MANAGEMENT

Principle of Management

Principle of Management

Introduction

In today's fast pace of competition, the organizations are required to develop effective and efficient business strategies that can provide the organization with the success, long term growth and high profitability. The strategies for the business organizations differ according the types of the business. Similarly when the business organizations operate locally they have to adopt different business strategies and when these organizations enter in to new or foreign market they have to adopt different strategies. It requires the business organizations to implement specific and appropriate market entry strategy because entering directly into the market gives the organization various challenges and risks.

A market entry strategy allows the company to have the proper planning of introducing the goods or services in the foreign target market. The market entry strategy provides the frame work to the organizations to distribute and market their product in the international or global market. The adequate and appropriate market entry strategy supports the business organizations in developing and managing the business deals in a foreign market. There are various issues that are faced by the organizations that plan to operate business in the international market. These issues involve which foreign market to enter and what products and services to the target market. There are also the issues related to the resources and the distribution procedures. When the business organization decides to cater the foreign market, it is also a great issue that whether the foreign market should be cater through the exports or the production and business operation must be held in the foreign market. The decision and planning regarding the investment in the foreign market is also a major issue for the business organization.

There are two major ways by which the business organizations can enter into the foreign market. The first is the entering foreign market through home market base and the other way is to enter the market through direct or indirect exporting or the setting up of production facilities in the foreign market. When the business organization adopts the way of home base, they make the use of governmental alliances, private business agents, local distributors and subsidiaries in the foreign market and when the business organization opts the way of exporting, they are required to make the contracts and alliances with the local and foreign trading companies.

When the business organizations decide to enter into the foreign market, they are required to adopt the market entry strategies by making the careful analysis of the foreign market situation. The organizations are required to analyze the probable results of the selected strategies and are required to analyze the impact on the long term growth and survival of the business in the foreign market. The market entry strategy is influenced by the decisions regarding many factors. These includes the choice of the product that is to be served to the target market, the goals and objectives of the organization regarding the target market, the decision regarding the marketing plan and the decisions readings ...