Exporting a product to another country normally requires a lot of preparation as there various management issues are likely to emerge in such an undertaking, thereby leading to the failure of the operation. Many organizations such as Marks and Spencer have tried to venture into the international market on several occasions but without success.
As such, the failure of these organizations has been a lesson to other exporting companies. As a result, it would be imperative not to duplicate the same management practices in the UK during the Alexander beer export venture.
This is because the UK consumers have different preferences, demands, and purchasing patterns. The company is prepared to undertake an integration process in the UK market. Given that the UK alcohol beverage market is competitive, the company is prepared to get involved in a management buy-in. Moreover, the exporting group will adopt a global internationalization strategy.
The exporting company will adopt a buy-in management strategy. This implies the company will have to get an outside manager who is familiar with the export business especially in the UK market (Slee, 2011). The reason behind the management buy-in strategy is that it would ensure that management issues in the UK market are addressed.
On the other hand, the company can also decide to look for another firm that has experience in the UK market and try a buy-in. For example, a company would adopt a company which has a wider range of management teams and distribution network. This would help the organization fit well in the UK system.
The company will approach an existing company but under the alcohol beverage industry and buy the firm. In the process, the company will retain the existing management team and incorporate nominated team based in Canada with experience in the industry (Slee, 2011). The blending of the buy-in management team and the nominated team will be able to meet the management problems in the UK market.
Given that the Alexander beer brands have a different taste compared to the UK’s beer brands, the possibility of yielding more under the buy-in company is high. As such, the company believes that it will yield high sales compared to the annual sales and profits recorded by existing firms in the UK beer market.
The new strategy which involves the infusion of management team and capital will improve the operational and the strategic positioning. The company will try to tap the management of the existing firm which has adequate experience and knowledge lacking in the exporting company.
The positioning strategy will enable the company evade the failures associated with the duplication of management in an international market. Obviously, the existing team has the market knowledge, consumer behaviors, purchasing patterns and trends of the UK beverage industry.
A strong relation is required between the exporting group and other operational groups in UK. Therefore, the exporting group will have to cooperate with the buy-in management to ensure full potential (Slee, 2011). For example, the company plans to apply workforce diversity which will ensure exchange of ideas, opinions, and suggestions in the organization.
Given that the exporting group has top tier and highly trained employees in management, the incorporation of the buy-in management team will enable diversification. In addition, it should be noted that the management buy in process has targeted a company with experience and a clean operational track record as advised by Slee (2011).
Generally, the company is planning the first export venture. However, although it lacks the experience of an exporter it has all mechanism put into place.
The buy-in from management will involve a company which has experience and knowledge in the export industry. This will necessitate the easy blending in the market as UK based distributors will provide the technical and marketing know how required in export entrepreneurship.
The exporting group has established a communication system with the targeted alcoholic beverage industry market influencers, industry and financial analysts. The analysts and the market influencers have the required experience and knowledge on the market.
The information gained will be availed to the exporting group management team. The process of exposing the management team to participate in understanding the UK market will not only prepare them psychologically, but give them the picture of the target market.
This coupled by buy-in will ultimately solve the management issues which may arise while carrying out the exporting business implementation process (Metayer, 2012; Slee, 2011). The management will deliver the expected Alexander beer message rather than inventing messages for the consumers.
A new venture in a new market with no prior experience and knowledge can be devastating hence leading to company failure. However, the consideration of the 3Cs is very vital. These 3Cs are customer, competition, and channel.
The exporting group will have to put into consideration how these three marketing components will be aligned in the buy-in process. The management will ensure that the buy-in staff gives the exporting company with the details concerning these three components (Slee, 2011).
For example, the company will use existing supply chain of the existing company to enhance easy distribution and supply of the Alexander beer products to customers in the set time frame. The distribution channels of the existing company acquired in the buy in process will necessitate easy and reliable availability of Alexander beer products.
Although the employees of the exporting company lack any past experience on export business, they have knowledge acquired from employees of buy in company and market influencers. The knowledge on exporting coupled with the experience of the existing firm will aid in entering the new market.
Given the past failure rate of companies trying export venture, the company has adequately prepared through the acquisition of market information. Furthermore, the employees of the company have extensive experience and knowledge in the alcohol beverage industry which meets the marketing objectives.
They are top-tier and have been well trained in business management and customer service. The staff will blend well in the UK market and cooperate with other stakeholders in the new market.
In the past, the company was contracted to assist in an export business where it emerged as a success. Additionally, the company has indentified UK based distributors who have been in the alcohol beverage business for long and are also interested in the export business.
The company plans to adopt global strategy of internationalization during it expansion process. The management is fully aware of its export failure rates in the past, and they have capitalized on this knowledge to provide a global strategic plan which will allow a successful export business.
Since legal regulations and rules regarding the market operations in the UK are different from those in Canada, the company’s legal team will cooperate with their counterparts in the UK to avoid acrimony. This will enable the company to operate within the required market regulations.
Additionally, the identified company will assist in processing all required documents to necessitate smooth running of the business. Buy-in of the senior management team will equip the company with both soft and hard communication skills essential in management (Metayer, 2012).
In summary, the exporting group is fully aware of the failure rates of businesses which have tried to operate the export business. Nonetheless, the group will get involved in buy-in from management where UK based organization will be targeted and purchased.
The takeover will retain all the employees of the company but include its employees to make a full diversified team. It will also cooperate with financial analysts, market influencers, and market analysts to get the required information about the UK market.
The information will equip the employees with the necessary information for business expansion given that the exporting group lacks prior market experience. Also, the exporting group will utilize the expertise of the existing management to channel Alexander beer products to the consumers at the specified time.
The targeted company has been chosen for buy-in because the exporting group believes the new products have the potential of yielding more than the current yields.
It also believes that the combination of the two will reduce any management challenges which may occur in the future. The global internationalization strategy will ensure that duplication of operational and strategic positioning does not exist in the current venture.
Reference List
Metayer, E. (2012). How to get senior management buy-in. Retrieved from http://www.smartbiz.com/article/view/63/1/8
Slee, R. T. (2011). Private Capital Markets: Valuation, Capitalization, and Transfer of Private Business Interests. London: John Wiley & Sons