StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Strategic Analysis of the Companys Entry - Essay Example

Cite this document
Summary
The paper "Strategic Analysis of the Company’s Entry" describes that a matter of implementation issues will be the concern as regards putting Center Group into the company's portfolio of business and how this will, in turn, affect the company's organizational structure…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER92.1% of users find it useful
Strategic Analysis of the Companys Entry
Read Text Preview

Extract of sample "Strategic Analysis of the Companys Entry"

Norrie Sinclair is the chief executive officer of CVO. Heading the company for more than three years now, Sinclair has a vision of a huge company that will uphold the vision of the founders by pursuing a very aggressive growth plan. Part of his growth strategies includes geographical expansion: in which he aims to establish a presence in the Western European region by entering London, UK as a first move. His other strategy includes divisional expansion, by going into the payroll sourcing and personnel leasing markets. For the latter, an opportunity to buy the Polish company Center Group in Warsaw has unfolded. However, he is faced with some major considerations.
II. Issue
Should Norrie Sinclair establish a presence in London? Should he aim to purchase Center Group? How will he overcome the challenges of the limited demand from the Polish market? How will he integrate the new businesses into the existing structure?
III. Alternative courses of action
A. Geographic expansion: to enter the UK or not to enter the UK
1. Pros
To enter the UK market is a prerequisite to divisional expansion. The majority of the market for payroll sourcing and personnel leasing can be found in Western Europe, therefore establishing a presence in London offers some advantages.
2. Cons
The major drawback from entering the UK market is the company’s doubts of offsetting the financial risks that it will face given the current mix of the products that CVO can offer—online services and traditional recruitment services. Because it is a Central and Eastern European company that would venture as a player in a fragmented segment of the HR services industry.
B. Divisional expansion: to purchase Center Group or not to purchase Center Group
1. Pros
The major advantage of purchasing the Center Group for CVO is that it can enter the larger payroll sourcing and personnel leasing industry, which demands are great in the Western European market. Because there is ample room for growth in the industry, as indicated in the exhibit, entering the industry can be a wise decision for CVO. As for the demand in the Eastern European region, CVO will have the opportunity to usurp the market leader position and push the demand for payroll sourcing in such a region, where it can reap substantial profits by increasing the market potential of the industry.
2. Cons
The major disadvantage in purchasing Center Group, at least for CVO is the lack of industry information where the company can base its forecast to measure the company’s value for the purchase. Because the industry has been less documented in the Eastern European region, CVO finds it hard to find information from where to base the value it can offer the owners of Center Group. As is previously mentioned, this market for payroll sourcing and personnel leasing is underdeveloped which has its share of pros and cons when it comes to entry decisions.
IV. Recommendation
My recommendation for the company is to both enter the UK market in order to establish a presence in the Western European region, and by the Center Group in Poland in order to expand its divisions.
The justification for this recommendation is the company's growth objective which requires both choices to be included. For one, if the company purchases Center Group in Poland, the major obstacle it faces would be the sustainability of demand from the Polish market for payroll sourcing and personnel leasing. While according to the exhibits, the huge market for payroll sourcing and personnel leasing could be found in Western Europe, where companies have started to see the benefits of specialization into the efficiency of their Human Resource departments. Therefore, if CVO is to buy Center Group, establishing a presence in the Western European region is crucial; hence, it's a plan for London. The major concern for putting a Western European presence in London, aside from the acceptability of the company as a Central and Eastern European company, is the huge financial risk if the company offers its traditional services. However, by entering the payroll sourcing and personnel leasing industry through entering the Western European region, the company can find substantial demand to offset these financial risks. Therefore, in order to succeed, Center Group should be included in its strategic business portfolio.
After these SBUs are in place, the company can utilize a cross-functional team based on countries comprised of the different managers from three functions: e.g. the Estonia team would be comprised of managers as representatives from the online services, from Professional People, and from Center Group. This way, the country team comprised of representatives of three functions can ensure integration in terms of the services of the company. As they tailor services to clients from each division, the company has a better way to leverage its name. CVO's clients can choose from services that CVO's online business can offer, Professional People can offer, and Center Group. This can solve Norrie Sinclair's dilemma of putting walls for the new division, but appealing to the same clients. The CVO brand can offer a larger set of benefits to its clients then. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Case Study analysis: strategic analysis of the company's in question Essay”, n.d.)
Case Study analysis: strategic analysis of the company's in question Essay. Retrieved from https://studentshare.org/miscellaneous/1551396-case-study-analysis-strategic-analysis-of-the-companys-in-question-entry-strategy-into-central-andor-eastern-europe
(Case Study Analysis: Strategic Analysis of the company'S in Question Essay)
Case Study Analysis: Strategic Analysis of the company'S in Question Essay. https://studentshare.org/miscellaneous/1551396-case-study-analysis-strategic-analysis-of-the-companys-in-question-entry-strategy-into-central-andor-eastern-europe.
“Case Study Analysis: Strategic Analysis of the company'S in Question Essay”, n.d. https://studentshare.org/miscellaneous/1551396-case-study-analysis-strategic-analysis-of-the-companys-in-question-entry-strategy-into-central-andor-eastern-europe.
  • Cited: 0 times

