Prada: Exploring International Business, Strategy, and HRM Role

This report provides a comprehensive overview of international business concepts, focusing on the managerial aspects of global operations. It begins by examining the nature of managerial work in international organizations, emphasizing the importance of foreign market analysis. The report then delves into the considerations managers must address when entering international markets, including economic, cultural, legal, and technological factors, along with strategies for overcoming entry barriers. Further, it outlines the steps involved in international strategy formulation, highlighting the variations in strategies among companies. Finally, the report explores the strategic role of Human Resource Management (HRM) in international business, focusing on decision-making processes and their impact on organizational goals. The analysis is contextualized with examples from Prada, a multinational luxury brand, to illustrate the practical application of these concepts.

International Business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
The nature of managerial work in the organisation for doing business globally and how a
manager analyse the foreign market...........................................................................................3
TASK 2............................................................................................................................................4
what a manager needs to consider when a company go to the international market to sell its
products and services..................................................................................................................4
How can these entry barriers be removed...................................................................................5
TASK 3 ...........................................................................................................................................6
Steps in international strategy formulation.................................................................................6
Are these strategies likely to vary among companies? ..............................................................6
TASK 4............................................................................................................................................7
The strategic role of Human Resource Management in the International Business and the
Decisions Making........................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES:.............................................................................................................................10
Books and Journals...................................................................................................................10
Online........................................................................................................................................10

INTRODUCTION
International business includes transaction of physical and financial products and services
across the boundaries. Physical services includes goods, products, human resources, raw material
and finished goods (Srivastava, Singh and Dhir, 2020). Financial products include skills, capital,
insurance and banking services. Businesses expand their businesses to international market for
growth and exposure which results in higher brand image. This report is in context to Prada. It is
a multinational company established in 1913 in Milan, Italy by Mario Prada. It offer luxury
products like leather bags, perfumes, accessories, shoes, clothes and watches. In this report
nature of managerial work is discussed on the global platform along with analysis of foreign
market. Needs of manager to be considered during the sell of their products and services in the
international market is discussed in this report. This report also includes the removal of entry
barriers and steps of international strategy formulation. At last this report will includes the
strategic role of human resource management and their decision making in international
business.
MAIN BODY
TASK 1
The nature of managerial work in the organisation for doing business globally and how a
manager analyse the foreign market.
Businesses need managers who can formulate proper rules and procedures for various
departments so that employees perform task in desired way (Guercini and Milanesi, 2020). To
coordinate all the activities for international business mangers have to plan various strategies.
Global competition is increasing day by day which is a challenging factor for managers. Prada in
multinational company who offer products globally. Managers of Prada need to analyse the
market situation properly to meet the demands of people. There are various managerial tasks
which have to performed during the international businesses which are discussed below:
 Long term planning: This nature includes crucial planning for globalising the business.
Managers analyse the foreign environment critically so that they can operate smoothly on
international platform. Managers of Prada examine which segment they have to target for
their products and services according to the economic and political stability of the

country because they offer luxury products and majorly target upper class people. They
also plan about currency stability, trademarks and patents for their products in the
international market.
 Controlling: It includes evaluation of geographic boundaries, barriers, restrictions and
language barriers. Prada involves various meetings and sessions to cope up with these
problems (Buckley and et.al., 2018). This stage also includes managing human resources,
raw material and finance. Managers of Prada also provide their employees with bonuses,
incentives, vacations and holidays which increase their satisfaction level towards
performance.
 Environmental scanning: International market is very dynamic that is why constant
scanning is mandatory by businesses. To capture the global market managers need to
evaluate economic indicators, business cycle, demand and risk. This scanning helps Prada
in successful operations in international business.
 Customer relationship management: It refers to the direct contact and relation with
customers to satisfy their needs and demands. Managers of Prada need to focus on the
requirements of the potential customers which help the in profit generation.
Managers analyse foreign market with the the help of various different market
assessments which includes competition level, political and legal environment, market potential
and socio-cultural influences. Prada analyse all these factors for their operations. After that they
evaluate risks, opportunities, profits and losses. These factors help them in knowing how much
capital they have to invest according to the risk and opportunities and how much return on
investment they get from international business.
TASK 2
what a manager needs to consider when a company go to the international market to sell its
products and services.
Before entering to the international market managers need to analyse various factors
which help them in effective operations (Aguilera and Grøgaard, 2019). Managers of Prada
examine various factors for selling their products and services which are mentioned below:

 Economic factors: Every country differs from each other in their economic conditions
and currency values. Managers of Prada majorly focus on those countries who can afford
luxury products because they offer very high class products and services.
 Cultural and social factors: Managers of companies need to study the various cultural
and social factors which includes religion, language and way of living. These factors
influence the choices of people living in that country. Prada analyse the choices of people
and offer products according to that which reduces risk in their operations.
 Legal and political factors: Every country have their different legal and political
structure which includes various tax and duties. To avoid excess charges Prada
thoroughly check the legal and political factors of targeted market. This helps them in
allocating resources efficiently.
 Market attractiveness and technological factors: This includes various factors like
market trends, cost patterns, economic feasibility, market forecast and market personality.
Businesses need to survey the technological advances which help them in providing
upgraded products and services in international market.
How can these entry barriers be removed.
Some of the obstacles and problems are faced by organisations before entering to the new
international market (Hult, Gonzalez-Perez, and Lagerström, 2020). Prada formulated some of
the strategies which helps them in removing the barriers. These solutions can be discussed
below:
 Businesses can select different markets which are or not affected or disturbed by
economic conditions of that particular market. Prada study the market environment which
are favourable for their operations.
 Organisations can customize their taxes and tariffs according to the needs of targeted
market. Prada involves activities which add values to their operations like after sale
services. Managers of Prada started its manufacturing process in targeted market which
save their import cost.
 Prada tries to give quality products and services which justifies the prices in international
market. This attract more customers towards their products which help them in building
long term relationship.

