.