Comparative Management Report: The Ark Clothing Co. Strategy

This report provides a comparative management analysis focusing on The Ark Clothing Co.'s potential expansion into the markets of China and Japan. It examines various entry strategies, considering the unique cultural and economic landscapes of both countries, including cost leadership and differentiation strategies. The analysis delves into organizational structures, highlighting the fragmented retail market in China and the hierarchical structure in Japan. It explores management decision-making approaches, contrasting the Confucian influence in China with the bottom-up approach in Japan. The report also covers control processes, emphasizing the importance of adhering to regulations in both nations, and it discusses staffing processes, focusing on hiring and talent management in China. The conclusion offers recommendations for The Ark Clothing Co. to successfully navigate the challenges and opportunities in these diverse markets.

COMPARATIVE
MANAGEMENT
REPORT

Table of Contents
INTRODUCTION.......................................................................................................................................3
COMPARATIVE MANAGEMENT ANALYSIS......................................................................................3
Entry strategies........................................................................................................................................3
Organizational structure..........................................................................................................................5
Management decision approaches...........................................................................................................6
Control process........................................................................................................................................6
Staffing process.......................................................................................................................................7
Conclusion and Recommendation...............................................................................................................8
Conclusion...............................................................................................................................................8
Recommendation.....................................................................................................................................9
REFERENCES..........................................................................................................................................11

INTRODUCTION
Comparative management is the study of different management principles and how they
apply and used from one situation to another within an organization. Along with this,
comparative management refer as identifying measures and interpret the similarities and
differences among mangers behaviour techniques flowed practices applied as found in different
nations. Management is an important element which helps in increasing growth and
improvement of an organization in different countries (Pollitt & Bouckaert, (2017)). China is an
economy which presents one of the most attractive and profitable destinations in terms of
investment for different countries companies. It is required for an organization is to use Japanese
language in order to gain success in Japan market, marketing of Japanese is essential to interact
and communicate with local consumers and business customers.
The report is based on The Ark Clothing Co. which is Australian clothing company and
provide fashion brand to the people. The main purpose of this assignment is to expand The Ark
Clothing Co. in China and Japan countries along with they need to analyze their entry strategies,
structure and culture for easily enter in these market place. Also this will help in taking
appropriate management decision which is beneficial for an organization. In addition to this, for
acquiring growth they are analyze staffing and controlling process of the nations for company
according to the rules and regulations of specific countries.
COMPARATIVE MANAGEMENT ANALYSIS
Entry strategies
China is an economy which presents one of the most attractive and profitable destinations
in terms of investment for different countries companies. This is because there is a presence of
rising income and easily expands market size (Brewster, Mayrhofer & Farndale, (2018)). For
The Ark Clothing Co, there are various strategies which can be employed in order to gain
success in the difficult Chinese market that is categorized by cultural differences as well as its
current situation. Firstly, respective company should ensure that it has partnered with local
business set up which are related with field of business operations that is mainly dealing with
high end products. The main reason behind this is that local company of Australia are in a similar

level with such franchise which are capable for ensuring that there are valuable resources
available in this market through which they can gain income.
The Ark Clothing Co. is the clothing and fashionable brand firm who try to enter in the
China market place where they can gain attention of large number of customers by offer them
unique and attractive products. For successfully enter in the market, the respective company
adopt cost leadership and differentiation strategy. When selecting the Chinese market, labor cost
and productivity, distribution cost and shipment cost of raw material are considered and other
considerations are characters and behaviors of consumer and income per capita (Estep, (2015)).
The respective Australian company are mainly focus on such aspects while enter in the market
such as economics which involves macro factors like tax, political conditions and export tariff
and micro factors includes local competitors, location of store, demand of consumers. Along
with this, government regulations and local manufacturer protection issues are other main
considerations. for attracting large number of customers, they are offer fresh stock which
satisfying all customers needs and requirements. The Ark Clothing Co. is manufacture more than
10,000 designer clothes in every year.
On the other hand, there are various ways or market entry strategies through which The
Ark Clothing Co. can easily enter in the Japan market place such as selling to a dedicated
distributor, ecommerce, direct exporting, licensing, franchising and many others (Fausel &
Afzali, (2015)). It is required for an organization is to use Japanese language in order to gain
success in Japan market, marketing of Japanese is essential to interact and communicate with
local consumers and business customers. Labeling is required for many products which are
specified by Japan government regulations and must be in Japanese market area. Although
effective interlocutors and professional interpreters are typically used, Japanese business people
will appreciate efforts made to communicate in even basic Japanese (Brewster, Mayrhofer &
Morley, (2016)). An organization which tries to expand their business operations and function in
the Japan nation so they need to analyze their people culture. For this they can easily analyze
their behaviour and requirement towards their products. Japanese culture and social practices are
used to establish business relationship in Japan. If they are not aware about the culture so they
does not convey information and message to the local people which create lack of commitment
or international business experience and it may lead towards misunderstanding and lost

