International Business Management: A Case Study of Hilton Food Group

   

Added on  2023-06-08

11 Pages3716 Words118 Views
International Business
Management
International Business Management: A Case Study of Hilton Food Group_1
Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
An Evaluation of the current international strategy of the organisation.....................................1
Give a justified recommendation for a suitable new market to enter with supporting evidence
and reasoning..............................................................................................................................3
Give the justified recommendation for the suitable mode of entry in order to support the
evidence and reasoning ..............................................................................................................6
CONCLUSION ...............................................................................................................................8
References:.......................................................................................................................................9
International Business Management: A Case Study of Hilton Food Group_2
INTRODUCTION
International business management is the study and awareness of global environment
considering the business which is applied into managing it effectively. It is required for the better
expansion of the business to increase company's reach and gain maximum profit. In this report
the current international strategy of an organisation will be studied. The organisation which will
be used in this report is Hilton food group. Hilton majorly operates as a food packaging business.
It has six factories and their products are mostly found in supermarkets across 14 European
countries. They also have joint ventures in Australia and Portugal with Woolworths Group and
Sonae Modelo Continente. Considering Hilton's operation being widely spread in Europe it is yet
to try their hands in Spain. In this report the current International strategies of the company will
be covered. Then a suitable market for the organisation will be selected and the opportunities
available in the country will be made known(Shirodkar, Strange and McGuire, 2019).A justified
recommendation for a suitable entry mode fro the Hilton food group will be discussed with
evidences and proper reasoning.
MAIN BODY
An Evaluation of the current international strategy of the organisation
International Business strategy
It refers to the thoughts and actions of a company to penetrate into a country that is foreign to
them. This helps the company to focus on the market and segment they are working upon. These
strategies helps a company in building a structure that could help them in the foreign market.
These could be used by the companies to export or import products or services to earn profits.
But the functionality of these strategies always face challenges which are foreign government
regulations, structuring the global logistics, bearing the manufacturing costs of the infrastructure.
International businesses could be of different types and hence, will use different strategies to
excel through the foreign market(Singh and Gaur, 2021). Various strategies will be needed to
guide the operations of business in different markets.
Types of International business strategies
International: It involves importing and exporting goods while having their headquarters
at the home country. But it still requires them to establish overseas offices and maintain
supply and logistics that is important for their success. The strategies would be different
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International Business Management: A Case Study of Hilton Food Group_3
for them than the companies already operating in the country. The international business
are the least likely to change or adapt to the local conditions. They are most likely to do
the production in their home country and sell them in the international market. A very
good example of this are premium bikes companies like Harley or Kawasaki who doesn't
change the prices or the features of their products. Hilton has been operating in almost 14
international markets.
Multi-Domestic: In this type of business expansion, it operates with a focus on the local
market and have a decentralised structure. These can have their headquarters in the home
and the other country they are operating in. These businesses keep their focus to the
responsiveness on the local requirements in the various markets they are present
in(Otenko and Parkhomenko, 2019). This help them in operating independently with a
minimum interference from the central office. An example of this is Kraft Heinz.
Global: It works totally different than the multi-domestic. It makes the use of economies
of scale to make their business big. Their focus doesn't differ between the home and the
foreign markets. There can be minor strategy changes required to succeed in various
markets but they usually sell similar products to different customers. Example – Procter
and Gamble always works towards making their business more global by establishing
efficiency in their global brands.
Transnational: Its working is somewhat a mixture of global and multi-domestic ways.
There strategy is to have a different departments in different markets like separate
research departments in different markets so to keep their focus more deep. The
businesses which has gone transnational works towards balancing their costs and
efficiency. Food chains are known to be using this international business strategy the
most. A company like Mcdonalds could influence their strategies over Hilton to take
different approaches with their products in every market they are present in.
The current International strategies of Hilton
The internationals strategies used by Hilton has helped them in gaining market advantage in the
foreign market. These are based on the customer acquisitions methods and the strategies to
strengthen and develop the business partnerships. These strategies are-
High investments in knowing customer needs
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