Question: F ormulatean international business-expanding plan focusing on entry strategy andoperational strategies for a selected product in a targeted country. Companies in the sector/industry that...

Expansion of business 1
Expansion of Business
Expansion of business 2
Introduction:
In the competitive world today, the organizations are moving forward to expand their
market base by capturing new market and are initiating its operations in other countries which
will help the company to expand its market and consumer base. Different competitive pressures
are compelling business organizations to be in state of constant change and expand its market
base so as to have a competitive advantage. Changes are bound to occur on account of global
exchange of information, knowledge explosion, cross Cultural Revolution, rising customer
expectations and increasing competitiveness.
The changing preferences of consumers, increasing advancement of technology are
forcing the companies to go global. The government and other international organizations are
making a step forward to reduce the tariffs and quotas on export and import to facilitate
international business. This helps in the economic growth of the country and also helps in the
diverse availability of products to the consumers. Organizations such as WTO are taking a step
forward to enhance the international trade and facilitate economic growth in the countries.
In this paper we will focus on building an international strategy for Arnott, one of the
largest food companies in the Asia Pacific region having its existence from more than 146 years
in Australia and which is highly supported by Campbell soup.
With the increasing demand of the high quality food across the globe, in this report we
will bring into focus different strategies that will be adopted by Arnott to start its operations in
India.
Firm’s Strategy:
―Strategy is the direction and scope of an organization over the long-term: which
achieves advantage for the organization through its configuration of resources within a
Expansion of business 3
challenging environment, to meet the needs of markets and to fulfill stakeholder expectations‖
(Johnson and Scholes)
Different strategies are adopted by the companies so that they are able to achieve
competitive advantage, for providing differentiated products along with a focus on low cost
strategy to the consumers. The company will focus on adopting different strategies which is
adopted at different levels of the company i.e. Corporate Strategy, Business level strategy and
marketing level strategy.
The company is focusing on expanding its market to India with a strong focus on poor
people, so the main target group of the company will be middle and low income group people.
The company will focus on building its strategy that will focus on fulfilling the needs and
requirements of the target market.
The company will focus on low cost strategy, along with a focus on differentiation as the
company focuses on different flavors and variety of biscuits which will be marketed and sold to
the target consumers.
Organization structure and Management:
The structure of the organization needs to be changed so that the company is able to
respond to the global competition. It is important for the organization structure to ―Fit‖ to the
strategy that has been adopted by the organization so as to survive in the market. Some of the
factors that need to be taken before deciding the structure of the organization are the strategy,
size, technology and environment of the organization. Other factors that need to be considered
for deciding the organization structure of the organization are geographic dispersion.
There are different organization structure that are used by the organizations which work
on the international perspective. These structures are:
Expansion of business 4
 ‗Domestic structure plus export department
 Domestic structure plus foreign subsidiary
 International division
 Global functional structure
 Global product structure
 Matrix structure‘ (Anne‘ 2004)
The best structure that will be appropriate for the company in the perspective of India is
domestic structure plus foreign subsidiary. With a focus on this structure the company will be
able to improve on its efficiency and subsidiary managers will focus on adapting to the local
market and will be able to serve the local market effectively. The firm can also focus on
establishing an international division, which focuses on functional, product, or geographic lines.
With a focus on this structure the company will be able to organize the structure and working of
the company and the company will have different managers and heads who will be headed by
Vice President, International Division who reports to the CEO of the corporation. With a focus
on this structure the company will be able to focus on implementing the global strategy and will
allocate and coordinate resources for foreign activities under one roof, which will help the...