LSBM303 Case Study: Critical Issues in Business Management - Hmlet

This case study examines Hmlet's internationalization strategy and the critical issues it faced in business management. The report identifies key drivers for Hmlet's international expansion, including financial resources, high occupancy rates, enhanced business efficiency, growth opportunities, and reduced dependency on local markets. It discusses Hmlet's international growth strategy, focusing on product development and its benefits. The analysis also highlights challenges in the Asian market, such as currency convertibility, local licensing, unique business culture, and sustainability. Finally, it outlines strategies adopted by Hmlet to become a strong player in the co-living space service market, including investing in marketing, satisfying customers, and enhancing investment in quality services. Desklib offers a range of solved assignments and study tools for students.

Critical Issues in
Business Management

Table of Contents
INTRODUCTION...........................................................................................................................4
Key drivers of internationalisation for Hmlet........................................................................4
International growth strategy of Hmlet..................................................................................6
Challenges that are faced by the organisation in Asian market and strategies of organisation to
cover service market...............................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCE.................................................................................................................................10

INTRODUCTION
Business management is defined as the process of organising, planning as well as
analysing business activities that are essential for running and managing business in efficient
manner. Business managers have responsibility to lead and supervise business operations and
employees to attain determined goals and objectives on time. Managers perform various
operations to enhance organisational productivity and effectiveness through implementing
different business strategies, analysing business performance and supervising employees
performance that lead business on right direction. There are various issues are faced by the
organisation is managing business such as ineffective financial management, uncertainty about
future, regulations and their compliances (Andrades, and Dimanche, 2017). In this report chosen
organisation is Hmlet which is started in the 2016 in Singapore with locations in Hong Kong,
Sydney and soon in Melbourne. It included in the operations of providing co-living space and
housing for people who relocated or living in the Australia, Singapore and Tokyo. This report
covers key drivers that plays important role in the internationalisation of Hmlet. Furthermore,
international growth strategy of Hmlet to expand business in Singapore, Hong Kong and Tokyo
are discussed. Various challenges that are faced by the organisation to expand business in Asian
Markets and strategies of Hmlet to cover services market is mentioned in this project report.
TASK
Key drivers of internationalisation for Hmlet
There are various key drivers that plays important role in expanding business operations
at international level. These motives as well as drivers of internationalisation depends on country
and industry in which organisation going to expand its operations. These drivers can be
technological advancements, cost management profitability and effectiveness of market. Some
drivers that motivated Hmlet to internationalise its operations in Singapore, Hong Kong and
various other cities are mentioned below:
Financial resources: Financial resource is the major key factors that influence
organisation to expand their operations at international level. Organisations with having high
equity capital are more successful in the markets of abroad (Baumgartner, and Rauter, 2017).
Access of long-term and reliable financial sources enables business to explore in different market

to attain the objectives of growth and development. Hmlet's ambitious of expansion was backed
by the large pool of financial resources which is US$ 48 million. The capital of respective
organisation is raised in the year of 2018 and 2019 from the investors like Mitsbishi Estate
company, Burda Capital and Sequoia India. Organisation has taken the decision to invest in other
country through provide better quality services.
High occupancy of Hmlet properties: Hmlet organisation has high occupancy rate of its
properties in the year of 2019 and the pandemic of Covid-19 enhances the demand of
perpetuities that motivates the organisation to expand its operations or provides its services in
other countries as well. Organisation provides range of services like property, management,
furniture subscription and interior designing to customers according to their needs and demands
that help business to attain success in market of other country as well.
Enhance business efficiency and productivity: Internationalisation of business
operations facilitates organisation to use excess capital in growth and development that improves
overall efficiency and productivity of organisation. As hmlet rapidly build its portfolio of co-
lining properties in Singapore, Tokyo, Hong Kong and Sydney because these cities are large with
having high rentals. Co-living properties were popular in the sections of locals and expatriates,
respective organisation provide them co-living space services as per their requirements that
enable business that facilitates business to attain the objective of higher proficiency and
effectiveness.
Growth: Growth and development is the major driver that inspire to organisation to
expand their operations out of local market place. Oversea trades provides various growth
opportunities that helps business to sustain in competitive environment for longer period of time.
Hmlet organisation provides various types of co-living services in different countries that enable
business to attain the objectives of ensuring growth in other country as well (Bell, Bryman, and
Harley, 2018). Respective organisation provides short and long-term rental options in apartments
and furnished rooms in more comfortable and flexible terms than traditional leases or rentals. In
these rental rooms, organisation provides various additional services such as lounges, shared
kitchen and various others that attracts customers and provides competitive advantages to
organisation than local rentals. It enable business to maintain effective brand image in the
markets of other country and lead towards growth and development.

