Report: Strategies and Challenges for Tech Company's Global Expansion

This report analyzes the global expansion strategies of Tech Company, focusing on its entry into the Central European market. The report begins with an introduction highlighting the importance of global management and the factors influencing the global environment. It then explores the challenges Tech Company faces, including differing market preferences, customer demands, and cultural differences. The literature review examines various market entry strategies, such as standardization, promotion, and marketing plan development, referencing the views of several authors. The report discusses the importance of setting goals and objectives, and the impact of issues like climate, lack of education, and economic opportunities. It also covers safety and security, joint ventures, social media marketing, and mergers and acquisitions as potential strategies. The analysis provides a brief overview of the pros and cons of each strategy, ultimately aiming to provide recommendations for Tech Company's successful global expansion.

MANAGING
GLOBAL CONTEXT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
IMPORTANCE OF ISSUE.............................................................................................................1
LITERATURE REVIEW................................................................................................................1
ANALYSIS......................................................................................................................................5
CONCLUSION AND RECOMMENDATIONS............................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Global management define international manage business services, sales, marketing,
hiring and finance practise. The global environment includes board rang of factor that will be
effect on geographic, politics, technology, culture economic status of global environment. The
global business is one that is operating in different countries with factor of the organisation,
decision making for improve global business. Tech Company performs well in Chinese market
but now, it is planning to establish its branch in European countries. Every year, company
generates revenue more than previous year. Now, company is at 4th rank across world for
manufacturing smart phone, TV, Mobile app and in China, it was at the 2nd position. In this
report, importance of issue of global environment will be highlighted with the strategy of
expanding business. Also, the way it will help company to develop business in other country will
be studied. In the study we highlighting issue that face company for expanding time.
IMPORTANCE OF ISSUE
Tech Company faced many issues before expanding their business or before entering in
Central European market. Market of Central Europe is different from Chinese markets and
preferences and demands of customer with trends of market vary from each other. Present study
will help in addressing the issues which will help company to develop effective strategic
marketing planning, decisions and actions. If company does not look for available or upcoming
issues, it can come as more complex situation in the future for organisation. Study will help
Tech Company to analyse various strategies which should be applied by the industry. It is
important to understand the international management and global environment. This study gives
knowledge regarding how to enter in the new market and get established successfully.
LITERATURE REVIEW
As per the view of Chen, Widjaja and Chen, (2018) market entry is a process of
developing business in other country so making polices and planning for attract customer and
improve company profit. Standardization is improved company’s productivity and minimised
product cost with a strong brand image. So, company has improved production and profit. Tech
Company wants to develop business in the central European country. So, company manages the
product’s cost for inviting customers to use Tech product. Company standardization defines
company productivity is good and company services is effective.
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According to essler, Prandini and Wu, (2014) company uses promotion strategy for
developing customer’s knowledge regarding improved company’s products and profits. The
Tech Company develops their business in competitor market i.e. central Europe and so, it makes
the promotion strategy for developing company’s product. Now, Chinese company, Tech makes
promotion strategy for European market for which it researches and analyses customer needs and
development. Company makes promotion only for improving company’s productivity but
according to promotion, company not give product and services company promotion strategy use
only for making company profit not for the customer.
Kalotay, (2015) stated that developing marketing plan for expand their business in central
Europe market so the company make research for the analysing customer need and customer
attraction the company also make research for knew the customer reaction about the product and
what strategy use in the market for develop new product so the company make many types of
promotion strategy and company also use price strategy. The company also makes plan for
achieving company’s objectives and goal, so the company Tech make team for improve product
life cycle and customer attraction. Marketing team work for the company to develop product in
market and analysed customer need. Human resource department hires employees for local area
markets because that employee knows the customer’s demands and expectations in a better way.
Teams of production and information technology department work for developing products and
collecting information about the product.
As per the view of Chen, Widjaja and Chen, (2018) setting goal and objective is helpful
in establishing branch in European country. Company sets objective for achieving the target. So,
The Tech uses different types of strategies and plans as well as company also follows the same to
reach at final objectives and goals.
Important issue of global market: the issue of the global market that will be define
company face issue for develop business in other country the issue effect the company
production, promotion, planning and other issue.
Kubátová, (2012) states climate will be effect on the product development and
production. When company try to hire there county employee that will be effect on the company
production price and some time the clime change so the employee are not adjunct and left the job
so the company hire local market employee so the company train employee for the work and
give proper training according to employee work. The Tech establish their business in the central
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Europe market. That will be effect on the company production and other activity. But author
Nariswari, (2017) say company show only inters on develop their business. Climate will not
effect on the Tech business in the central Europe market. The company has many opportunities
for develop their product in the market but company show they face issue for climate and other
so the company charge extra there customer for develop company product and business.
