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We will write a custom Assessment on Company: Metricum (market opportunity: Ukraine) specifically for you
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Taking into account our knowledgeable and well-informed personnel as well as the professional experience, we are highly optimistic that when granted such an opportunity to carry out this exercise on behalf of your company, we shall help the company not only realize their potential as far as the employee skills is concerned but also increase the company’s ability to venture into newer markets through availing of comprehensive analysis information concerning international market opportunities(Lloyd-Reason and Mughan 2002, p. 62).
Our guiding mission and vision is to be the best consultant company that provides quality and reliable services to our clients. Just to mention but a few of the benefits Metricum Company will benefit as a result of choosing us to conduct the survey for both the employee skills and competence as well as conduct a thorough market research to seek for newer opportunities might include:
- We shall provide a clear framework for the Company for assessing and understanding unfamiliar markets (Fillis 2001, p.771).
- We shall develop a suitable market entry strategy that would propel the company’s operations and enable it quickly adapt to the new markets without much struggles (Fillis 2001, p.771).
- We shall devise a structure for building the internal skills and knowledge base that would then help the company to be flexible as far as pouncing on new opportunities is concerned.
- We shall also develop a global strategy for the company that would help bring together all the required resources for carrying out global tasks.
This report is a descriptive discussion of the company’s (Metricum) potential in terms of the internal skills and knowledge. In addition, there is the inclusion of the analysis of the Ukrainian market as well as the recommendations to the company relating to what the company should exactly do to ensure competence when venturing into the new market.
A lot of emphasis will be drawn on the fundamental skills required of any company wishing to venture into the international markets. Some of the basic skills may suitably apply to the local marketing environment as well as the international market. However, other skills may be exclusively specific to the international markets like foreign language skills.
In addition, we will also discuss the transformation process that the company will have to undergo in a bid to going global from the viewpoint of both the skills and knowledge base. Basing on the background information provided about Metricum, the following is our analysis of the company’s potential to fully engage into the international market (Lloyd-Reason and Mughan 2002, p. 56).
This gives a description of the various ways the company can explore its engagement into the newer markets in foreign countries.
Depending on the size of the company, SME companies should first assess themselves in terms of the required skills before venturing into the newer markets unlike the larger companies that would pounce on any probable opportunity that presents itself before them. The process of planning brings along with it a number of benefits to the Company:
- It amplifies the planner’s knowledge as far as both the company and the market in question is concerned.
- It motivates the planner to put into consideration a number of possibilities the company can embrace for achievement of their strategy.
- It provides the planner with the current information to help keep track of the newer opportunities hence enhancing the readiness of the company in tackling future challenges (Fillis 2001, p.773).
Metricum is a company that has had a long time experience in the field of manufacturing material handling equipment and intelligence handling solutions. The company is already operating international with bases in Sweden, UK, China and Romania.
In their 28 years of operation, Metricum has faced a number of challenges some of which it has successfully overcome like the issue of competition in China where they chose to assume ownership of the competing company hence counteracting the competition effect.
Looking at the current market trends in Ukraine, there stands a precious opportunity for the company but there is also need for a thorough and reliable market research for developing the best strategy to will see the company taking over the Ukrainian market without much struggle (Andersen 1993, p.231).
Looking at the Ukrainian market in terms of the material handling equipment, there are already established foreign companies offering these services. However, despite all these challenges, Metricum stands a higher chance of outdoing them due to its variety of equipment and services.
Unlike the other companies operating in the Ukrainian market, Metricum not only deals with the material handling equipment but also intelligence handling solution which gives it an upper hand.
In addition, the economy of Ukraine is growing at a faster rate and there is focus on the industrial development which creates and widens the market hence further increasing the chances of Metricum’s survival into the market.Looking at the infrastructural set up of the country, Ukraine happens to have outdated roads(Lloyd-Reason and Mughan 2002, p. 63).
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Despite the high demographic rates and poor political environment, Ukraine still offers a potential market for the material handling equipment given its rapid investment in the infrastructural structures which highly needs technical assistance provided by Metricum.
|GDP (EUR bn)||84.84||103.1||123.4||93.0||112.0|
|GDP per capita (EUR)||1808||2 210||2 661||2 018||2 445|
|GDP (constant prices y-0-y %)||7.1||7.6||2.1||-9.0||0.5|
|Exports, real, y-0-y %||-7.6||2.8||6.7||-10.0||9.0|
|Imports, real, y-0-y %||13.2||20.2||17.5||-26.0||3.2|
|CPI (average, y-0-y %)||9.1||12.8||25.2||15.8||11.5|
|Central bank reference rate||8.50||8.00||12.00||11.50||10.00|
|Monthly wage, nominal (EUR)||164||195||234||180||203|
|Unemployment rate (%)||6.8||6.4||6.4||11.8||10.4|
|Net FDI (EUR bn)||4.6||6.7||6.8||2.3||5.5|
|FDI % GDP||5.4||6.5||5.5||2.4||4.9|
|FX reserves (EUR)||16.6||21.8||19.3||11.2||8.6|
|Exchange rate to USD AVG||5.04||5.05||5.24||8.17||7.73|
|Exchange rate to EUR AVG||6.34||6.92||7.70||10.60||10.16|
Table 1: major economic indicators in Ukraine (Lloyd-Reason and Mughan 2002, p. 67).
