Please read carefully and Respond with at least 100 words or more each to three of your colleagues’ postings by doing the followings below:
- Suggest one or more additional approaches your colleague’s company might take to reach a global or domestic market.
- Identify additional benefits of diversification strategies for companies operating in domestic vs. global markets.
IMPORTANT:
- When giving your opinion and ideas it is mandatory to support your response with ‘fact-finding’ and quote any research studies you have access to – including your text.
ALL posts require support for the views expressed by the use of citations and references. In upper level courses, students must be able to (a) display sentence, paragraph, and essay level skills; (b) use evidence to support a claim in an academic argument and give credit to a source; and (c) provide the reader with document ation of research with a reference page.
ALL claims must be supported by scholarly sources
Please keep in mind that…
- language structure and spelling should be perfectly done (write your answers in MS Word or similar and grammar or spell check);
- citations and references are required – for ALL posts including responses.
- demonstration that you understand the content of the discussion topic is required.
Tips:
- Use examples from your own company or a company that you are familiar with or relate your topic back to your working environment.
- Use your textbook to support your thinking by referencing what you have learned (citations please for both your own posting and your responses to others’ postings),
- Conduct some research on the topic to add to your supporting citations. Make sure you bring your discussions back to the research and text.
The Discussion Assignment for Week 4: Post a 325- to 400-word (3- to 4-paragraph) analysis of the strategic approaches that businesses can take for domestic and global competition. In your analysis, include the following:
- Briefly describe your selected company, including its industry; whether it offers products, services, or both; the size of the company; and where it is located or where it operates (if multiple locations).
- For your selected company, which approaches do you think are most effective for reaching a domestic market? What about for a global market? Why do those differences exist?
- How does a diversification strategy benefit a company competing in a domestic vs. global market? What, if any, differences exist between the two?
- To support your response, be sure to reference at least one properly cited scholarly source.
Travis Post: First Colleagues Discussion Respond to Week 4
A company that I have become familiar with is CNH industrial. CNH (Case New Holland) provides products in areas of agriculture needs, light, and heavy construction equipment. They are in over 160 countries and have over 28 billion in sales annually and headquartered in the Netherlands. Areas across the globe include Argentina, Mexico, Italy, Brazil, Canada, England, Turkey, India, and Iran.
Domestic markets they are utilizing the existing market share that they have had a hold of since the combing of Case and McCormick as well as New Holland. This is a combination of well-established brands that they continue to build from. As technology and needs have changed so have the innovation that CNH has incorporated into their machinery in efforts to stay ahead of the competition in the domestic market space. Strategic Alliance Foreign Fast Food Menu Items Discussion
When it comes to entering the global market, they take the strategy of using acquisitions or internal startup to enter new foreign markets. CNH has acquired many small market companies like, Steyr Tractor, Iveco, and Astra in an attempt to get their product introduced and they tailored their product to match the demand in the region like producing sugar cane harvesters in Iran, the only place that this is being offered. The financial outcomes of global diversification are contingent on the quality of the multinational firm’s corporate governance: high (poor) quality corporate governance is associated with positive (negative) financial consequences attributable to global diversification (Salama & Putnam. 2013).
The more a company can successfully diversify the more the risk is spread out. Not having all your financial gains and pitfalls in one industry or one product the more likely you are to sustain a setback in that area or avoid specific economic downturns. Doing this on a global market is easier than a domestic market where you have more options for growth and acquisitions to enter other markets available.
Reference
Salama, F. M., & Putnam, K. (2013). The impact of corporate governance on the financial outcomes of global diversification. The International Journal of Accounting, 48(3), 364-389.
Canaan Perry Post: Second Colleagues Discussion Respond to Week 4
Walden University is a higher learning institution based in Minneapolis, MN. Currently, with its structure, students from around the country are able to earn a degree in various studies including nursing, education, and more! Education is a market that is constantly changing, especially now with the development of COVID-19. This makes this service industry difficult to navigate – that is if the organization does not respond to market indicators.
Walden University not only has the ability to expand domestically but to expand globally as well. By offering more attractive services for those who have full-time obligations yet desiring to obtain a degree, Walden develops a competitive advantage domestically. Also, offering comparable pricing for international students attending, while capitalizing on technological advancement, Walden may also become a strong contender in the market of education world-wide.
