The export and import industry encompasses a vast number of businesses, as well as export intermediaries who play a pivotal role in business operations. Every export and import company utilizes one or more export intermediaries in order to foster success in its operations.
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International trade operations have played a very crucial role in the promotion of Victorian business – the Foster Group. International marketing success has become interplay of the main business, export intermediaries, export management companies, as well as export trading companies, a style mainly for conducting business in Europe. Appropriate research methodologies are crucial in analyzing a Victorian business.
Measures such as efficiency and effectiveness are considered vital in the international trade operations, which can be promoted using effectively coordinated CRM and exporter-intermediary relationships, regardless of the scope of business operation (Jenster, et al., 2008).
The discussion in this paper offers a detailed discussion on the analysis of Victorian business within the import and export industry; a case of foster group business. Complete analysis is facilitated by a discussion of research methodology used to collect information from the selected company.
An introduction to the company products spearheads the material of the essay. A detailed discussion of export intermediaries and their role in international trade is ample to be presented in this paper. In addition, a discussion of the export intermediaries that the chosen company uses and their functions, as well as suggestions for the company to improve the efficiency of international trade operation will be presented.
A combination of quantitative and qualitative data collection strategy is employed in the study of the organization. A mail questionnaire is found appropriate for utilization, which is used to collect both primary and secondary data.
The questionnaire constitutes of both open ended as well as close-ended questions in order to cater for quantitative as well as qualitative components. Sample unit of the study is the export and import department within the company, since it is considered to have the required detailed information concerning the type of international trade operations. The exercise has its target on the managers who operate in the international affairs department as well as company directors (Balabanis, 2005).
The Foster Group is a multinational company dealing with exportation of major beverages via export intermediaries. It was founded by William and Joseph Foster in Melbourne, New York in 1986 as a medium enterprise. The export intermediaries are highly valued in this company for their pivotal role in the international export and import operations.
Among the most crucial company’s products are beer, wines, spirits, cider, as well as a vast number of non-alcoholic products. The main objective for the group is to maximize its profits by reaching a large number of customers. Moreover, the company is out to come up with the most effective brands and customer services. Furthermore, the company’s mission is to become the best company in the world in terms of exports production (Jenster, et al., 2008).
On the other hand, the company is hierarchically managed by employees at distinct operational levels. CEO heads the company, while general managers and company directors oversee operations in different international firms.
Middle-level employees are also found within the company to facilitate the implementation of trade strategies. The company values sustainability as a driver to a higher company value and its globalization. Leadership, as well as appropriate benchmarking strategies is considered as vital tool for the company’s success (Jenster, et al., 2008).
Analysis of the type of organization based on its service offering
The company handles a vast number of beverage products, and it would be categorized as a full service provider (FSP), in relation to exportation and importation. This is as a result of combining both transaction creation (TS) and physical fulfillment transactions (PF). The rationale of these products is the provision of physical fulfillment (PF) services to its clientele.
The execution of physical fulfillment services is deemed crucial for the organization in terms of documentation of high order for export and import products. These documents include export fulfillment records, for instance, freight and insurance quotation, branding, packaging and product marking. All characteristics of the transactions that take place are ideally documented. The warehousing details, as well as forward of freights via third parties involvements are also recorded for future references.
According to Balabanis (2005), the transaction creation rationale concerning the company’s services entails researching on products and designs in the general market to ensure conformity with brand and product requirements. Training services to employees, country directors as well as other international dealers are also opportunities provided by the Victorian business.
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Key activities like conduction of international market research, advertising programs etc, are deemed crucial activities for international trading companies. In addition, marketing research is crucial in order for a company to widen the scope of the international operations. Balabanis declares that a company’s interior and peripheral contingencies, as well as the organizational type, determine the kind of service for an international organization.
The physical market distance is considered part of the internal contingencies. Thus, the Victorian business is best suited for the provision of transaction creation services, for it has an office and a warehouse that is located in the local market. Moreover, the organization is international in providing services to a number of countries including New Zealand, Australia, USA, Pacific Island etc, thus found to comprise of international market mixes (Vasset, 2009).
EIs and their role in international trade
A variety of export category classifications is needed for the accomplishment of exportation and importation tasks. Export intermediary services have traditionally been classified as those that are offered to customers, as well as those offered to suppliers. Most recently, a modern categorization is that of transaction creating export services as provided by the export intermediaries. Seeking information on market availability for the client company is among the key roles that are performed by the EIs for the Victorian business.
The market research activities are a crucial part of the intermediaries, finding opportunities in the foreign market for their client. Other intermediaries are out to carry out export transactions on behalf of their customer, including price negotiations to ease the burden for their client. They are attributed to playing the greatest role in the international trade since their activities facilitate exchange of products and services between different suppliers and customers in different countries (Wyld, 2010).
Suggestions for the company to improve the efficiency of international trade operation
Important business and performance measures are deemed crucial for the enhancement of international trade. First, efficiency in customer handling and sustenance drives business to successful ends. Secondly, effectiveness in customer, stakeholder, as well export intermediary’s relationship is an important measure for consideration in business performance.
The improvement in business efficiency should be the main aspiration by top management within a sound organization. Several factors are considered in the aspect of business operations efficiency, which include Customer Relationship Management, corporate governance, resource-based view and business sustainability in addition to corporate social responsibility (Dick and Merrett, 2007).
Customers serve a key aspect in business success, regardless of what type it is. Therefore, the Foster Group needs to practice customer satisfaction via implementation of effective strategies to enhance its CRM.
Customers are well attracted by effective brands, excellent employer customer relationship, as well as provision of technologically advanced services as crucial tools for promoting CRM. Secondly, the management should ensure appropriate leadership within the organization, employee training programs, as well as job satisfaction to enhance performance and productivity in addition to business sustainability and value.
The enhancement of appropriate CRM, excellent intermediary relationship, sustainability, as well as value ensures efficiency in corporate social responsibility as resource-based view within a business organization. Moreover, the company has opted to place minimum quantities of orders to its dealers wholesalers and retailers for an increment in logistics efficiency in the international scope (Dick and Merrett, 2007).
The export international trade becomes successful when there is a coordination of the export business, as well as the export intermediaries. Export intermediaries play an international role in business sustainability as well as promotion of export value. Efficiency measures are highly valued within the export and import business scope as well as performance in business operations.
Research methodologies used to evaluate the Victorian business should provide the best response when utilized in testing research hypothesis. Collection of data in this case employs the utilization of a questionnaire to seek responses from the target audience. Two types of export business operations are in existence, transaction creation businesses, as well as physical fulfillment services.
However, more research should be conducted to explain the models that are appropriate for EIS to use in effecting their services to the export Victorian business.
Balabanis, G., 2005. Determinants of export intermediaries: service mix configurations. International Marketing Review, vol. 22, no. 4, pp. 436-455.
Dick, H. and Merrett, D., 2007. The internationalization strategies of small-country firms: The Australian experience of globalization. Cheltenham: Edward Elgar Publishing.
Jenster, P. et al. 2008. The business of wine: a global perspective. Copenhagen: Copenhagen Business School Press DK.
Vasset, A., 2009. National Packaging Covenant. Web. Available from: https://www.packagingcovenant.org.au/documents/File/A._Clouet__AustraliaPty_Ltd_AP_09_12.pdf .
Wyld, D., 2010. Top Ten Management on International Trade: An Overview of The World’s International Trade Operation That Underpins Globalization. Web. Web.