Maintaining Momentum of the Group
Discuss about the Business Retention and Expansion Clusters.
FlashMobz being a mobile and retailer established by Asif from the scratch of a business. After gaining success in England Asif has bought three outlets of PhonesRUS, which are intended to work under the brand name of FlashMobz. With all the concerns, two of the three outlets of PhonesRUS are located in Belgium. Due to the undue expansion of the brand abroad because of the fact that two outlets of the PhonesRUS are present in Belgium unlike the originating location of the brand, the challenges of Asif regarding maintaining the business have increased to a great extent. The challenges faced by Asif during the business acquisition with PhoneRUS are as follows:
In case of FlshMobz collaborating with the PhonesRUS one of the major problem that Asif is going to face is the maintenance in momentum of the group. The momentum of the group is important to maintain in order to keep the organizational staffs motivated regarding the project. The momentum of the employees seems to degrade with regards with the lack of clarity in the motive setting of the organization. The distance in the communication process leads to lack of interaction among the stuff members of the company.
Due to the cause of long distance among the stuffs and the higher authorities of the company, the communication among the higher authorities decreases (Ablo, 2015). This decrease in communication among the higher authorities creates problem among the lower ranked staffs. Due to the lowering of the communication there is an increase in dilemma regarding the goal of the company. The goal of the organization stays conflictive which increases the growth in conflict among the lower ranked stuffs members, who do not get direct access to the higher authorities of the company. Due to the lack of information being transferred to the lower hierarchy leads to the performing of wrong task and the priorities of the task being not clear. This lack of understanding of the work leads to the fact of decrease in efficiency of the task that the stakeholders are to perform. This degradation in quality of the product leads to the downfall of the goodwill f the company that has been earned after years of hard work done by Asif to make the organization multinational.
The cost calculation of the product during its manufacturing process faces a lot of problem when two-business organizations collaborate with each other. The aim of both the organization does not always coincide with each other, which leads to the conflict that happens regularly among the lower hierarchy stuffs of the company (Benn, Edwards & Williams, 2014). Thus, the mismatches in the goal of the company cause the probation problem in calculating the cost of the entire project. As the goal of the project is differentially set in the organizations located in different parts of the world the cost management is the major problem in collaboration. Both the companies that are collaborated has their own set of managerial committee that enables them to keep a track on the cost calculation, due to the fact of increase in distance among the managerial committee the cost of communication also increases for communicating among the higher hierarchy of the organization (Ward, 2016). The collaboration between two organizations also leads to the clash in target setting, which often lead to excess expenditure of money due to the clash in target setting as the local managerial committee might take a decision which is not supported by the main branch of the organization. This aspect leads to the fact of undoing the previously done work and starting the project afresh which costs the organization a hefty amount as the costs of raw material as well as the service charges are wasted and the same charges are to be paid twice to get the same job done only once.
Communication Issues
The pricing of the product is the main marketing strategy that has been used by the organizations to gain attraction of the clients in the market. This efficiency in attracting clients will be a problem for FlashMobz if they intend on collaborating with PhonesRUS. Asif will face a problem in setting the price of the products that they are about to sell in the shops as the pricing structure of different countries are different from one another. The potentiality in currency varies in large constants. Hence, to make the products available and affordable the product must have differentiated pricing strategies, which will enhance the clients to get access to the product irrespective of the fact of change in currency potential (Ward, 2016). This variation in pricing of the product causes the deformation in standardization in terms of pricing of the product. This lack of standardization causes imbalance in the marketing strategies in the project.
The main problem that e-commerce platform will face in case of collaboration of FlashMobz and PhonesRUS are as follows:
In case of collaboration of FlasMobz and PhonesRUS, whose two out of three outlets are present in Belgium, the major problem will be the linguistic problem for the e commerce platform of the business (Lee & Lee, 2015). A basic language must be set to reference list, which will be the mode of communication for the users of the e commerce platform for clients. English is not generally spoken among the countries other than England. As the originating country is, English speaking hence the basic language must be English in order to retain the previous clients. However, the aim of expanding the business stays to a put, as English is not well accepted in the states of Belgium, which hampers the growth of the company.
As e-commerce is one of the newest technologies in the market the trust issues of the platform is always a reason of concern for the trading company. Without gaining the trust of the mass, it is not possible to continue business as without goodwill of the business loyal clients will not be available and a business cannot flourish without the loyal clients. The clients that have been using FlashMobz product lastly may not have brand trust on the PhonesRUS in that case the loyal clients of FlashMobz will not be loyal to the brand anymore and switch to some other brand. Similarly in case of the PhonesRUS, the loyal clients might not be well accustomed with the FlashMobz then due to the fact of PhonesRUS collaborating with FlashMobz will see a decline in the client satisfaction rate. Hence the trust issue remains on the e-commerce platform due to the collaboration of the two brands hence acting as a challenge in expanding the business abroad.
The main issue for making the business worldwide is developing the structure of the organization according to the global marketing tenure. Proper teams of experienced and specialized members are set up who will be efficient enough to handle the business executions of the company abroad without concerning the managing committee who are located in the main branch of the organization. This group of members takes surveys in order to gain the knowledge regarding the taste of people where the organization targets to gain a grip on (Bryson, 2018). This results that are evaluate from the surveys that are conducted by the team of managing committee who are appointed to send in proper results for the upcoming project purpose. The evaluated results are then used to stay updated with the facts of the needs and demands of the potential clients who are located abroad.