For many families in the United States, a deterring factor for returning to school is “time”. Having the time to dedicate to studies may prevent one from seeking to further their education. Developing a plan that would alleviate this factor places Walden in a competitive advantage. Creating methods and paths to completing a program in a reduced time is an appealing benefit. By joining or partnering with another organization such as Straighterline, Walden is now able to offer students a method to complete their degree in a reduced time period. This joint venture allows Walden to offer an opportunity to individuals (Gregg Learning, 2018).
For international students, strategies to develop services specific to the location while maintaining the quality education provided would benefit Walden greatly. This approach to education globally is referred to as a transnational strategy (Morris, 2017). Doing so allows Walden to identify the specific needs of students based on their location and integrate them into the process and standards of learning. These two methods place Walden at a competitive advantage.
Gregg Learning. (2018). Business diversification [Video file]. Retrieved from https://www.youtube.com/watch?v=50-d__Pn_Ac
Morris, S. (2017). International strategy [Video file]. Retrieved from https://www.youtube.com/watch?v=z7M1vQTvkx4
Alan Meade Post: Third Colleagues Discussion Respond to Week 4
The company that I chose to write my discussion post is on Shane’s Rib Shack, a BBQ restaurant that started in a small town in McDonough, Georgia in 2002 and has grown to 63 restaurants. Most of the restaurants are in 9 states in the southeastern region of the United States, and 1 restaurant in Massachusetts and 2 restaurants in Arizona. Shane’s Rib Shack employs 2,040 employee’s and had revenue last year of $369 Million. The reason I chose this company is because I grew up with the founder and CEO of the company Shane Thompson. I can remember eating the BBQ he now serves in his restaurants at his grandfather’s house, which is where the recipes for all his food came from.
When a restaurant like Shane’s looks to expand domestically, it must take into consideration the type of food that is going to be served. Since BBQ is a niche item in many parts of the United States and mostly popular in the lower half of the United States, opening a restaurant where the type of food is not very popular would require an in-depth marketing plan. Lorette (2017), a writer for small business chronicle website states, “Every business requires a strategy for marketing. Restaurants are no exception. In fact, some may argue that restaurants must fight for every customer even more than retail stores because it seems that in slower economic times, families are excluding (or at least reducing) dining out from their budgets. In marketing your restaurant, you will acquaint yourself with your target customer, your competition, brand-building techniques and advertising opportunities.” Even with great tasting high quality food, if the marketing fails to reach people to let the consumer know about the restaurant, the restaurant will not be able to succeed.
Like the different regions in the United States, taking a BBQ restaurant like Shane’s Rib Shack globally to another country would be a risky venture. One of the four reasons that Thompson (2018) mentions come in to play in Shane’s instance. The first is the presence of important cross-country differences in buyer tastes, market sizes, and growth potential. Introducing a new type of food to a country, as well as finding suppliers for the food would be a costly investment in the beginning. There is also the risk that the residents in this new country are willing to try a new restaurant as well as a new type of cuisine. Strategic Alliance Foreign Fast Food Menu Items Discussion
When a business looks to diversify globally, one of the factors that is considered is control of the economic, legal and cultural factors. Although the business can not control these factors, it is far easier to respond to the factors domestically compared to internationally. Domestically the factors will be affecting the company in the same way and will be easier to maintain a plan to deal with the factors. In trying to diversify Shane’s Rib Shack into newer area’s or growth would require getting away from what it built it name on and what it does best, serve good food and give back to the community that supports that restaurant (Shanesribshack, n.d). Keeping this type of service on a global scale would require changes in the way they do business, and that could lead to a bad image on the company.
It All Started at the Shack. (n.d). https://www.shanesribshack.com/our-story/.
Lorette, K. (2017). How to Develop a Marketing Strategy for a Restaurant. https://smallbusiness.chron.com/develop-marketing-strategy-restaurant-1407.html.
Thompson, A. A. (2018–2019). Strategy: Core concepts and analytical approaches (3rd ed.) [BSG electronic edition]. Burr Ridge, IL: McGraw-Hill Education.