Critical Issues in Business Management

This report discusses the main drivers of internationalization for Hmlet, international growth strategy for Singapore, Hong Kong and Tokyo for Hmlet, challenges faced by Hmlet in Asian market and recommending to emerge as strong player in co-living space service market.

Critical issues in
business management

Table of Contents
INTRODUCTION .............................................................................................................................3
Main drivers of internationalization for Hmlet.............................................................................3
International growth strategy for Singapore, Hong Kong and Tokyo for Hmlet........................4
Challenges faced by Hmlet in Asian market and recommending to emerge as strong player in
co-living space service market. ....................................................................................................6
CONCLUSION .................................................................................................................................7
REFERENCES...................................................................................................................................8

INTRODUCTION
In international business, activities are done across the nation border where, the selling and
purchasing of commodities and goods and services are done outside it's national borders. It
encompasses all the commercial activities which take place to promote the service across a nation
boundaries. In this, a business explore the trade opportunities outside border of its domestic
nation. These activities such as manufacturing, construction, banking, agriculture and other etc.
are undertaken by an organisation to extend their business. The international business is very
important for the Nation and business organisation. This report is based on the study of Hmlet
establishes in 2016 and provide the service of co- living for the peoples living in Australia, Tokyo
and Singapore. This report will include the main drivers of international for Hmlet, international
growth strategy for different countries and various challenges faced by the Hamlet in the Asian
market (Agrawa and Vinodh, 2021).
TASK
Main drivers of internationalization for Hmlet
Internationalization is an activity which include the practice of to design products or
services and the internal operation for the expansion within international market. There is a
transaction conducted within the corporation rather than in the open market. It is a significant
strategy that helps in the sustainable development which requires the internationalization to bridge
a gap among the diverse cultures and countries. Hmlet is based on drivers that influence the
process of how this company capabilities can be developed. It is very essential to understand the
drivers for Hmlet as it wants to expand its business in the new market and countries ( Alnefaiei
and Aziz, 2020).
 Organisation structure- The company has to decided that where they should have the
central headquarter and decentralised organisation by the country. If they use both as a
flexible combination then it would be better for them. In case of Hmlet, they organise its
structure according to the rules of countries to perform the work very smoothly. It also
gone through the expansion of their products included the senior vice- president Michael in
order to make an efficient management of their organisation. It also declared that their
CEO Yoan Kamalski wiuld step down or will be replaced by the Peter Kennedy, who is a
senior advisor in Bruda Capital Investment for the better leadership management.

 Financial resource- A company that have high quality capital and monetary resources ,
then it is more successful in abroad. A reliable and long term financial resources are very
safe and these are very significant for the high investment and competitiveness.
Additionally, it assists with the more relieving competitiveness within the new nation. An
organizations with the capital value is more fruitful around the world. During Covid-19
many financial investors and developers comes to Hmlet for a decent money related
investment and also examine the business opportunities (Bashir and Wani, 2021).
 Consideration of local market- There are various alternates of the methods to work
together which are identified with the nation the business is being finished. Because each
country has their own and different financial qualities that should have been considered of
an organisation to have a boundary of competition in new commercial centre. In context of
Hmlet, it offer the long term and medium term housing to meet emerging need of younger
generation. The local public were very delicate about the components such as area and
cost, week by week cleaning and the different conveniences. Further more, it enlarged their
item proposing to acquire more noteworthy piece of pies of the private housing market.
 Active management of risk- In this, the organisation faces various issues in the
internationalization. The main problem is to mange the risk which might originate new
country. the protection of intellectual property and lack of the compliance create many
difficulties during the internationalization. So it is very important to draw up the corporate
guidelines and have a detailed finance plan. In relation to the Hmlet, the Covid- 19
outbreak is the biggest hurdle in internationalization. Due to this, to mitigate these risks
the Hmlet laid off many workers ans received $6 million cash injection to regain their
share of the rental market ( Basnyat and et. al., 2020).
International growth strategy for Singapore, Hong Kong and Tokyo for Hmlet
International growth strategy are very helpful for the growth of an organisation into the the
new market. It include the market entry strategy with the choice of allocation of resources, service
and product values and the brand positioning etc. Growth strategies are classified on the basis of
organisation relying on the existing or a new product in the present market. In relation of the
Hmlet, it is used the Ansoff matrix to analyse the growth strategies.
The Ansoff model is very helpful for the marketers to identify opportunities for their growth in the
market that gives them an insight on the available methods.

