International Business Expansion Strategies of Crown Resort

This report covers different international strategies implemented by Crown Resort in order to accomplish the target market share. It includes PESTLE analysis, entry strategies, staffing strategies, and more.

INTERNATIONAL
BUSINESS CAPESTONE

EXECUTIVE SUMMARY
In the context of Crown Resort which is leading organisation in Australia. It is a gaming
and entertainment business deliverers quality serves to the target customers in Australia. The
business plans out towards expanding its business to China This report covers different
international strategies implemented by Crown Resort in order to accomplish the target market
share. Wherein, international strategies include PESTLE analysis, entry strategies, staffing
strategies, how the business will pool resources and others to successful run the business into
new market.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Findings from report in Part A.....................................................................................................4
Select the international expansion country of Crown Resorts.....................................................4
Discuss of the market expansion feasible?..................................................................................5
Difference between the home country and host country.............................................................5
Entry strategy analysis.................................................................................................................6
Discuss the purpose of internationalization.................................................................................7
Determine the entry strategies of Crown Resorts into new market.............................................8
Staffing strategies of Crown Resort Company............................................................................9
Discuss the challenges that the company might face in the international expansion................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
International business expansion helps the business with expansion of its market share
and improve the profitability of the business. Thus, while entering into new market business
must focus on establishing effective channels in order to deliver the market offerings to the right
targeted segments. Crown resort is an emerging and leading business in Australia delivering its
services in the product line ranges of gaming and entertainment including Casinos. The company
collects the largest revenues from the resorts. It was founded in the year 2007 by Robert Rankin
and Ken Barton, headquartered in Melbourne, Australia. Crown Melbourne and Crown Perth are
the two leading resorts of Crown Resorts. This report covers key finding from the report in Part
A, the chosen international business location and with proper justification of the selection,
difference of home country and host country, entry mode analysis, purpose of
internationalization, entry strategies, staffing strategies and challenges faced by the business for
international expansion (Apetrei, Kureshi and Horodnic, 2015).
MAIN BODY
Findings from report in Part A
In accordance to the business report in Part A, Crown Resort leading organisation in
Australia delivering its services to different consumer market. Crown Resort organisation wants
to expand its business over different market. It focuses on delivering different utilities including
gaming and entertainments in Australia, wherein Gaming includes Casinos. The main market
share of the business is covered by Resorts. The business is looking forwards to expanding its
business over new market. It implements different international marketing strategies in order to
develop new market development. The chosen international expansion market is China. In order
to expand its business to new market it adopts different international strategies includes joint
ventures and others. It the business plans out international marketing strategies in the most
effective manner so that the business is able achieve competitive advantage (Beamish and
Lupton, 2016 ).
Select the international expansion country of Crown Resorts
The chosen country is China; Crown Resort wants to expand its business to China as it
the most suitable market with high income earning customers.

Discuss of the market expansion feasible?
According to the market survey report in the year 2019, Hotel Industry mare share went
up to 539 Billion Yuan which have increased from the year 2018 which was 528 Billion Yuan.
China has more the 23000 hotel in the country. Gaming and Entertainment industries in China
also acquires large share of the market share. Thus, selecting China as the host country for
international expansion is justified. Expanding the business to China, will help Crown Resorts in
order to easily access the consumer market and capture the market share. As Crown Resorts is a
business that delivers gaming and entertainments to its customer expanding business to China
will render huge profitability goals to the business. Crown Resorts wit quality services, plans out
to expand its business also to deliver services of hospitality including opening Resorts in China
with large population to the targeted customer of high income earning segments customers who
wants to spend their earnings over experiencing pleasure (Buckley and Ghauri eds., 2015).
Difference between the home country and host country
The major differences between the host country and the home country lies within the
availability of the resources and the legal restriction faced conducting the business to the host
countries. Wherein, Australian government renders easy business finances to the business in
order to support the business and deliver different business solution of economic growth and
stability in Australia. On the other hand, expanding business over China, it becomes difficult of
Crown Resort to gather the sources of finances in the foreign land. As in China, the government
more focuses on developing and establishing the business growth of domestic business. Other
different factors involve the cultural and other dimension which shapes out the consumer
behaviors towards the business. In China, Crown Resort limited have to render different trade
taxes but on the other hand doing business in the domestic imposes less restriction over trade.
For conducting the business in China, the business must comply to the trade restriction imposes
by the Chinese government. The business must huge competition at the initiation phase as in
China government establishes relaxation and business support to the domestic companies
(Chidlow and et.al., 2015). In Australia, Crown Resort will easily find resources like employees
and raw materials for business activities, on the hand conducting business in China it would be
difficult for Crown Resort to find employees because new entrance in the market leading due to
lack of reliability in the mind of people.