 They should enter market whose possess political stability because it affects the sale of
products and services.
TASK 3
Steps in international strategy formulation
International strategy formulation is very vital process because it helps in achieving goals
and targets in effective manner (Chi and et.al., 2019). Managers of Prada also formulate
strategies before entering to international business which are as follows:
 Setting objectives: This step includes key components for setting organisational
objectives. It involves planning and deciding targets and aims to be achieved in
international market segment. Prada decides which products and services should be
offered in particular market segment.
 Gathering information: All the necessary data and information is collected on this
stage. This includes qualitative and quantitative data. It helps in evaluating the
environment which help Prada in identifying the needs and demands of market.
 Strategy formulation: With the help of above analysed information managers try to
select the best strategy from different alternatives. According to the issues and problems
faced by company, managers select best strategy for their solution.
 Implementation of strategy: This step involves the implementation of strategy
according to the business structure. Those strategies help in understanding the roles and
responsibilities of their operations in international business.
 Control and evaluation: This is the final step which involves measurement of
performance after the implementation of strategies (Hooper and Holtbrügge, 2020).
Managers of Prada take corrective measures if any issue reflects in the strategy. These
strategies help them in proper utilisation of resources in efficient way.
Are these strategies likely to vary among companies?
Every company has its own size, structure, products and services which uses different
strategies according to their requirement. Some business use strategies for adjusting prices or
acquiring market segment in international market. On the other hand some businesses formulate
strategies to cope up with political factors such as tax and tariffs. Prada formulate various
strategies to acquire more customers in foreign market in long run by offering quality products.

TASK 4
The strategic role of Human Resource Management in the International Business and the
Decisions Making
Human resource management is very important function of management as it manages
the human behaviour in the organisation. It helps in enhancing the skills, abilities, talent and
knowledge of employees by providing training and development programs. HRM of Prada aims
to help employees in best possible way which enhance their capacity at the workplace. Various
strategic roles of human resource management in international business are mentioned below:
 Strategic planning: Human resource managers plan everything before commencement
of their operations (Hannibal and Knight, 2018). This helps in clarification of thoughts
and ideas that what to do and how to do. Top management level of Prada, plan and
finalise all the major decisions which helps in efficient working.
 Strategic training: Training helps in improving abilities and knowledge of the
employees which are required in organisation. Managers analyse and assess the particular
field in which training is mandatory to carry out. Managers of Prada provide training on
regular basis so that they achieve organisational goals effectively.
 Risk management and workplace safety: Managers are responsible to create safe and
positive environment for workforce. They solve employees queries and address their
complaints which gives them satisfaction. Prada ensures safety of their employees during
various physical training programs.
 Benefits and compensation: Employees pay and incentives are responsibility of HR
managers. Benefits and pay of employees includes various factors like labour market,
budget constraints, job evaluation and workforce shortage. HR manager of Prada pay
their staff which maintain the image and reputation of their brand name including the
satisfaction of employee.
Decision making process refers to the identification and analysation of best alternative
among various alternatives. Decisions are majorly taken by the human resource managers who
evaluate the situation and implement best decision which is required by the situation.
International business is very complex and dynamic which requires lot of decision before starting
the operations. HR managers of Prada involves flexibility, productivity, loyalty and efficiency in

their decision making. Decision making of HR mangers impacts the organisation in achieving
goals and targets in effective manner.

CONCLUSION
From the above report, it is concluded that international business refers to transaction of
products and services, capital, knowledge and technology across different nations. It increase the
brand image and profitability of business. Before entering to the international business marketers
need to analyse the environment of the foreign market. This report included nature of managerial
work in organisation during the international business. Factors which managers need to
understand while selling their products and services globally along with the steps how to remove
entry barriers are included in this report. Various steps of strategy formulation during
international businesses are discussed in this report. In the end, strategic role of human resource
management and decision making in international business also included in this report.

REFERENCES:
Books and Journals
Aguilera, R.V. and Grøgaard, B., 2019. The dubious role of institutions in international business:
A road forward. Journal of International Business Studies, 50(1), pp.20-35.
Buckley and et.al., 2018. International business. Oxford University Press.
Chi and et.al., 2019. Real options theory in international business. Journal of International
Business Studies, 50(4), pp.525-553.
Guercini, S. and Milanesi, M., 2020. Heuristics in international business: a systematic literature
review and directions for future research. Journal of International Management, 26(4),
p.100782.
Hannibal, M. and Knight, G., 2018. Additive manufacturing and the global factory: Disruptive
technologies and the location of international business. International Business
Review, 27(6), pp.1116-1127.
Hooper, A. and Holtbrügge, D., 2020. Blockchain technology in international business: changing
the agenda for global governance. Review of International Business and Strategy.
Hult, G.T.M., Gonzalez-Perez, M.A. and Lagerström, K., 2020. The theoretical evolution and
use of the Uppsala Model of internationalization in the international business
ecosystem. Journal of International Business Studies, 51(1), pp.38-49.
Srivastava, S., Singh, S. and Dhir, S., 2020. Culture and International business research: A
review and research agenda. International Business Review, 29(4), p.101709.