Critical Issues in Business Management for Hmlet's International Growth Strategy

This report discusses the main drivers for Hmlet's internationalization, analyzes their growth strategy for Singapore, Hong Kong, and Tokyo, and describes the challenges they could face in Asian markets, including sustainability. It is suggested that Hmlet should not expand in Asian markets due to cultural and financial barriers.

Critical Issues in
Business
Management

Contents
CASE SCNERIO/INTRODUCTION..............................................................................................1
MAIN BODY...................................................................................................................................2
What are the main drivers for the internationalization for Hmlet?........................................2
Critically analyze Hmlet’s International growth strategy for Singapore, Hong Kong and
Tokyo......................................................................................................................................3
Discuss the possible challenges Hmlet could face in Asian markets going forward including
sustainability. What should Hmlet do to emerge as a strong player in the co-living space
service market?.......................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

CASE SCNERIO/INTRODUCTION
Hmlet is a start-up which provide the service of co living spaces in order to simplify the
housing for people relocating aur living in Australia Singapore and Tokyo. IT form the
functioning of by providing rooms and fully apartment for rent and allow other members to share
the flat and have access to monthly events which include networking session yoga classes clubs
booking and Cocktail evenings. They try their best to provide a secure and safe place for living at
affordable prices. Later on, Hmlet had rapidly created a portfolio of co-living properties in
Singapore, Hong Kong, Sydney and Tokyo. They make several changes in their organization and
started offering furnished rooms for apartments with more flexible terms than the traditional
leases or rentals. In 2019, they also get investors from Bura Capital, Sequoia India and
Mistsubishi Estate Company. They had enjoyed high Occupancy rate for their property is until
and 2019. But covid-19 pandemic affect the demand of Hmlet properties. After sometime it also
receive US $6 million injection which create the the hope will help turn the Tides in its favor
aimed to recovering rental market from existing investors. In Australian market they decided to
going for voluntary liquidation, walking out of seven lengthy head leases and living at least
Australian $508000 as unpaid debts. This report covers the main drivers for the
internationalization for Hmlet, analyzing the growth strategy for Singapore, Hong Kong and
Tokyo. Furthermore it will also describe the challenges which they could face in Asian markets
going forward including sustainability.
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MAIN BODY
What are the main drivers for the internationalization for Hmlet?
It has been well known that International active organisations are Highly Effective and
competitive viable. But it also have some conditions in the same regard which include or stable
return on sales, free cash flow, experience and know how. Below are the some key drivers for the
successful internationalization of startup Hmlet:
 Consideration of local situation: All the customers of different market and different
countries have their different social economic characteristics. It means that the on
structure of each and every country should be adopted. Where Hmlet was adopting the
same strategies in there all locations (Raut and et. al., 2019).
 The entrepreneur: The skills, experience and competence of entrepreneurial teams are
related to the development activities of internationalization. In simple words it can be
said that the the success and failure of internationalization of an organization. All the
decision in a Startup has been taken by the entrepreneur so it is clear that the skills and
experience of entrepreneur matters. When an investor of Hmlet become the CEO, it was a
huge mistake done by the organization. He didn't have much experience and knowledge
to handle the startup.
 Financial Resources: It has been analyzed and studied at the companies with high equity
capital are more successful abroad. Along with this, the knowledge about the fiscal,
bureaucratic and legal framework conditions is indispensable. In covid-19 pandemic the
demand of properties of Hmlet has been decreased but on the same time they were on
expansion mode and they make various expenses on the several properties in Malaysia
and Thailand along with widened their product range for the purpose of including
services such as Property Management, interior design and furniture subscription.
Because of the lockdown it was getting more expensive for them to handle all the
activities of expansions. As a result they laid off a number of its staff and thinking to
build or change the new strategies.
