The Capital China Company

Published Date: 02 Nov 2017

Table of Contents

Task-1

Capital China Company should choose potential market research. If four companies of china export their products to UK, so that I advise the Capital china company select the potential market research. Here four china companies, Wedgewood, Crown Derby, Royal Doulton and Aynsley built their factories, producing world famous designs, of pottery and china of incredible high quality. If Capital China Company is known for best quality so that it is very difficult to the company to gain more profit, Capital China Company should make low quality products for competing with their competitors. It needs to potential market research to know the customers test and preferences. And then they are producing their product according to customers demand.

(Richard Branson, 2000), China Company operates multinational business in the world. If this company follows the potential market strategy it can get some extra advantage form the potential market research. Last five year some business are failed only cause the misappropriate selections of market, so that market research is most important for the company. Market potential helps us to make future decision, instance of that time situation of country. First we make the questionnaire according what we want to know from the customers

(Gut Kawasaki, 2010), Taking opportunities over one's competitors is the most important component of business strategy. Potential market research is the key factors in gaining opportunities. Some experience and analytics expertise are simply unsurpassed in the field of market intelligence in the present market.

Potential market research supplies full clarity on target consumers. We go beyond political stability and educational data to revealing their values, norms. They replay to situations and other stimuli that drive their decision-making system. (Geo strategies, 2010)This nuanced profiling provides the Capital china company powerful advantage in designing market strategies in the present and future market. It helps us to measure the market size, the competitors and their environment, and markets hare collocation. Capital China Company verifies the market hot spots and top markets for any product, service, goods or industry.

If Capital china company want adjust this process, it must be developed 12 proprietary mapping and data enhancement software applications. Those other competitors do not do before. Capital China Company improved the most powerful models and process, to quickly combine all company data resources and market data into one various location.

Capital China Company chooses potential market research, there are some benefits of potential market research, and these are;

Task automation for the company: Refundable activates can be reduced by potential market research and the company not have to grow bored clicking the same set of links in the market. They search their over again to achieve their ends. They increase the experience of Kingdom of Loathing by protect time and including them to multitask. It includes many programs to take care of customers activities.

Character detachment: There are many ways in the world, part of the enjoyment comes from the engagement between the company and them customers they have created a relationship. Tasks are made for the investment of time and effort towards the player's development of international company. Activity automation must disconnect the customer from the company they have made, since customers no longer invest as much time towards the activities. This may also create top customers and new company as veteran players start receives their right time and effort in character development strategy for the company.

Encourage multiple accounts: Because most important activities in European country can be ended through automation. High natural response is to create more accountability to customers, which main propose is saving time for its customers since the time is actively saved. Capital China Company can save time and money by taking potential market research.

One European Country for China Capital Company

I suggest the Capital china company for one European country (Germany) to follow the potential market research. If this company selects the potential market, company must consider the following things;

Economic growth on that country

Cultural conditions

Political stability

Communication system

One Non European Country

If the company selects the non European country such as Malaysia, the company should follow the prospective market research, and then develop strategy and the company going to potential market research

Advise the Capital China Company to Collect Research

I suggest the Capital china company to collect secondary data because secondary data are available in the whole world and it is less costly. There are some ways to collect data;

Various types of interviews

International suppliers

Survey and data collection

Statistics analysis

Research instruments for the Capital China Company

Advertisements in the world papers

New website

Seminar Innovation

Task-2

Evaluate and consider the right country to enter for the four businesses that operate under the Capital China Company.

(T. J. Gerpott, 2011) It is very difficult task to identify right country to do business. If Capital china company select a company that company must have economic growth, political stability and security system and others things, following things are also important;

Political stability: country must have political stability and other stability in the country.

