Business Environment: Magnet Consultancy's Expansion Strategy

This report examines Magnet Consultancy's business environment and its expansion into international markets, specifically focusing on the suitability of its organizational structure and functions for facilitating this expansion. It assesses the company's formal and informal structures, resource availability, and market research efforts using tools like SWOT and PESTEL. The report highlights the importance of adapting to new cultures and environments, leveraging a skilled workforce, and developing growth-driven strategies. Furthermore, it explores the impact of digital technology, such as social media marketing and customer relationship management, on Magnet Consultancy's international expansion, emphasizing the importance of these tools for brand awareness, customer engagement, and competitive advantage in the Indian market. The report concludes that Magnet Consultancy possesses the necessary resources, a dynamic working environment, and effective digital strategies to successfully expand into the Indian market.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Magnet consultancy has expanded into international markets, explaination whether the
organizational structures and functions are suitable to facilitate the expansion. ........................3
Presenting the impact of digital technology in international expansion......................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment is to be defined as sum of external factors which affect or
influence the performance of an organization. This report is based on the case study of Magnet
consultancy firm. It is certified by women owned business. Magnet consultancy firm work with
different organization of various size and industries to assist their culture, team leadership
development etc. This report will cover the suitable organization structure and function in order
to expand in Indian market (Zahra, 2019). Moreover, this report will also study the impact of
digital technology in their internation expansion strategies.
MAIN BODY
Magnet consultancy has expanded into international markets, explanation whether the
organizational structures and functions are suitable to facilitate the expansion.
Magnet consultancy provide services like training and development to workforce,
leadership development, employment selection programme. Many company hire Magnet
consultancy to create an engaging work environment in their organization. The main aim of
Magnet consultancy is to make a better workplace which helps to achieve organization goal. In
their formal working environment where management rules and regulation are to be followed by
their teams. Before taking a decision of expansion, it is required to evaluate that company has
enough resources or not. Moreover, it is also identified that expansion is feasible or not in order
to earn high return and large customer base. Further, company conduct market research through
which it can take long term survival decision (Adomako and et.al., 2020). A company expand
into internation market in order to increase their revenue through sales, cut their cost by getting
easily resources (labour and raw material), build the reach of valuable brand. It can be a
combination of factors. To become a global player is the dream of many organizations but to do
is sustainably exercise in reality which require a clear goal, sufficient resources and well-defined
strategies to meet the goal of the company.
Magnet consultancy is following mixed organization structure which is made of two
formal and informal. Magnet consultancy follow formal organization structure when it is
required to fulfil legal formalities in written document. Moreover, in order to create friendly
work culture company follow informal organization structure. In addition to this, both the
organization structure are important for Indian market expansion. In order to create deep root

company need to adopt new culture and environment so that informal and formal structure play
important role (Xu, Zeng and Chen, 2018). Moreover, in order to accept new working
environment company has conducted research with the help of different tools like SWOT and
PESTEL etc. in order to confirm their growth potential and market opportunities. It can be said
that Magnet has sufficient resources and dynamic working environment to perform expansion
activity. In addition to this, company has prepared standard budget after analysing all the
variables which can affect the performance of company. Moreover, on the basis of standard
budget, it can be concluded that company has sufficient capital to compete with their
competitors. Company has efficient management system who can pan and direct their employees
to adopt changes to achieve organization goal.
Company ambition towards growth and expansion may shine if it has boundless
opportunities in the Indian market. Magnet consultancy has highly skilled team who can take
higher risk in order to get their organization on top (Kalasin, Cuervo‐Cazurra and Ramamurti,
2020). Further, it also has good leader who applied their leadership skill to direct their employees
to achieve organization goal. It helps management while taking a decision of expansion in the
Indian market. Moreover, it has highly efficient research team who analyse feasibility of
expansion project and keep the knowledge of all the activity which are going on in the market.
Further, as company has recently earned high profit through their operational activities (Pattnaik,
Singh and Gaur, 2021). Moreover, every company required skill and qualified workforce in order
to attain their goal. This company is preparing different groups of organization according to their
organization needs. That's why it has a high growth potential because organization is existed
everywhere. Moreover, company has sufficient capital for meeting day to day expenses.
Just as domestic expansion, there are more than one path are available which include
organic growth, building relationship (through investments in training and development) which
helps to make those relationships closure. Magnet consultancy firm has profitable organization
structure which may expand with the help of merger and acquisition deal. Moreover, it has high
growth potential and opportunities and large number of client base which helps to take step
ahead for merger and acquisition (Wu and Ang, 2020). Moreover, time and cost which are
invested to perform expansion is depended on the different type of variables like local talent pool
and local regulatory etc. In addition to this, Magnet consultancy services has skilled and satisfied
workforce who know their responsibility and accountability and ready to adopt new changes