Reduce dependency on local markets: Internationalisation is the process of selling or
providing organisational goods and services across national boundaries. Internationalisation of
business operations enable business to reduce the dependency on local market where it may
facing struggle due to economic pressure. Expansion of business operations in other country
enable Hmlet to attract range of customers in the area of Singapore, Hong Kong and various
other where more money is available to spend.
Increases the chances of success: It is the key driver that inspire organisation to expand
their business operations in other country. Provides organisational products and services
facilitates Hmlet to enhance the chances of attaining success in new market place. As oversea
trade is the obvious way to enhance sales ratio of business (Bindabel,Pateland Yekini, 2017). As
respective organisation expands its operations in various other places like Hong Kong, Singapore
and Tokyo that helps business to gain higher market share and customers which lead business
towards success.
These are the major key factors or drivers that motivates organisation to expand business
operations in other country. As expansion provides various benefits to business such as enhances
sales and profitability ratio and maintains global presence.
International growth strategy of Hmlet
International growth strategy:
International expansion strategy is defined as the market entry strategy that included various
activities such as selecting primary market to focus, identify target market and channel strategy,
provide products and services that have value for customers, resource allocation and create
effective market positioning in the market to gain sustainable competitive advantages. Hmlet
organisation adopts product develop strategy to enter in the market of Singapore, Hong Kong
and Tokyo.
Products development strategy: Product development strategy is related to launching
new products and services in existing market place. Products development used by the
organisation to offer differentiated products and services to proposed current customers with the
objective of enhances organisational revenue. These products are launched in the market through
investing in depth research and development to analyse needs and demands of customers and
develop products accordingly (Cerne, and Jansson, 2019). Hmlet organisation continuously and
rapidly built p portfolio of co-living properties in expand business in Singapore, Tokyo and

Hong Kong which are the large cities with having high rentals. Co-living properties are popular
among sections of local and expatriates. Respective organisation expands its product line through
providing short and long term rental options in furnished rooms and apartments. Organisation
provides its services in most flexible terms than local or traditional leases or rentals.
Organisation also provides some common areas like lounges as well as shared kitchen. It enable
business to attain higher market share and customer base.
Benefits of product development:
Hmlet organisation has strong product development strategy that support business ability
to turn an ideas into reality that enhances profitability ratio of business as well as modify it to
remain competitive within existing market place (Kirby, Duignan, and McGillivray,2018).
Respective organisation reveals areas for improvements and develop products and services
accordingly to satisfy needs and demands of customers. It facilitates business to achieve high
market share and number of customers.
Organisation bring innovation in existing products through improving existing products
as well as developing new products that are able to satisfy needs and demands of customers. It
provides sustainable competitive advantages to business than other competitors.
Hmlet organisation conducts proper market research than build effective plans to new
products and services to customers. It helps organisation to gain opportunities to attain the
objective of growth and development. Respective organisation also conducts promotional and
marketing strategies to spread awareness regarding new product in market and attain higher
market share through provide quality co-living services.
Challenges that are faced by the organisation in Asian market and strategies of organisation to
cover service market
In the process of conducting business operations in other country, business faces various
challenges and issues that impacts their overall performance and efficiency. Hmlet faces various
challenges to expanding business in Asian market. These challenges are mentioned below:
Currency convertibility issue and domestic economic manipulation: Diversify banking
as well as financial landscape is the challenge that is faced by the Hmlet organisation to expand
business in Asia market. In Asia no singular regulation are implemented, different trading
centres and diverse currency rate affect business performance. Asian nations keep their currency
low in order to promote export growth (Tambe, Cappelli, and Yakubovich, 2019). Respective

