Global Business Strategies
Global strategies are defined as the policies, which are used by the business organizations all over the world. This study would discuss the importance of global strategies in order to change their business models. Besides that, along with the global strategies, this paper would also focus on some related concepts such as the operational excellence, intimacy of the consumers as well as the product leadership. The Emirates Company from the airline industry and the Ford Motor Company from the car industry have been chosen for the analysis of their global business strategies (Ameenand Willis2016). On the other hand, the global value chain infrastructure would also be described in this report. For this analysis, the Apple Company from the computer industry, as well as the Thomas Cook Group from the hospitality industry, has been selected in this paper (Peng2013). Globalizing the value chain infrastructure of a company involves the activities such as the sourcing of required raw materials and other items, manufacturing products, research and development (R & D) and finally distribute the produced goods to the consumers. Apart from this, this report would also present the core competencies of the selected companies, externalization and also outsourcing (Biscop2016).
This section of the report is divided into two parts. The first part represents the global strategies of the two companies and the next part provides the global value chain infrastructure of another two companies. Global strategies are the business plans made by the companies for expanding their business in the global market. Before developing the global business, every business organization should form proper global strategies. On the other hand, the globa ........
This section of the report is divided into two parts. The first part represents the global strategies of the two companies and the next part provides the global value chain infrastructure of another two companies. Global strategies are the business plans made by the companies for expanding their business in the global market. Before developing the global business, every business organization should form proper global strategies. On the other hand, the global value chain implies all the activities such as the production, design, distribution and marketing which are required to reach a product to its destination.
Emirates Airline is an international airlines company whose headquarter is situated in Dubai. This is the biggest airline company in the Middle East and the fourth largest airline in the world. It operates more than 3600 flights in every week to 81 countries across the world. In order to change their business model, the company has taken various global strategies as a part of their business (Meyeret al. 2014). One of the vital global strategies is to attract more number of customers; the company often keeps the price of flights lower than other airlines companies. The cargo business has a very significant role in the Emirates Company because the international air freight as well as the logistics sectors send the passengers over 111 destinations of the world which is 17.4% of the total annual revenue of Emirates (Pezak and Sebastianelli2013). Besides that, now the Emirates Sky Cargo is looking for more opportunities worldwide. In the year 2012, it has already expanded its business to Africa and now is trying to expand their business in more countries (Gannageand Burton2016). The Emirates Airlines Company has successfully implemented these strategies, and gradually there has been a fleet growth in the Emirates airlines. It is shown with the help of figure 1.
Figure 1: Growth in the Emirates Airlines
(Source: Kumudha and Bhunia 2016)
The figure 1 depicts the fact that from the year 2000 onwards, the growth rate of Emirates airlines has been increasing gradually. Apart from the above global business strategies, this report would focus on some other relevant strategies such as the operational excellence. It is a part of the organizational leadership as well as the organizational intelligence whose purpose is to fulfil the needs of the customers, enhance the present working culture and motivate the employees as well. The Emirates Airlines Company uses this operational intelligence as another strategy in order to maintain a positive environment in their global business (Pezakand Sebastianelli2013).
Another significant global strategy used by this company is the customer intimacy. This strategy is used by Emirates Airlines Company in order to build a stronger relationship with the customers (Kandampullyet al. 2015). The benefits of having a good relationship with the clients are that the problem solving ability of this company would be enhanced and also the customers will prefer the flights of this Emirates Airlines over other airlines. One more competitive strategy of the Emirates Airline is the product leadership. The aim of this strategy is to provide better services to the customers so that they get an excellent experience and recommends this Emirates Airline to their family members and friends (Hashmi and Biesebroeck2016).
Case 2:Ford Motor Company
This report discusses the global business strategy of the Ford Motor Company, which is one of the leading companies in the automobile industry. The headquarter of this global company is situated in Michigan of the USA. Their products are automobiles, automotive parts, luxury vehicles and commercial vehicles and the services provided by this company are automotive finance, vehicle service as well as vehicle leasing (Rawlinsonand Wells2016). This company has taken various global strategies to develop their business all over the world. The company has tried to maintain a sustainable growth for the business, which is also profitable. Besides that, the Ford Motor Company has also implemented some product innovation strategy in order to make the cars more affordable to people. They have also tried to produce cars, which are cheaper and require less fuel without deteriorating the quality of the products (Law 2017). Moreover, these cars have less adverse impacts on the environment.