Entry strategy analysis
In order to justify the above chosen country by Crown Resort, to support the information
Pestle analysis is being conducted for the new market, the justification is states below:
P-Political factors
In China, the business must comply with the stringent political factors including delivering
quality output to the customers. The Chinese government have separate quality check department
which checks the quality of each international business delivering its products and services of the
company.
E-Economic factors
With high demand of gaming and hospitality industry growth in China, it becomes easier for
Crown Resort Company to conduct business in China, with large population and largely working
sections of population segment in China, Crow Resort can easily find targeted customers in
China and generate high revenue by conducting business operation in the international
boundaries (Collinson, Narula and Rugman, 2016).
S-Social factors
People in China follows healthy lifestyles and quality living standards, thus Crown Resort
Company delivers quality services to its targeted customers which further helps the business to
promote and delivers the market offerings which rightly matches the consumer and market
demand. These includes quality resort experience, casinos, bars which meets the consumer
quality expectations.
T-Technological factors
With high technological advancement in China, Crown Resort Company develops services in a
way that matches the technological factors in China. The company adopts different technologies
one of which includes customer relationship management software(CRM). These are the
software that helps to store all the relevant information of the customers that helps the business
to know the preference of each customers and build customer engagement by timely

communicating them the new products and services offered by the company (Cravino and
Levchenko, 2017).
L-Legal factors
Crown Resorts must comply with the all the restriction imposes by the legal bodies in China in
order to run the business in the most ethical and authentic manner. In order to conduct business
in China, Crown Resort Company must comply with the product standards set by the Chinese
government. In the market research, from 1 April 2019, Chinese government has set Value added
taxes to goods and services in three tier systems. Thus, Crown Resort company must pay all the
charges against tax and duties for offerings good and services in China.
E-Environmental factors
With increasing environmental concerns in China, Chinese government impose strict restrictions
for causing environmental pollution. Crown Resort Company adopts different environmental
safety measures including treatments of waste generated from business activities, recycling of
waste, uses of paper bags instead of plastic, minimizing the use of plastics, promoting digital
payments for business transactions in order to develops the corporate responsibility of the
business in the international marketplace (Cumming and Zahra, 2016).
Discuss the purpose of internationalization
The main purpose of business expansion of Crown Resorts Company to Chinese market
are discussed below:
Profitability
The main objectives for international business expansion of Crown Resort are to achieve the
profitability goals of the business. Wherein, through business expansion the copay can find more
investors and customer which boost the business growth and profitability margin of the business.
Access to international customer
It is no brainer that business expansion to international boundaries not only increase the profit
goals of the business but also helps the business to increase the number of customer reach of the
business (Derudder and Witlox, 2016).

Business growth
It is important for the business to accomplish continuous growth and stability of the business in
the foreign market. Crown Resort Company wants to expand its business to international
boundaries in order to accomplish business growth. Wherein the business will find more
investors to fund in the business operation and generates high revenue to the business.
Improved market offerings
Internationalization helps the business to adopt new innovative changes in the market offerings.
Wherein, business growth to international boundaries helps to business to adopt changes in the
market offerings in accordance to the new customer needs which helps the business to adopt
innovative and creative changes that best suits the market demand and customer desires (Gligor,
Esmark and Gölgeci, 2016).
Determine the entry strategies of Crown Resorts into new market
Corporate expansion
In order to expand the business over international boundaries, Crown Resort adopts the business
expansion method of Corporate expansion which involves establishing new outlets in the foreign
land. Corporate expansion methods are the most suitable of the Crown Resort as it does not
involve any interference of franchiser in the share of profit and 100% profit is being owned by
business. Moreover, by corporate expansion methods, the business can have full control over the
business operation in the foreign land.
Joint ventures
Joint Ventures partnership is determined by setting partnership of among different partner
wherein these partner invest in the business and shares profits and losses of the businesses.
Crown Resort company selects different partner, as business expansion to international
boundaries will require the amount of investment thus, it adopts joint ventures for financing the
business operations (Kingsley, Noordewier and Bergh, 2017).
Agency relationship
These are another approaches used by Crown Resorts in order to deliver the marketing message
to the end customers. Crown Resort company selects on the popular agents in China, who

