Colorado Technical Unit 2 Strategic Management in Dynamic Environments HW As you close your weekly meeting with Deborah, she says, “There are some very goo

Colorado Technical Unit 2 Strategic Management in Dynamic Environments HW As you close your weekly meeting with Deborah, she says, “There are some very good ideas here. I would like to see you continue with a global marketing plan. We need more concrete analysis and data for the presentation. Get your team to work.”

After your meeting with Deborah, you briefly meet with your team to discuss moving toward a more formal analysis.

“Tiffany and Mike, we need to provide a more detailed analysis,” you explain. “You’ve done a great job so far looking at what resources we need and potential countries, but we need to really dig deeper on this.”

Tiffany nods her head in agreement. “Definitely,” she says. “We need to look at some internal variables as well as political, environmental, sociocultural, and technological environments of the countries that we are considering.”

Mike interjects, “Well, that’s something we should consider, but it’s not the only way to analyze this type of project. This is such a big decision, and we need to give as much information as we can.”

You reply, “Great point, Mike. We should look at this from a couple of different angles.”

The next step in your strategic marketing plan is to determine the tools that are needed to conduct an analysis of the industry and competitors. Complete the following:

What are the best tools to use in this situation?
Provide a brief summary of at least 2 of these tools.
Why do you think these are the best ways to analyze the market?
How will you use these tools in your plan?

