Management - Business Model - Economical Model - Essay Writing Assessment Answer

Management Assignment

Assignment Task

Strategy:- planning and implementation ,importance of strategy under competitive advantage,in the global market.

These are the assignment headings:-

• cultural dimension under international trade
• administrative model advantage under IN trade.
• geographical advantage under IN trade
• economical model advantage on IN trade

BUSINESS MODEL

• COMPRISES
• NEED FOR BUSINESS MODEL
• FACTOR CONSIDER DURING BUSINESS MODEL
• HOW EFFECTIVELY YOU CAN IMPLEMENT THE BUSINESS MODEL

NOTE :- USE A PRODUCT / SERVICES TO EXPLAIN

Competitive Advantage in International TradeEssay 1

Introduction

Any firm will want to enter into markets that have similar administrative cultural, economic, and geographic markets like the national market (Dalton & Griff, n.d.). However this is not the case, and it can be said that achieving full globalisation with all these factors constant in all nations is hard that is why the present world offers a “semi globalised” market (Fundamentals of Global Strategy, 2012). Firms need to implement a strategic plan to ensure a competitive edge of the business and this entails that consideration of issues like the cultural dimension of the global market, the geographic location, administration, and the market economics. To better understand this market variation dynamics, the paper considers Amcor a leading Australian packaging company that is global. The firm uses rigid and flexible plastics in the development of packaging products that are used in the protection of various products like pharmaceutical, food, personal and household goods, medical, and beverage (Amcor , n.d.). The company, like others, has competitors in its global markets and to earn profits it has strategies that rely on among others the dimensions below.

Cultural Dimension under International Trade

It is important the culture of a country will always shape the way people will interact with each other and with existing organisation (Ghemawat & Reiche, n.d.). Each country has a unique market that has variations in the race, language, social norms, and religious beliefs and this variation can create a distance between an organisation and the consumers (Fundamentals of Global Strategy, 2012). The cultural view in international trade liberalisation is that the more trade develops the more culture develops, and this has influenced the issue of policy in many nations around the world (Dalton & Griff, n.d.). That is why Amcor started by moving to Switzerland and the EU with its paper products and then to the USA and the Scandinavian nation that had a similar culture before venturing to Africa (Amcor, n.d.). The way Japanese and an African consumer will have different preferences when it comes to packaging because on the way the two culture value space (Fundamentals of Global Strategy, 2012).

Administrative Model Advantage under International Trade

The administrative advantage arises from the issue of policies, laws, and institutional frameworks of different governments in the global market. This will also include the issues like bilateral and multilateral trade relations, treaties and the affiliation or membership of countries in international organisations (Fundamentals of Global Strategy, 2012). All this will create differences and hence this is an aspect that should be considered by a firm that is going global. Amcor’s diversification has been based on this factor and it can be noted that it has entered into economies that have treaties or bilateral relations with Australia. This has an advantage because it reduces the cost of doing business (Chapter 6: Australia’s International Economic Relationships as a Global Economic Issue, n.d.).

Geographical Advantage under International Trade

This is basically how far a country is, its size, if it has access to air and waterways, its physical and communication infrastructure, climate, and topography (Fundamentals of Global Strategy, 2012). These are important in doing business for they will have a direct cost influence on the sales (Sheng & Song, 2008). Amcor Corporation has tried to venture first into markets that have large geographical areas with high demography with easy access to both water and air transport. These nations have good infrastructures like the US and the EU (Amcor, n.d.).

Economic Model Advantage on International Trade

The amount of disposable income that one country has in relation to another will create a distance between nations. When the distance between the two is big, the investing company will have to adopt with the new market and make changes to the business model (Fundamentals of Global Strategy, 2012). This was the case when Amcor invested in Africa. It is the same reason why they started with investing with the EU and the US (Amcor, n.d.). The economy of a state is important because it will influence the level of trade in the market and hence it should be considered (Manteu, 2008).

