Choose a company that is currently not in India. The Boeing Company was originally founded in America. This company was founded by William E. Boeing in the year 1916, in Seattle, in the state of Washington (Boeing Company, 1986). This company has seen success in the years thereafter; it joined forces with the McDonnell Douglas in the year 1997. Boeing’s headquarters are now in Chicago, Illinois; this happened in the year 2001. It has commercial business units that make up its commercial business sector. These include the Boeing Defense, Security and Space; Boeing Capital; Boeing Shared Services Group and the Boeing Commercial Airlines.
Boeing Company is among the largest aircraft manufacturers in the world. It is also the world’s third biggest defense and aerospace contractor, basing this on revenue that is defense-related. In America, it is regarded as the most extensive exporter in terms of value and stock.
How Boeing Company Would Have to Change The Way It Does Business If It Were to Enter India
The Boeing Company has been remarkably successful in America, but it needs to spread its services to other nations like India. Boeing has to reduce on its tariffs so as to work successfully in India. This step would enable the company to gain more market shares in the country, thus increasing profitability. The costs on food need to be reduced because the other factors apply almost on the same scale for all other air companies. The cost reduction on fuel and other areas forms eighty to eighty five per cent of the costs on flying. Reduction of the tariffs is practical when their services are in full capacity, which is after the establishment of the company’s foundation (Boeing Company, 1986).
For this company to be successful it has to find an average tariff between the common airlines in India; a reduced tariff tends to pull a large crowd of passengers and investors. India is extremely populated, and this is an advantage that the Boeing can use in their establishment. The company can also offer discounts for its seats, in that, the more seats bought attract a larger discount amount. In doing this, the consumer sees a reasonable visibility in spite of this action having similar impacts on the company.
In India culture is extremely vital; Boeing Company has to incorporate cultural demands in the services they offer. Indians posses a rich and proud culture that distinguishes them from the majority of the world’s cultures; this is seen in food and the way of life. While using their services, food and drinks that are offered should be related to Indians’ traditions in terms of food and types of drinks. This will be a clear indicator of unprejudiced services and consideration, hence more subscriptions for the company.
This company has to establish routes that attract a larger market force in India. The success of Boeing has been attributed to its routes which meet the consumers’ demands; this should also be applied in India. All nations gain from international interactions with other nations, so for India, suitable routes of travel should be created in order to cater for a huge number of travelers. It is a strategic move for this company to create new routes for its consumers that are not found in other airlines.
India has a massive population that is poor and dependant. The resources are inadequate; the best approach to this issue would be for the company to introduce large airplanes that carry many passengers (Mathew, 2007). A large number of passengers would mean that the cost of travel is reasonable and practical to the people. This gesture would automatically give Boeing Company an advantage over the other firms.
The company has its sector that deals with training of pilots; it would be strategic for it to create pilot training centers in India. It builds confidence for the passengers when they identify with a pilot from their home country. Qualified pilots from these training centers will help build the name of the company in India, thus increasing on its popularity. For instance, Boeing needs to create a significant center in Mumbai that would pull its market force.
In planning for the success of Boeing, a more diverse approach like advertisement is essential. Creating a suitable market force needs awareness of the services offered; this is through local and international advertisement. The company should invest in advertising with popular Indian media and the world. Travel consumers are tempted to try new and promising airlines in order to establish a dedicated travel party. Putting the service diversity in public would pull a sizeable crowd of followers for the Boeing Company.
The Boeing Company needs to develop alliances and partnerships with local Indian manufacturing firms. When the company delegates manufacturing of their components by Indian firms, the company acknowledges increased business profitability. The natives of India would identify themselves proudly with the relationship, thus prefer this company to others. For instance, Rolls Royce Company made partnership with Larsen and Turbo in a signed memorandum in 2010 that was purposed to cater for civil nuclear chances, both globally and in India (Mathew, 2007).
Would Entering India Keep The Boeing Company from Being Profitable?
Establishing the possibility of unsuccessful investment by the company depends on the company’s application of the suggested strategies. Every firm or company, exploiting new and untapped areas gives an upper hand in their success. In profitability, the company focuses on attracting a large market force that will compensate on the investments, hence bringing returns. For Boeing Company to register profits, it has to take up these changes in their work structure. Through advertising their services to the Indian community in mass media, a larger crowd of interested parties would seek this service. An increased number of consumer subscriptions for the company would mean that Indian citizens extensively access the air network for their travel. Profits are in this matter obtained through buying of more tickets for travel in this group.
Creating other related channels for the company open a window of opportunity for better business. This creates networking that indirectly reduces the cost of transportation and manufacturing. Consider a company contracted to assemble Boeing’s plane parts in India; the firm provides reduced transportation costs to the company and also allows the company to direct its focus on other areas far from manufacturing.
Assess First Solar’s multinational business context and its internal resources, and recommend how it should use motivations and structures for its multinational business strategy over the next 10 years.
First Solar Company is established in the field of solar modules that are thin filmed. This organization has planned on how to increase its capacity in manufacturing over time that will put it far from competition. This American based company has publicly announced its plans on adding more manufacturing plants in France, America, Vietnam, Malaysia, and Germany. Analysts from research centers have concluded that due to this expansion the company will realize an increase in its manufacturing output to three Gigawatts in a year. Their strategy in tackling competition is addressing consumer demand by producing products that meet their customers’ needs. They address areas that are unexplored like the thin filmed solar products, thus pulling a large number of consumers.