 Active management of risk: One of the biggest difficulty during the internationalization
is the lack of legal compliance along with the protection of intellectual property (de Salas
and et. al., 2017). It has been proved that drawing up corporate guidelines and detailed
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financial plan is so important. Hmlet take the risk and they performed several activity is
for the purpose of expanding their business in several locations. They constantly
undertake all the expansion activities which result in huge loss. Sometimes this risk
become a good advantage for the organization but not all time. Hamlet takes the risk and
losses. As a result they decided the voluntary liquidation of their properties in Australian
market.
Critically analyze Hmlet’s International growth strategy for Singapore, Hong Kong and Tokyo
There are several strategies which are being used by the business organizations to grow their
business in the international market. In order to expand their business globally, the entrepreneur
have to do complete study for the same (Visani, F., 2017). For this study several of companies
hire consultant and then make decision to select any of one strategy which is suitable for the
specific business organization in the global market. Some of International growth strategies are
explained below in details:
 Export import: This strategy can be said as most prominent strategy which is used to
enter into a new market. This is strategy helps a lot in importing raw materials
maintaining external operations Into The Other foreign locations and semi furnished
goods. Such kind of strategies are not required any specific coaster for the installation of
a business. It only required or specific contact between the importing and exporting
companies.
 Joint ventures: This strategy leads to the creation of a specific partnership among two or
more companies which are dealing with similar products in a similar industry for stop it
also leads to the the formation of a separate business is by all the parenting partners
which is helpful in collaboration of these resources and capital in order to obtaining a
specific goal so that they can work collectively which helps in reducing the competitive
level. This strategy is helpful as it is beneficial in maintaining the international strategic
alliances in order to gaining more profit in the foreign countries.
 Licensing: this is strategy is beneficial as it has think transferring and sharing the
authorities and business rights to the organization (Gatto, A., 2020). This strategy is not
required any huge amount of capital as it is the positive point of licensing.
 Franchising: It is a mostly similar to the licensing strategy but it allows a little bit
difference among both of them. Franchising allow any organization to use their name in
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against of P or a payment. It is an essential part for the organization to understand the
requirements of target market and evaluate the cultural consideration so that they can
fulfill the requirements of customers.
From the above study, it can be seen that there are several international business growth
strategies which are used by the organization. Hmlet was suggested to perform licensing or
franchising. It will allow the people who are living in the other country to perform the specific
business operations by using the brand name of Hmlet. It will also stop that expansion which
they done on the time of COVID-19 pandemic (Ghouri and et. al., 2020). Through the
Franchising, the organization can work by expanding there business in Singapore, Hong Kong,
Tokyo and many other countries. Through the use of licensing, they can expand their business
organization in the international market.
Discuss the possible challenges Hmlet could face in Asian markets going forward including
sustainability. What should Hmlet do to emerge as a strong player in the co-living space
service market?
If the American companies want to start the operations in Asian market they can face a lots
of challenges of which may affect the profit productivity and potential of the development of the
organisation. First of all there are various barriers for entry for the new companies in East and
Southeast Asia. Below mentioned are the challenges they may face along the way:
 Limited financial Regulation and enforcement: There is a less robust financial
regulation system in Asia because of the presence of corruption risk and legal companies
issues for American companies with the foreign corrupt practices act (Raj K, J., 2018).
With this it is very high concentrated to on a wealth in Asia to the acceleration and
egality of a domestic business and the economy.
 Currency convertibility issues and domestic economic manipulation: For U K
enterprises another challenge for them is the diverse banking and financial landscape of
the region. There are different trading Centre along with the diverse currency rates and no
singular regulator. In order to promote the export growth Asian nations can keep their
currency low. Economic zones such as a India and China challenge American Enterprises
by a set all their own but do not operate under national or even provincial regulations.
The foreign company is a deal with the local currency and contact business to business
which is also an another Challenge to the profit and growth of organisation.
