Report Writing Marketing help online study review: Analysis of Michael Porter’s national diamond – Issues related to contemporary management & Market entry strategy

Questions Asked??

Write a report on contemporary management and issues associated with this management with the analysis of Michael Porter strategy??

Solution the question proposes is::

Introduction

Michael porter has developed the porter diamond model, which is helpful in understanding the reasons and factors regarding the competitiveness of the companies in a particular area. The approach is helpful in making a comparative analysis between the levels of competitiveness of companies operating in a market. The major factors that are analyzed under this model are demand conditions, firm’s strategy, structure and rivalry, government, chance, related and supporting industries and factor conditions (Tamer, 2009). This model is highly useful when a company is making an attempt to establish itself in a foreign country for expanding its base. The major focus of this section of the paper is to explain the competitiveness level of Fast Food Industry of UK in South African market. This paper will help in elucidating the opportunities that are available for the company. The major factors of the diamond model have been portrayed in the following diagram:

(Source: http://www.valuebasedmanagement.net/methods_porter_diamond_model.html )

Factors of Diamond Model

In the following section, the main factors of the porter diamond model i.e. demand conditions, firm’s strategy, structure and rivalry, government, chance, related and supporting industries and factor conditions will be discussed in detail in the context of entry of firm in foreign country.

Demand conditions:

            This factor is very important and the level of demand in the home country has an important role to play in this context. There is a need of understanding the needs and desires of the customers. This factor has an important role to play as it is helpful in understanding attributes of the product that will be helpful in making it successful in the market. After analyzing these attributes it will be helpful in creating space for innovation and quality of the products of the company (Tamer, 2009). The demand patterns of the South African market indicate that there is an increasing demand for fast food industry in the country. The company can make use of product differentiation, customer relationship management, and corporate social responsibility for gaining a strong base in the market. The country has high levels of demand for safe and healthy food, which can be supplied by the company by making an innovation in its existing products (Tamer, 2009).

Firm Strategy, Structure and Rivalry:

This stage of model is helpful for the company as it explains the importance of setting proper goals and managing them in an effective manner. This will be a major determinant for determining the success of the company in the potential market. In order to face intense rivalry, the company undertakes innovation in its products and services, which will be helpful for establishing base in the foreign countries (Tamer, 2009). The use of information and communication technologies will prove to be useful tool for the company to gain competitive advantage in the potential market.

The major focus of the company should be on promoting consumerism, which will be helpful in tapping the fast food market of South Africa. The option of providing affordable meals to the customers for addressing the level of competition can prove to be useful tool for the company.

Government:

The role of the government is highly powerful in determining the level of success of the company in handling competition on foreign grounds. This is because the government has control over the supply conditions, demand conditions, competition between firms, etc. of the country. The government of South Africa is highly in favor of FDI, which encourages foreign companies to enter the market and contribute in increasing the GDP level of the country (Walker, 2004). The major reason for this is the increasing growth rate of the country, in which FDI also acts as an additional boom. The increased level of foreign investment has an important role to play in fastening the development pace, which is the reason for gaining positive acceptance from the government.

Chance:

Chance element is highly based on handling the uncertainty level, which is tackled by the business with the help of effective planning of all the factors that make a contribution in determining the success of the company. Chance refers to kind of luck, which is also an important factor in deciding the fate of the companies (Walker, 2004). The element of chance in uncertain and is critical in nature as it lead to discontinuities, which will contribute in creating success for some countries while failures for other. It is very important that the company pays due observation to this factor for determining the level of competitive advantage of the company in the country.

Related and Supporting Industries: 

            This factor is also an important determinant for ascertaining the level of competitive advantage for the company. This highlights those related and supportive industries, which can act like a support for the company trying to establish itself in a foreign country. This will be helpful for the company as it will be able to decide about the cost effective inputs and contribute in upgrading the company. The increasing trend for fast food in the South African market indicates that the country has positive acceptance towards the retail food sector (Tallman, 2010). The sector has an increase of 5% in the year 2009 because of growth in the income level of middle income people. These trends and conditions indicate that the fast food company of UK will be able to establish a strong base for itself in the country (South Africa Country Commercial Guide, 2011).

