Hunter Mason's International Business Strategy: A Detailed Analysis

This report provides a strategic management analysis of Hunter Mason, an Australian SME specializing in interior fit-outs and refurbishment services, focusing on its international expansion into China. The report begins with an overview of Hunter Mason and the rationale for choosing China as a target market, highlighting the country's large population, economic strength, and favorable business environment. It then discusses the selection of China and the product choice of providing fittings and refurbishments for corporate clients. The report explores relevant strategic theories, including contingency theory, evolutionary theory, organizational theory, resource-based view, and positional view, and how they can be applied to Hunter Mason's operations. The analysis culminates in a recommendation for a partnership market entry strategy, considering the company's financial constraints. The report concludes by emphasizing the importance of adapting to the Chinese market and leveraging local partnerships for successful international business operations. The report is based on the assignment brief provided and the student's solution is available on Desklib.

Running head: STRATEGIC MANAGEMENT ANALYSIS
STRATEGIC MANAGEMENT ANALYSIS
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction....................................................................................................................2
Main discussion..............................................................................................................2
Background................................................................................................................2
Country choice and product choice............................................................................2
Useful theories and concepts in Strategy Design.......................................................4
International business Strategy choice.......................................................................6
Strategic implications of the choice...........................................................................8
Conclusion......................................................................................................................9
Reference list................................................................................................................10

2STRATEGIC MANAGEMENT ANALYSIS
Introduction
A modern organization can enter different international markets with the help of
different methods of market entry that are implemented with respect to the requirements of
the organization. The country that is selected for entry of the organization is able to play a
major role in the development of the future operations of the global or multinational
organizations. The organization that has been considered in this report for the analysis of
international marker entry belongs to the SME or small and medium enterprise group in
Australia. The report will also provide a detailed analysis of the strategies that can be
implemented by Hunter Mason on an international basis in the selected country of expansion
(Ambler, Witzel & Xi, 2016).
Main discussion
Background
Hunter Mason is the small or medium company that has been selected for the analysis
in this case. The organization is planning to expand its business operations to China where it
is provided with the opportunity to develop a larger customer base due to the population of
the country. The company mainly provides interiors fit outs and the refurbishment services to
the corporate clients. Hunter Mason has also been able to develop its position as the one of
the fastest growing SME in the world. Australia is the major domestic market that is catered
by Hunter Mason with the help of different products that are offered to the customers.
Country choice and product choice
The country that has been chosen for expansion of Hunter Mason is China. The
organization aims at increasing its presence on a global basis along with the customer base.
The large population of the country provides a huge market to the organization in order to
maintain its operations in a profitable and sustainable manner. The economic position of

3STRATEGIC MANAGEMENT ANALYSIS
China is also considered to be a major factor related to the choice of the country for
expansion of Hunter Mason. China is the second biggest economy in the world after the US
and the country is able to provide huge levels of growth opportunities to the organization
(Angelsberger et al., 2017). The profitability levels of Hunter Mason will also be increased
with the help of expansion plans that have been made by the organization. The purchasing
power of the customers is high and they will support the growth of Hunter Mason in a huge
manner (Buckley, 2016).
The demands of customers can also be fulfilled by the organization by offering them
with the unique products that are developed currently by Hunter Mason. The company mainly
provides fittings and refurbishments for the corporate clients and will be able to attract the
individuals and corporate houses in the country who are willing to make investments in the
development of different construction projects. The purchasing power of the customers in
China will provide maximum levels of support to the organization in order to maintain the
levels of profitability and maintain the revenues as well (Buckley & Ghauri, 2015). People of
China also tend to follow the different trends in the market and will be attracted towards the
modern products that are offered by Hunter Mason. The Government of China also aims at
providing support to the demands and needs of the consumers (Cuervo‐Cazurra et al., 2017).
The rights of the consumers are protected in a huge manner by the laws and
regulations that are developed by the government. Small and medium organizations are also
supported in China and the government provides opportunities to them in order to maintain
the operations in a profitable manner. The technological environment in China is highly
advanced and is considered to be a major factor behind the operations of different
organizations in the country. Hunter Mason also has the opportunity to receive support from
the technologies and develop the products in an effective manner as well (Dodgson, 2018).
The modern trends are able to play a major role in the development of different products by

