Case Study Of Bharat Forge And Suzanle

In a time of global commerce, new business ventures can take on many forms. What used to be local or even national companies have become world-wide. International growth of a business can be extremely beneficial but is not without its challenges. Different countries have different peoples and different cultures - different ways of doing business altogether. If a venture is to be successful, these differences must be well understood.

Conditions have changed. Global trade has rapidly increased in both volume and value, reaching nowadays more than $4 trillion in 1997 (Daniels J.D., Radebaugh, 1998, pg. 529). Competition is fierce from all corners of the world. Failure at the global level can backfire and may consume existing brands and business relationships. At the same time, global opportunities have emerged that offer possibilities for growth, profit, and an improvement in worldwide standards of living.

The companies have become a key parameter, especially in the global economy. The size of global companies closely correlated with the decrease of vulnerabilities, with higher resistance to economic shocks occurred along the time and with their bigger chances of success in certain markets. Companies aim not only to optimize their size, but also to strengthen the global production networks, affording them a better competitive position, in a mighty competitive environment and under the pressure of quick development of the technological environment. The size of an organization has become a barrier that stops its entry into the sector, higher than profitability, which explains why some corporations have focused, in recent times, more on strengthening their position abroad, although their economic performance does not justify this endeavor. The process of economic globalization is both a resultant of the increasing activity of multinational organizations and a cause of their increasingly stronger internationally affirmation. However, global organizations activity is much more intense in the developed countries; their impact on the developing countries must not be neglected. Global organizations have a few main features that individualize them from all other forms of companies known so far:

The economic and political development cultivates the global vision and perspective of companies. An increasing number of companies opt for forming the collaboration relationship with foreign partners. Those companies strive to fully utilize the complementary strengths and achieve a win-win situation such as increasing profitability, higher production efficiency, access to a new market and lower production cost. (Cavusgil, Ghauri and Agarwal, 2014)

Our firm has set out to Internationalise its operations by opening to different facilities One in China Assembling and Maintaining Aircraft Engines and the other in Europe fabricating turbine blades for Aircraft

This paper examines the expansion of General Motors overseas in its various phases, as well as triggers for internationalization and the problems faced during the process. The paper also considers what benefits have been achieved through international growth, and how the company can be classified with regards to Bartlett and Ghosal’s 4 typologies. Finally, the paper discusses the concept of a “world car,” meeting the demands of customers across the globe.

As several brand names of businesses continue to grow in the United States, most companies continue to search of different ways to maximize their profits. One of the most common ideas businesses have is to harness the potential of global sourcing. Global sourcing has been one of the many keys for owners to expand the territory of their companies. Besides the fact of low cost, owners want to expand their products line in other countries for many beneficial reasons. This benefit includes increasing supply capacity, gaining access into resources or skills that are unavailable domestically, learning how to do business in a potential market, and having an alternative supplier to increase competition. With all these benefits included, it is obvious that companies such as, CISCO, IBM, Microsoft, Google and Oracle wants to participate in global sourcing. The companies that recently been listed are five of the largest companies to obtain a huge amount of profit from opening up their businesses overseas. Between these companies, they accumulate up to 262 billion dollars in profits. Of course, not every company has the ability to attract as much popularity to their products overseas; it takes plenty of planning and research to invest the company’s products in global sourcing. One company that decided to invest in global sourcing several years ago is a company by the name of, Levi and Strauss.

International trade and organisation has opened many opportunities for the businesses and has provided them with the wider arena to operate their business. Globalisation and International trade has enabled the businesses like Armani to conduct their business activities across the national border and to expand their business. The globalisation and international trade has not only opened doors of new opportunities for Armani but the differences between countries and the globalisation of world economy also has also imposed many challenges on the business. When making international strategic decisions, business managers of Armani have to take account of the global business environment in managing on-going international operations. Globalisation has significantly boosted economic growth all over the world and therefore has provided Armani with better business opportunities.

Mahindra and Mahindra, the business sector pioneer in multi-utility vehicles in Asian nation. The corporate began creating business vehicles in 1945. Mahindra is that the pioneer by a long shot in business vehicle furthermore the second biggest inside of the voyager vehicle market. The corporate is that the world's 6th biggest medium and huge business vehicle creating.

Dependence on manufacture of steel making machinery from abroad : India lags behind on facilities for producing machinery for steel production to be installed in steel plants. All the steel producing firms including Tata Steel have to import almost all the machinery and equipment to be installed in the plants from other countries. This tends to push up the set up costs to be investing while setting up the plants. China on the other hand has a hub of such capital industries which gives them cost advantage.

The case study throws light on the success story of two Indian based manufacturing companies and the strategies adopted by them to become the giants in the world market. Where one company Suzlon had shifted its roots from a former textile industry to an entirely different Wind Energy Industry, Bharat Forge entered the domestic market as automotive manufacturers stuck to their primary business of forging and expanded their business all over the world in the same field. Both the companies believed that an enhancement in technology is a mandate for a vast global footprint and development.

Going global and being known as a successful international corporate is an impressive achievement that almost all companies aim to attain. To successfully convert a business from domestic to international, a firm will need to consider a new set of factors that might not necessarily affect a local-only company. Companies use a number of tactics to achieve their global expansion plans, including exporting goods, forming strategic partnerships, licensing, acquiring businesses and building new facilities in multiple countries. Often, a company may need to try out few strategies in order to find the perfect fit. Many global expansion failures results from companies’ temptation/decision to apply their domestic management approach to global operations. Grolsch, like other companies, encountered many impasses during their international expansions. Nonetheless, much can be learned from Grolsch, successes and failures.

When you think of Harley-Davidson, you think of an all-American male riding on the open roads of the United States. It is an iconic American brand and well known to exude confidence and “cool”. However, with a vibrant history in the American culture, Harley-Davidson soon reached a point where they needed to expand their company. They needed to globalize their version of “American adventure” and sell that to the rest of the world, and they were able to do so by insourcing, outsourcing, exporting, and global sourcing. “International business is done by global sourcing, import/export, licensing, and franchising” (Schemerhorn). By encompassing all of these details into their financial plans, Harley-Davidson was able to encompass globalization.

2. “Today’s challenge is to build transnational organizations that can sense an emerging consumer trend in one country, link it to a new technology or capability it has in another, develop a creative new product or service in a third, then diffuse that innovation rapidly around the world”. With this in mind, identify a company who has demonstrated this ability including a brief description of each step they took.

TATA steel strategy was to integrate the value chain of steelmaking to aid the growth of Asia’s bubbling construction economy. When presented with the opportunity (financially the government policies made it easier) to gain access to the other markets, they later acquire CORUS which was an established name in Europe, but were not cost effective in their operations (Tarun Khanna, Krishna G. Palepu and Richard J. Bullock, 2009). This acquisition provided them the right synergy by combing the low cost upstream production in India with the high-tech research aspects of Corus and areas like procurement, marketing, back office operations and R&D. This was also required due to the trends in world steel industry whereby there has been a global