Building a Strong Business Presence in Consumer Markets

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Building a strong business presence in a
consumer-based market for global
expansion: a case of ISS a global catering
company
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Table of Contents
CHAPTER 1: Introduction..............................................................................................................4
1.1 Introduction................................................................................................................................4
1.2 Background of the study............................................................................................................4
1.3 Background of the company......................................................................................................4
1.4 Research Aim.............................................................................................................................5
1.5 Research Objectives...................................................................................................................5
1.6 Research Questions....................................................................................................................5
1.7 Rationale....................................................................................................................................6
1.8 Structure of the project..............................................................................................................6
1.9 Summary....................................................................................................................................7
CHAPTER 2 Literature Review......................................................................................................8
2.1 Introduction................................................................................................................................8
2.2 Concept of consumer-based market...........................................................................................8
2.3 Concept of global branding or expansion..................................................................................8
2.3.1 International Trade Theory.....................................................................................................9
2.3.2 Bartlett and Ghoshal model..................................................................................................10
2.4 International expansion strategies of global companies..........................................................10
2.5 Factors for building a strong business presence in a consumer-based market........................11
2.6 Literature gap...........................................................................................................................12
2.7 Summary..................................................................................................................................12
CHAPTER 3 Methodology Justifications.....................................................................................13
CHAPTER 4 Methodology Explanations......................................................................................14
4.1 Introduction..............................................................................................................................14
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4.2 Research Philosophy................................................................................................................14
4.3 Research Approach..................................................................................................................15
4.4 Research Design......................................................................................................................15
4.5 Data Collection Methods.........................................................................................................15
4.6 Sampling size and method.......................................................................................................15
4.7 Ethical Considerations.............................................................................................................16
4.8 Research Timeline...................................................................................................................16
4.9 Summary..................................................................................................................................18
CHAPTER 5 Results.....................................................................................................................19
5.1 Introduction..............................................................................................................................19
5.2 Primary data analysis...............................................................................................................19
5.3 Summary..................................................................................................................................22
CHAPTER 6: Conclusions and Recommendations.......................................................................23
6.1 Conclusion...............................................................................................................................23
6.2 Objectives linking....................................................................................................................23
6.3 Recommendations....................................................................................................................24
6.4 Limitation of the research........................................................................................................24
6.5 Future scope.............................................................................................................................25
CHAPTER 7: Reflections.............................................................................................................26
Reference list.................................................................................................................................27
Appendices....................................................................................................................................30
Appendix 1: Questionnaires..........................................................................................................30
Appendix 2: Research ethics approval form..................................................................................31
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CHAPTER 1: Introduction
1.1 Introduction
In the context of global expansion, the business needs to build a strong consumer relationship and
emphasis on the stored execution for capturing emerging markets. As the rapid growth in the emergent
market is encountered in a marketing environment, initial considerations are needed to capture the trust
of consumers in that market. Building a strong business presence is important to overcome challenges
while expanding internationally (De Mooij, 2018). The case study of ISS Company’s emphasis is on
corporate branding and specific consumer based marketing to go global. Creating global branding may
enable consistent consumer-based marketing and loyalty in order to develop the market for global
expansion (Godey et al., 2016). The research will aim to build a strong business presence for global
expansion with consumer-based marketing with the case of ISS Company.
1.2 Background of the study
The business on global expansion depends on a strong competitive advantage, which is created by
supporting the ecosystem and the strong relationship with the consumers (Liu et al., 2017). In 2015, its
revenue set 34% of group revenue (Inv.issworld.com, 2019). That is increasing in the coming years.
Establishing a core relationship with the local businesses is important to consider the outsourcing, local
management plan and pricing strategy in order to go global. The research is focused on developing
global expansion and strategic implementation in the consumer-based market in case of the catering
industry.
1.3 Background of the company
ISS is a global catering company to design the best food experience to the employees by adding value
in the business. From healthy breakfast to lunch time and to fine dining restaurants, they have an
approach to creating a cultural solution for meeting the clients need efficiently (Issworld.com, 2019).
