Colorado Technical University PepsiCo Company Balanced Scorecard Paper Based on previous assignments and a furniture company and textiles APA Format 2-3 p
Colorado Technical University PepsiCo Company Balanced Scorecard Paper Based on previous assignments and a furniture company and textiles
APA Format 2-3 pages with Citations and References
Deborah enters your office ready to discuss the project. She discusses her feedback on the plan thus far. She states that your team is doing an excellent job researching and you’ve been keeping her up-to-date on your findings. She commends you for your focus on effective management strategies because your team has been looking at every aspect of the company and considering both internal and external pros and cons. She asks that your team now apply the findings to develop a strategic framework so that the company can begin its global expansion programs. You decide that Deborah has brought up another good point and decide that the balanced scorecard would make a good part of strategic framework.
A balanced scorecard suggests that we view the organization from four perspectives (the learning & growth perspective, the business process perspective, the customer perspective, and the financial perspective). Create a 2-3 page paper that discusses the following:
Briefly discuss the four perspectives of the balanced scorecard and analyze what each means to your organization.
In addition to the balanced scorecard, provide an overview of two other strategies that would be part of your companys strategic framework for global expansion.
Why is it important to combine different strategies when pursuing global expansion?
In addition to your textbook material, here are a few resources that may help you learn more about the basics of the balanced scorecard:
http://balancedscorecard.org/Resources/About-the-Balanced-Scorecard
http://ap-institute.com/kpi-white-papers/what-is-a-modern-balanced-scorecard.aspx 1
Running head: GLOBAL STRATEGY
Global Strategy
Carla Dempsey
8/23/2019
GLOBAL STRATEGY
2
Why Resources Should Be a Concern in a Global Strategy
In the contemporary global business, companies have to operate in consideration of the
foreign market and business environment. Developing the global business strategy depends on
the available resources in the specific foreign market region. Resources and characteristics of the
foreign market significantly impact on the overall business strategy that the company will
employ. Resources in a global strategy are a real concern because they influence the three basic
decisions that a global organization faces. These include the decision of whether or not to engage
in global trade, the particular markets that the company will serve, including the demographics,
product, and geographic markets. The third decision influenced by resources in the global market
involves whether to participate in selected markets. This includes strategies involving product
planning, pricing, promotion, distribution, and financing (Agarwal & Ramaswami, 2009).
Resources combine to affect the global strategy that countries, regions, trading partners,
and other parties use to accomplish wide economic objectives related to competition and foreign
trade. Resources are a real concern in global strategy because they enable businesses to predict
and plan for future business growth and plan effectively. The global business platform presents
organizations with new and exciting resources, different from the domestic business
environment, which managers are ready to pursue and utilize. Global strategic managers need to
be aware of the existing resources and their potential concerns, as well as how they can be
effectively managed (Erramilli, 2011). Running the textile industry in the foreign market in the
Italian market will require effective strategic management. This includes identification of the
resources that are a real concern to the business operations in the foreign market. Identification
of such resources will enable the management team to effectively analyze what impacts the
resources will have on various aspects. These include decision making and the overall business
competitive or market strategy.
The Resources That May Be a Concern in the Selected Country
Natural resources in the country are a significant concern, considering their importance in
almost every industry, including textile. Italy boasts a vast of natural resources, including zinc,
lead, salt, fluorite, sulfur, asbestos, and pyrites. However, these are non-renewable resources and
have been diminishing since the early 90s (Locke, 2018). Italy has moderate natural gas
resources and imports about 99 percent of its solid fuel. Most of the industrial raw materials,
including 13 percent of the electric power used in the industries are imported. Italy’s participation
in the construction of a nuclear power plant has enabled the supplementation of its industrial
power using nuclear power imported from France. The country has also tapped various types of
renewable power, including wind, hydro-electric, geothermal, and bio energy (Locke, 2018).
Agricultural resources are also the primary concern, given the usage and importance of
agricultural products in the textile industry. This involves livestock products such as hides and
wool explicitly. The number of farms in the country is estimated at around 1.6 million, with most
of them concentrated in the country’s southern region (Locke, 2018). The major livestock reared
in the country includes cattle, sheep, goats, and pigs. Transportation resources are a major
concern to the strategic management team. Italy is well connected by about 66720 roadway
kilometers and 16860 kilometers of railway. These transport sectors are owned and maintained
by the Italian government. The railway system extends in the northern part, thus enabling
effective shipping to other European countries. Additionally, all the major cities are connected
GLOBAL STRATEGY
3
by an extensive commuter railway; thus, domestic shipping is easy and efficient. Air and sea are
also among the transport resources used in Italy, with about 130 airports, and 43 seaports and
harbors (Locke, 2018).