Factor conditions:

There are many factors, which have an important role to play in deciding the level of competitive advantage for the company in the foreign industry. The factors include physical resources, knowledge resources, capital resources, infrastructure, etc. It is very imperative for the UK Company for gaining access to these resources in order to sustain itself in the market. The company needs to ensure that it has these resources, which will be helpful in establishing in the foreign market (Peng, 2008). The company can shift its existing employees for handling the top management position, which will be helpful in ensuring that it has all the essential resources and factors which for maintaining competitively advantageous position in the South African market.

Conclusion

In the above section of the paper, the main focus has been on explaining about the essentials, which will have an important role to play in helping the company in gaining competitive advantage. From the discussion, it is clear that the South African market is supportive and encouraging for the UK fast food industry. The company will be able to gain competitive advantage if it functions as per the insights elucidated by the porter’s model. It is very essential that the company gives due importance to these factors, which will ensure its success in the foreign country.

Part 2: Issues related to Contemporary Management

Introduction

The meaning of Contemporary management issues mainly refers to the issues that are faced by the organization in the modern era related to management. There are many steps, which are taken by the companies for effectively managing the key issues in order to effectively manage the managerial issues faced by the organization. These issues have an important role to play in ascertaining the success of the strategies, which are adopted by the company. The company makes use of techniques for the purpose of lowering down the costs of the organization. These issues that arise in the organization evaluate the management theories and how they are applied in the organization. In the present era, there are many contemporary issues related to management, which are faced by the organization. Some of the most common issues are Business Ethics, Corporate Governance, Corporate Social Responsibility, Quality of Work Life and Quality Circles, etc. In the following section, there is in-depth discussion about two contemporary issues, which are faced by the organization.

Corporate Governance

The organizations need to function in such a manner that they are able to maintain their business activities in an effective and efficient manner. The organization should be successful in meeting its ethical obligations and give due value to its stakeholders. The considerations of stakeholders should be main focus of the company while functioning. Specifically in the context of South African, there is a different set of corporate governance principles. South Africa is well known in the world for fulfilling its duties related to corporate governance (Armstrong, Segal & Davis, 2005).

Companies Act and Johannesburg Securities Exchange Listing Requirements have been taking step for building strong corporate governance framework in the country. The main requirement of stable structure of the company is to enable long run and continuous growth strategies. For this purpose, the company needs to effectively allocate resources, which will contribute in effective utilization of resources and maximizing the profit level. The companies should register and fulfill all the norms of the South African government and work in compliance with the existing standards of the country in which they are entering (Armstrong, Segal & Davis, 2005).

          The companies should be able to overcome its weaknesses and work on the areas of poor performance before entering the market of South Africa. With this, the company will be able to main its competitiveness in the market of South Africa. By fulfilling these responsibilities, the company will be capable of building its brand image and target mass customer base for its products and services. This will enable the company in building a highly stable market for the business and also fulfill and satisfy the needs of its stakeholders. In order to effectively operate in the South African market, the company needs to follow rules and regulations of South African market and also give proper training to staff and directors to work in an obligatory manner (Mallin, 2007).

Corporate Social Responsibility

This issue basically relates to concern of the company towards the environment in which it is operating. The increasing concern of the society towards the environment makes it sure for the companies to give due consideration to this segment. The activities and actions of the organization should be such that they have a positive environmental impact. It is very important for the organization to make an improvement in general welfare of the society. The company needs to plan its actions in such manner that the needs of the society should are fulfilled along with its organizational operations (Idowu & Filho, 2009). Talking specifically in the context of South Africa, there are many companies which are taking strong actions in this direction.

The governmental authorities of South Africa have taken steps for combating the issues related to CSR. The Companies Act of South Africa has not highlighted any specific policies which are to be followed by the companies operating in the country yet the issue has been able to gain high level of importance from the government. The companies which are operating in the country are taking initiatives for development of society by fulfilling their CSR duties (Idowu & Filho, 2009).

The companies that have been taking steps for social issues have been able to make a positive change in their productivity and also influence its profitability and share. The king reports explains the major guidelines which are followed by the companies that are operating in South African market. There are many companies like Sony and other big brand which have shown high level of commitment towards the society and promoted CSR practices in the country. The basic focus of these companies is to make change (Flores- Araoz, 2011). The basic purpose of the companies behind showing their concern for the society is to fasten up the pace of development on lesser developed countries. South African society and environment have been able positively benefited in the areas of education and training, healthcare and social welfare (Mullerat & Brennan, 2011).