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 The different legal system: Some countries such as China and Malaysia imposes several
restrictions on the operations of foreign company is a full stop for instance intellectual
property protection is where the High Limited to the technology theft. As per a researcher
it has been founded at the us losses over $300 billion per year on exports to Asia. This
state that the companies should develop some innovative product and services so that
they can present their business organisation different from their competitors and prevent
interactual and Technology it after. It is not in the hand of local legal system to to protect
the foreign company (Hwang and et. al., 2017). This is the caution which lies between the
impulse chalati of the Judiciary and its abct for setting the meaningful precedent.
 The unique business culture: Because presence of unique business cultures and non
Western political ideology is a in some part of Asia increase protectionism towards the
domestic economy, specially in China and Japan. Along with this they also pressure the
foreign company is a to start the domestic interest in the local partnership.
It is suggested to the Hmlet to perform the business organisation in US and UK markets not in
Asia as the CO living business is not so successful in Asian market. In Indian tradition coliving
is not legal so so this business have to face a lots of problems or difficulties a while doing
business in Asian market (Nguyen 2022). It is not possible to change the thinking of Indian
people. It also faced the problem of finance as well because the maintaining of apartment and
rooms on rent is not an easy task or huge amount of capital is required which they will not get in
the Asian market. Along with this they will also going to face the currency convertibility issues
with the domestic economic menu pollution. In addition to this it is also found that there are
different legal systems with the US and UK markets in the Asian market. Difference in both the
market is the business culture the culture of Asian market is not so developed to do the business
of co living spaces services.
CONCLUSION
From the above report it is a concluded that Hmlet was a developing organisation. There
were lots of resources of Finance for them before covid-19 pandemic. It is necessary for
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international organisation to follow all the cultures of the country in which they are working.
Along with this it is the responsibility of managers to make sure that what is the exact time to
expand the business. Sometime expansion of business organisation may cause a huge loss to the
management. Same happened in the given case as they were planning for expansion during the
lockdown and they face a huge amount of losses even they decided to voluntary liquidation of
their organisation. It is also analysed at there are lots of International growth strategies which can
be selected for expansion of business organisation. At the end it is also found that there are lots
of challenges which are available in the Asian market for foreign companies. There is no any
sustainability of political factors for the foreign companies. Hmlet can't be a strong player in the
co living space service market because of presence of barriers and culture.
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REFERENCES
Books and journal
Nguyen, M.N. and Dinh, T.H., 2022. Implementation of PPP for Urban Metro System: Critical
Issues for Developing Countries. In CIGOS 2021, Emerging Technologies and
Applications for Green Infrastructure (pp. 1535-1544). Springer, Singapore.
Raj K, J., 2018. A Critical Study on Business Strategies of 3i Infotech Ltd. International Journal
of Case Studies in Business, IT and Education (IJCSBE), 2(1), pp.13-21.
Gatto, A., 2020. A pluralistic approach to economic and business sustainability: A critical meta‐
synthesis of foundations, metrics, and evidence of human and local
development. Corporate Social Responsibility and Environmental Management, 27(4),
pp.1525-1539.
Visani, F., 2017. Applying business analytics for performance measurement and management:
the case study of a software company. Applying business analytics for performance
measurement and management: the case study of a software company, pp.89-123.
Raut, R.D., Mangla, S.K., Narwane, V.S., Gardas, B.B., Priyadarshinee, P. and Narkhede, B.E.,
2019. Linking big data analytics and operational sustainability practices for sustainable
business management. Journal of cleaner production, 224, pp.10-24.
de Salas, K., Lewis, I.J. and Huxley, C., 2017. Using the critical process targeting method to
improve SMEs’ process understanding: A tale of two Australian case studies. Business
Process Management Journal.
Ghouri, A.M., Mani, V., Khan, M.R., Khan, N.R. and Srivastava, A.P., 2020. Enhancing
business performance through green human resource management practices: an empirical
evidence from Malaysian manufacturing industry. International Journal of productivity
and Performance management.
Hwang, B.G., Zhu, L. and Tan, J.S.H., 2017. Identifying critical success factors for green
business parks: Case study of Singapore. Journal of Management in Engineering, 33(5),
p.04017023.
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