Given the financial background of the company and its subsidiaries, Metricum stands a better chance of managing effectively newer markets. With the flourishing markets in China, Sweden, UK and Romania, it turns out that the financial ability of Metricum is very viable and meets the minimum requirements of entering into the Ukrainian market.
Having had a taste of the international market and the competition that comes along with it, Metricum only needs to shape their internal operations and change their global strategies. Additionally, there is need for a larger capital base to enable the company flourish and keep up with the newer challenges in the international markets.
There is need to venturing into capital generating activities that would propel the company forward even when challenges become too intense which is very normal with the global market.
Having already ventured into the international markets in over 40 countries where they export their products, it will be very easy for the company to enter into the Ukrainian market. Metricum is an already registered company with full license to operate within their line of products in Romania.
Venturing into the Ukrainian market and other global market would require that the company registers with the relevant authorities to gain access into those respective markets (Fillis 2001, p.770).
As stated in the preceding sections, there are a number of companies that are already into the Ukrainian markets but most of them are foreign based. Given that Metricum wishes to open a subsidiary base in the Ukraine through its Romanian base, it will give it an upper hand against their competitors. Metricum offers a variety of services in addition to the material handling equipment.
Most of the companies just offer part of the material handling equipment as opposed to Metricum that offers both the equipment and the intelligence services. Also, given that Metricum is seeking to establish a base in Ukraine, it will be much easier to compete favorably with the existing companies.
However, Metricum needs to develop an appropriate strategy that will harmonize the required resources and skills to be able to appropriately suit into the market. Currently, the company has fewer experienced personnel to handle the global challenges especially from the large international companies that are already operating in Ukraine.
There is therefore dire need for major considerations in the enrichment of the personnel skills and consequently the addition of more skilled human resource personnel to increase on their competence in the new markets (Haahti, Hall and Dockels 1998, p.165).
Going global goes hand in hand with the restructuring of the company’s production strategy to not only suit the local demand but also the international market demand. Given that there exist disparities in the interests and preferences among individuals from different regional and international communities, the company will have to rebrand their products and services and make them suitable for both the local and international use.
The products offered should be flexible and make it possible for future modifications in response to the changes in the global market (Lamb and Liesch 2002, p.26).
This section gives a description of the internal organization of the company in terms of gathering of the required resources for venturing into the foreign markets. The resources include both the tangible material resources and the personnel knowledge and skills that can be achieved through a series of business processes like recruiting and training of employees.
Communication (foreign language)
The new Ukrainian market demands that the company should have personnel that are conversant with either the Ukrainian language or the Russian language.
Given that the company wishes to venture into the entire of the Ukrainian market and compete favorably with the existing businesses, it then stands that the company has to reinforce the employee base by employing more personnel who not only possess the required professional skills but also are fluent in either of the two languages.
This is to enhance interactions with the customers and clients and also improve the public relations. A good customer relation is an important tool when venturing into newer and competitive markets. Currently, Metricum has little or no personnel who effectively meet these requirements hence the company needs to consider adding more personnel to their existing employee base.
They also need to train their personnel especially those to be based in Ukraine on the fundamentals of the Ukrainian culture and language so as to ensure a strong business-customer relation.
There is need for a professional translator that will help translate the manuals, brochures, statements, articles and other relevant documents into the local Ukrainian and Russian languages (Haahti, Hall and Dockels 1998, p.163).
Given that Metricum has experience in handling exports, there will be lesser challenges in exporting of their products into the Ukrainian markets. There is need for employee further training especially concerning handling of international clients and dealing with major challenges that may arise.
Venturing into the new market with existing businesses requires that the company should develop well-furnished marketing strategies that are customer tailored in order to attract new customers and consequently outshine the competitors. Therefore, Metricum has a greater responsibility of looking for better market and sales strategies to help them survive in the new market.
There are basic requirements for any company entering into the Ukrainian market one of which is that they should be registered by the relevant authority in order for them to carry out their operations. This is not a major obstacle to Metricum since they can sufficiently handle it very well. However, there is need for the company’s flexibility in cooperating with other corporate enterprises to ensure efficiency.
Just like what was done in China where they collaborated and eventually took over a competing company just to increase their influence in the market, it may also be necessary the company prepares for the same in case of any opportunity, this will in fact help the company adapt to the new market faster and tremendously cut on competition (Lamb and Liesch 2002, p.23).
Since the new market will impose a lot of challenges to the business, there is need for competent personnel with a lot of experience in international trading to help deal with the new challenges that would always arise. The current situation Metricum stands that the CEO has so many responsibilities and the sales manager cannot effectively manage the local and international markets.