600-800 words, APA Format, reference attached work for extra info Company Biography
In January of 2002, John Ferrer and his wife Deborah started their own corporation, a large custom
furniture manufacturer located in Boston, MA. Their initial accounts were in the Northeastern region of
the United States, and they annually observed a constant profit increase. By March of 2006, they were
able to grow the company enough to go from five distribution and manufacturing plants to 10 to allow
shipping to 48 states. Although they have two retail stores, one located in Phoenix and one in Boston,
their primary source of revenue is online catalog sales. They have 10 manufacturing plants and
distribution centers throughout the country.
John and Deborah’s corporation is known throughout the industry for its exceptional customer service
and superior quality. The contemporary designs lend themselves to a younger market, and the customer
base is predominantly upper-middle class because it is one of the highest priced furniture companies in
the market. Part of the appeal of John and Deborah’s brand is their consistent involvement with the
local communities to create green gardens. They have also been a major contributor to organizations
that build houses for people in need.
One of their primary strengths is their vertical integration. They have a team of in-house designers
saving the company design costs and allowing the flexibility to rapidly change designs as the market
changes. Their products have been featured on several prominent home design and gardening shows
and have been endorsed by several well-known designers.
Because of the recent housing market sales decline (8% from 2005–2006), home renovations have
slowed significantly. This has impacted the amount of furniture and fixture sales and continues to
impact revenue. Furniture sales in the United States have decreased significantly, and John and Deborah
have recently been discussing the possibility of global expansion.
Another potential threat to their company is that many higher-end brands have been marketing
aggressively and creating lines for popular retail stores. These allow the lower-income consumers to
have access to high-end brands at a much lower price point. So far, these lines have been incredibly
successful and have significantly increased profits for competitors. Many of these competitors have also
had great success in the global marketplace with these lower cost replicas.
John and Deborah know that it is time to seriously consider expanding their business. They want to be
able to make it through the economic crisis and rely on other ways to increase sales and business. They
are open to looking into the global market, but they want to be sure that it is the right move for the
business. They have requested an advisory board meeting next month in which you will present the
global marketing strategy. As the market strategist, you will play a key role in helping the board decide if
this is the right move for the company.
The Problem
You are sitting in Deborah Ferrer’s office. After the customary small talk, Deborah sits forward and
states, “I am very impressed with the work that you have done as the strategic marketing manager.
Since John and I started this company in Boston, we have seen continuous growth, but nothing like what
we have seen since you started. However, the housing market is really starting to impact our profits.
This last quarter’s numbers were not looking good.”
You reply, “The crisis has really hit us hard. We have some stiff competition, too, with the other brands
creating retail knock-offs.”
She counters, “We’ve had great success with your strategies in the domestic markets, but we do need to
think of a new approach and strategy. I have complete faith in your abilities to take this company exactly
where it needs to go. I must say that we are really counting on you, and I know that you will follow
through.”
“I will make sure that we do well. Do you have any new projects for me?” you ask.
Deborah smiles and says, “You know me well. I do have a new project for you. I sent you an e-mail just
before our meeting. I’m curious if expanding in a global market would be a good move for our company.
I would like you to look into this for me.”
“Our team is definitely up for the challenge,” you say with enthusiasm.
Deborah shakes hands with you warmly, and you make your way out of the meeting. As you drive out of
the parking garage, you think about your success with the company. You cannot wait to get started.
Michael Ramsay
Unit 1 DB 2
As an established and successful company, a global strategy can definitely help to improve presence and
revenues for the company across the world. With technology to assist with communication, it is easier
to facilitate a broader view on growth outside of the host country for the company. The definition of a
global strategy is one that a company takes when it wants to compete and expand in the global market.
In other words, a strategy businesses pursue when they wish to expand internationally. A global strategy
refers to the plans an organization has developed to target growth beyond its borders. Specifically, it
aims to increase the sales of goods or services abroad (Market, 2020).
Global strategy covers three different strategies: international, multinational, and global (Market, 2020).
An international company is one that imports and exports. In other words, it sells to customers abroad
and has foreign suppliers. However, this type of company does not have any investments (Market,
2020). A multinational company, unlike an international one, has investments in other countries. It has
business, staff, and premises in more than one country. However, it does not have coordinated product
offerings. A multinational company focuses more on adapting its products and services to individual
local markets (Market, 2020). A global company has investments and is present in several countries. It
markets its goods or services through the use of an identical coordinated image/brand in every market.
In most cases, there is one corporate office that is responsible for the worldwide strategy. There is also a
strong emphasis on cost management, efficiency, and volume (Market, 2020).
Three possible countries for globalization are China, Canada, and Germany. All three countries are major
importers and/or exporters of the world’s furniture. China’s exported furniture revenue reached about
$93.4 Billion USD in 2014. Chinese furniture has been in demand due to its top-class products. Reliability
is another plus, and a factor that has attracted many foreign customers (Wee, 2017). Canada had
achieved a total revenue of $4.9 Billion USD in furniture exports in the year 2014 (Wee, 2017) and had
2.9 billion USD in imports in 2017 which was 3.6% of the world’s imports (World, 2020). Germany’s
annual furniture export revenues in 2014, amounted to $18.2 Billion USD. As the largest EU country in
the furniture export business, it has export destinations which include Asia, North America, and the
Middle East (Wee, 2017). It also had 5.7 billion USD in imports in 2017 which was 7.1% of the world’s
imports (World, 2020).
I would choose Canada as it serves as a good median. With good export and import track records and
obvious proximity to the United States, it would serve as a good first step before expanding elsewhere.
There is also lots of shared culture and little to no language barrier. And with decent tariffs and
regulations, it would be easier moving products to and from Canada and back and forth across the
border with the United States.
A good argument would be that it would be unwise, since sales are down and negatively affecting the
company, to try and expand. Expanding/growing internationally, is very expensive and time-consuming