conduct the market of the good and services offered by the company in the most effective
manner. These
Staffing strategies of Crown Resort Company
In order to develop effective staffing strategies, business develops strategies in order to
recruit most skilled employee and maintain highly efficient workforce in the organisation, these
strategies are as follows:
Determine the business goal
Crown Resort Company develops the complete objectives of the business goals which the
company wants to accomplish, it also involves the staffing policies regarding the number of
employee required, what is the job performed by each employee, how the fill the vacant position
for different job roles, how to motivate the employees in order to achieve productivity at
workplace, setting deadline and standards for the accomplishment of any task (Malyarets and
et.al.,2017).
Develop strong employer brand
It involves developing positive working environment by promoting different measures in order to
develop reliability of the employees at the workplace. practicing good workplace environment in
the organisation help to retain employees at workplace and develops the corporate image of the
business in the market place, some common measures taken by the manager in Crown Resort
Company are as:
Safety at workplace
Workplace safety is the rising issues faced by the employees. Thus, Crown Resort Company
promotes the safety at the workplace by addressing the concerns and issues faced by the
employees at workplace. different measures to promote safety at workplace includes resolving
workplace conflict, delivering equal rights and opportunities to employees at workplace,
financial benefits for any physical accidents faced by the employees at workplace and other in
order to promote workplace safety at Crown Resort Company (McGaughey, Kumaraswamy and
Liesch, 2016).
Employee satisfaction

Employee satisfaction is the greatest source that helps to maintain positive working environment
in any organisation. Crown Resort Company deliver financial and non-financial benefits to the
employees so that they feel valued for the efforts they out for performing any job. Apart from the
financial and non-financial benefits, Crown Resort company also focus on skill development of
employees at the workplace, wherein the manager and leader renders training development to the
employees in the workplace which helps the employees to accomplish to both professional and
personal growth development.
Discuss the challenges that the company might face in the international expansion
In order to expand its business to foreign land different challenges faced by Crown Resort
Company in order to expand the business to China, these challenges are discussed below:
Quotas
China adopts quota system which is determined non-tariff trade barriers in order to save the
Chinese domestic market from foreign businesses. Two types of quotas impose by Chinese
government are as absolute and tariff quotas. These trade restrictions are being imposed of
foreign goods and services for business in the Chinese territory as thus give more preference to
the domestic business in China. Quotas are being rendered in order to imposes restriction over a
certain period of time (Meyer, 2017).
Licenses
These involves imposing restriction to trade by Chinese government, thus, Crown Resort grants
the permission from the Chinese governments in order to conduct business in the most legal and
authentic manner (Nambisan, Zahra and Luo, 2019).
Voluntary Export
These are the non-tariff restriction impose by Chinese government, thus Crown Resort Company
must company with these restrictions in order to operate smooth functions of the business
activities.

CONCLUSION
In the nutshell, it can have concluded that the international business expansion is
important for business in order to capture the large market share and acquire the profit goals of
the businesses. Business must carefully determine different strategies y analyzing the actual
external environment of the host country in order to deliver the right market offerings to the end
customers. Analyzing the external market, Pestle analysis is conducted to determine different
factors that positively or negatively affects the business performance. The strategies involved,
with the purpose of internationalization and the justification of the chosen country, different
barriers faced by business and the staffing policies that the business formulate in order to expand
the business to the international market.

REFERENCES
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