LSBM303 Case Study: Critical Issues in Hmlet's Business Management

This case study solution critically examines Hmlet's internationalization strategies, focusing on its expansion into Singapore, Hong Kong, and Tokyo. It identifies key drivers for internationalization, including considering local situations, organizational structure, management risk, financial resour...Read More

Critical Issues in Business
Management

TABLE OF CONTENT.
MAIN BODY...................................................................................................................................3
TASK 1: Drivers for the internationalization for Hmlet..............................................................3
TASK 2: Analyse Hmlet’s international growth strategy for Singapore, Hong Kong and Tokyo
......................................................................................................................................................5
TASK 3: Possible challenges Hmlet could face in Asian markets and Hmlet do to emerge as a
strong player in the co-living space.............................................................................................6
TASK 3: Service market..............................................................................................................7
REFERENCES................................................................................................................................8

MAIN BODY.
TASK 1: Drivers for the internationalization for Hmlet
Hmlet, is a Singapore based company which provide the co-living, housing facility to the
people who are living in the Australia, Singapore and Tokyo. Company mainly provide the
rooms, apartments and flats which can be shared. Hmlet's expansion was backed by the large
pool amount which is raised in $48 million.
There are many ways by which company will successfully implement the internationalization;
Consider local situation:- wherever the organization need to develop the business and expand it
also they have to structure the place where they want to set up their business for.
Organizational structure:- this indicates the main headquarter for the organization by which the
they handle their business as the Hmlet is a Singapore based company so that their main
headquarter is (Ciravegna, Kundu, Kuivalainen, and Lopez, 2019).
Management risk :- if company has to internationalize their business they have to setup the
management risk and set up the risk management theory in their business also the backup plan
what if the culture of the place does not allow them to set up their business. For risk management
organization should have to manage the legal compliance and legal protection such as law and
law related to the property.
Financial resource:- if the organization is going to internationalization then they have to make
sure about the financial resource for where they find the resource to set the business up and after
that who are the investor. Like, banks, some outsider investor etc (Sist, 2018).
Personal resource: - after financial resource from the outside of the organization as mention
above organization also need to implement their own resource. Resources are such as language
skills, perfect communication because business is going to be international thereafter they have
to know the language of the place where they are going to set up. Organization should also have
knowledge about their condition and legal framework of that place.

Market environment:- this factor consists the external factor and the internal factor of the
organization by which they set up business. How much competition is in the market where they
are going to set up and what is the entry strategy should company have to apply and how will
they broad their network there. Company also have knowledge about the target market.
Home market: - this indicates the purchasing power of the organization which consist the
population and wants of the consumer in that country. Is the country mature enough to drive the
sale of the new start up or business set up. These types of essential thing's organization have to
understand (Alon, Mersland, Musteen, and Randøy, 2020).
Excess production:- company should understand the demand and supply theory by which they
are able to calculate the production and want of customer. Because extra production will make
company in loss.
Emerging market:- as the emerging market is in trend nowadays thereafter, company should
know that they will setup their business in the emerging market in the country where emerging
market is because it will help the organization to riven up their business.
Market share:- for now company will globalize their business for the recognition in a globe.
After the recognition in all over the globe company sold have work on their market share.
Higher profit:- as all business need profit in their business therefore, it is important for the
company to maintain their profit margin according to the place. Company search for those
foreign markets where the profit margin is good because it’s a starting of globalization for the
Hmlet.
Political stability:- company have to sure about the profitability of the organization where they
are going to set up their business. Because this is necessary for the business and their stability
also they are not that big company, but they have potential make big brand as a globally that’s
why for the better profit margin company should have maintained and seek for the political
stability.
Technology:- this indicates the mature place( country) where organization is set up because it is
necessary for the organization to see the availability of the technology in that particular place and
how often people use the internet it is necessary for the people and mainly for the organization to
develop and make growth of their business where people know how to use technology, and they
are already advance this is the best benefit that a company get.

Liberalization:- before setting the business in foreign country organization should have known
about the liberalization of the country and their economic policy. How liberal the country in
order to start business and especially in the real estate sector or the interior business (Ciravegna,
Kundu, Kuivalainen, and Lopez, 2019).
Culture exchange; - this also has a main factor because the culture of the places differ and vary
accordingly that’s why company have to look after the culture exchange. For example Singapore
has different lifestyle of people and if company wants to set their business up in the India
thereafter they have to maintain and work according to the country.
TASK 2: Analyse Hmlet’s international growth strategy for Singapore, Hong Kong and Tokyo
Hmlet has been gone a lot of stuff and make achievement Hmlet raised $1.5 million in 2018nand
after that $6.5 million. This year Hmlet raised $48 million from investors and their existing
backers. Company has more than 2000 rooms in Singapore, Hong Kong, Tokyo. As fully
furnished well-established flats. As company achieve success in these countries they are also
trying to expand their business more in other countries as well.
For the better effective workflow and achieve success organization apply growth strategy which
will beneficial for the organization benefit.
Growth strategy
Growth strategy is a collection by which h a company get help in their business to seek initiative
towards the success of the organization. When company want growth it's totally refer the net
earnings of the company by these factor: (Yusupov, Toktamysheva, Yangirov, and Akhunov,
2019).
Market penetration: This indicates to the factor which evaluate the customer consumption of
the product or service which is maintained or given by the company. This also used to develop
the strategy planning of the organization and help them to grow. This also include the action
which is taken by the company in order to develop.
Market development: market development is a stage where company taken step towards the
development in the existing market where they already situated. Company just have to set the
pitch for their customer to more growth and betterment of the company it also helps the company
in expand their business (Vinogradova, 2018).