 Market penetration- In this growth strategy, a organisation focuses on the selling and
increasing sales of same products in same market. In relation to the Hmlet, it is easy and
less risky because there is no need of introducing a new product in a new market. It can
offer the discounts to increased their sales (Borbotko. and Borbotko, 2020).
 Product development strategy- In this, it introduce a new product in existing market that
requires the development of a new competencies and also needs to modify an item to have
a appeal in the existing market. With the help of innovation and research and development,
a new product can be introduced very easily. This strategy is little risky because there are
the chances of product failure. In context of Hmlet, it introduced an interior designing and
property management in Singapore with the purpose of gaining the market shares
( Caporarello and Manzoni, 2020).
 Market development- In this, there is selling of the current product in new market. In
relation to Hmlet, it has an international growth by approaching to the geographical
market and new product dimensions for attracting the new customers. Hmlet can also
follow different pricing policies to create a new customer segments. But, it is risky for
them because of the competition in the market which is not known yet and there is a
possibility of down fall in the present. Hmlet adopted this strategy to cover the new market
that are Tokyo and Hong Kong, where it will introduced their same services those are co
living houses in market of the Tokyo and Hong Kong.
 Diversification- This strategy is undertaken by the companies to introduce a new product
into the new market. In relation to Hmlet, it is more risky because they have a little
experience and if they will expand their business with a new product, then it there is a
greater possibility of failure. The business uses research and development strategy to bring
a new product to make market research for the stating their business. Hmlet introduce a
wide variety of its products for their customers in Hong Kong and Tokyo such as furniture
subscription, interior designing and the property management. It also declared
management contracts for the various properties in Thailand and Malaysia.

Challenges faced by Hmlet in Asian market and recommending to emerge as strong player in co-
living space service market.
An organisation has to face many challenges during the expansion of their business
internationally. There are several reasons due to which these challenges are occur in the
environment where the business operating its functions. The business environment play a major
role in influencing the working system of a business in international market. The sustainability is
required by every organisation that is very crucial element. Asia is country with the limited
resources, here all the organisation work in a sustainable manner to protect the resources form
wastage. In relation to Hlmet, it provide the service of housing and rental which faces many
problems towards the sustainability in Asia (Grove. and et. al., 2021).
 In Asia, there is a shortage of housing in the urban areas because of overpopulation and
the limited space. This challenge is also faced by may big cities such as Thailand, Tokyo
and the investments are made to big because of an increasing demand and low revenue.
 Certain jurisdiction have imposed the minimum capital requirement due to this, Hlmet
face challenges to start a new business.
 In Asia, the poverty and rising energy costs are widespread, so it will become difficult for
the customers to pay their rent and the Hlmet have to reduce the living cost.
 Housing industry id dependent on the construction industry and there is a shortage of
labours due to which, it caret a challenges for Hlmet, because it is dependent on the
infrastructure companies.
 Hlmet also face a problem of appointing the directors to handle company's obligations,
they appointed the local or foreign directors (Shehada. and Shehada,2020).
 To run the business in another country is very difficult, because they have some
restrictions and imposed unfavourable policies due to which, Hlmet faces challenges
Above challenges are faced by the Hlmet in the housing and rental industry in Asia. They adopt
the sustainability practice to reduce the impact of these challenges and also gaining the
competitive advantages in the market. There are some possible solutions for the Hlmet so that it
can emerge as a leading player into the service market.
 Hlmet should discover the ways to cut down their rising energy cost and jeopardize the
revenues. For the cost reduction. Hlmet should have use the sustainable practices because

by using the solar energy their activities will lower in cost and more in the income. It is
also helpful in creating a good image of the comp-any in front of their stakeholders.
 Hlmet can reduce the investment cost by using such ways that is helpful in raising funds
and work efficiently. The new public offerings can be made for raising funds or indulge in
partnership with other business of same industry ( Seifert, , 2020).
 To have an effective construction and the furnishing of house with new innovative ideas,
Hlmet can make an investment in the artificial intelligence. It can also hire new innovative
machines that have an effective and efficient working ability.
Hlmet come sup with some strategies that are helpful to provide a competitive benefits in co-
living space market. It critically analysed the needs of the customer. The Hmlet also offers renting
house to the working people and establishes the food order facility for the people who want
service. The transportation service can be rendered to the customers that will help in gaining the
competitive advantage to Hmlet in an international market.
CONCLUSION
From the above report it is concluded that The globalization creates greater opportunities
for the global business by shifting towards an interdependent and integrated global economy. The
business faces many difficulty during the planning to expand. This study is about the Hmlet, it is
a start-up from the Singapore that is offering their customers co-living space with the additional
services. In the first part some main factors are explained which helps their company in expanding
the business internationally which were the financial resources, active management of risks, etc. in
the second part it is about the growth strategies that are used by the Hmlet with a purpose of
business growth by considering the Ansoff matrix. In the last part it looks at the challenges Hmlet
could face in terms of the sustainability as it expands their business in the Asian market. An
organisation should have some strategy to enter in to an international market or
internationalization.

REFERENCES
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Basnyat, S. and et. al., 2020. Domestic Tourism in Nepal: Issues and Challenges. Tourism Review
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