Personal wealth or per capita income is also a significant resource that concerns the
strategic team in the Italian market segment. For the company to record high sales and profits,
there have to be adequate market or willing consumers to purchase the product. The country is a
significant market for a wide range of products in the European and global market, including
textile products. Italy’s PPP (purchasing power parity) per capita is estimated at 40306 and is
ranked 37 in the latest international monetary fund (IMF) world economic outlook. The country’s
GDP per capita purchasing power parity has averaged around $35131.92 between 1990 and 2018
(Vachris & Thomas, 2019).The purchasing power will enable the strategic team to make market
and sales projections. The team has to be therefore concerned by personal wealth as a resource in
the Italian market.
Multinational corporations are essential marketing resources that will interest the
strategic team. The country’s proximity with Europe and membership in the European Union has
led to the establishment of more regional corporations. However, the larger segment of foreign
investment is made by small and medium-sized companies located in established industrial
centers and make up the bigger part of the country’s manufacturing sector. Most foreign
industries in the northwestern part include automotive, produce niche, luxury products,
aerospace, and naval industry (Vachris & Thomas, 2019). Domestic companies are mostly
present in the northeastern and central regions. They mainly include furniture, textile, footwear,
leather, jewelry, and beauty industries. The transport industry is more popular in the northeastern
parts because of proximity to railway and seaports. This division of Multinational Corporation is
of concern to the strategic team, in its efforts to find the best location for the physical presence of
the business.
Another business resource of interest to the strategic team involves global trade
partnerships. Italy’s participation in the European Union has dramatically increased business
activities with other neighboring and overseas countries (Locke, 2018). Italy is a significant
exporter and importer of textile in Europe and the world. This factor will have a substantial
impact on the global business strategy, as well as critical decision making by the strategic team.
Impact of Resources on the Decision
The resources will influence the decision to move business operations to Italy. The
unavailability of critical natural resources and products for the textile industry might hinder the
decision to move to the country. The unavailable resources will require the company to import,
which usually comes at a high price. Importation of resources and materials will increase the cost
of production, thus reducing the profit margin. A well-established transport system will
encourage the decision to move operations to Italy. Good transport system means that raw
materials will reach production sites on time. Products shipping to various markets will also be
effective. A high personal wealth in the country will encourage the strategy team to move the
business to Italy. This is because consumers in this foreign market have a large number of
consumers who can afford to buy the company’s products. A high purchasing power in the
market is an encouragement to the team. Additionally, multinational corporations and trade
GLOBAL STRATEGY
4
partnerships provide an extensive market for products. A larger market segment is an opportunity
to increase sales and revenue, thus encouraging the decision to move the business to Italy.
Impact on Competitive Strategy
The above resources will significantly impact on the competitive strategy in the Italian
market. The scarce natural resources will impact on the business’ mode of production. If the
company has to import materials and resources for production, it will require a change in the
production and pricing strategy. The company will have to adapt to the JIT system of production
to reduce further costs (Kim & Hwang, 2012).The business will also increase the price of
products, to increase revenue and profit. The high pricing is a strategy to cater for the
importation cost. A high personal wealth or purchasing power will also impact on the pricing
strategy. The business can utilize this resource to gain a competitive edge over rivals. An
example is to increase product pricing due to the high purchasing power. Alternatively, the
product price can be lowered to target a higher number of product sales (Erramilli, 2011).
Multinational corporations and trade partnerships impact on the competitive strategy in that; the
business will increase the product presence in the neighboring countries, as well as other trading
partners of the country.
5
GLOBAL STRATEGY
References
Agarwal, S., & Ramaswami, S. N. (2009). Choice of foreign market entry mode: Impact of
ownership, location and internalization factors. Journal of International business
studies, 23(1), 1-27.
Erramilli, M. K. (2011). The experience factor in foreign market entry behavior of service
firms. Journal of international business studies, 22(3), 479-501.