opportunities. At last, exports of respective firm need to take time to understand the demand and
expectations of the Japanese consumers in areas such as product quality, packaging and display,
appearance of clothes, delivery and sale after services.
Organizational structure
China is growing retail market place which offer wide range of opportunities for foreign
investors, but some sector are easier to access than others. It is one of the most lucrative and
rapid growing retail markets in the world (Horovitz & Webb, (2015)). The Ark Clothing Co. is
entering in the new market place where they need to analyzing the situation of whole market in
which they are establishing their business operation. Because of the wide disparities among
China's regions and the country's rural urban income gap, purchasing power and retail demand
vary greatly (Ho, Woodward & Coward, (2016)). China's market is highly fragmented and
composed of many small and medium sized companies. There are various companies which are
face different levels of competition advantages depending on retail clothing section in which
they are operate and regulate business in the same country market place. China's integrated with
retail business which includes department stores, clothing companies and supermarkets which is
dominating slightly large players. In current time period, it is difficult for respective company is
to enter in the new market place for gaining high income and profitability because they need to
follow all rules and regulation which are made by government in proper manner to survive.
On the other hand, Japan was dominated by small number of very large companies in the
market place. The Ark Clothing Co. need to analyze whole Japan's market place in which they
try to expand their business operations and functions effectively. In current time period, Japanese
economy has become much more varied in terms of size and structure of their companies. Along
with this, respective firm require to measure their competitors strengths and weaknesses as per
this they need to develop their strategy which help them in gaining high income (Kan, (2016)).
Japanese society are hierarchically organized and managed with individuals knowing their
position within a group and with regard to each other. The structures in the Japanese corporate
culture are mainly based on the cooperation's and consensus instead of delegation of authority
and top to bottom decision making procedure. According to this, The Ark Clothing Co. required
to analyzing their employee's culture that are hired by them and they are belonging to different
culture so they need to develop strategies and make changes as per their demand or need.

Management decision approaches
In the Chinese management decision approach, all the relationships are deemed to be
unequal, ethical behaviour demands that such inequalities are respected. In an organization of
china, the older person should automatically respect from the younger whether they are senior
from the subordinate. They are adopting Confucian approach which should see as the
cornerstone of all management thinking and issues such as empowerment and open access to all
information (Tushnet,. (2017)). If The Ark Clothing tries to expand their business operations and
its function in china country so this will help them in easily survive in the market place. As well
as this will assist in developing goodwill and reputation in front of their competitors. When they
are take decision they must be taken their entire senior and subordinates views and opinion
regarding specific issue so this will assist them in smoothly runs their business operations.
Japanese management emphasizes the need for data and information to flow from the
bottom of the company to the top level (Schott, Wenzel & la Cour Jansen, (2016)). This results
in senior management having a largely supervisory rather than hands on approach. As a result, it
has been analyzed that policy and strategies is often originated at the middle level of the
company before passed towards upwards for rectification. The main strength of this management
decision approach which are need to be followed by The Art Clothing Co. which is try to expand
their business in Japan nation. So they required to take decision which is related to the policy and
strategy (Mian, (2017)). The key task for new company manager is to provide environment
which flourish the group. In order to achieve this they must be accessible at all times and willing
to share accurate knowledge within the team. In the open approach, they expect that team
members required to keep him fully informed of developments. This will assist in developing
and formulating good relationship with respective company employees and new hired Japanese
staff members.
Control process
The core principle of control procedure of new business in the china nation is very
effective. China's legislative framework for internal control largely mirrors the corresponding
legislation in the US (Haddock-Millar, Sanyal & Müller-Camen, (2016)). It is required for The
Ark Clothing Co. Company is to follow all rules and regulations which are made by country
government related to different factors. Such as quality of clothes, delivery system, provide

coupons and many other which attract large number of customers. Along with this, they need to
analyze whole market where they require to set up their business operation for gaining higher
income and profitability in better manner. They can manage and maintain their pricing rate
which gains attention of customers of Japan country. The respective firm required to analyze all
risks and issues which occur while entering into new market place to smoothly run their business
operations. Some of these are universal to all the businesses while others are specific china or
specific industries and business structure (Awasthi & Li, (2017)). For appropriately control
business procedure, respective company need to identify core objective, pinpointing the major
risk to fulfilling them and considering other main factors which can directly affect detect
business.
On the other hand, Japanese companies are following effective principles for
management of their business operations and its function in better manner (Zhao, (2015)). The
Japanese apply different principles and have developed various approaches and policies to tackle
with each issues and problems. Such policies are not the key factors of Japanese and it certainly
major factors in the astonishing rise of Japan in the last 100 years. The Ark Clothing Co. can
easily control business procedure in the Japan when they are develop and follow effective
approach in order to reach with desired goals and targets (Naser, Al Shobaki & Amuna, (2016)).
The managers of Japanese companies are taken decision before analyzing the views and opinions
of their each and every employee within an organization. For effectively controlling procedure of
business operations, the manager of an organization required to focus on arising issues and
problems and try to make possible solution in proper manner. This will assist them in smoothly
run of business activities in another country like Japan.
Staffing process
The Ark clothing Co. is entering in the china market and about to hire Chinese
employees. The guide to hiring and staffing talents in china has been designed and developed
which help them in developing country's business in china and it could be useful to china
experienced companies to take a couple of tips out of it (Jiang, (2015)). First of all, when an
organization enter in the china market, they should be aware about the way to recruit the local
employees which is quite not the way that are used to in the western world. Moreover, they
required to sending experienced of company to the employees regarding development of

