International Management: Analysis of Woolworths' Expansion Plan in Russia

Running head: INTERNATIONAL MANAGEMENT
INTERNATIONAL MANAGEMENT
Name of the Student
Name of the University
Author Note

1INTERNATIONAL MANAGEMENT
1. Executive Summary
The report is built on the analysis of the expansion based plans which have been developed
by an organization. The organization which has been taken into consideration for this analysis
is Woolworths which is a huge retail organization that operates in Australia and New
Zealand. The organization has planned to expand its international operations in Russia. The
external or the macro-environmental factors of Russia are taken into consideration for this
analysis. The effects of these factors on the policies of Woolworths will thereby be quite
high. The mode of market entry of the organization is considered to be an important part of
the analysis in the report. The entry which has been suggested for entry of Woolworths is
joint venture with a local organization.
Further, the report is also able to suggest the international strategy which can be implemented
by the company and multinational structure which can be developed. The strategies and
methods implemented for the leadership and motivation development among the
multicultural teams have also been discussed in the report. The human resource management
based recommendations and marketing strategies that can be implemented by Woolworths
have been analysed in the report in a detailed manner. The report has thereby been concluded
by stating the international expansion of Woolworths in Russia will be profitable and
effective for the company in order to increase the levels of its presence in a huge manner.

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Table of Contents
3. Introduction to report, background of the company...................................................3
4. Summary of the macro environmental issues relevant to the country.......................3
5. Recommendations based on the entry with justifications..........................................4
6. International strategy for the company......................................................................5
7. Multinational structure for the company....................................................................5
8. Strategies and methods used for the leadership and motivation of the cross cultural
teams..........................................................................................................................................6
9. HR recommendations.................................................................................................9
10. Marketing based considerations.............................................................................10
11. Conclusion..............................................................................................................10
12. References..............................................................................................................11

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3. Introduction to report, background of the company
The report will be based on the analysis of the ways by which a global organization
can plan to enter the market of a new country with the help of effective market entry based
strategy. The company that has been considered for the analysis is Woolworths which
currently has its operations in Australia and New Zealand. The organization is planning to
further expand its market and operations with the help of proper international market entry.
The recommendations that will be made in the report will be based on the most appropriate
mode of the entry of Woolworths in a completely new market area (Doz, 2017). The
processes that can be used by the company in order to manage the cross-cultural teams are
also considered to be important factors that need to be considered in the report.
Woolworths has acquired the position of one of the largest supermarket based chains
in Australia. The organization mainly operates more than 900 stores all over the country.
Woolworths relies on its 115,000 members in order to provide the best services to the
customers in Australia. The company has been working closely with the Australian farmers
and growers in order to offer the best quality of products to the consumers. The collaboration
of Woolworths with the farmers and growers has been able to provide the company with a
position of the fresh food people of Australia (Woolworthsgroup.com.au., 2018).
4. Summary of the macro environmental issues relevant to the country
As discussed by Buckley and Ghauri (2015), the macro environment of Russia is
affected by different factors which include, the political and the legal environment of the
country. The political changes which have been taking place in Russia have been able to play
a key part in the ways by which different organizations that operate in the country are
affected. The foreign relationship based strategy that has been developed by the government
of Russia has provided major chances to the global organizations. The development of
technology is also supported by the government and this is able to ensure the growth which
has been showed by the economy.
As argued by Angwin and Meadows (2015), the relationship which is shared by
Russia with the other countries has also proved to be effective and supportive for the global
organizations. The legal conditions of the country on the other hand have changed in order to
follow the capitalist regime developed in Russia. The economic freedom based index of
Russia has been ranked at the 107th position and the growth of Russian economy has been
reduced due to the transitions which have taken place. The cultural aspects of Russia are