Lack of education: according to author Piekkari, Welch and Welch, (2014.) define
company Tech want to develop their business in the central Europe market so the company has
hire worker in the organisation that time in some place company management team face
education an issue because some areas' education was not developed so the company have to hire
employee at other place and they have to pay high cast for hiring the employee. That will be
effect on the company product cost and nature of the employee. Lack of education so the
company change and make new promotion strategy for the product development. According to
Author... say the company only show that they face issue for the employee knowledge. If
company want to hire local worker that time the company give employee training and knowledge
about the work performance. The company also try to give local employee knowledge and hoe to
manage work in the working environment. That will be help company to minimise production
and worker cost.
Lack of economic opportunities and employment: as the author Newburry, (2017)
company Tech expand their business in the central Europe market but it faces lack of
opportunities for the product development and try to reach company product goal and setting. So
the company make different types of strategy and planning bet the lack of opportunities all plans
and polices will be failed. The company Tech face lack of employment opportunities in the
central Europe market because the most are people have own work so the employee are not
interested work in the company. The china company work for develop company market business
in the organisation for develop economic opportunities and employment opportunities.
According to author Ranta, Aarikka-Stenroos and et. al., (2018) the company not work for
develop economic condition so and show the company Tech try to develop company economic
commotion. The company launches many types of product and services for improve company
productivity and profitability. So the company make different types of employee but the
company actual improve company productivity and printability.
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Safety/ security: Tech give its employee safety and security tools like Mechanical Aids,
personal protective equipments , clear instruction for working on hazardous machines,
emergency facility etc, to improve its working conditions and working environment. The
company now planning to expand its business in central Europe so the company required hiring
new employee. For this purpose Firm try to attract new people by rendering them attractive
package, best job security and safety options for work. The company also care for its employee's
safety for which it gives regular medical check-up facilities to employees. Company also give
security to employee's personal data. According to author Vance and Paik, (2015) Company only
doing show off and act like it cares for its human capital but in reality it did nothing for
employee's welfare and interest.
As per the view of Yip and McKern, (2016) joint venture is a common way of combining
resources of two unrelated companies. Authors said that this type of partnership usually offers
great advantages, but it can also contain certain risks because arrangement of this category is
highly complex. The advantage of this strategy is that it can help Tech company to grow their
business faster in the global market. It helps company to access the new market and distribution
network effectively. Flourishing in Central European market have a lot of risks in its own, so the
strategy will help company to share the risks and costs with partner company. Also, company
can successfully access to greater resources, specialised staff and technology in the new market.
It provides the opportunity to gain new insight and expertise of Central European market.
According to Allen, Lee and Reiche, (2015) in joint venture different companies work together.
People with different beliefs, tastes and preferences and result in poor management style co-
operation and integration. As the joint venture companies are from different areas with different
goals, this is not an appropriate style for Tech Company in context of global expansion.
According to Yuting, (2018) social media marketing can be effective for Tech Company
as it can influence Central European consumers in a positive manner and help to target the
specific market. Social media marketing refers to applying marketing tactics through internet
such as Facebook, Instagram, Emails and SMSs, YouTube or many such platforms. Author says
that the use of social media marketing is cost effective and is able to grab a wide range of market
and target consumers. By using social media, company is able to make the consumers aware by
introducing products and services provided by Tech. Also, it will lead company to use their
marketing strategy effectively. It performs as a great platform for customer engagement.
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On the other hand according to China’s Huawei to up investments and staff in Romania,
(2014) social media have its own negative effect. According to the author Hitt, Li and Xu,
(2016) marketing on social media is hard to control and can affect the brand image. Negative
comments can affect the behaviour of upcoming consumers in Central European market. The
more complaints company get on social platform, more brand will suffer. It also increases level
of risk for Tech Company to maintain the image of brand in expanding in new market. The social
media marketing needs continuous monitoring and managing. Company needs additional
resources as well to manage the online presence.
Kalotay, (2015) stated that Merger and Acquisition is an effective strategy for company
where merger is when two companies decide to join forces and share the risks, profits and losses
equally or rationally and acquisition is when one company takes over another by purchasing it.
Tech Company can use this strategy to avoid or decrease the risk of failing in new market in
decision of expansion. Also, it will helpful for organisation to create multiple growth
opportunities in the Central European market. Merger and acquisition increases the market share
and gives tax benefits to organisation in global market.
And Alden and Nariswari, (2017) mention that merger and acquisition can increase
business complexities and debts owned by the organisation. Tech is a Chinese company and if it
chooses to be merged in the Central European industry, differences in corporate culture can
create stress within organisation and employees. It will be difficult for company to do adequate
valuation of target. According to the author, strategy cannot be used in global expansion
situation for the tech company, as firm is already famous in China and this strategy results in
increasing the risk of building same brand image in Central European market.
