Small Business and Entrepreneurship in the Automotive Industry

This assignment delves into the dynamic landscape of the automotive industry, specifically examining the role and prospects of small businesses in this sector. The focus is on electric vehicles (EVs), analyzing the barriers and opportunities presented to new EV manufacturers. The assignment draws upon various academic resources, including books and journals, to provide a comprehensive understanding of this evolving market.

INTERNATIONAL
BUSINESS MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
ASSIGNEMNT 2.............................................................................................................................1
Entry strategy:.............................................................................................................................1
Strength and weaknesses of lighting car:....................................................................................2
Intended organisational design....................................................................................................3
Expansion scope in new market..................................................................................................5
Requirement of financial capital.................................................................................................6
Staffing policies..........................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Nowadays, business is becoming globalised that will allow their businesses to expand
their businesses in many countries. There are various strategies for entering into any market.
Now there are so many tools which would allow by lighting car company (Beamish, 2013).
Financial capital market refers to, financial market is mainly divided into two parts capital
market and equity market. For achievement of organisational goals and earn maximum profit
from external market place, so in this case business firms are investing their fund in several
areas. Along with this, these both markets are regulated and controlled by government of country
in appropriate manner. In this report various type of strategies are introduced that are used by
lightening car company in practice to expand it business in India.
ASSIGNEMNT 2
Entry strategy:
There are various ways by which the cited company could enter could enter in a foreign
market. Direct exporting might be one of the most adequate strategy in one market but, on the
other hand, there are other various modes which are having some set of regulatory requirements
before entering into new markets. The following strategies are the major tools by which one can
enter into another market. Some of them are mentioned hereunder:
Direct export: Direct export sending out is offering specifically into the market you have
picked utilizing as a part of the primary case you possess assets. Many organizations, once they
have built up a business program swing to operators and additionally wholesalers to speak to
them promote in that market. Operators and merchants work intimately with you in speaking to
your interests. They turn into the substance of your organization and accordingly it is essential
that your selection of specialists and merchants is taken care of similarly you would enlist a key
staff individual (Birkinshaw, Brannen & Tung, 2011).
Licensing: Licensing is a generally advanced game plan where a firm exchanges the
rights to the utilization of an item or administration to another firm. It is an especially helpful
system if the buyer of the permit has a generally vast piece of the overall industry in the market
you need to enter. Licenses can be for promoting or creation. permitting).
Franchising: it is a kind of North American process for quick market extension however
it is picking up footing in different parts of the world. Diversifying functions admirably for firms
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that have a repeatable plan of action that can be effectively moved into different markets. Two
provisos are required while considering utilizing the establishment display. The first is that your
plan of action ought to either be exceptionally one of a kind or have solid brand
acknowledgement that can be used globally and besides you might be making your future rivalry
in your franchisee.
Partnering: Partnering is right around a need when entering remote markets and in a few
sections of the world (e.g. Asia) it might be required. Cooperating can take an assortment of
structures from a basic co-promoting game plan to an advanced vital organization together to
manufacture (Cantwell, Dunning & Lundan, 2010). Banding together is an especially valuable
methodology in those business sectors where the way of life, both business and social, is
substantively not quite the same as your own as nearby accomplices bring local market learning,
contacts and if picked wisely clients.
Joint Ventures: Joint venture are a specific type of association that includes the making
of a third freely oversaw organization. It is the 1+1=3 procedure. Two organizations consent to
cooperate in a specific market, either geographic or item, and make a third organization to
attempt this. Dangers and benefits are typically shared similarly. The best case of a joint venture
is Sony/Ericsson Cell Phone.
Purchasing a Company: In a few markets purchasing a current neighborhood
organization might be the most suitable section procedure. This might be on the grounds that the
organization has significant piece of the pie, are an immediate contender to you or because of
government directions this is the main alternative for your firm to enter the market. It is
positively the most exorbitant and deciding the genuine estimation of a firm in an outside market
will require generous due perseverance.
Strength and weaknesses of lighting car:
lighting car Motors outlines, creates, fabricates, and offers superior completely electric
vehicles and vitality stockpiling items (Organization Design for International Construction
Business. 2017). It has built up its own system of vehicle deals and administration focuses, and
also Supercharger stations far and wide to quicken the across the board appropriation of electric
vehicles. It worked 208 areas, alongside 585 Supercharger stations in North America, Europe,
and Asia. The organization presently delivers and offers two completely electric vehicles, the
Model S car and the Model X don utility vehicle.
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Strength: One of a kind Position in the Auto Market: lighting car is not simply in the
matter of offering auto. It is changing the way we drive, and the organization is conveying
inventive new advancements to do as such (Chang, Van Witteloostuijn & Eden, 2010). While
lighting car is by all account not the only car maker that offers electric vehicles, it has made, and
commanded, the market for extravagance, long-run electric auto. This market is unmistakable
from the one for more affordable electric vehicles, and in addition the market for extravagance
gas-cooled vehicles.