Conclusion

The globalisation of businesses means that a firm will have a larger market. One of the major issues that a firm needs to consider when it goes global is the issue of competition. Globalisation of firm will entail delivering the same products internationally, in the same way; however, this is a major challenge because of the various diversities in market similarities. The market considerations include cultural dimension of the global market, the geographic location, administration, and the market economics and they are key for firms like Amcor.

Essay 2

Business Model

Introduction

A business model can be said to be the way in which an organisation generates its revenue and earns profits through its operations. It can be looked at as a design successful and efficient operation of an organisation, with a clear identification of the sources of revenue, the market, the products, and a well detailed financial operations (Björkdahl & Holmén, 2013).

Components of a Business Model

Any business model should be a strategic statement with a focus that will enable the organisation to set its vision and objectives, to have a focus on the target market, and to be able to order its operations (Fundamentals of Global Strategy, 2012). This encompasses its products and services as well as the difference it has with the market competitors (Hvilsom, 2012). The business model, therefore, offers a value position that encompasses benefits that are both tangible and intangible that the company will offer to the customers (Fundamentals of Global Strategy, 2012). For Amcor, it is reflected in the product quality and mode of supply.

The second component is the market participation. This particular dimension gives a description of the particular market being invested in e.g. US, EU … for Amcor, showing whether it is abroad or domestic, the distribution method, and the way of advertisement and promotion of the organisation's value position to the market (Hvilsom, 2012). This is a key aspect of the business model.

The third component is value chain infrastructure. The component looks into the issue of internal capabilities and resources that the company has put in place to handle the value proposition and the market segment (Jeong & Phillips, 2001). It then covers the partner networks in place to assist the business model, and finally it looks at how all this activities or operations are organised to deliver the model and achieve the desired value (Fundamentals of Global Strategy, 2012).

The final component is management model. This is the organisation structure that the company intends to adopt globally and its policies of management. The management style can either be decentralised or centralised basing on the needs of the organisation (Fundamentals of Global Strategy, 2012). Amcor has a more centralised system with various divisions globally (Amcor , n.d.).

Need For a Business Model

The business model is needed to create a clear, focus on the issues the general operations of an organisation to generate revenue and make profits while giving value to the customers. In the process of attaining all this, there are various important value disciplines that will be attained and these are operational excellence, product leadership, and customer intimacy (Fundamentals of Global Strategy, 2012). Operational excellence defined by the production of products and provision of services that are reliable for the customers at competitive prices and offering this with high efficiency (Jeong & Phillips, 2001; Fundamentals of Global Strategy, 2012). The customer intimacy entails having products that fit the customers and this is another major need for the business model. This will help the company to have a competitive age. The other one is product leadership, and this means that the customers are satisfied with the product and this will face out competition because they will become obsolete (Fundamentals of Global Strategy, 2012). All this can be achieved by the use of a business model.

Factors to Consider In the Business Model

The factors to consider include the social factors that include the culture of the market and the population. The second are the economic factors that include the cost of production and market liquidity. The next are administrative and political factors that entail the law and treaties in place in the global market. The market and competition is another factor. And finally are the physical factors geographic in nature that includes infrastructure at the marketplace (Fundamentals of Global Strategy, 2012).

Implementation of a Business Model

For efficiency in the implementation, the plan should be flexible to the market that has been selected. It should meet the Ghemawat’s “AAA” framework that includes adaptation, aggregation, and arbitration to the market demands (Fundamentals of Global Strategy, 2012). This will ensure that the business model fits the market effectively and hence it will give the organisation a competitive advantage.

Conclusion

A business model is aimed at achieving market leadership will require that an organisation attain operational excellence (Fundamentals of Global Strategy, 2012). This is what has been put in place by Amcor in its global diversification. The business model should include value position, market participation, value chain infrastructure, and management model if it is to succeed. Besides, there is need to look at the factors that will affect operations for this will reduce risks.