Kim, W. C., & Hwang, P. (2012). Global strategy and multinationals’ entry mode
choice. Journal of International Business Studies, 23(1), 29-53.
Locke, R. M. (2018). Remaking the Italian economy. Cornell University Press.
Vachris, M. A., & Thomas, J. (2019). International price comparisons based on purchasing
power parity. Monthly Lab. Rev., 122, 3.
Discussion post
Carla Dempsey
Strategic Management in Dynamic Environments
8/22/2019
Introduction
This project necessitates the research concerning growth the global marketing plan, identifying three
probable globalization nations, a personal explanation, and choice on one of them. Global strategy is the
one which a corporation takes when it wants to expand and compete on a global market. The strategy
organizations seek after when wishing to develop worldwide. The global strategy can be characterized
as plans that the corporation develops to the target developments beyond its borders (N.A., 2006). To
be specific, it focuses on augmenting the sales of services or goods. Its an abbreviated tenure which
covers just three stratagems which are; global, multinational, and international. Organizations must seek
after these strategies on the off chance that they wish to develop.
Benefits of Globalization
The three countries possible for globalization included China, India, Russia, and Brazil. These nations are
the ones that are ideal for manufacturing our products. These nations have solid monetary forms and a
consumer populace, which is proliferating. They were selected for the manufacturing locales dependent
on their ongoing economic development, political stability, utilities, and the overall operations’ cost
(M.U.S.E, 2019). China has encountered an extensive industrial developing ever since opening itself to
the places international market two decades prior. Its furniture commerce is vast, profoundly
dependent on the regional tastes, has appreciates enormous developments due to open worldwide
marketing. It is well known as a basement for exportation. The consequence is the huge foreign
investments in the facilities for production, generally due to low labor expenses, and abridged rates of
import tariff. International organizations will have to compact its tax regulations, corporation policies,
distinguishing the superlative furniture market to be tapped into and also setting up excellent networks
for distribution (N.A., China Furniture Industry, 2004).
The best, efficient, and practical approach to see and articulate the actual cons and pros of using these
in global strategy is by running the SWOT Analyses (Hranipex, 2015). Since not every one of th e nations
will have similar cons and pros, every country on the planet runs differently, and their functionality is
also diverse, as well as their regulations, laws, and rules are dissimilar. Much the same here as in the
U.S, even though where are the most diverse nearly everything, we excessively possess deification’s
comparable to other countries on the planet.
a. Strengths
i. Every solitary component in the manufacture of furniture is conducted in the EU (European Union).
ii. The furniture commerce is capable of relying on higher-end qualities, which are the principal
suppliers and the materials for every constituent.
iii. Making the furniture stuffs in EU provides the customer with diverse benefit kinds and also permits
for equitable pricing.
b. Weakness
i. Labor expenses are higher in the EU.
ii. Force of labor is aging increasingly.
iii. Still, EU dynamically applies the protective measure for the export markets.
c. The Opportunities
i. New opportunities for marketing can arise on the global level (for instance Russia, China, and the
Persian Gulf).
ii. Furniture exports are comparatively low. However, they are increasing steadily.
iii. The segment provides new improvement and development possibilities.
d. Threats
i. The development of the Asian Markets.
ii. Increasing costs of primary materials due to the EU standards and rules.
iii. Regulations for products, safety, and environment are augmenting even more stringent in the EU.
The country I would choose:
I choose China. In light of their situation in the market, they are an obvious choice. Not merely have they
been at the top in terms of salary, their products are reliable and top of the line. We need to make the
best, and our globalization with China will ensure that this continues happening. China also harbors such
a critical number of producers making it unfathomable for most US business not to go into the overall
market in China.
Moreover, China’s colossal expansion has created lots of business opportunities and wealth for high-end
luxury products. The impediments incorporate managing environmental policies, incorporation policies,
and tax regulations, regional tastes that need product variations and the shipping cost and time.
Reasonably, China is a great decision, its a noteworthy worldwide exporter, and method showcases
around the globe. As a Project Manager, China would be a brilliant basement of the activities to address
Asian markets in light of their locale.
Somebody elses evidence:
From my perception, I would say that China will be the nation that somebody else would select. This is
because most countries, incorporating the United States, deal with China in the importation and
exportation of products of all kinds. It is the most prevalent nation which would, assemble products,
then manufacture them and distribute them to on a cheaper and inexpensive alternative possibility.
