GLOBAL MARKET STRATEGY

Global Market Strategy



Global Market Strategy

Introduction

A simplified view of the strategic planning process is shown in figure. The internal and external analysis of the firm, along with a factory internal to the firm is strength and weakness. Environmental factors external to the form are opportunities and threats. Internal and external are the most important analyzes in the strategy process. The order is important. The strategic planning process is arguably the most significant function of organization boards and managers.

That process includes the following elements: evaluation of the current business model; development of a competitive strategy, the organization's vision and mission, and its strategic and tactical goals; compilation of the formal strategic plan; and establishment of measurement and reporting capabilities and a stakeholder communication plan. It is usually not necessary or desirable to attempt to complete the process in a single board meeting or strategic planning session. A structured, well-planned approach is more likely to result in a strategic plan that is optimal, effective, and likely to be used on an ongoing basis rather than being relegated to a shelf and forgotten until a crisis arises.

Identification of Market Entry Options

Entering new markets requires an understanding of the economic background and the basic data of the new economy. In particular, while entering the emerging markets of the UK investors have to be familiar with the cultural background, as these societies are mainly context oriented in contrast to a western “content” orientation.

Economic background

Foreign direct investment (FDI) to the UK region increased in 2008 for the sixth consecutive year with a total of $90 billion, which represents 15 per cent of FDIs to the developing world (UNCTAD, 2009). This development was largely due to soaring flows to the KSA, which is the largest recipient of direct investments in this region. FDI rose by 57 per cent to $38 billion in 2008, with real estate, petrochemicals and oil refining accounting for most of the growth.

Owing to various opportunities, the investment-friendly environment and the bright prospects for the economy, Beijing Yanjing Beer Group Company management decided to focus its UK activities. UK economy is capitalist based, owning about one-quarter of the world. In fact, the development strategies incorporate a very high level of state involvement in the economy. There are more British employed by the state than by the private sector.UK imports a large number of workers from other religion. It is estimated that about 60 per cent of the private workforce is foreign.

Moreover, more drastic signs of change can be seen: market deregulation, increased competition, work-related migration from one part of the country to another and the introduction of western work-effectiveness and efficiency metrics.

Following is the PEST analysis of UK market which could be helpful for the Beijing Yanjing Beer Group Company in delivering Beer in UK market.

Political Factors

The main political factors associated with the UK Beer market are as followed. The local authority support for the beer is declining continuously. There is a great potential of withdrawal preceding the ...