CHECK THESE SAMPLES OF Strategic Analysis of the Companys Entry

Company Strategy Analysis: Adidas

Strategy analysis comprises of two fundamental components which are the analysis of the external environment (primary industry analysis), and the internal environment analysis (analysis of the firm's resources and capabilities) (Grant, 2005, p.... strategic analysis defines the techniques, frameworks, and the concepts that are used to effectively formulate and implement effective performance strategies within any given organization.... Company strategy Adidas Company has been strategic in terms of its entire operations worldwide....
3 Pages (750 words) Research Paper

Strategic Analysis of Sony Company

The paper presents the strategic analysis of Sony Corporation.... By learning from their competitors, Sony Corporation has introduced new ideas that aid in market entry and more customer attraction.... The five Porter forcers under discussion are: barriers to entry, power of buyers, supplier power, substitutes, and internal rivalry (Porter, 1987).... It has been on the first lane in creating a successful business strategy by utilizing the organizational internal and external analysis frameworks....
9 Pages (2250 words) Case Study

The entry strategy mode for NEXT to Expand into China

his research project investigates the current literature on the internationalisation process and reviews alternative modes of market entry strategy.... It should be noted that due to certain limitations imposed by environmental and internal factors, the findings of this research cannot be utilized in terms of all market expansions, although they can be amply used as an example for further theory building in the area related to the Chinese market entry and expansion strategies....
37 Pages (9250 words) Essay

Market Analysis for Entry Strategy

The other purpose of this study was to find out various suitable methods of market entry and identifying the best method that can be used by the company that will yield more benefits.... For companies to remain competitive and international in scope as well increasing there financial bases they need to embark on market entry strategies that will enhance good results in terms of exploring new markets1....
16 Pages (4000 words) Case Study

Market Entry Proposal for Xiaomi

This essay "Market entry Proposal for Xiaomi" discusses Xiaomi that is frequently increasing its market share in China which has persuaded the organization to enter into new markets.... Following are the most important market entry strategies which are discussed in this proposal (Schermerhorn, 2011): The company should pursue the wholly-owned subsidies market entry strategy particularly for Singapore.... Hence the proposed market entry strategy will actually facilitate the organization in achieving the company's strategic goals....
6 Pages (1500 words) Essay

Strategic Planning of Any Company

The paper "strategic Planning of Any Company" states that the main threats and dark aspects include the rival company's imitation in all fields.... 'Simply put', McNamara opines, 'strategic planning determines where an organization is going over the next year or more, how it's going to get there and how it'll know if it got there or not.... The focus of a strategic plan is usually on the entire organization, while the focus of a business plan is usually on a particular product, service or programme....
11 Pages (2750 words) Coursework

Business Strategy of Google Company

Google's vision statement is reflected as a ten point strategic framework named as ten things.... The present study analyzes the business strategies of Google in the wake of the turbulence in the markets.... The internet search engine industry has an oligopolistic market structure with only three major players namely Google, Yahoo and Microsoft having a majority market stake....
12 Pages (3000 words) Term Paper

Strategic Management for Global and Local Companies

The paper "strategic Management for Global and Local Companies" compares differences in international strategic management of international and local firms - the extent of coordination and involvement from the center, the grade of product standardization and responsiveness to local markets, etc.... There are major differences in global or international strategic management especially of multinational companies compared to companies operating in one state....
8 Pages (2000 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us