business in the country. Most of the time, international companies are hire local professional and
just bring them to their company's country for 1-3 months for training on business services. The
Ark Clothing Co. need to understand the challenges and costs of staffing before entering in to
new market place in china. Striking the right balance between local and international knowledge
in the workplace will be especially important for such ware of the benefits of blending Western
and Eastern cultures (Araujo, (2015)).
On the other hand, staffing procedure in Japan is probably one of the major challenges for
an organization which can go through when entering in the Japanese market for variety of
reasons. Generally, Japan has a narrow talent pool of bilingual professionals that can be
attributed to an inadequate English language system, a low birth rate and some of the cultural
traits. According to Japanese government report, only half a million employee work for
international companies. Firstly, they are applying recruitment ad on internet where large number
of people who are interested are applied (Starling, (2017)). After that they are make contact with
recruitment agency which are approach Japanese people who are willing work with international
organization. After that they are taken test in which those candidate who are select, they are
qualified for the next stage. Then they are taken interview of selected candidate and make their
final decision and hiring of people for the job profile within an organization.
Conclusion and Recommendation
Conclusion
According to the above described report, it can be concluded that China is an economy
which presents one of the most attractive and profitable destinations in terms of investment for
different countries companies. The Ark Clothing Co. is the clothing and fashionable brand
company who try to enter in the China market place where they can gain attention of large
number of customers for gaining high income and acquire goodwill. On the other hand, there are
various ways or market entry strategies through which The Ark Clothing Co. can easily enter in
the Japan market place such as selling to a dedicated distributor, ecommerce, direct exporting,
licensing, franchising and many others. China is growing retail market place which offer wide
range of opportunities for foreign investors, but some sector are easier to access than others.
According to this, The Ark Clothing Co. required analyzing their employee's culture which are

hired by them and they are belong to different culture so they need to develop strategies and
make changes as per their demand or need. In the Chinese management decision approach, all
the relationships are deemed to be unequal, ethical behaviour demands that such inequalities are
respected. The key task for new company manager is to provide environment which flourish the
group. The core principle of control procedure of new business in the china nation is very
effective. Japanese companies are following effective principles for management of their
business operations and its function in better manner.
Recommendation
On the basis of above mentioned report, it can be recommended that china is that country
where The Ark Clothing Co are easily expand their business operations and its functions in better
manner. It is provide various opportunities and growth in order to gain attention of large number
of customers towards company goods and services. Along with this, it is more attractive and
profitable location where any organization can set up their business to earn maximum income
and profits. There are various factors which directly affect on business while entering in the
china market such as labor cost and productivity, distribution cost and shipment cost of raw
material are considered and other considerations are characters and behaviors of consumer and
income per capita. It can be analyzed that china is one of the fastest growing country where large
number of companies are enter to expand their business. They are providing wide variety of
opportunities to Australia Company which is described in this report. In addition to this, it is one
of the most lucrative and rapid growing retail markets in the world. China's legislative
framework for internal control largely mirrors the corresponding legislation in the US. it should
be recommended that when an respective organization enter in the china market, they should be
aware about the way to recruit the local employees which is quite not the way that are used to in
the western world.
On the other hand Japan is that country which is dominated by small number of very
large companies in the market place which reduces their profitability. They can adopt some other
approach instead of Confucian approach which should see as the cornerstone of all management
thinking and issues such as empowerment and open access to all information. Japanese
management emphasizes the need for data and information to flow from the bottom of the
company to the top level. This results in senior management having a largely supervisory rather

than hands on approach. It is also providing wide growth and development to foreign country in
better manner while respective company offer their fashionable clothes to the consumers and
users. The Japanese companies are apply different principles and have developed various
approaches and policies to tackle with each issues and problems related to delivering of products
such as clothes. In Japan, staffing procedure is probably one of the major challenges for an
organization which can go through when entering in the Japanese market for variety of reasons.

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Online
Japan - Market Entry Strategy. 2019. [ONLINE]. Available through:
<https://www.export.gov/article?id=Japan-Market-Entry-Strategy>.
Chinese Retail Market Entry Strategies. 2019. [ONLINE]. Available through:
<https://barbradozier.wordpress.com/2016/04/08/chinese-retail-market-entry-strategies/>.