In technology, the company strives to exploit new energy resources that contribute towards their photovoltaic projects. It is known that First Solar Company is a high tech company whose stock recorded three hundred and seventeen dollars from the year 2008. In their efforts to supply green energy to the world, they have employed customer friendly conditions that put them at the top of the list. Measures like reduced cost of their products in the market render their commodities favorable for sell. Compared to other organizations on commodity pricing, First Solar caters for its consumers by reducing the prices of these thin filmed panels. This promotes their marketability in comparison with other companies in the same field (Lovins, 2010). The company should also consider the mass marketing of their products in the effort of addressing aggregation strategies. Another way is to increase on its production of solar related products.
The tangible, intangible assets and capabilities of First Solar Company make up its internal resource. First Solar has chosen the best time to put an increase in its operation. Recent analysis by the IMS Research Center predicts that the scale of utility on photovoltaic products is likely to outdo the rest of the solar industry with a margin of five per cent in the next year (Lovins, 2010). The major specialization of First Solar Company is in utility sale projects. This company was contracted to establish America’s largest solar plant that deals in thin film panels. It was also contracted to build the largest solar plant globally based in China in the year 2011.
First Solar Company has suffered a number of losses and disadvantages in business dealing. In adaptation, the company ought to introduce and review their business strategies. This can be done by the funding of solar related sector in the field. These funded areas make up the firm’s stronghold in business. The company can also accept grants from well wishing parties in order to develop on their new projects. Even with their technological advancement on solar energy, this firm still needs to adopt new ideas in the field from innovators of the same. Arbitrage measures should also be taken up by the firm; this is that the company can invest in other related industries through buying profits at the initial low price and selling them later in profit. This builds the company itself and the owner company of the shares sold (Lovins, 2010). The company should also offer the selling of shares to the corporate world.
Planning for a better and successful market strategy, First Solar Company should take up the idea of home based work structure. In this case, the company is run in the residential areas, thus reducing on the burden of using only one work area that is urbanized (Lovins, 2010). Applying the work strategies from hub business structure would help boost the company’s marketability. It is done by providing solutions that add value to management and at the same time sustain client proximity. This structure optimizes on every platform, hence integrating them into global structures. Mandate concentrates on the development needs and training of First Solar Company and employee levels in its departments. This venture will increase on efficiency of the employees, as they are trained and work levels revised. These strategies when adopted by the company should help First Solar Company develop and sustain business success.
Choose a company’s product or service, disaggregate its value chain, and identify its core activity. Explain whether it should keep activities within the company or outsource activities, and describe how it should either keep activities in its home country or offshore particular activities.
Diamond is a monumental employer in the industrial world, and a valuable (mineral) product in the world. The mineral goes through a number of processes that see its value added; these are called value chain. For diamond, the first process is the formation, this happens in the earth’s crust (Vlassenroot, 2008). Diamond is a carbon derivative that has its components bonded strongly together, making it the hardest known mineral in the world. This mineral can also be created in the industries. The next step is the exploration process which has seen a lot of increased interests from companies since the year 2002, having 380 projects to 2004 with 500 projects. This stage is concerned with the search for new diamond sources. The process of mining occurs in two main stages; open pit or underground mining. Open pit is done for deposits on the ground surface while underground mining is conducted below the surface (Lenzen, 1970). In the course of maintaining an advantage in mining; the firms should utilize techniques that favor the conditions. The process of sorting follows, where the diamond is graded and put into different categories that depend on the value. Here, the best products are taken to the next stage while the rest are used industrially. Cutting and polishing the diamonds follows as the next value chain. After this cutting and polishing, they are put into categories depending on Colour, Cut, Clarity, and Carat weight (Vlassenroot, 2008). This stage forms an indispensable part of the supply chain of diamond in the global market.
It is said that those companies that have the most appropriate means of cutting and polishing will benefit from this product in the next years.
The cut and polished diamonds are purchased by manufactures. Depending on the consumer demands on the specifications, these diamonds are made into jewelry. This is a stage that is of colossal value addition to the product, with unusually few nations performing it. These manufacturing centers thereafter determine the last destination of the product. In the hands of the retailers, this jewelry is bought by the customers at truly exorbitant prices. It is recorded to be worth thirty one billion dollars or sixty two billion dollars when included with other components.
The diamond industry should outsource some of its activities in order to realize immense profits and consumer demand. Activities like cutting and polishing the diamonds after sorting should be done by other related companies both locally and abroad. The technological improvements on the process can easily be accessed when the pressure is not all on one company. This enables the related companies to develop individual technological advantages that will create efficiency in the process, hence better products. Another area that should be outsourced is the process of exploration (Vlassenroot, 2008).
It would suite the whole value chain idea if these activities could be in the form of specialization, where a leading company abdicates these activities to other smaller groups on industries in the form of contracts. For instance, when the process of diamond exploration is given to company B and mining to C; the major company A focuses on fewer activities and follows up on the other outsourced activities. In outsourcing these activities, the number of employment cases is increased, as well as a nation’s development. Creation of other smaller industries and companies related to diamond production would be done in areas that were not having industries, thus this brings urbanization in the process.
On the other hand, keeping these activities within one company or industry only bulks and creates more pressure for performance. The productivity of an industry dealing with all these processes cannot match that of outsourced activities. These goes down to quality of production which is especially vital for the consumer group.