Strategic Management and Global Marketing Environment Analysis Report

This report delves into the realm of global marketing strategies, examining various international approaches such as global, multi-domestic, and transnational strategies, highlighting their respective advantages and disadvantages. It presents a competitive analysis of prominent automotive industry players like Volkswagen and Toyota, evaluating their competitive advantages and employing tools such as SWOT analysis to assess their strengths, weaknesses, opportunities, and threats. The report also explores the application of balanced scorecards for performance measurement and emphasizes the significance of cultural considerations in international business operations. Furthermore, it recommends China as the optimal geographic location for establishing a global presence, supported by evidence of resource availability and market potential. The report discusses the potential impacts of such a decision on competitive strategy, growth, and expansion, concluding with a defense of the chosen strategy.

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strategic managemnt in dynamic environment
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Contents
Introduction......................................................................................................................................2
Types of international strategies..................................................................................................2
Advantages and disadvantages of global strategy for a company...............................................2
Strategic considerations for establishing companies in other countries......................................3
Competitive Analysis...................................................................................................................3
Volkswagen’s competitive advantage.....................................................................................3
Toyota competitive advantage.................................................................................................3
Balanced scorecard......................................................................................................................5
Cultural considerations................................................................................................................5
Geographic location to globalize the operations with evidence..................................................5
China........................................................................................................................................5
Japan........................................................................................................................................6
Recommendation.....................................................................................................................6
Availability of Resources............................................................................................................6
Impact of decision to establish the company in China................................................................6
Impact on competitive strategy....................................................................................................7
Growth and expansion due to decision........................................................................................7
Defending the decision................................................................................................................7
Conclusion.......................................................................................................................................7
Bibliography....................................................................................................................................8

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Introduction
The process of integration and interaction among companies, governments and people is
considered globalization. The companies globalize their operations and productions to gain
increased profit and growth in a long term. It is an opportunity for the companies to develop a
positive brand image globally. In the globalization approach company remains headquartered at
its place of origin and from their it controls the operations in various established countries. It
follows the standardized approach for its products and services (Beck, 2018). The standardized
products are available with little changes to the localized environment to it.
Types of international strategies
The types of strategies are global strategy, multi-domestic strategy, and transnational
strategy. The global strategy deals with standardizing the operations, products, and services
across the globe. The strategy does not consider cultural differences and follows the standardized
pattern for operations. The multi- domestic strategy focuses on changing the market policies and
strategies keeping in the mind the country where they are in operation. The policies and
strategies of the company working in various countries differs according to the company’s
culture. The other type of strategy is transnational (Hamel & Prahalad, 2017). In the
transnational strategy, the social and cultural differences among the nations are considered.
Advantages and disadvantages of global strategy for a company.
The globalization move by the company leads to expansion of its market size and target
market thus leading to increased profit. It improves the growth of the company in a long run and
betters their future. The expansion of its operations to many countries improves its brand value.
As globalization is a move that leads to establishment of its subsidiaries in various counties thus
helping in the fusion of great talents from the country (Beck, 2018).
The global strategy followed by a company lacks flexibility in its operations. As the
subsidiaries must follow the strategies and polices framed by the headquarter so it becomes
difficult for some localized employees to adjust in the environment. For example, a Global USA
automobile company set to establish in India. The pattern of working will remain same in India
and in other countries.

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It is a good move for the automobile company to globalize its operations in other
countries as it will give them an advantage to develop a brand image in other countries. It will
promote a great brand image of the company. The expansion of the business will promote its
growth and result in increased profits.
Strategic considerations for establishing companies in other countries
It is important to consider the environment of the market where the company is getting
established. The environment of the market can be analyzed by using various tools. The tools
used are SWOT and the pestle analysis. The Swot analysis will be helpful in knowing the
strength, weakness, opportunity, and threat of the industry (Song & Jin, 2017). The knowledge of
opportunities in the automobile sector of China will help the company to flourish by timely
utilizing it and the identification will be helpful in saving from the challenges and pestle will be
helpful in knowing the political, economic, technological, and social environment (ano-Rubio,
2017).
Competitive Analysis
The competitor’s analysis of the competitors of automobile company of passenger cars
are Volkswagen and Toyota (Ngai, 2016).
Volkswagen’s competitive advantage
High profits and revenue
High reliable cars
Focus on luxury and safety features
Alluring economical offers for purchase
Toyota competitive advantage
Highly detailed engineering
Good quality of engineering
Kaizen system of continuous upgradation in quality
SWOT analysis of Volkswagen

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Strengths
Availability of wide range of cars
Strategy of diversification
Association with local Chinese automaker
Weakness
Few incidents weakening the image of the
brand.
No expertise in manufacturing vehicles driven
by batteries
Opportunities
Acquiring competence and skills from
acquisitions.
Autonomous vehicles are in demand
To improve upon the sustainable policies
Threats
High competition
Increase in government regulations
Increase in the compliance fees for damage
SWOT analysis of Toyota
Strengths
Robust brand image
Effective Global supply chains
Continuous innovation
Weakness
Tall organizational structure
High confidentiality in organizational
structure
Opportunities
High opportunities in developing countries
Increased demand for fuel efficient
automobiles
Increasing interest in advanced electronic
vehicles
Threats
Increased market presence of low-cost
competitors
Innovative strategies adopted by competitors
The presence of these great players in the market affects the establishment of the
company in the global market as people prefer the global brands over small brands. These
companies have the diversified car options to purchase from. In the case of Toyota, the Toyota’s
threat of presence of low-cost competitors can be the opportunity for the company (Phadermrod
& Wills, 2019).

