Gayam Motor Works: Overcoming Challenges in Global Corporate Strategy

This report analyzes the key challenges faced by Gayam Motor Works (GMW) in its expansion strategy into the Chinese market. The primary challenges discussed include supply chain issues, such as sustainability concerns, environmental problems, and the need for strong alliances. The report also examines formal and informal institutional challenges, including rule enforcement and the impact of federalism, as well as the lack of local market experience and the presence of institutional voids. Furthermore, the report highlights language barriers as a significant obstacle. The analysis includes comparisons with challenges faced in Thailand. The report provides insights into the complexities of global corporate strategy and market entry, offering a comprehensive overview of the hurdles GMW must overcome for successful expansion into China.

Strategy 1
Global Corporate Strategy
(Gayam Motor Works, India)

Strategy 2
Contents
Key Challenges faced by the firm in expand to China....................................................................3
1. Supply chain challenges.......................................................................................................3
1. Formal and Informal Institutional Challenges......................................................................3
2. Lack of local market experience...........................................................................................3
4. Formal and informal institutional voids...............................................................................4
5. Language Barriers.................................................................................................................4

Strategy 3
Key Challenges faced by the firm in expand to China
1. Supply chain challenges
The supply chain challenges are the biggest challenges faced by Gayam Motor Works in
expanding to china. China is a largest population country so there are many challenges in
expanding the China. The supply chain challenges include sustainability and st. alliances, which
create problem in expanding the business (Bostrom, et. al., 2015).
The sustainability is highly matters in China due to the bad environment of the country
and it create many issues for the organization in the process of expanding. The sustainability
challenges include waste, carbon, footprint and emissions. The air pollution is also include as a
main sustainability challenge occurred in the process of supply chain. St. Alliances is also
included as a challenge in the supply chain management. This can create many problems for
Gayam motor vehicles in expanding process.
The sustainability challenge is also faced in expanding the business in Thailand as the
country also faces many environmental problems, which creates a problem in expanding the
business. Gayam Motor works face many environmental issues in Thailand.

Strategy 4
2. Formal and Informal Institutional Challenges
The formal and informal institutional challenges are also affected the organization in
expanding the business in China. The formal challenges related to the Gayam Motor Works are
rule enforcement effectiveness and federalism (Li and Zahra, 2012). These challenges affect the
overall process of expansion the business in China. These challenges are highly rise in China as
per the environment of the country.
Thailand is also a country, which has many formal and informal institutional challenges, as
there are lack of laws and regulations and a lack of norms, values and beliefs. However, there is
not as much challenges occurred in the expanding of business so the organization not face as
many issues as faced in China. The formal and informal not create many problems in Thailand.

Strategy 5
3. Lack of local market experience
The lack of local market experience is also a big challenge because this creates many
problems in the business. Gayam motor works need to know the local market problems in the
particular country so that their expansion becomes easy (Hilmersson and Jansson, 2012). The
organization need to know about the local market experience of China.
The organization needs to know about the local market of Thailand to expand their business
in this country. As Thailand has many issues that need to knows about the organization before
expanding.

Strategy 6
4. Formal and informal institutional voids
These are the main challenges occur in the business expansion to China. As these are the
main parts of the business especially for the Gayam Motor Works. The forma institutional voids
are the failure of forma institutional like laws, regulations, infrastructure and many more.
Informal institution voids are lack of norms, values and beliefs (Welter and Smallbone, 2011).
In China the water and electricity is a big problem so the organization face a problem in expands
to China.
Thailand has many formal and informal institutional voids so Gayam Motor works analyze
these challenges before expansion to get the proper success in Thailand. These challenges create
many problems for the organization.

Strategy 7
5. Language Barriers
The language barriers are also big challenges in expanding the business in China as the
employees of Gayam motor works in India knows the language of India so they cannot explain
and understand the language of the Chinese people.
The people living in Thailand have different language from India so the organization faces
many challenges in expanding the business to Thailand (Brannen, et. al., 2017).The language
barriers create many problems in the organization.

Strategy 8
References
Boström, M., Jönsson, A. M., Lockie, S., Mol, A. P., & Oosterveer, P. (2015). Sustainable and
responsible supply chain governance: challenges and opportunities. Journal of Cleaner
Production, 107, 1-7.
Brannen, M. Y., Piekkari, R., & Tietze, S. (2017). The multifaceted role of language in
international business: Unpacking the forms, functions and features of a critical challenge
to MNC theory and performance. In Language in international business (pp. 139-162).
Palgrave Macmillan, Cham.
Hilmersson, M., & Jansson, H. (2012). International network extension processes to
institutionally different markets: Entry nodes and processes of exporting
SMEs. International Business Review, 21(4), 682-693.
Li, Y., & Zahra, S. A. (2012). Formal institutions, culture, and venture capital activity: A cross-
country analysis. Journal of Business Venturing, 27(1), 95-111.
Welter, F., & Smallbone, D. (2011). Institutional perspectives on entrepreneurial behavior in
challenging environments. Journal of Small Business Management, 49(1), 107-125.