Star Truck Ltd: Analysis and Strategy for Emerging Market Entry Report

This report examines Star Truck Ltd's strategy for entering emerging markets, focusing on Indonesia as a prime example. It begins by exploring various global business management theories such as Mercantilism, Comparative Advantage, Product Life Cycle, and Porter's National Competitive Advantage, and discusses their relevance to market entry. The report identifies key perspectives for successful market entry, including location, strategy, and funding. It then analyzes different organizational, geographical, and economic entities to determine options for success. Furthermore, the report analyzes the investment environment of emerging markets, assessing opportunities and threats. Finally, the report concludes with recommendations for Star Truck Ltd's entry into the Indonesian market, highlighting the importance of a well-defined strategy and understanding of the local market dynamics. The report also contrasts the Indonesian market with those of the Philippines, Nigeria, and Ethiopia.

The competitive global context

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
Various global business management theories & ways to select problem............................1
Identification of the major perspective of the market to make the entry................................2
Identify the options for success in different organizational, geographical & economical
entities.....................................................................................................................................4
Analysis of the different perspective of the emerging market...............................................5
Assessment of the opportunities and threats in the emerging market....................................6
Recommendations for making the entry.................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
In the present era, international businesses is expanding the greater extend for the purpose
to assess the potentiality in the new emerging economies. The business entity requires proper
option to tackle the problems to meet the changes and expand in the international market. The
present report discuss about the several perspective that need to be analyzed properly to adopt
the investment and other aspect to expand step by step. Star Truck limited has been chosen to
expand and grab the opportunities into the new emerging market. Further in this report
identification of the several options is determined for the success in the different organizational,
geographical & economical entities to meet different opportunities.
TASK 1
Various global business management theories & ways to select problem
There are various business management theories which determine proper procedures to
make the entry into the emerging economies. They are different theories that are evolved to carry
out the concept of exchange between the two countries and effectively function in the emerging
economy of Indonesia in comparison with the economies of Philippines, Nigeria and Ethiopia.
There are different theories that will help Star truck ltd to successfully make the entry into the
market with the proper investment techniques (Pereira-Moliner and et.al, 2015).
Mercantilism: This theory states that the country’s economic trend helps the business
unit to effectively promote over the different aspects. These aspects help in promoting the
exports and reduce the import that will increase the wealth of the business in which they are
trying to make the entry. This theory help Star truck ltd to slowly expand and build its network
within the economy of Indonesia as it is very effective in comparison with the economies of
Philippines, Nigeria and Ethiopia. It is the oldest theory but include the modern thinking
perspective to make the entry into the emerging economies of the other countries.
Theory of Comparative Advantage: This theory indicates the ability of the business
unit to produce particular goods and services to meet the requirement of the company to expand
step by step (Hotho, Lyles and Easterby‐Smith, 2015). This will help in the proper allocation of
the resources that will determine the effective functioning of Star truck ltd in the economy of
Indonesia with comparison to the economies of Philippines, Nigeria and Ethiopia.
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Product life cycle theory: This theory will help to attempt the different patterns through
which the new product can be launched within the economies of the other nation (Shumway,
2015). As in the present era, the demand of the product to increase the set of productions to make
the offering of the product as well as taking proper initiatives to make the entry into the
economies of Indonesia. This theory indicates the proper innovation and modification with the
presentation of the new product in the economy of Indonesia.
Porter's national Competitive advantage theory: This theory indicates the proper and
effectual aspect which endows the basic factors that are essential and intent to attain the success
of the business unit with the implementation of the different perspective (Pereira-Moliner and
et.al, 2015). Star truck ltd relate the different prospects and characterize the different measures
to meet the entire working of the company in an effective manner.
Major issue which is identified
The major issue which is identified with the theories is to expand within the economies of
Indonesia is the perspective that is related to the different factors. The major perspective behind
this issue is to allocate the different factors that will effectively help Star Truck ltd to expand
within the economies of Indonesia.
The different dimensions are evolved to make the entry but it not easy to determine the
exact location (Kleist and et.al, 2015). The economy of Indonesia is at greater growth stage and
Star truck ltd require the proper strategy to make the entry into the market as the entire
functioning is based on the aspect to expand within the new economy of Indonesia.
The major disadvantage that is associated with the other countries such as the economies
of Philippines, Nigeria and Ethiopia does not induces much growth perspective in order to grow
and expand within these countries and strict norms are induced over the new entrants in the
market of these economies.