Powerful Sales Growth: lighting car has been developing at a quick pace in the course of
the most recent couple of years, thanks in expansive part to general society's energy for its cars.
Weaknesses:
High Debt Loans: The organization has a generally high obligation stack. lighting car
had so much loan of long term debts and capital rents on its accounting report, or about 72% of
aggregate capital. Premium instalments on this obligation are genuinely critical, and will
probably keep on cutting into income.
Consuming Through Cash: lighting car has been consuming through critical measures of
money throughout the years. This is to a great extent because of the noteworthy speculations it
has made in innovative work for the transformative innovation in its auto. It is likewise the after
effect of the fast development the organization has encountered in only a modest bunch of years.
Intended organisational design.
The organisational design is the structural composition of a organisation which dividing
its task within the working environment of firm. The lightening car company is an small medium
sized enterprise. This private firm is thinking about to expand their business globally. In order to
attain successful establishment and convert them into an profit making firm in different countries
should be structurally and systematically managed in order to take appropriate profitable
decision of expansion (Lightning strikes blow for innovation. 2017). The various strategies
should develop by an company in order to expand business internationally. The organisation
should divide its task and functions according to the global products, global area and function of
lightening car company in order to expand the business successfully. The firm is expanding form
the domestic business to an international business that have to be managed properly working in
compliance with the target market structure, feasibility of financial resources and the distribution
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of work in organisation structure to large extent. The various types of organisation design that
can be followed by firm in order to work properly in global market are as follows:
Global products: The company is designing its organisational structure according to the
product line and type of products in which the firm is engaged in manufacturing or assembling
operations. This divides task and team according to the products lien of company. The lightening
car company is engaged in developing electric sports cars for the customers targeting different
type of needs of clients. The company is having different assembly line and manufacturing lines
according to the requirement. So, the firm is following this organisation structure as the car
manufacture requires the management of task according to the various assembly line and
production lines (In the auto industry of the future, is there space for new EV manufacturers?.
2017). In order to manage the functions at global level organisation have to work in compliance
with the various international business growth strategies in order to bring efficiency in
production line. He structure followed in the global product organisation design is M form which
is used for the related products while the other is H form which is implemented I order to work
with unrelated products lines of enterprise. The firm should divide its task and operations on
basis of different products in order to work efficiency and with maintaining good quality in
production operations.
Global area: When an firm is thinking to adopt various expansion strategies in the global
market then the company should also defines the functional area in which organisation will work
in various locations of world. This selection of area largely influence the efficiency of
organisation collectively. The company engaged in delivering its products and services to the
different countries globally are requiring this type of organisation design. This design helps in
dividing the functions and responsibility according to the different needs of region and locations.
The division of task is depending upon the market analysis of particular region, requirement of
various resources in efficiently working in the countries (Doz, 2011). This divides the task
according to different regions and collection of regions which is dealing with an larger area. Like
for example the Lightening car company can develop global area organisation structure design in
order to deliver their services efficiently in all country while developing their expansion plans.
The firm should provide various service centre for their electric cars by developing company
service centre establishments according to regional division. climatic condition. Geographical
condition of an region largely effects the functionality and effectively of the business entity to
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large extent. So, the companies which are engaged in delivering its services to the wide variety
of region with different geographical specification have to work according to the global are
division organisation design in commercial environment.
Global function: The company should also implement global functional organisation
function in action in order to distribution the task and operation according to the functional
department of the firm (Dunning, 2012). Like in order to bring proficiency in actions and work
efficiently of different department and division of the lightening car company this global
function structure will be helpful in gaining higher competitive advantage in market. The
division of task globally based subsidiaries of organisation according to the department like
finance, HR, operations and marketing goes the functional organisation design. This helps in
increasing efficiently of particular department successfully.
Global customer: This is based on the division and distribution of task according to the
need and choices of customers demand. The various type of customer care centre established in
this organisation design in order top satisfy clients efficiently.
Matrix design: The matrix design is commination of all the above defined structure
which works in collaboration with the financial, product division of task along with the
functional responsibility of authorities.
Expansion scope in new market.
UK market is one of the biggest market in the world because it keeps good economic
condition in the world. One of the biggest car company is lightening car company who want to
invest in India market and looking to launch his new (Lightening car company) car company.
India has a lot of opportunity to launch this company because Indian market need battery kind of
car. Petrol prices are hiking day by day and India has a less petrol. Pollution is growing day by
day, Car quantity is also increasing day by day. So it should be mandatory in India to launch that
kind of cars.
The lightning GT was created in UK and it is 100% pure electric with ultra smoothness
and high top speed. Anyone can fall in love with this car (Kelley, 2013). India has more 50% of
youth And they are attracted by sporty looks, good performance, and good mileage also. This
car's speciality is that it is fully electrical, So this car will attract more youth of India due to his
all kind of performance. It will give more cheer to Indian youth. Main features of this car are
following:-
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 LED recharging sockets
 LED beam
 5 short visual overhang
 Driver focused interior
It is great experiencing car with attracted features like looks, lights, interior, exterior etc.
engineers used 'tour de force' technology which makes the good performance and smoothness.