which has occurred in the organization environment. Moreover, top management of the Magnet
is capable for developing growth driven strategies to expand with available resources. In order to
face competition, company has conduct sufficient campaign for marketing and brand awareness.
As company is looking forward to expand in the Indian market where people with different
culture and region live together in helping environment. Magnet is looking forward to provide
services like training and development, effective work culture ethics etc. to the Indian
organization.
Presenting the impact of digital technology in international expansion.
Digital technology can be defined as electronic tools such as social media and data
analytical that helps the firm in expanding the business. That help organization in making use of
the innovative ideas that result in increasing the overall development of the firm. As well as
allow the organization in exploring the new area of the market. There are various tools are used
by Magnet consultancy are discussed in detail below:
Social media marketing: It is one of the most cost effective tool that help in increasing
the overall performance of the organization. The company can use various sites such as
Facebook, Instagram, YouTube that will the firm in promoting their services so that it can attract
more and more customer. This platform helps the organization in collaborating with the large
and small company that will help the firm in covering the local as well as Indian market.
Moreover, SMM also firm to share the relevant information related to the new offering, seasonal
sales and new product to their customer (Hendriks, 2020). That will contribute in building the
healthy relation with their audiences.
Along, with this it allows the organization in knowing the marketing strategy of the
competitors. Thus, it will help in increasing the brand image of the organization in the
competitive market as well as helps in increasing the global presences of the firm in Indian
market (Bretos, Diaz-Foncea, and Marcuello, 2020). However, it also has a negative impact on
the firm such as any bad review on the official website of the firm can affect the reputation of
the firm that can lead in losing the present and the future customer.
Customer relationship management: It is can be state as the software that help the
organization to interact and manage the relationship with the customer and suppliers. It also
leads in collecting the data related to the taste and preference of the consumer. That allow the

organization in making the products according to the needs of their audiences that will contribute
in building the strong and trustful relationship with the consumer.
CONCLUSION
Magnet consultancy services has skilled workforce who clearly knows their vision and
mission. Moreover, company is following both the organization structure formal and informal
which help to make a root in Indian market. Moreover, with the help of external factors
measurement tool, it is to be conformed that it has high opportunities and growth potential to
expand in the Indian market. Top management has prepared expansion strategies in which digital
technology has played crucial role. With the help of digital technology, company make their
targeted customer aware about their brand and services which is being offered.

REFERENCES
Books and journals
Adomako, S. and et.al., 2020. Home country institutional impediments and international
expansion of developing country SMEs. International Business Review. 29(5). p.101716.
Bretos, I., Diaz-Foncea, M. and Marcuello, C., 2020. International expansion of social
enterprises as a catalyst for scaling up social impact across borders. Sustainability. 12(8).
p.3262.
Hendriks, G., 2020. How the spatial dispersion and size of country networks shape the
geographic distance that firms add during international expansion. International Business
Review. 29(6). p.101738.
Kalasin, K., Cuervo‐Cazurra, A. and Ramamurti, R., 2020. State ownership and international
expansion: The S‐curve relationship. Global Strategy Journal. 10(2). pp.386-418.
Pattnaik, C., Singh, D. and Gaur, A.S., 2021. Home country learning and international expansion
of emerging market multinationals. Journal of International Management. 27(3).
p.100781.
Wu, J. and Ang, S.H., 2020. Network complementaries in the international expansion of
emerging market firms. Journal of World Business. 55(2). p.101045.
Xu, X., Zeng, S. and Chen, H., 2018. Signaling good by doing good: How does environmental
corporate social responsibility affect international expansion?. Business Strategy and the
Environment. 27(7). pp.946-959.
Zahra, S.A., 2019. Technological capabilities and international expansion: The moderating role
of family and non-family firms’ social capital. Asia Pacific Journal of Management, pp.1-
25.
Online references
Expansion Strategy., 2021. [Online]. Available through <https://businessjargons.com/expansion-
strategy.html>
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