Business in Global Context

G8 Education is planning to expand their business in New Zealand and this report outlines their strategy for doing so. It covers the identification of the country and industry, goods and services offered, suitable strategies, entry modes, and HR approach.

Running head: Business in global context

Business in global context
Table of Contents
Introduction.................................................................................................................................................3
Identification of the country and industry....................................................................................................3
Identification of the goods and services offered..........................................................................................4
Strategy suitable for company.....................................................................................................................5
Entry mode..................................................................................................................................................6
Reasons why New Zealand is the right country to export and invest...........................................................7
Manufacturing strategy................................................................................................................................8
HR approach................................................................................................................................................9
Conclusion...................................................................................................................................................9
References.................................................................................................................................................11
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Business in global context
Introduction
In today’s era, the scope of education sector is increasing day by day. G8 Education is
one of the leading education providers in Australia that is well known for best child care and
education services. There are various diverse brands under the G 8 education banner, permitting
people to provide tremendous quality options to Australian families and workers. The company
is planning to explore and flourish the business in New Zealand also to cope with rivals and to
attain maximum results. For this purpose, various international and HRM strategies are used by
the company. The report further highlights that how the company uses international strategies to
enter into the new market. Without international strategies, it is quite impossible for the firm to
enlarge and increase business in the international market. The entry modes that used by G8
education also have been presented in the task briefly. Apart from this, the report showcases that
how the company uses centralized approach to deliver services in the new market. HR strategies
that help in selecting best workforce also are discussed in the paper. At the end, it is
recommended that G 8 education can invest in New Zealand to strive with rivals and to make a
dynamic image in the minds of people.
Identification of the country and industry
In the recent years, the changes in the economic setting of businesses have been realized.
The domestic market is no longer able to meet the demands of the globalized people. G8
education limited offers developmental and learning child care services. The firm is having its
headquarter at Varsity Lakes, Australia. The company is having 495 centres in Australia and 21
centers in Singapore. G8 education limited is listed in the Australian Securities Exchange and
trades under the code GEM (Koch & Farquhar, 2015). Now the company has decided to set up
trade links and invest in the New Zealand for the education purpose. Thecompany has decided to
set up education centers as an early childhood education (G8 education, 2018).
The education industry in New Zealand replicates unique and diverse society which always
looks for the income levels and the ideas about teaching and learning. The education industry in
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New Zealand is a student centered pathway and offers constant learning progression and choices.
It enables students to learn at one level sets and sets the foundation for the next step. The
education system in New Zealand comprises the levels given below:
 Primary babyhood learning: from birth to school entrance age.
 Main and secondary learning: from 5-19 years of age.
 Further education: higher and vocational education.
G8 focuses on the early childhood education. As per the New Zealand education industry,
early learning helps kids to be confident and interested around the world. It further supports them
to do better when they go to school and may help in learning important skills (Welford, 2016).
The early childhood education has role in the later development of the students and makes them
strong and happy. It is believed that 96.8% of the kids attend early childhood teaching. There are
several types of early babyhood care education services in the New Zealand and the government
subsidises to all the students who attend childhood education 6 hours a day (David, 2011). The
early childhood education is the higher funding subsidy available for the children.
Identification of the goods and services offered
G8 education limited is a primary provider of superiority care and education amenities across
Singapore and Australia. It was founded in 2006. The company provides services through a
range of well-respected and known brands (Shenkar,Luo& Chi, 2014). The company brings
together a team of enthusiastic professionals to render high quality and education services for the
children. The efforts are made by the G8 in response to increase government regulations by
making it harder for the single-centre operators to survive. G8 has capability of identifying the
different needs and wants of the different families. Each brand of G8 has been tailored to suit the
different requirements of the families. The centres are basically collaboration of the children,
parents and educators who attend (Keddell, 2015). The company not only claims strategic
acquisitions but also strong organic growth by every year. It is committed to acknowledging
needs of the community and invets in the educational resources and qualified educators
(Westerveld, Gillon, van Bysterveldt& Boyd, 2015). It sets apart the company from its
competitors. The company aims to attain its mission through:
 An assortment of outstanding primary childhood education brands.
