International Business and Globalization
International Business and Globalization
Introduction
It is easy to think of starting a company, but it is very difficult to think of the ways to make the company a profit earning company from the start, to expand the company and to make it known in different parts of the world. These are the most important things for the progress of the company, and if the business is unknown to people, it cannot achieve anticipated objectives of growth. Moreover, to apply these things a person should be well aware of the steps that how these things can be made applicable and how a company can reach the heights of progress.
In this report, all these steps about a company will be discussed. The contents that we will discuss in this report are how to make country and market analysis of the company, how to make marketing mix of a company, how to manage staff, how to enter in the global and international market. All these things will be discussed in detail in this report that will tell any other company about the steps of making a god company and how progress can be achieved.
The company name is “Southern Water”. It is a limited company founded in 1989. Its headquarters are in Worthington, West Sussex. The number of employees working for the company is 2092. It is regulated under the water industry Act 1991. The water act 1973 resulted in its formation. (Southern Water, 2016)
It company deals with water supply and sewage treatment of water. The duties of this process have been taken from local industries and have been given to southern water. It provide with pure water in different areas of the country and also clean the water that has been polluted due to different chemicals these days. It provides their services in different parts of UK. It also performs different tasks in the community (Southern Waters, 2016)
It provides swimming training to different students.
It also provides free education.
It provides awareness to people about water usage and water treatment.
Country and Market Analysis
Southern waters selected Pakistan to expand its business. As Pakistan is facing many problems in the treatment of water these days. A large number of people become sick due to this water pollution. A large number of chemicals from industries are mixed wit the water, and it is used in houses that lead to a larger number of diseases. So there is a need for a water treating company in Pakistan that provides Pakistan with clean water and also deals with sewage problems. The factors that are Important while starting a business in a new country are following:
Political Stability
Pakistan is facing some problems of political stability these days. However, these problems are not so much that they affect the problem of southern water. So it is not much difficult to start a business there. A little bit problems will be in the start but after that, it will not be difficult for southern water to operate a business in Pakistan.
Free market System
In Pakistan, there is a free market system in private organizations so southern water will run the company how it wants. It can keep the rates how much will be profitable for them. They can operate freely in the market. They do not have to take permission from the government to run their business.
Inflation Rates
Pakistan is improving its economy day by day, so the inflation in the prices is also decreasing day by day. The purchasing power of goods is increasing in Pakistan. Southern water can sell its products in Pakistan with profit which will take its business towards progress.
Corruption Levels
Southern water is expanding its business so it has a good idea that which people will suit best in their environment. The company understands the internal and external environment so it will not face the problem of corruption. It has been working for many years so it can easily judge people who are corrupt and who are honest so it can hire employees according to its requirements and this will prevent it from the problems of corruption.
Level of Existing Competition
In Pakistan, there are not many companies dealing in this process of treatment of water. So there will not be much competition in this field. Southern water will not face the problem of competition in Pakistan. As there are many problems of water pollution and sewage system in Pakistan so with more demand and less competition Southern waters can progress a lot in Pakistan.
Efficiency and Value of Existing Competitors
In Pakistan, there are not many companies dealing with sewage and treatment of water, so the competitors are very less in number. As Southern Water is a very old company, so it has much experience in this field so it can easily overcome its competitors. It has much experience in this field so its performance will be better than anyone.
Trade Barriers
Southern waters will not face a large number of trade barriers. Trade already occurs between Pakistan and UK, so it will not be difficult. Southern waters will be the first set up its small plant in Pakistan, and then it will start its proper business, so then it will not be difficult for Southern waters to trade (Parker, 1999).
Labor Force Availability
As in Pakistan, there are any educated people who are unemployed so it will not be difficult to find and labor force to operate in business. So labor force is easily available in Pakistan. The workers who previously go in other countries for the job will then not have to go and will find more job opportunities there in Pakistan (Czinkota and Ronkainen, 2005).
Transport Costs
Transport costs will be the costs in moving its sources from the UK to Pakistan. Southern Waters will face a little bit transport cost at the start, but once it sets its plant in Pakistan, it will not face such transport costs. Moreover, as it is a company having good profit do it will not be difficult for it to face transport costs.
Rate of expansion
Once Southern water sets up its plant in Pakistan, it will expand its business very rapidly in Pakistan. Because these water pollution problems are very common in Pakistan, and they will easily expand their business.
All of the factors mentioned above are very important to start a business in Pakistan. If we will start Business without looking at those factors, then it will take our Business towards a downfall and will affect our performance. For example, if there is much political instability there then the company will face many problems in establishing its business in Pakistan (Czinkota and Ronkainen, 2005).
Marketing Mix
The marketing mix for southern waters for starting business in Pakistan will be:
Products and services
The products of the company are:
Iron/odor filters
Residential water softeners
Carbon Filters
Residential Pumps
Dual Media conditioners
Filters
Drinking water systems
Coolers
Commercial Pumps (Jupiter SEO, 2015)
While selling its products in Pakistan, it should add such features that are easily understandable by the people in villages and other small localities where education is not common or first it should give people training of its products.
Price
Southern water offers its products at prices that are suitable and easily afforded by customers in Pakistan as it is the belief of people that the goods of more prices are of high quality so it should set its process according to the mindset of people there (Parker, 1999).
Place
Southern waters in now operating in the only UK. It provides services in different areas of UK. In Pakistan, it should place its product and services in areas where there are more water problems like different villages and localities.
Promotion
Southern waters promote its product and services through social media. In Pakistan, it should use newspapers and Advertisements on television to promote its product. The good advertisements mostly attract people so it will attract the customers towards the business.
Staffing Policy
Southern waters should use the recruitment policy for hiring the employees according to the education level of people applying for the jobs. In the start of business, Southern waters should not increase its staff so much. When it starts progressing then, it can increase its staff it will be better for southern water (Parker, 1999).
Market Entry Strategy
The basic market entry modes are:
Direct Export
Indirect Export
Licensing
Franchising
Joint Venture
The best mode of new market entry is direct exporting. For this Southern water do not have to sell their name to anyone, so it is not risky. It will see whether its products are sold or not then it will increase the supply of its products and with increasing demand it can also establish its centers and offices there.
Strategy for International Business Operations:
Global Standardization
Southern Waters should maintain its standards internationally good so that it can easily take its company to international markets. When people of different countries are aware of the products, then the number of customers will increase (Parker, 1999).
Transnational
Southern Waters should also become transnational so that the other countries or cities become aware of its products. It should also give awareness to people outside its national boundaries. It will expand its business.
International
Southern waters should also make its products internationally recognized. It will increase both their customers and also the trust of their old customers when they came to know that the products they use are internationally recognized (Parker, 1999).
Localization
Southern water should also make its product localized. It will increase its progress. It will help in attracting more and more customers from different areas. It will also make their products and services recognized in those areas (Parker, 1999).
Conclusion
The crux of the whole matter is that if Southern Water wants to start a business in any other country, then it should have to follow the factors that are mentioned above. It should focus on Marketing mix, staffing policy, new market entry strategies and international market entry strategies. These factors are important for the progress of Southern waters in any other country. Not only in Asia Southern Water will also progress its business in various other countries after focusing on the factors mentioned above.
References
Czinkota, M. R., & Ronkainen, I. A. (2005). A forecast of globalization, international business and trade: report from a Delphi study. Journal of World Business, 40(2), 111-123.
Parker, B. (1999). International Business to Globalization. Managing Organizations: Current Issues, 234.
Southern Waters,. (2016). About Us. Retrieved 27 February 2016, from https://www.southernwater.co.uk/about-us