This car's top speed is 175 mph and it takes 4.5 seconds to 60 mph speed. Engineers declared
'super car' to this car (Killing, 2012). This car also called the drive-train. This car developed by
MAGTEC of Sheffield and it holds lithium titanite battery cells and it is 100% British company.
All aspects are GB sourced.
Requirement of financial capital.
In the context of capital market instruments such as treasury bills, commercial papers,
bill of exchange and so more. All these instruments have maturity of up to 12 months. In order to
earn profit from capital market, so there has high number of chances to earn profit as well as
have proper safety and security (Kolk & Van Tulder, 2010). Due to, government of country
provides protection facilities to their investors in effective manner. Capital market includes long
term instruments with the help of them an business firm and individual person can raise fund
with proper safety and security. In this market has been regulate some important rules and
regulations, which all are have to be followed in effective manner. Along with this, capital
market defines, long term investing sector or area in which a person invest fund for long time
period with proper safety and security. Because it involves banks and government of nation.
Equity market refers to, as an share market in which persons and business firm are
investing fund for earn maximum profit with taking high number of risk. Because in this market
place company's share price is uncertain in nature, which all are depends upon market condition,
earning, expense, exchange rate, currency fluctuation and governmental situation. As per these
elements, a particular company's share price changed. That's why it is essential to proper
determine them in effective way after that should be invest fund with proper planning. Equity
market is uncertain in nature there has includes high number of risk as well as maximum chances
to earn profit. As compare with capital market share of maturity level is more compare with
equity market. Because in the equity market an individual person can any time withdraw their
fund as per their requirements as well as any time sell and purchase any company's shares. These
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both markets are handled by London stock exchange in appropriate manner as per their rules and
regulations (Lewis, 2010). In the addition of this, financial market also includes derivative
market there has involves various types of sources to earn profit with proper safety and security
such as call and put option. These both also divided into two categorised like long put, short put
and long call, short call. With the help of these financial methods and instruments effectively
earn maximum profit with taking high number of risk. These financial instruments are the major
sources for all business organisation and an individual person. With the help of which, they can
effectively earn retrofit and take fund from external market place but it is important to have
proper knowledge about financial markets and major rules of London Stock Exchange.
Staffing policies
Human resource management has different challenges in international business as
compared to local or domestic business. Its nature and complicities increase in terms of
international business. In staffing in international business, expatriate workers are given key
roles in overseas operation. There are three type of staffing policy approach:
 Ethnocentric
 Poly centric
 Geocentric
Ethnocentric: In this policy approach to staffing designates from home country in the top
positions of the company. For example lightening car company has its top employee in America
from UK only as UK is a home state. This approach has a advantage of having people at the top
most position from their parent country (Marschan-Piekkari & Welch, 2011). So they have
experience and knowledge of ethics and work culture that needs to be implemented in the new
country also. It is easier for management to handle staffs in this kind of approach. And the
disadvantage of this approach is that it does not provide local area knowledge to the company.
Also this policy hinders the promotion of local staffs.
Poly centric: In this approach home country workers are given top position in head
quarters and local workers are given responsibility of the other workplaces. Management has a
very slight difficulty in managing its staffs (Nahavandi, 2016). It has a advantage that it imparts
local knowledge to company and provide better career opportunity to local workers as they can
get promotions. However promotion can be only up to key positions in local operations. It has a
disadvantage that it can create gap between the local managers and the overseas managers.
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Geocentric: In this approach key position can be provided to any person best suited for
this position regardless of his/her background, culture, country or region. Main advantage of this
approach is that it is flexible and provides equal opportunity to everyone. It increases companies
knowledge about various cultures throughout the globe. Main disadvantage is that it quite
difficult to implement and its hard for lightening car company management to handle situations
arises in the process.
CONCLUSION
From the above report it can be concluded that, various staffing techniques are developed
in order to work efficiently in compliance with the from objectives. Car lightening company is an
electric car company who is developing various strategies in order to expand its business in
Indian market. Company has developed organisation structure according to different needs an
functionality of firm. Like for instance the the organisation is following can develop new
product line and design the structure of organisation according to the needs of operation carried
out in various products. The organisation can also compliance with matrix organisation design in
order to work efficiently with the expansion strategies in Indian market.
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REFERENCES
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Online
In the auto industry of the future, is there space for new EV manufacturers?. 2017. [Online].
Available through: <https://www.automotiveworld.com/megatrends-articles/auto-
industry-future-space-new-ev-manufacturers/>. [Accessed on 1st August 2017].
Lightning strikes blow for innovation. 2017. [Online]. Available through:
<http://www.peterboroughtoday.co.uk/news/business/lightning-strikes-blow-for-
innovation-1-126595>. [Accessed on 1st August 2017].
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Organization Design for International Construction Business. 2017. [Online]. Available through:
<http://www.springer.com/gp/book/9783642351631>. [Accessed on 1st August 2017].
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