ISS is a facility services company that was founded in Denmark in 1901 by improving cleaning
services, property services, catering services, support services and facilities management Services.
Presently it has global fame with top multinational performers in 2017.
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Figure 1.1: Financial position of ISS
(Source: Forbes.com, 2019)
1.4 Research Aim
The aim of this study is to find out if building a strong business presence in a consumer-based market is
a recipe for global expansion with a case of ISS global catering company.
1.5 Research Objectives
The research objectives are:
 To determine the core business strategy of ISS while expanding in global presence
 To identify the factors for building a strong business presence in a consumer-based market
 To explore the market share of ISS for going global in the catering industry in the UK
 To recommend ISS for enhancing the consumer-based market for increasing global reach
1.6 Research Questions
The research questions are:
 How can the core business strategy of ISS be determined while expanding in global presence?
 What are the factors for building a strong business presence in a consumer-based market?
 How can market share of ISS be explored for going global in the catering industry?
 What are the recommendations ISS to enhance the consumer-based market for increasing global
reach?
1.7 Rationale
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There are several issues, which have been identified to prepare the global expansion by ISS. While
expanding, it has a growth of 1% and an operating margin of is7.8% in 2014 (Inv.issworld.com, 2019).
The issues regarding the consumer-based market can be outlined as the physical distance and familiar
cultures, organisational communication, mastering market, human resources, choosing the right
countries for expansion and others (Papadopoulos et al., 2018). Delivering catering services, ISS had
growth 26% in 2013 to 34% in 2015. In the context of expanding in the UK, ISS can face political and
tariff and export fees as a major threat. Potential obstacle includes the economic and social-cultural
forces and the legal and political legislation that ISS can face while expanding (Steenkamp, 2017). The
research with shed light on the issues while going global through the ISS has the global frame in the
catering industry.
1.8 Structure of the project
Figure 1.3: Structure of the project
(Source: Created by Learner)
1.9 Summary
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The chapter has identified the key research aim and objectives by introducing the research topic. The
chapter is focused on exploring the backgrounds and key issues in going global in the context of the
global customer-based market.
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CHAPTER 2 Literature Review
2.1 Introduction
A literature review is an essential part of the research study, which needs the specific reviewing of the
secondary sources that are played by the research aims and objectives. This chapter has identified the
reviewing of existing literature regarding several theories and concepts of the research topic.
2.2 Concept of consumer-based market
Consumer-based and customer-centric market has basic terms to carry consistent and satisfying
experiences with the companies. The consumer-based market has a better understanding of the
requirements in today's market and segmentation for the customers. It is focused to achieve the
customer lifetime value of digital customers, since the satisfaction is achieved. According to
Papadopoulos et al. (2018), understanding the customer-centric approach and customer heterogeneity is
important to achieve winning milestones for the businesses. In the context of the global business aspect,
it is important to categorise the consumers into meh customers, good customers and great customers to
develop the customer acquisition, development and retention with the company. Generally, the
customer-based market is enhanced by developing rapport to endure the relationship for attracting
global customers (Steenkamp, 2017).
Figure 2.1: Categorisation of customers
(Source: Kasemsap, 2015)
2.3 Concept of global branding or expansion
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In the view of Chen et al. (2017), international brands have been in existence in an industry for a long
time that leads the extension from the domestic market to the global market. It is very difficult for the
company to advertise in a global environment by setting a new global branding while identifying and
differentiating a company's services or products from others. Also, in markets such as catering services
there is heavy consumer mobility to the more feasible. Nonetheless, branding concept for global
branding scholars and local markets advocate the global offers and opportunities to capture and
capitalise the economics of scales and multiple segmentations. As argued by Palmer (2017), generating
global branding and cultural benefits for the company lower the cost and it is associated with benefits
by adopting a global brand in a contemporary market. Global branding has effects regarding developing
economic and political scenarios for penetrating in the global market.