Identification of the major perspective of the market to make the entry
In context of the present era, the economies of the countries adopt different aspect to
provide the wider platform for the different companies to make their functioning within the
boundaries (Pereira-Moliner and et.al, 2015). This will ascertain the proper benefits which will
help Star truck ltd to make the entry. The major perspective which is associated with the aspect
to make the entry into the economy of Indonesia is stated below:
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Location: This is the major perspective which helps in determining the exact location to
make the functioning of the Star truck ltd into the economy of Indonesia as the location is the
major aspect to carry out the different operations. This perspective help to ascertain the major
requirement of the business unit to market and produce the product and also define the other
aspects that are required by them while making the entry into the market (A Menendez, 2015).
This will help Star Truck Ltd to effectively identify the best location as Indonesia work
environment would benefit the entire working of the business.
The aspect of expansion within the economies of Philippines, Nigeria and Ethiopia is not
beneficial as the business unit that are new into the market does not provide effective location in
order to carry out the various operations.
Strategy: Proper strategies are the essential perspective which determines the aspect that
is ascertained by Star Truck Ltd to carry out the entire functioning in an effective manner. The
proper strategy formulation and defined perspective will help Star Truck Ltd to expand within
the economy of Indonesia. The major perspective behind the strategy formulation helps the
organization to manage the entire working in an effective manner (Pereira-Moliner and et.al,
2015). Star truck ltd require the proper strategy to make the entry into the market of Indonesia as
the entire functioning is based on the aspect to expand.
The economies of Philippines, Nigeria and Ethiopia are very fast moving and to make the
entry they require the more effective strategy to grow and expand.
Funding: It is the essential perspective which is required by the business unit to properly
define the different dimensions to make the expansions within the economy of Indonesia. The
proper financial resources are required by Star Truck Ltd to expand the business with the proper
utilization of the financial resources. This will help Star truck ltd to effective provide the proper
funding facilities to expand in the new economy of Indonesia.
As the economies of Philippines, Nigeria and Ethiopia are not financial sound to a certain
extent to carry out the entire functioning (Drake and Lawson, 2015). This will not help the Star
Truck Ltd to grow and expand.
As Star Truck Ltd is entirely new in the markets of Indonesia and they require the ample
amount of funds to make the entry and attain the purpose of expansion.
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Identify the options for success in different organizational, geographical & economical entities
In the present era, there are several options that determine the success of Star truck ltd
over the different perspective. These aspects ascertain the proper evaluation of the options which
help the business unit to expand in the economy of Indonesia. This will provide the best measure
that will help in the proper establishment and expansion of Star truck ltd (Qin and Chen, 2016).
The various aspects which will determine the success of the company and help in the adoption of
the respective option over the evolution of the entities that are discussed below:
Organizational entities: These entities determine the proper relation to manage the
entire working of the purpose to expand and grow within economy of Indonesia. Other
economies of Philippines, Nigeria and Ethiopia build up the weak relation with the new entrants
(Qin and Chen, 2016). These entities help in determining the proper procedure to carry out the
various operations which are essential for the purpose of expansion of the business unit within
the boundaries Indonesia. This help to effectively manage the different dimensions to manage the
resources in an effective manner to meet the defined criteria.
Geographical entities: These entities provide the proper position to the business unit and
occupy the exact location to define the different dimensions. This will help in building up the
connectivity and defining the interdependence of the different set of the criteria (Tan and Sousa,
2015). This will also help in defining the class as well as the dimensions to meet the expansion
criteria within the economy of Indonesia.
This will help Star Truck Ltd to effectively identify the best location which would benefit
the entire working of the business and help with the aspect of enlargement within the economies
of Indonesia. These entities clearly define the population, the province in which Star Truck Ltd is
entering the new economies that help to intend the growth and the expansion objective within the
economy of Indonesia.
Free entry in order to access the extensive aspect
Many of the countries provide the free entry in order to access the extensive aspect of
Star Truck Ltd over which they are determining the objective to expand and enter into the
economies of Philippines, Nigeria and Ethiopia.
Economical entities: it is separate from all the entities and help Star Truck Ltd to define
the financial activities. These are the assumptions which are generally made by the business unit
in order to expand to make the offering and enter into the economies of Indonesia. These are the
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key set activities which bear determined by Star Truck Ltd to grow and expand within the
economy of Indonesia (Hotho, Lyles and Easterby‐Smith, 2015).
The business activities are proper analyzed to make the proper decisions and ascertain
the requirement to claim the perspective to grow and enlarge the functioning dimensions within
the economy of Indonesia.