Recommendation
With regards to bench marking, I would recommend the following area to benchmark in preparation for
the decision regarding global expansion
a. Performance area: areas of reliability, speed, the quality and other products and services
characteristics
b. Collaborative area. It permits the flow of information in various ways and be capable of being
shared amid corporations during the sessions of brainstorming that could be bench marked activities
(M.U.S.E, 2019)
c. Competitive area- bench marking strictly concentrates on the competitors versus the company as a
whole.
References:
N.A. (2006, September). The domestic furniture market in the Netherlands. Retrieved from
CBI:www.philexportcebu.org/pdf/CBI_TheNetherlands.pdf
Hranipex. (2015, February). Pros and cons of the furniture industry in the EU (part 1). Retrieved
fromhttps://www.hranipex.co.uk/en/latest-news/2015/2/pros-and-cons-of-the-furniture-industry-inthe-eu-part-1
M.U.S.E. (2019). Types of Benchmarking. Retrieved
from https://class.ctuonline.edu/_layouts/MUSEViewer/Asset.aspx
MID=14627627&aid=14627633
Running Head: STARATEGIC ANALYSIS TOOLS
Strategic Analysis Tools
Carla Dempsey
9/1/2019
Introduction
1
STARATEGIC ANALYSIS TOOLS
2
Business is a risky venture, which is why, before making any decisions, there is a need to
carry out a strategic analysis. The analysis must look into both external and internal-external
because both of these has the potential of affecting the performance of the business negatively or
positively. There are many methods used in carrying out an analysis and in my paper, I identified
the SWOT analysis method, which looks at the strengths, weaknesses, opportunities and threats of
the company. Strengths and weaknesses look at the internal environment while opportunities and
threats look at the external environment. I also identified PESTLE analysis, which purely looks at
the external environment. Specifically, it focuses on the political, economic, social, technological,
legal, and environmental factors. Another tool that I identified include TOWS’ matrix Finally, I
identified Porter’s five forces, which look at competition, entrants, suppliers, buyers, and substitute
goods and services.
Analysis of Responses
After going through the responses of two of my classmates, I am confident that the
strategies I chose will be suitable. My classmates’ responses were not different from my own,
which only means that we agree on the strategy that will help the company grow. The first
classmate whose responses I went through identified SWOT analysis and PEST analysis. As can
be seen, these are the same methods I looked into in my discussion. The second classmate looked
at PEST, SWOT, and Porter’s five forces. These methods are also the same ones I identified. The
fact that they Identified similar methods proves that these are the best methods to use in conducting
a strategic analysis of the internal and external environment of the company. Most companies use
these tools, especially SWOT, PESTLE, and Porter’s five forces. SWOT focuses on the company
while PESTLE and Porter’s five forces look at the industry and other external factors that can affect
the market both negatively or positively.
STARATEGIC ANALYSIS TOOLS
3
Effective strategies are those that look into the company, understand its operations, and the
look at external factors that can affect the company’s performance. The methods should look into
the market and the industry failure to which they won’t be sufficient. My classmates choose not to
look at legal and environmental factors which I believe was a mistake because laws and regulations
stand to affect the company as well as environmental factors such as climate change. This argument
is what I would offer individuals with a differing opinion.
Analysis of Market using tools identified
SWOT Analysis
The analysis will concentrate on PepsiCo Company, which belongs to the food and
beverage industry. PepsiCo Company is food, snacks, and beverage company. The company has
managed to build itself up to become the second-largest company in the food and beverage
industry. It is a global company whose main competitor is the Coca-Cola Company. Under the
SWOT analysis, I will look at the strengths of the company, which include its popularity and strong
brand (Bhasin, 2019). The company also diversifies meaning that they have a variety of products
under each category, thus presenting its customers with a variety of choices.
Its weaknesses include the unhealthy state of its products, the stiff competition it faces in
the industry, and lastly its adverts concentrate more on youngsters and do not feature critical
societal values like its biggest competitor Cocacola does. The opportunities available for the
company include the stable economy being witnessed in major markets and various developing
economies, the company could also introduce new flavours to its sodas, and finally, people are
becoming more health-conscious which allows the com…
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