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 Concentration on the value of primary childhood education.
 By making good epicentres through concentrating on the outstanding primary childhood
education management.
The company provides all types of education and care for the young children. The early
childhood education term by the company is also used specifically for the supplement care of the
children from birth to 8 years. It is believed that children of the age of 0-5 are the most sensitive
to the brain development (Grant, 2016). It is because 90% of the brain growth happens in this
period. G8 company takes initiative for the quality child care with better math, language and
social skills. These skills are good start for a child in order to be succeeding in school and further
life (Rutherford&MacArthur, 2018).
Strategy suitable for company
G8 education limited is doing well in Australia and Singapore. Nowthe company has
decided to invest in the market of New Zealand. The best strategies suitable for the G8 education
are explained below:
Global strategy: The global strategy is used in order to compete in the international market. The
global strategy comprises worldwide, conglomerate and international strategies. These strategies
enable an organization to accomplish objectives of international development. The global
strategy supports a company to grow from an international company to the global company
(Pacini-Ketchabaw& Taylor, 2015). Employing this strategy enables an organization to compete
with other international organizations. This strategy can be utilised by the G8 education limited
in New Zealand to invest in the education services.
International strategy: The international strategy can be used by G8 international to increase its
profits. This strategy can be employed by the company in order to operate in the foreign country.
As per this strategy, the company can offer its services to the international suppliers. The
international strategy is best suitable for the company in order to make entry in the global
business market. The company can test its sustainability in the foreign market with the help of
this strategy. The international strategy uses different approaches to build efficiency across
nation’salong with remaining responsive to the customer preferences (Hornby, 2015).
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Ansoff’s matrix: In order to make huge investment in New Zealand, G8 education has to
analyse the market sustainability and it can be made easier by the Ansoff’s matrix. The matrix
describes 4 different strategies on the basis of market and product scale. These four strategies are
market development, market penetration, diversification and product development strategy.
All these four approaches, market penetration and diversification are more suitable for
the G8 education. In the market penetration, the company is required to offer its existing services
in the New Zealand which are offered in the Australia and Singapore. It can be said that the
company makes efforts to enhance its market share in the current market scenario. This growth
strategy can be accomplished by the factors like price diminish, increase in encouragement and
acquisition of competitors in the same market (Moss, Dahlberg, Grieshaber,Mantovani, May,
Pence &Vandenbroeck, 2016).
The diversification includes increasing market share by introducing new products and
services in the new market. G8 education can introduce senior education other than the early
childhood education in the market of New Zealand. The diversification comprises the high risk
and is compensated by the higher rate of return.
Entry mode
G8 education can take entry in the market of New Zealand by two modes given below:
Joint venture: A joint venture is a business which is created by the two businesses in which both
agree to pool resources for the purpose of achievingprecise task. In a joint venture, G8 education
can enter into an agreement with any local centre in the New Zealand which provides the same
services as the company (Forsgren&Johanson, 2014).. It is beneficial for the G8 as the local
company will be known to the education trends in the New Zealand. Both of the companies will
share profits and losses together (Yan &Luo, 2016).
Franchise: The franchise is the best method for the business expansion. As per this model, G8
education can provide its franchisee in the market of New Zealand. As per this, the franchiser
licenses its know-how, uses brand and business models. In return, the franchisee is required to
pay the certain fess to the G8 education. The franchisee gets support from the company on the
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timely basis. They keep constant relationship with the franchises in order to maintain brand
standard, quality control and advisory support.
Reasons why New Zealand is the right country to export and invest
There are sufficient education agencies in the New Zealand which works towards
government’s education priorities. These agencies are the ministry of education, ministry of the
tertiary education commission, the education council, the education review office, careers New
Zealand and the New Zealand Qualifications Authority. The education system in New Zealand
promotes to the expansion of the G8 education in the country. The ministry of foreign affairs in
New Zealand works closely with the centres like G8 education in order to promote free trade
agreement negotiations. The ministry of education collaborates on the joint work programmes.
There is lack of good centres in the New Zealand which focuses on the early childhood education
brands (Peters, 2014). So there is scope for the centres like G8 education to make investment in
the country. These factors promote gG8 to invest in the New Zealand.
