Free Top Management in Gok Nur Baki Ltd Essay Sample
This company was established in 2003. A part from producing various goods, they also produce at different scale goods; PVC isolated erection cable (450/750v), isolated flexible cables (450/750v PVC). The company was awarded TS EN ISO 9001-2000, and the quality certificates, among others. This company begun the construction of new plant in area of Ziro, to extend its production in the year 2000, after which, this plant was provided with modern production equipments, from Germany, Finland and turkey. After installation, one continues being modern standardization in 2007.
The firm presented a more qualitative commodity. The raw materials that the company uses are imported from Iran, Turkey and the Russian federation. The safety and installation of the presented cables that are presented to its clients with guaranteed fair and proper prices. There has been no need for painting while the house is still under protection. As a rule of export and the internal markets, the institution usually takes high quality products. The institution at on point was awarded many awards like Oksas, 18001-2007, Quality certificates. In conjunction with this, the institution has named as the best producer of cable and the name 'Company of the year' was awarded to the company. In this framework of national business awards established by the company called magazine, consulting and commerce. To its goods, this institution provides a guarantee, and for the purchasers' information, they can be assured that every cable from this institution is subject to personal lab and ensure that they meet international classes, (The Treasury Board of Canada, pp. 5).
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Gok Nur Baki ltd decided to go international because of the following reasons; the company had to build more brands and the value of shareholders. It also wanted to reduce overdependence on home markets. Furthermore, the organization saw leverage existence of corporate technology, chains of supply, technological know how, and intellectual proper. The last reason is the reception of awards from the home ground due to going international and even global, (Edwards, pp. 1).
Entry Strategy Justifications
The planned entry strategy can be justified by the fact that, it is much vital in assessing the international potentiality of Gok Nur Baki ltd. starting with joint ventures; this is where an enterprise in which two or even more investors shares the ownership and control over the rights of property and operations. This forms a more extensive kind of participation than in licensing and exporting. Joint venture has the following advantage; there exist sharing of abilities and risks to combine both in-depth local knowledge and the foreign partners' expertise. There is also a joint financial power, apart from having the only possibility of entrance. Lastly, it might be the source of supply for the third country. The five common goals of forming a joint venture include risk or reward sharing and the development of the product, and meeting the government requirements, and even sometimes to ensure the company might get connections and distribution channels through political favors.
Joint ventures are in most cases favorable in conditions like; when the strategic objective converges while competitive objectives diverge. The entry is also recommended when the size, power of markets and resources of partners are far much smaller as compared to what business potential competitors and leaders of the industry. It is also good under environments that enable partners to learn from one another, while at the same time, limiting their access to their own proprietary skills and knowledge.
The Top Management in Gok Nur Baki Ltd have some issues in a joint venture market entry include control, ownership, the length of the contract, transfer of technology, pricing, local firm abilities and resources, and lastly the interventions of the government.
There are also conflicting pressures to compete and corporate. These includes: strategic imperative; this is where partners desire to maximize the benefits accrued from the joint venture, but at the same time, they might be thinking of maximizing their own competitive position. The Top Management in Gok Nur Baki Ltd have to look into another issue in which it will develop shared resources, yet every company wants protect and develop proprietary resources of its own. This international market entry need to be controlled coordination and negotiation process, at the same time as each firm would like to have hierarchical control.
Factors in International Trade
One of the environmental factors is true market potential; India is a very large country. The population as per now stands at one billion and the growing rate 1.7% per year. A reflection on size and condition and potential customers, it can be concluded that, the middle class of India is analogues to the Europe middle class. The fact is that, the characteristics of income levels of western middle class, represents a very smaller upper class in India. The most attractive segments of Indian market include the urban youth and the rural population. The upcoming generation has been in the recent past shown inclination towards impulsive buying.
Market diversity is another factor to consider in the Indian markets. The reality of Indian market is that, there are more than 17 official languages, and a very wide ethnic diversity, 26 states, many castes more than six major religions. Such like a diverted population have varsity tastes. Such like marketplace has tremendous effects on product variability and labeling, and places where successfully products can be sold. Tailoring services and goods to local tastes has been never been a trivial undertaking. The firm has to realize that there is need for extensive market research for it to understand consumer demands, and they have to be willing to make modifications at a local level.
The political systems form another factor. India is a federal republic of 26 states and seven union territories. In the country, judicial system is an independent arm of the government, having legal systems similar to theses of Britain. Changes in political environments have affected international marketing operations, though some have led to opening of previously closed markets. The Indian society can be considered as being plural; it is the most demogratic country in the world with multi party political system. This forms the attractive business environment, was realized largely due to the political and economic reforms that has encouraged foreign investors by providing them with incentives for undertaking business in India (Accessmylibrary, par 3-10). The political events in India affect business performances. Political system has provided a more relaxed climate of investment. The direct foreign investment rules have been changed in the country. Having the prime ministers support and legislative bodies, foreigner's investment has been encouraged. In India, there is excitement sense, in industrial communities and financial, as transnational firms enter joint ventures in India. Political challenges on the other side have remained strong and real.
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The company's management will have to look at individualism and collectivism nature in India. In India, every business learns quickly that independence is the order of the day in carrying out one's assignments; however, supervisors in the country are depended upon and much respected for their managerial work. The collectivists' value relates to obedience, respect, parental financial services, and honor of ancestors. Ancestors are much respected and looked upon for advice, as they are looked upon to be experienced and have more wisdom (Limaye, par. 14).
Among the operational factors, the process of analyzing global markets and opportunities is among them. Companies have to evaluate potential markets to recognize the country that has greatest opportunities. This has to encompass the discussion of variable factors that affect different customer types.
Another issue is the development of international marketing strategies. This involves plotting strategy with an international mindset; which is a very challenging process. The creation of international customer logic, international information logic and purchasing logic, have been proved hard (Docstoc, pp. 11)
Culture is just a set of traits b that sets a group of individuals separate from another group. The strength of culture depends on the degrees at which such values of such a culture are coded and efficiently transmitted to all. In the definition of desirable values for corporate culture, traits are chosen for their utility other than popularity in defining a firm that is worthy working with. Gok Nur Baki would like to work with individuals sharing these values. My list has seven values that I hope can be kept in a register. (Marasco, pp. 3)
Honesty, hard work, integrity, customer focus, results, absence of noxious politics and open interchange of ideas are desirable values in the target country. These values need to be depicted both externally, and internally, with both colloquies and to customers. At Gok Nur Baki, our unveiling commitment high quality production, paying attention to the results that is detailed and extraordinary. Our employees will have to treat clients with dignity, compassion, kindness and respect, while we work hardly to attain our production limits by not compromising on quality.
The local workers will join hands as partners to enhance production and quality of goods and services produced by Gok Nur Baki. They will have unwavering friendship, and having old versioned work ethics. They will be committed to each other and ensure quality products, all continue to enhance the successes of Gok Nur Baki.