 The focus of companies is on bridging the gap between the skills and focuses on improving the socio-economic status of South Africa and also made a positive influence on the health and education. The focus of the company is on resolving these issues that hamper the growth and well being of the nation (Mullerat & Brennan, 2011). Thus, it makes very clear that the company which is willing to enter the market of South Africa should give due importance to corporate social responsibility.

Conclusion

            In the above section of the paper, the main focus on highlighting the contemporary issues which are to be faced by the organization who are willing to enter the south African market. It is very important that the companies are able to handle these issues in order to fulfill their business objectives in the desired manner.  

Part 3 Market Entry Strategy

Introduction

Market entry strategies play a significant role in the companies for the purpose of expanding the operations of the business on a global scale. For the purpose of expansion, the company has to invest a lot of time in investigating and analyzing the options and strategies that an organization should undertake in expanding its business on a global scale. This is a critical step for the organization in order to generate revenue in the long run and conduct its operations globally. This would help the company in enhancing its market share earn increasing profits. The market of South Africa offers a great potential for the organizations of UK (Lymbersky, 2008).

An organization is required to have a wide market research in order to identify the available opportunities in the country that would be helpful for the company to analyze the chances that the company would have a successful business operations in Saudi Arabia. It is important for the company to analyze and acquire information about the new customers, their pattern of buying, their reasons of buying, and their characteristics. In this manner, the company should adopt a structured and well defined business plan in order to enter the ne w market in a new country for the new customers. The objective of the business plan lies in the decision of the company to enter into the market of South Africa and conduct its business operations (Lymbersky, 2008).

 With the help of a business plan the company gets a direction about how to enter the new market of South Africa and cater to the needs of the new customer base. For this purpose, it is necessary for the company to have an effective plan for undertaking actions of entering the new market. The business plan would be beneficial in identifying the target customers of the company and what are the services that the company would be providing to the new customers. For having an appropriate business operation in the new market, the company should adopt appropriate strategies for marketing and promoting its products and services in South Africa (Lymbersky, 2008). This will be beneficial for the company in creating awareness among the consumers about the existence if its products in the new market.

Strategy for Entering the New Market

It is important for the company to define an appropriate market entry strategy before entering into the new market. This strategy is beneficial for the company in identifying the products of its competitors and how it can go for offering its products in a better way.

As known as the Republic of retail foods, the country is gaining increasing importance in importing the products from outside. While entering into the new market the company should go for acquisition strategy for opening its food business in South Africa. The target audience of the company can be the people of middle income group and tourists who come for visiting the country (Tielmann, 2010). In this manner, the company should undertake an appropriate strategy for entering the new market and confirm to the rules and regulations that are prevailing in the new market.

The company has ample opportunities because of new protocol and governmental agreements which have taken place. The economy of South Africa is highly refined in nature. It is very important for the industry to take well defined steps and give due considerations to all the factors. About 45% of the national economy is earned by 10% of the population of South Africa (Mushuku, 2006). The consumer demand in the region is highly sensitive towards price as there are only five major areas in which retailers can operate. As per the conditions that have been listed for the company to operate in South Africa it is clear that the company needs to adopt a low risk strategy risk in order to sustain in market. Most suitable strategy for the company is to merge with an existing player which will make it easier for the company to gain a strong hold in the market. This will be helpful as the company will be able to easily reach its target market (Mushuku, 2006).

The suggested strategy will be valuable for the industry as it will enable easier understanding of the operations of the company because of the merger and will also facilitate coordinated working.  By adopting this strategy the company will be ale to save on time required for entering the market because it will be able to easily manage its operations because of the merger. Along with this the company will also be able to curb its competition with the existing food retailers in the South African market (Doole & Lowe, 2008).

Conclusion

            From the above discussion it can be concluded that if the company is able to make use of this marketing strategy it will be able to reduce the barriers in entering the new market. With the aid of this technology the company will be able to manage its skills, technological efficiencies and supply of raw materials in an effective manner. It is clear that the company will be able to expand its operations and increase the customer base which will facilitate easer working on the global level and also positively contribute in the profits. The market of South Africa is an effective option for the organization which will contribute in achieving the objectives of globalization and cater to a large segment of customers.

If you want Marketing Management Assignment Help study samples to help you write professional custom essay’s and essay writing help.

Receive assured help from our talented and expert writers! Did you buy assignment and assignment writing services from our experts in a very affordable price.

To get more information, please contact us or visit www.myassignmenthelp.Com