Aditya Birla Group Case Study Essay example

BMW have also started to offer financial services in the UK. Horizontally expanded companies are extremely vulnerable to fall in sales and cyclical downturns. Advantage of diversification is that the firm can provide a stable profit stream by offsetting losses in one area to increasing profits in another area.

There are many benefits of a global market. One major benefit is improved outsourcing. Outsourcing is basically contract work. They do

There are benefits and there are risks associated with diversification into global markets. Diversification into global markets means a company is seeking to have the control in one central area instead of in many different areas because ultimately they are seeking to control their costs. The main advantage of a global market is that a company does not need to make a lot of variations of a product. They can instead just make one quality standardized product, which means it is easier for the company to keep everyone on the same page in regard to any changes or innovations to their products. Ultimately having a global market means

Considering the conducted research and analysis, it can be clearly seen that the international strategy is not effective, that is why, needs to be fixed. Moreover, the company has a success in the local market, so it may be reasonable to put the efforts to promote inside the country.

Many companies today want to expand their business to the international business, which can bring cost down and profits up. Taking a business internationally means knowing the rules and regulations of the countries you are entering. There can be many issues with going global which include cultural barriers, diversity issues, multicultural issues, political issues, and economical issues. It is very important to know how important expansion is to the company and what implications will come from going global.

After several failed attempt of internal diversification, they realized the lack of knowledge of their management about businesses outside the automotive area. so acquisition brought them quick fix where it brought already knowledgeable people in respective areas in their payroll.

Q: Was the decision to attract ultra HNI customers through a separate dedicated branch a good idea?

• Globalization allows for access to increased customer base by using online media and multinational brand presence.

The company may face structural problems associated with the diversification strategy. As the company gets larger and larger and diversify into different product divisions, the organization structure should be changed to fit the diversification strategy. An inappropriate fit may result in low performance and lead to strategic changes.

Based on Tata Group’s experience, we can see the advantages and drawbacks of going international as follows:

Aditya Birla group is a US $41 billion multi-billion conglomerate; headquarter in Worli, Mumbai, India. It is third largest Indian private sector conglomerate after Tata group and reliance group. It is in the league of fortune 500, having an employee force over 120000, belonging to 42 nationalities, over 50% of its revenue comes from overseas and it operates in about 36 countries.

The world offers significant business opportunities for every company, however, opportunities are accompanied by significant challenges for managers. Managing global operations across diverse cultures and markets represents a big challenge and opportunity for companies. To compete in the global market and be successful, companies must learn the strategies, policies, norms and technology necessary to conduct international business. The opportunities for global expansion are numerous, and attaining success is a matter of developing the right strategy to win local markets and its consumers.

Increase Sales: - if a business succeeds in the US, going international will likely improve the overall revenue. Approximately 96% of the world’s population lives outside of the United State and 90% of the world’s population do not speak English, that suggest that customer is global and if a business has to look beyond the end of the domestic market, you have real upside potentials

Well known companies like Nike, Microsoft, Sony, Shell Group are just some of the big companies that went global and expanded their trading around the world, they are large businesses that operate internationally in many countries. Development of worldwide integration urges companies to reach out international markets and interact with foreign customers. Businesses focus on fulfilling the demand of the market by its products or services, besides their target is increasing profit, in order achieve these goals they favor to expand their work in a foreign market. Other reasons to internationalize their business may be to become

global knowledge of consumer demands for services as well as products in a world scale, the