Business Policy & Strategy: Kingston Properties Global Analysis

This report provides an analysis of Kingston Properties Limited's business policy and global strategy, focusing on its responsiveness to national differences, strategies for competing globally, and major foreign markets. The report evaluates the firm's multi-domestic strategy, highlighting its appropriateness given the varying local laws, customs, and customer preferences in the United States, Jamaica, and Cayman. It also examines the firm's use of Foreign Direct Investment (FDI) as a mode of entry, discussing its advantages and disadvantages, and suggests joint ventures as a potentially more preferable alternative. The analysis underscores the importance of local responsiveness and customization in the real estate business to effectively address the unique operational, legal, and economic conditions of each country.

Business Policy & Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Responsiveness to national differences and variation of services & marketing message:..........3
Strategy to compete globally and its correctness:........................................................................4
Major foreign markets and the mode of entry:............................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................1

INTRODUCTION
Business policies focuses on the daily or routine activities for the efficient and effective
operations of an organization whereas business strategies focus on the strategic decisions of the
entity. The following report will evaluate the responsiveness of the firm to the national
differences regarding its services and marketing message and the strategies it follows to compete
globally.
MAIN BODY
Responsiveness to national differences and variation of services & marketing message:
The firm is active towards the local responsiveness strategies i.e., the level at which the
Kingston Properties Limited having its primary office in Jamaica customizes its services to meet
the requirements and conditions of the other countries in which it is operating. The firm has its
operations in United States, Jamaica and Cayman. Therefore, being in the real estate business it
invests in, owns and undertakes management of the real estate properties. It operates in the
Equity Real Estate Investment Trusts (REITs) industry.
Although it provides only real estate services like investing, owning, leasing and
managing real estate properties like commercial complexes, warehouse building and residential
colonies but the nature of these services and also the marketing strategies and message needs to
be varied as per the target customers in the country of operations, rules and regulations related to
the real estate of the respective country, etc. The local customer’s tastes also need to be
addressed (Edwards, 2021). The strategies and services also varies according to the selection of
services and methods of payment. It is to be noted that such variance in the service & products
and marketing message from country to country is necessary to be able to cater to the needs of
the customers in the respective country and address the operational, legal and economic structure
of that country.
There are various pressures for local responsiveness and these arise from various sources
like differences in the tastes and preference of the consumers which are to be addressed and
fulfilled for customer satisfaction, difference in the practices of infrastructure and traditions
which are needed to be adhered to and followed, differences in the channels of distribution which
are to be analysed and understood and also the demands of the host government which are to be
compulsorily met to avoid any hindrances in the operations of the business.

Strategy to compete globally and its correctness:
Kingston Properties Limited which is operating in United States, Jamaica and Cayman
follows the multi – domestic strategy where there is high local responsiveness and low global
integration. As per this strategy the firm has to customize its services and processes according to
the specific conditions of the country in which it is operating. It is to be noted that the
management of the firm is centralized in the home country and the managers in various countries
are given duties and responsibilities to make adaptive changes in the respective country (HOW
TO ENTER A FOREIGN MARKET? 2022). In such a way the firm will due to responsiveness to
the local situations and conditions sacrifice the scale efficiency. The firm will be benefitting
from the multi – domestic strategy as only the managers working in the various countries of its
operation will be able to understand the local laws, customs prevalent in the country and tastes &
preferences of the customers in the country and therefore, will be able to meet them in the best
possible manner.
As the firm here i.e., Kingston Properties Limited is operating in United States, Jamaica
and Cayman, the pursuing of multi – domestic strategy is correct step as the different country has
different local laws, customs and tastes & preferences and thus, the firm needs to address these
varied aspects to operate effectively and efficiently in the various countries of operations (Ahsan,
Al-GAMRH and Mirza, 2022). In other words, the firm is trying to achieve maximized local
responsiveness through customization of the services and processes as per the national conditions
of the countries. In this the needs of the local markets of the countries are taken into
consideration by focussing on the advertising and commercial efforts of the firm thus addressing
the needs of the relevant local markets to achieve the maximum local responsiveness.
Major foreign markets and the mode of entry:
Kingston Properties Limited is a public real – estate investment company having its head
office in Jamaica has its major foreign markets in the United States, Jamaica and Cayman where
it is engaged in acquiring, owning, leasing and managing real estate properties which includes
residential complexes, commercial complexes and warehouse building (Collings, Mellahi and
Cascio, 2019). It operates in the industry of Equity Real Estate Investment Trusts (REITs). The
mode of entry used by the firm is through Foreign Direct Investment (FDI) in which the
investment is directly done in foreign country on various components of a business like
premises, technology and staff. Such a direct investment can be done through acquiring of an

existing firm or by setting up of a new firm in the target country. Advantages and disadvantages
of FDI are as follows:
ADVANTAGES DISADVANTAGES
 It assists in boosting the economy of a
nation.
 It allows expansion of the human capital.
 It allows more trading in the international
market which facilitates enhancement in
the exports.
 Advanced inflow of capital.
 It assists in building competitive market of
international standards.
 It causes the hindrances in the investments
in the domestic markets.
 Many times, such investments are of
negative values.
 Foreign investment will naturally be more
expensive than the domestic investments.
 This will include capital – intensive
methods and these methods turns out to be
dangerous in many cases.
Another mode that would be more preferable for such a real – estate company will be
investing through joint venture (Schlegelmilch, 2022). Joint venture will include two firms
operating together to own a jointly – owned business such that one firm will be a local firm to
the foreign market and there will be benefit of knowledge of the local market and cost sharing.
CONCLUSION
The above report therefore, is talking about the business policy and strategy of a firm
which is operating globally and thus, its local responsiveness is discussed along with the
pressures on such local responsiveness and the mode of entry it used to enter the market and
recommendation of another more preferable mode of entry.

REFERENCES
Books and Journals
Ahsan, T., Al-GAMRH, B. and Mirza, S. S., 2022. Economic policy uncertainty and sustainable
financial growth: Does business strategy matter? Finance Research Letters. 46. p.102381.
Collings, D. G., Mellahi, K. and Cascio, W. F., 2019. Global talent management and
performance in multinational enterprises: A multilevel perspective. Journal of
management. 45(2). pp.540-566.
Edwards, M. G., 2021. The growth paradox, sustainable development, and business
strategy. Business Strategy and the Environment. 30(7). pp.3079-3094.
Schlegelmilch, B. B., 2022. Balancing Global Synergies and Local Responsiveness. In Global
Marketing Strategy (pp. 83-103). Springer, Cham.
Online
HOW TO ENTER A FOREIGN MARKET? 2022. [Online]. Available through: <
https://www.workspace.co.uk/content-hub/business-insight/how-to-enter-a-foreign-
market >
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