These entity form a proper framework which will help Star Truck Ltd to effectively
manage the different operations that are carried out and the operations are ascertained to meet all
the transactions that are proper evaluated for the purpose to operate and help in tackling the
different challenges that are meet up by Star Truck Ltd for the purpose of entering into the
economy of Indonesia.
As the economies of Philippines, Nigeria and Ethiopia are not financial sound to a certain
extent to carry out the entire functioning. The entities ensure the effective growth and
development within the boundaries of the certain elements.
Analysis of the different perspective of the emerging market
Investment environment: The business activities are proper analyzed to make the
proper decisions and ascertain the requirement to claim the perspective to grow and enlarge the
functioning dimensions within the economy of Indonesia.
The other countries such as Philippines, Nigeria and Ethiopia adopt strict policy to
manage the entire working and manage the environment. It is the essential perspective which is
required by the business unit to properly define the different dimensions to make the expansions
(Shumway, 2015). These are the key set activities which bear determined by Star Truck Ltd to
grow and expand. Proper evaluation is being determined for the purpose to operate and help in
tackling the different challenges that are meeting up by Star Truck Ltd for the purpose of
entering into the economy of Indonesia.
Effect of government: The government play a vital role in order to make the entry
economy of Indonesia. Alternative aspects that are related to the government policies and the
regulations are followed with the proper evaluation of the business transactions to carry out the
several operations (A Menendez, 2015). There are certain policies which are defined by the
government to regulate the entire working of Star Truck Ltd to make the entry and effective
ascertain the perspective to expand in the economy of Indonesia.
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Market potential: It will help Star Truck Ltd to measure the market potentiality to make
the entry into the market which ensures the effective growth and expansion. This will help in
building up the connectivity and defining the interdependence of the different set of the criteria
(Liu and Meissner, 2015). This will also help in defining the class as well as the dimensions to
meet the expansion criteria within the economy of Indonesia.
Assessment of the opportunities and threats in the emerging market
There are various opportunities and threats that are emerging at a greater extent in the
market and the trends changes simultaneously and on the frequent basis (Egan and Ovanessoff,
2011). This provides the best opportunities to the business unit which determine the perspective
to grow and expand within the economy of Indonesia.
As the economies of Philippines, Nigeria and Ethiopia lack to in the opportunities to grow
and expand. As these economies is fact growing in order to ensure that they tap new
opportunities to grow and expand within the economy of the countries.
In context to the present era, the business entity emerge the different opportunities for the
business to grow and expand over the larger perspective. This will provide the ample amount of
opportunities to Star Truck Ltd that ascertain the proper evaluation of the options which help the
business unit to expand in the economy of Indonesia. This will implicate the proper functioning
of the business unit over the set and the selected criteria as per the framed strategy that are
beneficial and help Star Truck Ltd to grow at a wider scale. But along with this there are certain
threats which are associated with Star Truck Ltd to grow as the economy of Indonesia is new as
they are entering into the market which have lots of opportunities to grow and expand
(Shumway, 2015). They require proper resources to deal with the threats and meet the
opportunities in an effective manner. This will help the company to make the entry over the
border perspective.
There are different threats that are associated within the economy of the country over the
larger perspective to ensure the effective growth and expansion.
Recommendations for making the entry
Companies are emerging with the perspective to make the entry into the market that
provides the effectual opportunities to meet the different outcomes in an effective manner.
Within the economy of Indonesia there are greater growth dimensions for Star Truck Ltd will
adopt the proper polices to make the entry effective and efficient manner. Proper investment
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policies should be framed by Star Truck Ltd to manage the entire working and make the entry
into the economies of Indonesia.
Conservative approach should be adopted by Star Truck Ltd to manage the entire
business functioning and effectively determine the investment technique to expand within the
economy of Indonesia.
The economies of Philippines, Nigeria and Ethiopia does not comprises of the different
opportunities to grow as the expansion is very extensive within these countries.
The chose country is good for imports because the place is filled with many resources.
Company like star truck can get high rate of customers for its products. The market has huge
potential as there is availability of both commercial and business customers.
CONCLUSION
From the present report, it can be concluded that for the purpose of expansion proper
resources are required and they need to be implemented properly to make the entry into the
economies of Indonesia. Further, it can also be concluded that the proper analysis of the market
will present the defined perspective which will help the business unit to expand and grow in an
appropriate manner. This will implicate the proper functioning of the business unit over the set
and the selected criteria as per the framed strategy that are beneficial to make the entry into the
four economies over the time frame.
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