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Manufacturing strategy
It has been analyzed that the company should adopt a centralized manufacturing strategy
to invest money in New Zealand for expanding and exploring the business in such country.
Centralized service is a service which the company provides to more than one customer to ensure
a fast, effective, secure and smooth computing experience and knowledge. By using centralized
strategy, G 8 education could able to provide quality of education services to the children in the
New Zealand. At G8 education, the team works with education partners to provide various
opportunities to child in the country. By using centralized approach, the company could able to
make effective and unique decisions in the market. In this strategy, the power and authority are
assigned to top management and managers to run the business activities in a hassle free manner
(Chatti, Agustiawan, Jarke & Specht, 2010).
The other members of the company then work to run the decisions made by the top level
leaders. The company should use this strategy to control costs, efficiency, messaging, quality and
overall operations in the New Zealand. It decides the content of curriculum controls the budget,
is accountable for employment or job, the developing of educational facilities and discipline
policies etc (Guo, Brown, Ashcraft, Yoshioka & Dong, 2011). By implementing centralized, G 8
education can maintain proper communication and cooperation with partners in the new country
(Downes, 2012). Along with this, the company would focus on the accessibility, skills, talent and
knowledge of teachers while investing in the new country. G 8 education will also focus on the
level of competition because it can hamper the image and position of the firm in New Zealand
adversely (Guo, Brown, Ashcraft, Yoshioka & Dong, 2011). Apart from this, the firm will also
focus on the choices, preferences, and income level of the people while expanding the business
in such country (Tewell, 2015). The government policies and system in regards to education
shall also be identified and measured by the company before investing money in New Zealand.
Marketing analysis such as Pestle analysis and SWOT analysis shall be done by G 8 education
before implementing the business in new country. By using centralized education strategy, the
company can easily flourish the business in New Zealand along with thus, it also helps in
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Business in global context
overcoming the competitors in the international market (Guo, Brown, Ashcraft, Yoshioka &
Dong, 2011).
HR approach
HR approach helps in recruiting and selecting right and appropriate candidate for
performing roles and responsibilities effectively in the New Zealand. HR is a department that
trains and finds employees to conduct business activities successfully (Boxall & Purcell, 2011).
HR strategy is taking those roles and responsibilities and making sure they meet the objectives,
goals, and needs of the firm (Brewer & Brewer, 2010).Some of the HR approaches that shall be
carried by the company in New Zealand have been drawn below.
Extensive training approach: The extensive strategy is significant to provide information and
develop their skills in the new market for providing services to the people. The company must
invest heavily in training time and budget for its workers. After recruiting and selecting the
excellent people with skills, G 8 Education Company should provide training and development
coaching to the workers. It will increase and augment the knowledge, skills, talents and
competencies of teachers (Brewer & Brewer, 2010).
Reward and compensation approach: One of the significant HR approaches that shall be
pursued by the company is reward and compensation. If the company wants to attract and retain
the candidates in New Zealand then it should highly focus on the compensation and reward
policies (Gupta & Shaw, 2014). It will further help the company to stand out over the rivals in
new market. Attractive reward and compensation strategy further help in boosting and improving
the loyalty, moral and satisfaction level of the teachers in New Zealand (Keep, 2014).
Conclusion
It is concluded from the above study that G 8 education can easily invest in New Zealand
to take ample of opportunities and benefits. By investing in New Zealand, the company wants to
maximize and boot profitability and revenue internationally. It is analyzed from the above
discussion that the company uses innovative HR strategies, and international strategies to grow
and survive business in the foreign market. Along with this, effective and dynamic entry modes
such as franchise and joint venture would be used by the company to implement the business in
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new market. G 8 Education strongly focuses on the early learning framework and it aims to be a
leader in education industry by expanding business in New Zealand. It is highlighted that G 8
education needs to focus on the HRM to conduct business policies and activities in new market.
HRM is needed to appoint excellent candidates and to deliver best services to children in the
country. It is recommended that the company should invest in New Zealand to deliver excellent
education services and care. The company should focus on the advertising and promotional
strategies to promote education services in the market.
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