Reduce conflict and stability

Standard exchange rate

Security of system of foreign business man: Company always concern to the security system in the country which country selected

Security of transactions

Finishing the uncompensated expropriation of property

Follow the world law and human rights

Government rules and regulation: Country must have standard rules and regulation,

Consistent between market and government

Address regulatory cost

Certainty

Remove regulatory barriers

Taxation system: Country has good tax system,

Basic tax system

Enhance tax parties

Remove corruption

Simple tax system

Finance: A country have standard finance system if a company wants to do business

There is no monopoly competition

Minimize risks

Improvement credit information

Infrastructure: Infrastructure is also important for doing business in any country

Improvement of investment climate

Improve all infrastructure

Market entry methods for the Capital China Company

Exporting

Exporting is one of common methods to enter international markets. Exporting entry process in which products produced in one country is export to country through various distribution channels. It needs an important investment in marketing strategies. Exporting is the most traditional form of international business process by this process company operates foreign markets. Export is divided into direct or indirect export.

Direct Export: Here one organization is makes agent and distributor. Overseas own subsidiary, and act as a Government agency. Generally firms export through local agents and local distributors mainly due to firms have local information that is significant in conducting the foreign markets. The company owners speak the language and easily understand the local business and know all local customers

Indirect Export: Company export it goods and products by trading companies or others agents.

The benefits of indirect exporting is if manufacture has not sufficient information that why going to indirect export. In trade method there are the counter- are two separate Parts include one for1, the delivery and payment for the service and the other for the sales and payment for the products exported. The owner of seller, in fact, accepts goods and services from the exporting country in partial or totally payment for his exports. This process is suited for situations where competitors do competition level is low and difficulties in currency exchange.

Wholly Owned Subsidiaries

Organizations can make 100% ownership in the foreign markets which is called wholly owned subsidiary. To follow this method, organizations maintain big control over company operations Company make more profits since there is no ownership split some agreement. This method needs large investments in the foreign country and it some risks such political, legal and economical risk. There are two methods for the wholly owned subsidiaries entry process; one is through acquisition and Greenfield process. Greenfield investment uses funds to, make entirely new opportunities. Even though such methods engage full control and no risk of cultural conflicts and costs are high, and return on investment is long run process. Company is always concern about the return of investment. When going to new markets, in order to be successful, the organization unable to properly identify probable customers in the targeted market and conduct valuation of the to-be acquired company. The company valuation process should prevent the organization of low estimating the economic scale of the acquisition, as well as underestimating it’s spend. After the acquisition, the success depends on how well the integration of both

Joint Venture

Joint Venture is another method applies to those strategic alliances where one foreign company and the local collaborator work together for greater profits. The parties can be of different ratios, ranging and minority stake and equal stake also important to a control stake owner.

To the joint venture perspectives we see the following things

Decrease the risk of capital

Product manufacturing and distribution in easy ways

Increase managerial capability

Better contract with government and others parties

Some time many companies do not agree to do joint venture because the complexity included in help policies in different countries. There is some direction for a company when companies do business in others countries which have the ability to reduce risk include in entering new markets.

It is most innovative ways but there are also risks associated with entering in joint venture. One of the biggest risks is the complexity of time of exit. When a Company is going to foreign contract decides to leave the market. They do the joint venture. A significant prospect of an entry method is to have an exit strategy also. The entry method of joint venture is most complicated and out of control sometime. The second difficulty is safety in foreign country. Definitely is most critical task to manage the complexity

Contract Manufacturing

Contract manufacturing is one type international business entry strategy and is more often used to others business strategies. It is practiced as like as with strategies like wholly owned subsidiaries or investing. Some time Contract Manufacturing is also often used in the new market. Company enters a new market is most important task for the company when it has a task that is required but is not a core nor is permanently. It has some advantage these are;

Less capital is needed for doing business

Less managerial risks

Mainly focus on the core activities

Less complicated

Licensing

Licensing is a one method of entering to international market in which one party give to use company brand name, trademarks and other facilities and take loyalty form this party is called licensing. Now days licensing is most common methods in the international business. Companies has legal asset in this type of organization, which is a key differentiating material in their marketing offer. It includes a contractual dead whereby a company licenses the rights to certain technological information. This company also provides design, patents, trademarks and intellectual property to exchange of taking payment of loyalty

