Fruity Drinks is a manufacturer and seller of fruit juices established in the United Kingdom. The company produces a variety of juices such as apple juice, pineapple juices, orange juices, tropical fruits juices and other delicious juices in 500 ml bottles. The company intends to acquire numerous other bottling plant organizations operating in BRIC countries within the time period of next ten years. For that purpose, the business plan of the Fruity Drinks Company is as follows:
Global Business Organization
Advantages
After acquiring the bottling plants in BRIC countries, the Fruity Drinks will become globalized organizations. Globalization is generally equated with large enterprises that are able to impose their interests to the world market. But in fact, in today's market, it is in much more shades. There are many strategies that allow the businesses to succeed in a globalized world, and it is not always about giant companies. The Fruity Drinks will have the advantage of having:
benefits from the opening of new markets, using the strategy of integration with other companies;
specialization in one link of the chain and the price to develop as a "virtual" company, relying on a network of partners;
to position itself as the main contractor;
Benefits of the opportunities that are neglected competitors who focused on the world markets to outperform their domestic market.
Strategies
Fruity Drinks will have the advantages of integrating with the bottled plants in the BRIC nations. The essence of integration on an international scale is to introduce a globally integrated enterprise model of traditional, and then look for the benefit of using cheap labour and goods in bulk to cater for a larger market for optimized prices. This approach will be used by the company in a successful and sophisticated manner. In order for the integration strategy to be successful, Fruity Drinks will need to apply the key success factors, such as
Reliance on a strong position. To be successful in the global market, the Fruity Drinks will have to establish effective management of all components of value chain that will withstand numerous competitors. This policy should adhere to those companies that have already established themselves in the sector (Scullion & Collings, 2006). Newcomers rarely use this advantage as they do not have one set of competencies that are needed to subdue all the links of the chain. Therefore, they are more specialized in one part of the overall activity and not take risks trying to learn more. With growing competition, the ability to combine different types of activities will enable the company ahead of the competition in the issue of adaptation to the changing needs of the market and provide its brand image of the manufacturer of high-quality products in the various verities of fruit juices;
Transfer on a new location, allowing access to the most beneficial resources. Even if Fruity Drinks is not a subcontractor, it will still be interested to benefit from globalization, choosing it plants convenient location, thus reducing its production costs.