Introduction
A plan is an integral part of all complicated tasks to be done. In this respect, a plan should cover all stages of the process including financial part and risk management. Expanding into different markets is a really complicated task that requires a lot of information to be processed, assessed, and used while planning certain activities.
Thus, the current management plan contains overview of the country to expand into different regions, best practices to take into account, and each sector that should be considered while launching products in other countries.
General Overview of the Country
Transnational companies should take into account a number of challenges and difficulties that may occur in the process of expanding into several different markets.
In this respect, large corporations and companies should acquire knowledge and apply successful experience of other transnational corporations in order to operate effectively in the international market, especially while expanding into several markets outside the country of origin.
So, gaining knowledge about “customers, suppliers, and talent in foreign lands” (Gupta, Govindarajan & Wang, 2008, p.217) is one of the most important steps in the strategy aimed at expanding of the company into other markets than its national one.
As soon as the company gains information and finds appropriate methods of its application, elaboration and implementation of those to practice, this company can move to the international market. As reported by Gupta et al. (2008), “One of the most important benefits from early globalization can be rapid growth or even the transformation of an interesting but economically nonviable business idea into a viable one” (pp.221-222).
So, effective globalization and expanding into different markets can be encouraged by various incentives offered in the markets of other countries as a mean of attracting foreign investments and introducing more active competition onto the market.
In other words, “rapid accumulation of competitive advantage” (Gupta et al., 2008, p.222) as suggested in the case of Bharti Airtel Limited that expands into the Kenyan market where the government provides certain areas of business with special incentives regardless of the fact that some legal differences between India and Kenya may pose business challenges (Sinkovics, 2009) because the company will implement the best business practices into operation.
In other words, the country of origin and examination of its legal base, rules of making business, and other numerous peculiar features are very important while launching a product onto the market or simply expanding into that market.
Best Practices to Implement
Experience on business, legal, and cultural practices can be implemented after analyzing other cases of successful application of certain viable perspectives into operation. In this respect, it is necessary to take a set of measures including solving such industry constraints as “need for local adaptation, need for local infrastructure, and regulatory barriers” (Gupta et al., 2008, p.226).
In other words, the company should conduct a thorough research before even trying to expand into different markets all over the world.
Incorporation of best practices is aimed at facilitating the application of international needs to the company’s strategies and company’s expectations and long-term plans into international market with its unique needs, preferences, and tendencies of demand and supply, insurance, and risks.
Another point that should be taken to discussion is the resources management and its peculiarities for international companies and international market, especially in cases when human resources and materials are the basic ones for the production.
As reported by Bartlett, Beamish, & Ghoshal (2008), “The task of coordinating flows of materials, components, and finished products becomes extremely complex as companies build transnational structures and capabilities” (p.651).
Though materials and manufactured goods are of primary concern, it is necessary to remember about human resources in terms of recruiting and training or outsourcing as the most appropriate way of effective performance.
To sum up, the best practices used or invented by other businesses and corporations should be implemented to the extent of creating the most appropriate ground for effective manufacturing goods or providing services.
In other words, knowledge management, collaboration and communication practices, multicultural awareness and construction of intangible capital are some of the components to be used while expanding into different markets using incentives such as competitive advantage to attract customer and develop their loyalty to the brand.
Besides, employees and product distributors who are already conversant with the market are able to facilitate the learning of the markets needs and expectations (Jain, 2003).
Management Plan
Scope management
One of the first steps to be made by the company is to conduct a research on the market’s peculiarities, legal issues, and needs of customers and their expectations from the foreign brand.
A team of international experts has to outline the major areas of the highest and lowest priority for company in terms of effective distribution of goods, further development of the product line and brand extension, expanding of the company into other markets, and its financial performance used for research and development, training and professional development programs, incorporation of international practices, and other areas of main concern.
Schedule management
The team of schedule managers should analyze the situation in terms of various criteria to be achieved and evaluate the periods of time necessary to accomplish the company’s mission. Definite time frames should be stated for each process and each step. In other words, the company should thoroughly plan its operation in the international market.
Financial management
Budgeting is one of the most important sectors for managerial to accomplish because it enables the company to grow further and extend its brand line, implement technological innovations to gain more profit and invest it into research and development sector to gain competitive advantage over its rivals.
Moreover, successful assessment of sectors in need for financial investment and priority in this issues and distribution of financial assistance can be rather beneficial in terms of areas of highest priority.
Quality management
Quality of goods and services provided should be assessed by independent experts which involves outsourcing and extra costs spent on this sector.
However, if the company is interested in the manufacturing of high-end products and providing the customers with services of high quality, it should spend some costs on establishment of a special department that should deal with assessment of quality, monitoring or activities, and counseling on the issues that can contribute to the improvement of quality or reducing cost efficiency of products by means of production of certain parts in other locations.
Resources management
The team of international experts has to evaluate the situation and take the most effective measures to choose the most sufficient method of employing people and delivering materials.
As some locations can be farther than others, it will involve extra costs on delivery of materials and increase the cost of goods resulting in decreasing of products’ attractiveness for buyers. All manipulations performed for delivery of materials and distribution of goods should be sufficient in terms of cost of the final product that comes to the market.
Communications management
One of the key components in transnational management is the communication management; a failure to communicate will lead to poor performance and results. In this respect, all changes that take place in the headquarters should be introduced immediately to subsidiaries.
Various software programs and other technologically advanced means of communication can enable the company to take competitive advantage over its rivals.
Project change management
All changes that occur in the international market are sure to affect the company’s performance. In this respect, it is necessary to trace all innovations and tendencies that affect the international market, assess those, and implement into the company in case they provide the company with some advantage over competitors or will increase the productivity, quality, or profit or good manufactured.
Though some changed may be considered positive within the international market, they are not necessarily applicable to the company regarding its needs and perspectives.
Risk management
Every sector of economics includes some risks as well as perspectives. The company should send some costs on identification, evaluation, analysis, and appropriate treatment of risks.
If the company fails to identify risk or does not want to spend costs on this procedure permanently, it can use outsourcing occasionally when some changes in the international market occur. Tracing changes and taking appropriate measures in terms of risk management can be done with the help of independent experts.
Procurement management
The company should take measures to ensure that all departments function in accordance with the company’s plan. Any changes and difficulties should be identified by the change management team to take steps and prevent occurrence of certain problems in procurement sector of the company in future.
Delivery and distribution of material and manufactured goods is really important for the company. So, it should spend corresponding costs to provide all sectors with appropriate materials and prevent system failures.
Conclusion
To sum up, the plan contains consideration of the most important sectors to manage before starting to perform in the international market.
As transnational companies have to consider risks, legal issues of other countries, cultural diversity of employees, and many other issues, a management plan is the document to rely on while expanding into different markets. Overview of the country is of high importance because the country of origin can become a competitive advantage while producing goods and providing services.
Reference List
Bartlett, A., Beamish, W. & Ghoshal, S. (2008). Transnational management: Text, cases and readings in cross-border management. 5th ed. New York: McGraw-Hill.
Gupta, A., Govindarajan. V., & Wang, H. (2008). The quest for global dominance. New York: John Wiley and Sons.
Jain, S. C. (2003). Handbook of research in international marketing, Vol. 2001. New York: Edward Elgar Publishing.
Sinkovics, R. (2009). New challenges to international marketing. New York: Emerald Group Publishing.