organisation have to conducts its activities under various regulations that are formulate by the
government of country that create challenge for business potential growth.
Local licensing and labour law: In order to conduct business operations in the country of
Asia, business required local licensing. It enhances organisational cost to conduct business
operations in other country. Labour laws of each country are different from others that enhances
the level of difficulty for business to operate operations. Organisation should follow all rules and
regulations that are formulated by the government regarding working conditions, social security,
insurance and provide minimum pay to employees. There are regular changes are happened in
these laws that impacts business performance and functionality.
Unique business culture: Unique business culture as well as non-western political
ideologies in Asia intensify protectionism towards domestic economy create challenge for
business to operate in the countries of Asia (Trigeorgis, and Reuer, 2017). Every country consist
different culture, shared values and beliefs that affect business performance to sustain in
competitive business environment. Hmlest understand these differences and needs as well as
demands of customers to provide them products and services in efficient manner.
Suitability: Sustainability in the countries of Asian market is the biggest challenge for
business because there are range of competitors are conducting their operations in same field that
affect business performance and functionality. Competitors has power to impacts on business
market share and customer base that affect directly and indirectly sustainability of business.
Hmlet do to emerge as a strong player in the co-living space service market
There are various strategies are adopted by the Hmlet organisation to become as a strong
player in co-living space services marker. These strategies and actions enable business maintain
effective brand image in the market and enhancing organisational market share. These strategies
are mentioned below:
Invest in marketing: Organisation uses creative marketing and advertisement strategies
to reach potential customers and build effective brand image among them. Hmlet conducts
various social media marketing platforms to spread awareness regarding its products and services
in other country that attracts customers and facilitates organisation to become strong player in
co-living service market.
Satisfy customers: Satisfies customers are key of business success. Organisation should
be customer centric and fulfil all needs and demands of customers to retain them with

organisation for longer period of time. Hmlet provides quality co-living services to its customers
that enhances organisational market share. Respective organisation provides short and long term
rental options, furnished and apartments and various additional services to the customers of
different country in more flexible terms than traditional leases or rentals. It enable business to
attain the higher market share related to service sector.
Enhances investment: Hmlet organisation received US $6 million that helped business to
recover the rental market from existing investors of organisation (Turner, and Endres, 2017).
Organisation ensures optimum utilisation of its financial resources and invest them to provide
better quality produces and services to customers that enable business to attain the objective of
higher market share. As perspective organisation provides cop-living services that includes room
and full apartments for rent as well as letting members to share flats and have access to monthly
events such as networking sessions, yoga, cocktail evening and various other. All these facilities
attracts large customer base enhances overall performance of organisation.
CONCLUSION
As per above report, it can be concluded that business management is the business
environment is the set of various internal and external factors that impacts business performance
and functionality directly and indirectly. Business faces various challenges and issues that need
to be handle ion order to attain sustainable competitive advantages. Business uses various
internal growth strategies that help business expand at international level. There are various
drivers that motivates business to internationalise its operations.

REFERENCE
Book and journal
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Baumgartner, R.J. and Rauter, R., 2017. Strategic perspectives of corporate sustainability
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pp.81-92.
Bell, E., Bryman, A. and Harley, B., 2018. Business research methods. Oxford university press.
Bindabel, W., Patel, A. and Yekini, C.O., 2017. The challenges faced by integrating Islamic
corporate governance in companies of Gulf countries with non-Islamic companies
across border through merger and acquisition.
Cerne, A. and Jansson, J., 2019. Projectification of sustainable development: implications from a
critical review. International Journal of Managing Projects in Business.
Kirby, S.I., Duignan, M.B. and McGillivray, D., 2018. Mega-sport events, micro and small
business leveraging: introducing the. Event Management, 22(6), pp.917-931.
Tambe, P., Cappelli, P. and Yakubovich, V., 2019. Artificial intelligence in human resources
management: Challenges and a path forward. California Management Review, 61(4),
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Trigeorgis, L. and Reuer, J.J., 2017. Real options theory in strategic management. Strategic
management journal, 38(1), pp.42-63.
Turner, S. and Endres, A., 2017. Strategies for enhancing small business owners' success
rates. International Journal of Applied Management and Technology, 16(1), p.3.