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Balanced scorecard
Balanced score card is a tool that can be used to measure the performance of the
organization. the balanced scorecard is helpful for the business in taking the strategic decision of
the business. The four areas of the business are measured that are internal business process,
customers, financial and innovation and learning. The tool is helpful in taking the strategic
decision of the business such in this case the decision to expand its operations in other countries.
The automotive company which is based in USA has good financial base that supports its
decision for globalization. The internal business process of the company is also effective thus
making it capable for establishing in the other countries.
Cultural considerations
The cultural differences also pose the problem in the establishing companies in other
countries. The language differences are the major problem in globalizing the company’s
operations. As the company is of USA establishing it in other countries result in major
differences in the cultural attitudes of the people. In China, organizational structure is
hierarchical and highly formal while USA the culture is very informal and follows a very flat
organizational structure. there is also a difference in the attitudes they way the people deal with
each other, Americans are usually straight-forward but people of China are soft-spoken. These
cultural differences can be covered up with proper strategies.
Geographic location to globalize the operations with evidence
China
The best geographic location to globalize the automobile company is China. As China is
the major producer for the cars, as the company has manufactured around 24 million of cars in
2017 (Marklines, 2019). The highest manufacture of passenger cars makes it the best location
for automobile companies to establish. After china comes Japan and Germany which are also the

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largest producers of the ca (Li, 2015)r. The other important reasons for the automobile company
to set up in china is the easy availability of resources or parts for manufacturing the best quality
cars. The parts used for manufacturing passenger cars are also available at low cost. The cheap
availability of unskilled labor in the country leads to low of cost of production. The low cost of
production leads to higher profits (Sun, 2016).
Japan
Another important location for setting up of automobile industry is Japan. The largest and
the greatest automobile countries are established in the Japan. The other important reasons for
the company to set up in Japan is the innovative and detailed-focused engineering that gives the
car with its competitive edge (Fullerton & Hattori, 2015). The cars manufactured in Japan are
known for its high reliability and quality. The company getting established in the country can
learn various innovative techniques of manufacturing cars thus improving the its long-term
profitability and growth.
Recommendation
It will be advisable for the company to establish its company in china due to the easy
availability of resources and labor at low cost and Moreover the company is the largest producer
of the cars.
Availability of Resources
There will be good availability of resources required for manufacturing the car as China
is the largest manufacturers of cars. The parts and components for designing a passenger car of
high quality will be easily available at low cost. The unskilled labors and technicians for
developing the cars of high reliability at low wages.
Impact of decision to establish the company in China
The decision for establishing the subsidiary of the automobile company in China will be
affected by various internal and external factors. As China is popular market for automobiles of
passenger cars so the components to manufacture the cars are easily available at low price. The
easy availability of the components of the cars makes it the perfect destination for establishing
car manufacturing plant. The cultural and the difference in the policies of the communist

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government of China in doing business good the reason for the company to deliberate its
establishment in the company.
Impact on competitive strategy
The lack of precision and detailed- focused engineering in manufacturing cars in China
could affect the high-quality of the cars. The competitive strategy of producing cars of values
could affect get affected in the long-run.
Growth and expansion due to decision
The decision to establish the enterprise in China will result in high growth rate as the
market of the US company will expand to Asia and the lower cost of production of
manufacturing the cars in China will result in higher profits and growth. The increased profits
will result in good financial position of the business.
Defending the decision
Someone with the opposing the perspective could think that the cultural differences such
as the straight forward attitude of Americans would not mix with the soft-spoken attitudes of
China. They might say that the cultural changes might lead to changes in polices of the company.
Their perspective could be defended that although there are cultural differences but they can be
adjusted with the minute changes in the policies and working style but the opportunities that
China offers in the automobile sector is huge which will result in huge profits and growth of the
company
Conclusion
The decision of establishing the enterprise in other countries is a major one and needed to
thought of it deliberately by analyzing all the pros and cons of it. as one wrong decision could
affect the company greatly in terms profits and growth. Various tools could be used to analyze
the environment such as Pestle and Swot analysis.

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Bibliography
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on research into their international strategies. . European Research on Management and
Business Economics, 23(3), pp. 132-146..
Beck, U., 2018. What Is Globalization. 1 ed. Berlin: John Wiley & Sons.
Fullerton, D. G. L. & Hattori, M., 2015. A model to evaluate vehicle emission incentive policies
in Japan. Environmental Economics and Policy Studies, 17(1), pp. 79-108.
Hamel, G. & Prahalad, 2017. Do you really have a global strategy?. In International Business. 2
ed. New york: Routledge.
Li, S. X. J., 2015. The price evolution in China's automobile market. Journal of Economics &
Management Strategy,, 24(4), pp. 786-810..
Marklines, 2019. China - Flash report, Sales volume. [Online]
Available at: https://www.marklines.com/en/statistics/flash_sales/salesfig_china_2017
[Accessed 15 September 2019].
Ngai, E. W. L. S. S. P. J. K. L. S. B., 2016. Design and Development of Intelligent Decision
Support Prototype System for Social Media Competitive Analysis in Fashion Industry.
Journal of Organizational and End User Computing, 28(2), pp. 13-32.
Phadermrod, B. C. R. M. & Wills, G. B., 2019. Importance-performance analysis based SWOT
analysis. nternational Journal of Information Management,, 44(2), pp. 194-203..
Song, J. S. Y. & Jin, L., 2017. PESTEL analysis of the development of the waste-to-energy
incineration industry in China. Renewable and Sustainable Energy Reviews, , 80(2), pp.
276-289..
Sun, Q. X. L., 2016. Energy pricing reform and energy efficiency in China: Evidence from the
automobile market. Elsvier, 44(1), pp. 39-51.

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