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Hunter Mason. The people of China will also accept trendy and different types of products
based on needs and demands of the customers. Investments that are made by the organization
are able to play a major role in the development of a huge customer base in China. Hunter
Mason will receive major levels of support based on the ways by which the company is able
to develop the operations and create a major presence in the country as well (Hamel &
Prahalad, 2017).
The environmental issues that are faced in China are solved effectively with the help
of policies that are developed by the government. Hunter Mason will thereby need to follow
the regulations in order to continue its operations in the country in a sustainable manner.
China mainly provides importance to the levels of innovation that are implemented by the
organizations in order to maintain the revenues and profitability in an effective manner
(Hamilton & Webster, 2018). Hunter Mason can offer innovative products to the customers
in order to attract large group of consumers towards the organization. The products will also
be used by the corporate houses in China and the investments that can make are also quite
high (Hitt, Li & Xu, 2016). Hunter Mason will need to develop the products in such a manner
that will be able to fulfil the needs of corporate houses within the budget that is developed
and settled by them. The development of the innovative fittings for interior decorations will
be considered as a major aspect of the operations that will be developed by Hunter Mason
(Holmes et al., 2018).
Useful theories and concepts in Strategy Design
The development of effective strategies will be a major factor that is related to the
profitable and sustainable operations of Hunter Mason in China. The implementation of
particular theories will be able to support the growth of the organization in China and to
increase its presence on an international basis as well (Hotho, Lyles & Easterby‐Smith,

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2015). The specific theories that can be implemented by Hunter Mason in order to maintain
its operations are as follows,
 Contingency theory – Contingency theory is based on the strains that are faced
by an organization like Hunter Mason in terms of the concept of SARFIT
(structural-adaptation-to-regain-fit). The managers and senior employees
Hunter Mason need to adapt to the changes that can take place in the external
environment due to expansion based operations. Different factors that are
taken into consideration in order to develop the operations include,
technology, levels of diversification and the contingencies-size. The managers
of Hunter Mason will need to adapt themselves in such a manner that will help
in development if the organization in a new environment. The performance of
the organization will also suffer in a huge manner due to changes and
contingencies that take place in business environment (Jannesson, Nilsson &
Rapp, 2016).
 Evolutionary theory – The organizations have to evolve in such a manner that
will help them to exist in the constantly changing environment. The process of
evolution of the organizations are based three major processes that include, the
variations, selections and retentions. The strategy thereby consists of the
production of requisite variations from which the advantageous positions,
patterns or the configurations are selected and retained as well. The proper
evolution of the operations of Hunter Mason is considered to be an important
part of the growth that can be gained by the organization in China (Kossyva,
Sarri & Georgolpoulos, 2015).
 Organizational theory – Organizational approach to the strategy mainly
maintains that the structures and strategies that are dependent variables and are

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based on the performance of the organization as well. The competitive
advantage that can be developed by Hunter Mason in the industry is also based
on the competency that can be applied in the new market environment
(Mangematin, Ravarini & Sharkey Scott, 2017).
 Resource-based view – The distinctive competencies of the organization have
been a major focus related to the ways by which different customers and
markets are targeted. The resource-based view is able to provide a detailed
analysis of the internal capabilities and resources of the organizations. The
resources and capabilities of Hunter Mason will also be analysed in a detailed
manner in order to understand the value that the company provides to the
customers and levels of products that they develop (Meyer & Peng, 2016).
 Positional view – The theory of positional view is also related to the focus that
is provided to the position that has been formed by an organization in the
market or the industry. The strategy related to the continuation of operations
will also be developed based on the position that is formed in the industry and
has been maintained for a long period of time as well. Hunter Mason will form
its strategies with respect to the position that the organization had been able to
form in the industry in the domestic operations (Rugman & Verbeke, 2017).
The theories that have been discussed above can be used by Hunter Mason in order to
develop strategies that will be useful for the future operations in China. The environment that
will be faced by the organization in China will be able to affect the proper development of
strategies in order to gain high levels of profitability (Samiee & Chirapanda, 2019).
International business Strategy choice
Hunter Mason is an organization that operates in the construction management based
industry and is also able to provide high quality based services to the customers. The