ANALYSIS
The study is based on reviews of different authors and gives a brief of pros and cons of
various strategies. The study discussed about several issues faced by an organisation while
expanding in new market. Issues are related to the employees, consumers, market environment,
marketing issues, etc. According to some authors, the strategies mentioned are effective and
positive while, as per others, Plan of industry might result negatively for Tech Company to
expand in the Central European market. After mentioning issues and strategies of Tech, the
study can analyse that joint venture is not appropriate for company as it creates complexity in
expansion. Social media marketing is an effective strategy for company to access the wide
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market of Central Europe. It is high managing process but in today's competitive market, social
media platform is an effective tool. Various issues was analysed in the report, such as lack of
education, environmental factor which include external and internal. These issues affect the
organisational decision, but from a proper planning they can overcome these problems. For
example; lack of education can solved by giving proper training to the employees in the
international market. And consumer can be aware by marketing strategy and effective
advertisement. Environmental issues can be resolved by proper implementation by leader and
manager of the firm.
CONCLUSION AND RECOMMENDATIONS
Tech Company is a famous Chinese organisation that is planning to expand in the Central
European market. The report analysed problems which might be faced by company in global
expansion. Also, the study discussed about strategies such as joint ventures, social media
marketing, etc. that can be used by the Tech Company for successful business process in new
market. Lastly, it concluded the analysis of overall study where the most effective strategies that
should be implied company is discussed with specifying those that should not be implemented.
It is recommend to the Tech Company to develop an effective strategic structure and to
use the marketing tactics to build company’s image in the new market. It is also suggested to the
firm to use social media platform as a marketing tool to cover all target markets of Central
Europe Market. Organisation should implement the strategy to fulfil lack of employment in
market by merger or acquisition in Central European companies. Organisation should determine
the environmental factor of new market and take actions according to the strengths, weaknesses,
opportunities and threats of Tech Company. Tech company should start a campaign to grow in
international expansion by preparing business plan, it will help in to evaluate needs and set the
goal. It is recommend to the firm to conduct foreign market research and identify global market
also it is important to evaluate and choose a method of distributing company's product.
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REFERENCES
Books and Journals
Alden, D. L., & Nariswari, A. (2017). Brand Positioning Strategies During Global Expansion:
Managerial Perspectives from Emerging Market Firms. In The Customer is NOT Always
Right? Marketing Orientationsin a Dynamic Business World(pp. 527-530). Springer,
Cham.
Allen, D. Lee Y. T & Reiche, S. (2015). Global work in the multinational enterprise: New
avenues and challenges for strategically managing human capital across borders. Journal
of Management.41(7). 2032-2035.
Chen, J. V. Widjaja, A. E. & Chen, B. (2018). The Relationships Among Environmental
Turbulence and Socio-Technical Risk Factors Affecting Project Risks and Performance in
NPD Project Teams. In Global Business Expansion: Concepts, Methodologies, Tools, and
Applications. (pp. 1353-1373). IGI Global.
essler, E. Prandini, M. & Wu, J. (2014). Chinese Companies in Switzerland.Central European
Business Review. 3(3). 23–30
Hitt, M. A., Li, D., & Xu, K. (2016). International strategy: From local to global and
beyond. Journal of World Business, 51(1), 58-73.
Kalotay, K. (2015). 11. Acquisitions as engines of foreign expansion of Russian multinationals.
Handbook of Emerging Market Multinational Corporations. pp.239.
Lessard, D. R., (2018). Aspen Aerogels: a capability-based framework for global expansion. The
Business & Management Collection.
Newburry, W. (2017). Dimensions, Contexts, and Levels: A Flourishing Reputation Field with
Further Advancement to Come. Corporate Reputation Review, 20(3-4), 183-185.
Online
Piekkari, R. Welch, D. & Welch, L. S., (2014).Language in international business: The
multilingual reality of global business expansion. Edward Elgar Publishing.
Ranta, V AND et.al (2018). Exploring institutional drivers and barriers of the circular economy:
A cross-regional comparison of China, the US, and Europe. Resources, Conservation &
Recycling. 13. 70–82.
Vance, C.M. & Paik, Y., (2015). Managing a global workforce. Routledge.
Yip, G. S., & McKern, B. (2016). China’s Next Strategic Advantage : From Imitation to
Innovation. Cambridge, Massachusetts: The MIT Press.
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Yuting, L., (2018). Book review: Rebecca Piekkari, Denice E Welch and Lawrence S Welch,
Language in International Business: The Multilingual Reality of Global Business
Expansion.
online
China’s Huawei to up investments and staff in Romania. (2014). Retrieved from
<https://login.ezproxy.utas.edu.au/login?url=http://search.ebscohost.com/login.aspx?
direct=true&db=bsu&AN=95314805&site=eds-live?
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