2.3.1 International Trade Theory
International Trade Theory includes the trade approaches for developing the concept of exchange
between the countries. As opined by Butt et al. (2017), international trade theories and focus on
understanding how the countries trade with each other by explaining the mechanisms of global trade. In
the context of strengthening the national or international boundary, it is important to control the trade
and benefits to continue evolving in the international market. Different trade theories have been
evolved to represent the benefits and interests while dealing with the policies as business strategies
develop internationalisation and global branding (Chatzipanagiotou et al., 2019). The theory is applied
to evaluate and enhance the initiations of global business aspects regarding trading and exchange in the
context of the customer-based market.
Figure 2.2: International Trade Theory
(Source: Das, 2015)
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2.3.2 Bartlett and Ghoshal model
Bartlett and Ghoshal model indicate the international strategic option for the business to manage the
operation based pressure in local and global integration (Molinillo et al., 2016). This model is
explained to review the international strategies for global, transnational, international and multi-
domestic approaches. Global integration is standardized to operate efficiently in order to achieve
international success. The global companies need to adopt the model to maximize the benefits to meet
the local market needs and decision-making approaches for each country. Local businesses are treated
to separate business strategies and local responsiveness through extensive customisation and
developing customer loyalty. According to Burke et al. (2018), international strategy and transnational
strategy pressure of global depend on local responsiveness while integrating and centralising
economical and standardised production ability adoption while meeting the local requirements.
Figure 2.3: Bartlett and Ghoshal model
(Source: Lemon and Verhoef, 2016)
2.4 International expansion strategies of global companies
International expansion helps the company to market in different countries along with the marketing
requirements with large budgets emerging techniques regardless of its size. International expansion
strategies are important too as a global company can adopt and emphasize to ensure success.
According to Mathew (2017), a brand can be defined by its design, emotion, name and symbol with the
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combination of intended selling approaches and differentiation from competitors. The marketing and
external strategies are:
Keeping a light footprint:
Many companies hold off infrastructure investment until its operations to be matured. This is great to
justify light footprint expenses for long term ROI. The global businesses can evaluate the market
penetration and untapped opportunities true to establish legal entity in-country (Katsikeas et al., 2016).
Adopting a product strategy:
Developing a product strategy is important to encourage and expand into new regions and countries.
Business strategy associates in the overseas market for monitoring new development, decision making
approaches and identify the opportunities. The new expansion in new countries and identification of the
opportunities are important to develop the daily basis identification while maintaining contract and
capital resources to increase the equity (Lemon and Verhoef, 2016).
Gain, Reinvest, Repeat:
An international market can be introduced with the standard product and services where the
competition is low. Testing the product in domestic country is important to ensure a domestic
continuation with investing to gain market share. Gaining, reinvesting and repeating are important to
gain market share.
Being Proactive:
According to Mathew (2017), it is important to establish an entity into another country with a long-term
plan. Therefore, a proactive business plan is needed to enter a new market. The global businesses
ensure the entire team with the strategic plan.
2.5 Factors for building a strong business presence in a consumer-based market
Consistency:
Consistency is a crucial factor that affects the business measurement and perception for enriching the
business plan in order to establish strategic planning in a consumer-based market. It involves the
extension regarding measuring business growth.
Risk:
Without risk, any business is not possible. While expanding and measuring the likelihood of risk,
building an effective relationship is needed with the existing brand (Burke et al. 2018).
Geographic factor:
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Consistency is important with the company's global branding and the location to connect with the outer
world. It is important to focus on the culture and vision differences in individual territories to meet the
local preferences.
Management:
Running global branding reduces the complexity and cost to manage the campaign. If the agencies
created different strategies and campaigns to go global, branding and advertising strategy with social
media emphasis could be applied (Chatzipanagiotou et al., 2019).
2.6 Literature gap
The research is focused on global business strategies while focusing on the customer-based market.
Any particular industry or geographic region is not taken to identify in the literature. There is a gap in
the literature to identify specific solutions while building a strong business presence for global
expansion.
2.7 Summary
The chapter focus to identify basic interpretations and analysis of secondary sources to convey
arguments and contradictions regarding strong business presence in a customer based market while
expanding. Depth literature on the research topic has been reviewed to conclude the finding for further
research.
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