There are some conditions which are favor to the company

If company faces imports and trade barriers

Legal protection against target environment

Various types of cultural distance

Low sales potential country

Franchising

Franchising is now most popular method for doing international business. The modern time franchise is widely used rapid process of international expansion, most notably by fast food chains, consumer service related business and such as hotel or car rental, and business services. A franchise is an upper ongoing business relationship between two parties in which one party gives the right to allocate products or services using the franchisor’s brand and system in exchange for a fixed fee. Franchising has options to make market expansion using the intellectual property and other property franchisor. It has large capital and enthusiasm of a network of owner operators. More innovated franchise dead specify a clear business format under which the franchisee is wish to bear on business and ensuring a common customer expertise. Some methods of franchising in the present time these are;

Alliance purchasing arrangements

Alliance advertisements

Training and support from franchisor

I advise Capital china company to select the wholly own subsidiary, because already company know the trend of customers in European market. So that Capital china company should go international market though the wholly own subsidiary.

Task-3

Issues That Affect the Capital China Company to go International Market

(James D. Rosener, 2010), there are many opportunities in the international market but small company do not capture these because some barriers in the ways Capital china company want to go international business. There are some factors which affecting the international marketing.

Political-Legal factors

There are some political factors that affect the company when a firm to go international marketing. These are the political and legal factor in which country to do business. When a company goes to international it must consider the political and legal risk because present world many countries emerge in political instability and political unrest. When this type of political unrest is occurs the company turn to national. Many organizations is must be destroyed in Second World War. So that every company concern to political and legal issues

Economic Environment Factors

There are some rules in the world. Some rules are encouraged to international business and some rules discourage to international business. Economic factor is most common factor that affects company when go to international business. There are some basic important things in the economic environment. There are some international laws and other country created laws that may affect the international business and have others factor that also affect company. These are

Fluctuation of exchange

Vulnerable economic situation

Instability of economic condition

Slow and smooth economic growth

Education system of country

Low productivity

Lack of information

Technological Environment and Infrastructure

(Devenir, 2012), Technological factor also affect the company to international business. Infrastructure is referring to country communication, transaction and utility systems country communication, transaction and utility systems. Neighbor countries exchange the information in the past but present time it is impossible tasks. If a company wants to be success in the international business it must consider the technological factors. Present world is depending on technology so that every company concern about technological factors.

Task -4

Developing an Integrated Marketing Communication for China Capital Company

Integrated marketing communication plan is a way in which company implement their strategy easily to international business. All activities are going to fail if do not engage potential customers. And it is common for the company fail to gain their goals. An integrated marketing plan is must be needed for providing company message to the potential customers.

Elements of the Integrated Marketing Communications Plans

There are some elements of integrated marketing plan these are;

Web site: Company website always focus on main vision of products

Advertising: Company decide which way do advertisement that must focus company brand

Trade shows: Company must setup various types of meenting

Steps of integrating marketing communications plan

First mover advantages

Identify and set objectives

Simplify the idea

Basic information

Visionary products

The difficulties of developing such a plans and strategies

(Gerald B. White and Wen-fei L, 2010), Technological deficiencies are common barriers to develop the plans and strategies. There are many lacings in the administration. Planning is a source collection process carry out in a corporate reward system. Technological deficiencies are most important thing that creates the short term and long term problem.

Conclusion: After the long discussion we understand that if Capital China Company goes to international business, it should select the secondary market research and follow he wholly owned subsidiary. Here four china companies, Wedgewood, Crown Derby, Royal Doulton and Aynsley built their factories, producing world famous designs, of pottery and china of incredible high qualityExporting is one of common methods to enter international markets. Exporting entry process in which products produced in one country is export to country through various distribution channels. It needs an important investment in marketing strategies. Taking opportunities over one's competitors is the most important component of business strategy. Potential market research is the key factors in gaining opportunities. Some experience and analytics expertise are simply unsurpassed in the field of market intelligence in the present market.

Potential market research supplies full clarity on target consumers. We go beyond political stability and educational data to revealing their values, norms.