Product improvement: Product development is the process where organization develops a
meaning product for the betterment of the company and advancement of the customer and their
creation. This involves the new customer and increase the benefit to them by the customer who
are already exist.
Product development: this includes the product development with the new creation and new
product management by which they able to conceptualization, and create the best product for the
customer they have. Product development also determine the design and layout of the
accommodation by the company provide for their customer.
Revenue optimization: this is the process used in the expansion of the business and improve the
durability of the company in regard to expand the business in order to gain more profit through
the valuable customer or the customer they have already and with the new customers. It allows
company to anticipate the demand of the product they made or provide to their customer (Suh,
Shin, Kim, and Youn, 2019).
Cost optimization: this help the company in order to discipline to gain the advantages of the
cost reduction by applying this factor in the company. The cost optimization increase the
business value and it gives the customer best price product by which they are able to buy the
product give by the organization to their customer. This process also standardizing the company
profit by making good profit margin in the product they sell to their customer.
Inorganic growth: this include the process by which organization increase their sales and
expand their sales by expanding their business in the new region. This also include the acquiring
new businesses in regard for the betterment of the company which they are able to expand and
able to make profit. This factor help the company by in growth.
TASK 3: Possible challenges Hmlet could face in Asian markets and Hmlet do to emerge as a
strong player in the co-living space
Hmlet co-living a space is fully affordable and flexible for their clients. It gives the best
accommodation to their customer and best experience as well. Co living emerged as a attractive
option for the people as nowadays young people prefer to live alone as their own for those
people this is the best option.
Main challenges that company can face in the Asia market is:

Varying in legal terms: the law and legal systems different in this region company have to face
these challenges when they are set up business over their.
Culture difference: for the set up in Asia market these factor also include in this that culture
difference also their company have to maintain that work accordingly.
Local competition: with the help of this factor when company is going to establish in that
market then it also increases the local competition of that particular market.
Politics: Asia is very big market but company have to see where they are going to set up that's
how they are able to see the challenges which also include the political factor.
TASK 3: Service market
Service market indicates the services which provided by the company to their targeted
audience. Service marketing also reflect the service that organization give to their business.
Hmlet service is the best well establish product that they provide to their customer at affordable
price and in a best quality.
Features of service marketing
this indicates the concept of work that will be beneficial for the organization and their marketing.
Intangible performance: this includes those activities done by organization such as quality of
the room, apartments that company provide to their customer which is not seen but only can feel
(Dasgupta, 2019).
Inseparably interesting: this indicates the service which provided by the company in order to
target the audience who is interested in the real estate property which is provided by the
company to the customer. The ambience of the house will be like inseparably which customer
cannot say no that house, like this that's how company will make profit, and they will access
their capability towards the achievement of the company.
Types of service marketing
External service: this type of service include the maintenance and services of the house or room
which company give to their customer. Promotion of the place which produce by the company
(Affandi, and et.al 2020).
Internal service marketing: this includes the promotion of the services or product which
provided by the company to the audience. This is important in the organization to establish their
employee like that they will be spread awareness about the company they are working in.

Interactive service marketing: this includes service which is largely involved in the marketing
as globally based by which company will promote their product and service in a global market
(Hole, Pawar, and Bhaskar, 2018).
REFERENCES
Books and Journals
Affandi, and et.al 2020. Optimization of MSMEs Empowerment in Facing Competition in the
Global Market during the COVID-19 Pandemic Time. Systematic Reviews in
Pharmacy, 11(11), pp.1506-1515.
Alon, I., Mersland, R., Musteen, M. and Randøy, T., 2020. The research frontier on
internationalization of social enterprises. Journal of World Business, 55(5), p.101091.
Ciravegna, L., Kundu, S.K., Kuivalainen, O. and Lopez, L.E., 2019. The timing of
internationalization–Drivers and outcomes. Journal of Business Research, 105, pp.322-
332.
Ciravegna, L., Kundu, S.K., Kuivalainen, O. and Lopez, L.E., 2019. The timing of
internationalization–Drivers and outcomes. Journal of Business Research, 105, pp.322-
332.
Dasgupta, S., 2019. Gender-based vulnerabilities and adaptation to a changing Climate: a case
study in Tra Hat hamlet, Bac Lieu province, Vietnam. Gender dimension of, p.17.
Hole, Y., Pawar, S. and Bhaskar, M.P., 2018. Service marketing and quality
strategies. Periodicals of Engineering and Natural Sciences (PEN), 6(1), pp.182-196.
Sist, F., 2018. When and Where? Drivers of Banks’ Internationalization from the Destination
Market. In Internationalization of Banks (pp. 37-52). Palgrave Pivot, Cham.
Suh, E.K., Shin, D.J., Kim, D. and Youn, M.K., 2019. Growth Strategy of The International
Journal of Industrial Distribution & Business. The Journal of Industrial Distribution &
Business, 10(4), pp.7-12.
Vinogradova, V., 2018. Value creation through external growth strategy: the architecture of
successful performance. Review of Quantitative Finance and Accounting, 51(3),
pp.847-882.
Yusupov, K.N., Toktamysheva, Y.S., Yangirov, A.V. and Akhunov, R.R., 2019. Economic
growth strategy based on the dynamics of gross domestic product. Ekonomika Regiona,
(1), p.151.