along with coming with new varied risks that might further hinder the company.
Benchmarking the business by measuring it against competitors is an important tool for any business
and is becoming increasingly popular as a way to understand an organization’s position in the
marketplace (Different, 2020). Peer and collaborative benchmarking would work best, in my opinion.
With peer benchmarking companies look at their closest competitors and establish whether their
products or services are in-line with what else is being offered in the marketplace (Different, 2020). A
competitor like IKEA is an obvious choice as they have an expansive international presence within the
market. With collaborative benchmarking, some industries have trade bodies or consumer groups
associated with them and these are an example of how collaborative benchmarking can work. These
associations collect and publish data from all their members, allowing them to identify industry-wide
trends and enabling effective reviews of best practices (Different, 2020).
References
Market Business News. (2020.) Global strategy – definition and meaning. Retrieved from
https://marketbusinessnews.com/financial-glossary/global-strategy/
Wee, Rolando Y. (2017, April.) Top Furniture Exporting Countries. WorldAtlas. Retrieved from
https://www.worldatlas.com/articles/top-furniture-exporting-countries-2014.html
World’s Richest Countries. (2020.) Retrieved from http://www.worldsrichestcountries.com/topfurniture-importers.html
Different types of benchmarking examples. (2020, February). Retrieved from
https://www.indeed.com/career-advice/career-development/benchmarking-examples
Running head: GLOBAL STRATEGIES
Development of Global Strategies
Michael Ramsay
Colorado Technical University
1
GLOBAL STRATEGIES
2
Development of Global Strategies
In the modern competitive business environment, successful companies dare to explore
and invest in potential international markets. It is worth noting that most successful organizations
have ventured into the global market. John and Debora’s mission to venture in to the worldwide
market is a strategic move to grow and increase sales for their business. However, for their
company to be successful, John and Deborah need to consider factors like resource capability
and business laws like taxes to avoid conflict with the government.
Resources Concern
Resources are essential assets that determine an organization’s success. Any organization
with the ability to accumulate required resources to partake its intended duties is likely to acquire
a competitive advantage over the rival companies in the same sector. Resources like enough
capital to support various organizational activities, able and supportive management, which
understands the key areas that need to be prioritized to improve production and lure potential
customers into buying the products, and use advanced technology to automate various operations
meet the market demands.
Adequate funds are essential for an organization to partake in its various duties to
succeed in the global market. Therefore, there is a need for a firm to allocate enough funds for
development, extensive marketing, and acquisition of new equipment to facilitate production.
Equally, each country taxes each international company differently. Therefore, some funds will
also be required to register and pay for their operations in foreign countries. Some other funds
can be used to cater for operational expenses before break-evening into the global market.
Moreover, any successful organization must have able and supportive management who
understand the company’s international strategy. For instance, before setting their operations in
GLOBAL STRATEGIES
3
any country with a potential market like Canada, they will apply various managerial decisions to
make any decision like the reduction of their products’ cost while maintaining their high quality
to lure as many consumers as possible. Through the management, the firm can identify a
qualified and experienced team in the potential market to assess and determine the weaknesses of
the various organizations in the same market and prioritize them. The team’s suggestions will
decide if the organization will set up subsidiaries in the potential markets or partner with other
stakeholders. Further, technology is an area of concern in the modern-day business world.
Technology will automate some operations to reduce operational costs and wages paid to
employees. For instance, John and Deborah’s furniture business can be significantly impacted by
innovation to succeed in the global market.
Resources of Concern in Canada
Canada is among the best furniture potential markets, and high-end Furniture Company
should make priorities to invest in it. Like the United States, Canada’s middle and lower-class
members of society are more than 80%. This population has a lust for high-end products, which
has increased over the past few years. For instance, by 2018, the Canadian furniture market grew
by 12 %, which shows if John and Deborah ventures into the market, their profitability can
tremendously increase, provided that they embrace quality and culturally sensitive furniture
products.
Managerial capability is another essential resource that will ensure that the company
thrives well in the Canadian market through the managerial tactics and decisions made. For
instance, when venturing into Canada’s potential population, three types of consumers should be
closely monitored; luxurious customers, average wage-earning customers, and avid customers.
The middle of the average income earners should be prioritized in each aspect because they
GLOBAL STRATEGIES
4
make up the majority of furniture consumers in the market. Equally, the wealthy members of the
society should also be located who do not consider the cost of a product before buying it instead
of prioritizing quality. Canadian classical furniture styles can get a ready market from wealthy
members.
Impact of the Decision
Able and supportive management directly impacts an organization’s performance even in
the overseas markets where their subsidiaries are footed. In the Canadian market, there is a high
competition concerning the high-end furniture products, which requires the management to
swiftly act to acquire a competitive advantage over the other companies in the same production
field. Due to the fact that the company does not have any business connections and interactions
in Canada, John and Deborah should consider partnering with small furniture developers in the
Canadian market because they might be aware of the local customer demands better. After
growing within the Canadian market, the management can then decide to open a subsidiary after
acquiring the necessary skills to thrive in the Canadian market.
Impact on the Company’s Competitive Strategy
Since Canada is among the countries with the highest population in the world with a fastgrowing economy, the company should choose an appropriate strategy that can help it fairly
compete with other companies on the international scale. The strategy to penetrate the Canadian
market will be essential not only to grow the company but also to increase its sales for
profitability. To attract customers, the company should first acquire a small furniture firm in the
Canadian market, which is aware of customer demands and priorities. This will make John and
Debora’s business to grow tremendously and attract as many furniture consumers as possible.
GLOBAL STRATEGIES
The other advantage of acquiring a Canadian small furniture firm is that it has developed
customer contacts and brand loyalty to some; thus, it can be easier to reach out to them.
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