Therefore, there is need for any company venturing into the new market to employee competent personnel who will act as team leaders and will be in charge of spearheading the bases established in the unfamiliar markets (Haahti, Hall and Dockels 1998, p.167).
This section encompasses the measures undertaken by the company to keep track of the emerging issues and current trends in the global markets. It also includes the fundamental requirements in the international markets in terms of the knowledge, skills and competence of the human resource personnel employed by the company.
Proper planning and formulation of the appropriate strategies towards the market play a vital role in ensuring the successful outcome after venturing into unfamiliar markets. After thorough analysis of the internal skills and knowledge of the company’s personnel, it then follows that the company should engage into a comprehensive evaluation of the potential market.
Market research can be done in various ways and several methods can be incorporated including the use of surveys or testing using samples.
Potential customers should be interviewed or given questionnaires to fill in concerning their views on the current market conditions and whether they would embrace products from the new company in their market. All these feedback will then be analyzed and used to arrive at whether the new market is viable for investment or might lead to losses (Haahti, Hall and Dockels 1998, p.167).
This involves the evaluation of the market in terms of the existing opportunities. This involves looking at whether there are other businesses already in the market and whether they sufficiently meet the market needs. The potential of the customers to buy products should also be assessed in order to estimate the profitability of the venture (Fillis 2001, p.771).
Building the best channels to market
There are various channels the company might employ in ensuring a better market strategy and competence especially in the unfamiliar markets. The company might either choose to sell their products directly to the final consumers or use intermediaries who are already established into the market.
Given the Metricum will be venturing into a market it has never been before, it then becomes very important and crucial for them to devise the best channel for their products into the market.
Buying or collaborating with the local suppliers who are already established into the market proves to be a better strategy since this would help the company quickly adjust into the market and favorably counteract competition from the existing companies (Haahti, Hall and Dockels 1998, p.168).
It is very hard for a business venturing into the new unfamiliar market to pick up faster without the help of other businesses that have a long term experience in the market. Given that Metricum wishes to go global, it becomes important to them to build mutual international relations with other global institutions that have been in such a business for a relatively longer time.
This would help them learn from their predecessors and also benefit from professional advice that may be given to them by the existing experienced institutions. A well connected network of collaborations and cooperation with the international community will help the company explore newer markets more easily that they would have done when alone(Lamb and Liesch 2002, p.22).
Monitoring the competition
To go global basically means the company should adjust their focus on not only the local market but also, the international market trends.
Whatever affects the international market will inevitably affect global companies. Since everything in the global market is dynamic and competitors are ever devising newer strategies of counteracting their competitors, Metricum will have to keep pace with their competitors to know the kind of plans and strategies they have.
Keeping track of competitors in the global market helps a great deal maintain innovativeness and competence in the company to avoid being wiped out of the market (Andersen 1993, p.231).
Our main objective for this report is to analyze and assess the abilities of Metricum (internal knowledge and skills) relative to the global requirements and verify whether or not the company is capable of going global.
From the evaluation and analysis provided in the preceding sections above, the following are some of the recommendations we would wish to deliver to Metricum concerning their potential of venturing into unfamiliar markets.
These recommendations are meant to develop and provide a better strategy for the company especially when approaching unfamiliar markets (Lloyd-Reason and Mughan 2002, p. 67).
- The company should invest in best practices manuals like brochures with fundamental tools for competing favorably in the global market. This should be availed to the staff to equip and add value to their skills.
- The company should also enroll for the global SME manager development programs that would equip their managers and personnel on better competence skills required in the global markets.
- There is need for engagement in the international cooperation programs with other key players in the market involving innovations and inventions in the field global business management.
- Metricum should participate in the global mentorship programs that would see a good number of interns and intellectuals being incorporated into the company to add value to the skill and knowledge base. This should be carried out in collaboration with the relevant international advisors to bring forth efficiency.
- The business also needs to participate in the internationally organized workshops and seminars that bring together global SME managers to share their experiences and challenges then devise strategies necessary for the market.
- The conducting of tracker studies several companies both successful and unsuccessful ones over a given period of time that would involve careful study of their skills, knowledge and strategies. This would provide them with the required information needed for global operations. It would also help understand why some companies fail in their bid to go global and why some end up successfully.
- The company should employ “passport to Export” programs to help employees who are underperforming so as to furnish their skill to the international standards. This would consequently improve the company’s competence and preparedness towards counteracting challenges in the global markets
Andersen, O., 1993. On the internationalization process of firms: A critical analysis. Journal of International Business Studies, 26(2), pp.209-31.
Fillis, I., 2001. Small firm Internationalisation: An investigative survey and future research directions. Management Decision, 39(9), pp.767-783.
Haahti, A., Hall, G. and Dockels, R., 1998. The Internationalization of SMEs – The Interstratos project. London: Routledge.
Lamb, P.W. and Liesch, P.W., 2002. The internationalization process of the smaller firm: Re-framing the relationships between market commitment, knowledge and involvement. ManagementInternational Review, 42(1), pp.7-26.