The Ford Motor Company has also taken some other policies such as the operational excellence as one of the competitive strategies. By implementing this policy, they have tried to enhance their manufacturing process so that there is high volume, standardized as well as a transaction-oriented production of cars. Another significant strategy used by the Ford Motor Automobile Company is the customer intimacy (Dhingraet al. 2016). By applying this policy, this company offers different types of products to different customers, and thus a good relationship with the customers is maintained by this company. One more vital competitive strategy is the product leadership, which includes teamwork, marketing, research portfolio management, talent management and product management. All these strategies are successfully used by the Ford Motor Company (Hashmi and Biesebroeck2016).
Apple is an American technological company whose headquarter is situated in California. The company designs develop and manufactures electronic products such as mobile and computer, smart watch, iPod, tablet and also software and their services are apple pay, iTunes store, apple store, iBooks store, apple music, app store, iCloud, mac app store and so on. Besides that, the value chain analysis of the Apple Company provides the analytical model, which helps in recognizing the business activities, which may create value as well as the comparative advantage for this company (Wang et al. 2014). The value supply chain of the Apple Company includes some primary activities as well as some support activities, which are represented by figure 2.
Figure 2: Value Supply Chain of Apple
(Source: Farin 2014)
The supply chain of this company has various steps such as the firm infrastructure, human resources, technology development, and procurement. These all are the parts of the support activities (Grant2016). Moreover, there is also some primary activities in the value supply chain of apple such as the inbound logistics, operations, outbound logistics, marketing and sales and lastly service as depicted in figure 2.
Some more concepts are related to this issue such as the core competencies of a company. It signifies the main strengths as well as the strategic advances of a company, which also includes its technological capabilities and the dedicated workforce. The core competencies of Apple are its innovative designs and the technologically advanced software. Besides that, this company is financially very rich which is also a strength of this company (Hughes et al. 2014). The externalization is also related to the value supply chain of any company. It is a kind of defence mechanism by which a company protects its products from its rival companies. Similarly, the Apple Company has taken some strategies for the externalization purpose. Besides that, outsourcing is also practised by this Apple Company in order to mitigate the costs of the companies. This is done by transferring some parts of work to outside workers rather than executing it internally. This outsourcing is an efficient tool used by Apple Company for reducing costs (Allen and Tildesley 2017).
In the last part of the report, the value supply chain of the Thomas Cook Group from the hospitality industry would be analyzed. It is basically a travel company whose headquarter is situated in England. This company was established in the year 2007 by Thomas Cook, and its products are hotels, package holidays, resorts, cruise lines and also airlines. This Thomas Cook Group runs their business in UK, West Europe, Germany, Central Europe and Northern Europe (Walker 2016). To form their value chain supply network, they have taken various strategies. For example, they offer travel-related monetary services incorporating the foreign currency, travel insurance, subsidiary travel services and travel finance. Besides that, the Thomas Cook Group has experienced some major trends such as the online growth (Kandampullyet al. 2015).
The growth of the internet has enhanced the price transparency as well as it has made more choices available people which leads to a large increase in the number of travel products. Sometimes the company offers the rooms of hotels as a discounted price rate in order to attract more customers (Wang et al. 2014). Moreover, by the trust, consistency as well as providing the good services to people, the company has been successful in making the value supply chain of infrastructure. Some other issues are also related to this supply chain such as the core competencies, externalization and outsourcing (Kandampullyet al. 2015). The core competencies or the main strengths of the Thomas Cook Group are this groups has various types of businesses. Therefore, if they suffer loss from one business, at the same time, they can gain profit from another sector and make up their loss. Moreover, the tourism industry has taken some externalization policies as a defensive strategy. Sometimes, this externalization is executed to reshape the existing business of this tourism company. For example, the resources are shifted from one sector to another. Besides that, this Thomas Cook Company has implemented some outsourcing strategies in order to save their money, time as well as resources. By applying this policy, some works are executed by another company, which is specialized in performing those activities (Wang et al. 2014).
This part of the report sums up the whole findings as well as the discussions of this paper. In the first section, the study provides the importance of global business strategies. For this analysis, The Emirates Company from the airlines industry and the Ford Motor Company from the car industry have been selected.The Emirates Airline is the biggest airline which operates more than 3600 flights in every week to 81 countries across the world. After discussing the general strategies, some competitive strategies such as the operational excellence,customer intimacy as well as the product leadership have been provided in this study. In the later part, the global business strategies of the Ford Motor Company have been described. Their products are automobiles, automotive parts, luxury vehicles and commercial vehicles and the services provided by this company are automotive finance, vehicle service as well as vehicle leasing. In the second part of the paper, the meaning of the global Value Chain Infrastructure has been defined. The Apple Company from the computer industry, as well as the Thomas Cook Group from the hospitality industry, have been chosen for this part. The value chain infrastructure has been explained focusing on some related issues such as core competencies, externalization and also outsourcing. These all have a very vital role to play in this value chain infrastructure of the business organizations.