Curative International Marketing Construct †MyAssignmenthelp.com

Question: Discuss about the Curative International Marketing Construct. Answer: Introduction: International management is the technique of being responsible for business operations in several countries simultaneously. This requires that the parties involved, that is the international management professionals, be acquainted with the language, cultural, economic, legal, political and business practices of the country of interest in order to efficiently and effectively conduct business (Eisend et al, 2016). International management helps in market expansion and also in improving individual living standards for various people. This is based on the fact that with the growth and expansion of business, there is creation of jobs in different countries (Key et al, 2016). Even though like many other business growth strategies it has its disadvantages like challenges in acquiring knowledge of a peoples culture, international management is one of the best ways in growing a business as it is based on diversification. Situated in different countries across the globe, Welspun group of companies would find it difficult to find the right people at the right time and with the right skills and talent to carry out various activities. Even if a particular company is acquired, it would be impossible to acquire all its employees as well because that company has entered a whole new level of conducting operations and it is probably answering to a new management (Eisend et al, 2016). The companys strategy for growth involves geographical and product diversification which requires different capabilities to succeed. This makes the process of hiring time consuming especially for the senior team which should comprise professionals who are conversant with the culture, economic, political and business practices of a particular country, for example the chairperson. The growth of the company through globalization is faced by various cultures which may affect the companys development negatively. Leadership and management styles may differ from country to country making it difficult to adopt the most popular strategy for management in the group everywhere, even if it possibly could also be the most rewarding (Adler et al, 2017). The culture of people also affect the manner in which communication takes place in an organization as well as what is communicated. Welspun group of companies therefore would have a problem in adopting different ways of life in order to expand their operations across the globe. Rising Operation Costs Welspun group of companies was founded at a time when technology was not as efficient and as fast changing as today. Based on this fact, the company would have incorporate large amounts of cash in adoption of the modern technology. This is obviously unavoidable if the groups mission is growth and development. As it diversifies its operations into other industries and geographical region it incurs costs in acquiring the needed companies and hiring people with the right skills (Chabowski et al, 2017). Relocation also requires change of the name of the acquired company which could be both costly and time consuming. There could also be a need for a translator incase the management of a certain company speak their native language which also adds up to the total operating cost. It is impossible for the company to predetermine if all these activities will be worth the risk without actually carrying them out. Yes. The ability to spot opportunities all over the globe and its willingness to venture into very risky but highly profitable enterprises is what gives Welspun an edge over its competitors, thus becoming its key success factor. Other than the obvious available opportunities all over the world taking risks creates opportunities of its own, that is it opens an organization up to new possibilities for consideration, thus leading to both external (of the company as whole) and internal growth (of the employees and management). Taking risks aids the group in overcoming the fear of failure meaning that it incorporates confidence in its operations and it is able to pick up after a fall-out (Skarmeas et al, 2016). The group would also be able to comfortably adopt new technology and be free of its comfort zone, which is crucial to growth in all sets of life. Welspun group of companies has also diversified its product by acquisition of different types of companies to ensure growth and development globally. This is very important because there is no certainty that a specific business venture will be successful. In case it fails, therefore, the company would have other sources of income meaning that bankruptcy is not a likely obstacle for the business. Customer satisfaction is also guaranteed as the company taps an opportunity, that is, identifies what is needed and provides it. The group has formed and maintained business relationships with various companies such as Chevron, Walmart and Shell, which is one of the largest petroleum company in the world. It has investments both in the United States and in United Kingdom which are the fastest growing economies in the world thus giving assurance of the groups further expansion. The decision by Welspun group to act as both supplier and manufacturer has enabled it to venture many global markets where its services are required. Yes. The growth strategy for Welspun group of companies is geographical and product diversification. This is a very risky and difficult way of conducting business since it requires various capabilities to succeed (Czinkota et al, 2017). The process is made even more unpleasant by the fact that the group is entering a new geographical area, possibly with different beliefs and ways of life. This growth strategy, however, is made easier by acquisition of small companies in different regions. This makes it easy to diversify the product because the companies acquired often deal with other products such as pipes, infrastructure and energy. Welspun groups growth strategy may be cumbersome and often risky but it has led to a high growth rate of over 30 percent annually. The strategy therefore acts as a good role model for other companies for fast growth and expansion. However, this strategy will not be appropriate for smaller companies who are capable of dealing with only a single product. Small companies often lack a large capital base and therefore it would be next to impossible for them to venture in multiple industries, especially those that require a high capital investment such as power and pipeline. They are also based in one geographical location and have no interest in diversifying to other countries, not to mention the fact that even if they wanted to diversify they may not be able to due to the large capital investment required in this process. The groups growth strategy, however, may work very well with large companies that have a heavy capital investment and are willing to expand their businesses to global height at whatever cost. These include manufacturing companies involved in infrastructure and power industries, as well as those that have adopted network marketing as their main growth strategy. Diversification has had the largest impact on Welspuns growth because it has led to maximization of returns from different industries as they do not react the same to similar circumstances. Geographical diversification has enabled the group to open up new markets all over the world for its products which is an important factor in a businesss development. Product diversification makes it possible for the group to satisfy its customers by gearing the product specifications towards customer needs. Diversification minimizes risk. As mention earlier, Welspun group of companies venture in business entities that are very risky. Diversification therefore, ensure that the group obtain long-range financial objectives while minimizing risk. Even if diversification does not guarantee against loss, it ensures the group that its risky investments will not go unrewarded (Li et al, 2014). This is because there are different types of risks and every investment faces different challenges thus with diversification there is assurance of a flow of income. Diversity gives Welspun group of companies competitive advantage. The group identifies an opportunity and is proactive in its efforts to take advantage of it thus increasing its customer base. The groups management is efficient in spotting market gaps all over the world in places that are under-served and investing in them. It aids in building the groups stability. If the group were to concentrate all its efforts in a single industry, product or region, it would be risking volatility in revenue and resources due to the changes in the forces of demand and supply. It would also have to retrench most of its employees if that certain industry faltered or the consumers tastes and preferences changed against that particular product. Losing some clients are a single industry failing is not as destabilizing if the group is diversified. Conclusion In conclusion, it is evident that for any kind of business to succeed especially internationally, it must be ready to take risks and diversify its operations. References Eisend, M., Evanschitzky, H. and Calantone, R.J., 2016. The relative advantage of marketing over technological capabilities in influencing new product performance: the moderating role of country institutions.Journal of International Marketing,24(1), pp.41-56. Czinkota, M.R. and Ronkainen, I.A., 2013.International marketing. Cengage Learning. Papadopoulos, N. and Heslop, L.A., 2014.Product-country images: Impact and role in international marketing. Routledge. Li, L., Qian, G. and Qian, Z., 2014. 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