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expansion of the operations in a different country however requires high levels of
investments by the organization. However, the organization lacks financial resources and
stability that are required for the development of effective operations. Hunter Mason will
thereby need major support from another organization in order to develop the operations and
the manufacturing facilities as well (Tallman, Luo & Buckley, 2018).
The market entry strategy that can be implemented by the organization in order to
start its operations in a country like is partnership. Partnership strategy will provide support
to Hunter Mason in order to the develop the operations and manufacturing facilities in the
country as well. The requirement of capital will also be reduced in the process and the
organization will be able to increase its presence on an international basis as well. The
reduction of investment requirement will have an impact on the expansion plans that are
developed by Hunter Mason (Thomé & Medeiros, 2016). The partnership with a local
Chinese organization will be helpful for the organization to gain information based on the
market and the customers. The limited levels of funds have an impact on the plans based on
expansion. The operations of an organization on an international level will be influenced in a
huge manner by the support that is provided by the partner (Tallman, Luo & Buckley, 2018).
The business model that has been formed by Hunter Mason will be supported by the
financial resources that can be offered by the partner. The local partner will also be able to
affect the ways by which Hunter Mason can understand the demands and needs of the
consumers. The strategy that will be developed by Hunter Mason will also be influenced in a
huge manner by the support that is provided by the local partner of the organization. The
future operations of Hunter Mason in China is considered to be a major aspect that will be
assisted by the partner in the country (Jannesson, Nilsson & Rapp, 2016). The needs of the
customers and corporate houses in China will be analysed effectively by the partner of Hunter
Mason in the country. Future operations of Hunter Mason can be influenced by the

8STRATEGIC MANAGEMENT ANALYSIS
employees of the local partner organization. The local employees have an understanding of
the culture in China and will be able to help the employees of Hunter Mason from Australia
to understand the culture and the needs of consumers (Tallman, Luo & Buckley, 2018).
The business model of Hunter Mason that is related to the supply of construction
management based facilities will be influenced by the partner organization in China. The
model that is followed by the local partner can also have a major impact on an organization
like Hunter Mason. The entry of Hunter Mason in the Chinese market will be supported in a
huge manner by the levels of financial resources that are offered by the local partner
organization. The organization that belongs to the host country will be able to influence
Hunter Mason and the different strategies that have been developed by the organization as
well.
Strategic implications of the choice
The requirement of resources for implementation of international business strategy is
quite high in case of a small medium enterprise like Hunter Mason. The human resources or
employees will play a major part in the successful expansion of the organization in China.
The host country provides major growth opportunities to the organization in order to maintain
the operations and increase the profitability levels as well. The recruitment of new employees
can be related to the knowledge that they have based on the products that are offered by
Hunter Mason to the customers (Mangematin, Ravarini & Sharkey Scott, 2017).
The ways by which the employees are able to deal with the corporate clients will also
be considered in order to recruit the suitable people for the organization. Financial support
will be provided by the partner organization of Hunter Mason in China in order to maintain
the operations effectively. On the other hand, the senior managers and leadership of Hunter
Mason is also an important part of the development of the operations of the organization. The

9STRATEGIC MANAGEMENT ANALYSIS
leaders will provide major levels of training to the employees who will be a part of the
Chinese operations of Hunter Mason (Rugman & Verbeke, 2017).
The marketing and promotional activities will affect the levels of awareness that are
developed by Hunter Mason in the country. Promotions and advertisements of the
organization can have a major impact on enhancement of the presence of Hunter Mason in
China. The environmental issues that have taken place in China need to be taken into
consideration by Hunter Mason in order to develop the production and manufacturing based
operations of the organization. The operating process of Hunter Mason will be totally based
on the regulations that have been developed by the government of China in order to maintain
the quality of the environment (Ambler, Witzel & Xi, 2016).
Conclusion
The report can be concluded by stating that a small medium enterprise like Hunter
Mason needs to make a detailed plan in order to expand its operations in a different country.
The expansion of Hunter Mason in China will be supported by the partnership based market
entry strategy that will be applied by the organization. The international business strategy that
will be developed and implemented by the organization will support the future growth levels
of Hunter Mason for a long period of time. The human resources and leadership of Hunter
Mason will have a major impact on the growth and operations of the organization in a
different country.

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Reference list
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