Cost Calculation and Target Setting
The laws and regulation are different for every other country and abiding by the laws of the countries where one’s business is based. In order to gain goodwill of the mass, it is necessary to stay in the good books of the government. In case of starting an organization in a new country, the business officials must be accustomed with the laws of that country (Bendell, 2017). Asif being the sole owner of the organization it is not possible for him to take care of the business after establishing the business worldwide. Issues once caused by the lack of maintaining the laws of specific countries causes a lessening of the goodwill of the company which might turn to losing the brand loyal clients as well as lessening the scope of gaining potential clients.International Accounting
Tax compliance is the most important aspect of pursuing business abroad. Tax compliance leads to the major issues of fraud cases overseas, which leads to the decrease in the goodwill of the organization. The accounting process posses threat to the multinational companies who are comparatively new to the country as well as the laws and the accounting systems of the country. Accounting strategy has been the main reason behind the revenue collection of the revenue. Accounting function has proven to be the most challenging task for an outsider to get into the business. Proper transaction in the accounting department causes the impact of tax liability. For mitigating the risk of tax fraud cases the higher authorities must stay indulged in the entire process of accounting system (Boshyk, 2016). This act to be a difficult task for the higher authorities as the task that might prove to be problematic for the managing committee as the they themselves are located abroad and are dealing with the laws and facilities of the respective countries they are located in.
E commerce has evolved to a great extent since the last decade. This propagation helps the corporate sector to gain access to the global market (Neelankavil, 2015). Despite the fact of increase in exposure in the market, the major problem that the e commerce faces is that the payment process varies globally which in turn causes the problem of determining the methodology of payment and trust issues regarding companies and brands that are foreign. Possibilities of accepting transaction by the means of Paypal, Yandex has grown in last few years but countries that are still not exposed to these platforms faces difficulties in processing the transaction hence leading to the decline in business in those countries (Knoke, 2018).
Communication is the main layout path carrying out good business proceedings that are needed to make a business successful. Communication does not only comprise of diversity in language but also acceptance of the cultural and glorifying the need of the business proposal (Doppelt, 2017). Communication does not mean only the communication between that of the clients and the business organization. The communication issues also deals with the intra organizational services that are to be performed among the employees of the firm. In case of lack of transparency among the employees, the business organization suffers due to the conflictive decision-making in the terminology of the process (Brady, 2017). The issue of trust also appears in case of lack of communication among the business organization and the clients of the business.
Pricing Strategies
The sustaining of a product and a brand is completely dependent on the aspect of acceptability of the product and brand by the mass. This process of acceptability is highly dependent on the fact of acceptability scale of the product by the government of the country (Crane & Matten, 2016). In case of the brand or the product, sharing a conflictive relation with the government the mass of the country does not gains the trust on the product or the brand which causes the lessening of the goodwill of the company and lessening of the brand value of the company (Sekaran & Bougie, 2016).
To resolve the problem caused due to the creation of the international infrastructure of the business is by employing members who are well confident regarding conducting of survey in the places where the higher authorities of the business cannot reach (Chang, 2018). The results that have been achieved by following the evaluation of the survey conducted will help Asif to gain an access to the entire scenario of the business organization.
- To avoid the terms of not being able to cope up with the laws and regulations of the foreign countries a native lawyer must be appointed who will be well acquainted with the laws and regulations of the country to prevent any kind of law related problems.
- To avoid the problem that arises due to the fact of accounting problems can be solved by setting up an accountancy firm for the project. Accountants must be hired who are exclusively trained for the process of maintaining accounts issues of the multinational companies (Morabito, 2016). In order to get the perfect results from the recruited employees in the accountant firm proper training must be provided to the employees before putting them in a real life scenario in order to get efficiency in the field of accountancy department as this department plays a decisive role in increasing the scale of the business.
- To avoid the problems that are being created due to the fact of international payment that is to be made for clearing the debts of the services that are enjoyed by the clients is by making an independent platform of payment for every country. In this method the country allocated for the business proceedings has been allocated with a proper payment platform that is available in the country with the standardized payment technique so as to increase the stability of the tenure processing. With a stable payment strategy the increase in business management is observed in the business.
- To avoid the political aspect of denial of the project Asif must maintain a proper relationship between the government organizations by abiding by the laws stated by the government for the proceeding of the business (Chang, 2016). This factor help in gaining the trust of the company that will lead to the fact of gaining the good will for the brand name. the brand will stay in the good books of the government by paying the tax and informatics in correct tenure period.
- To avoid the problems related to the fact of maintaining the connectivity among the employees of FlashMobz a particular platform must be built in order to maintain the communication among the employees of the organization in order to prevent the communication gap among the employees of the organization. This decrease in the communication gap between the employees of the organization helps the organization to grow as a unit that helps to increase the motivation of the employees leading to the increase in scalability of the organization in terms of production (Kolk, 2016). The aspect of lack of conflictive communication also ensures that the proper information that is generated from the higher hierarchy of the organization is delivered to the employees with proper efficiency.
I being a member of SBS Consultant Team was allocated the task of discussing the issues that might take place when Asif, the owner of the FlashMobz buys three outlets of PhonesRUS. Acquisition process between FlashMobz and PhonesRUS whose two of the three outlets are present in Belgium whereas the origin of the FlashMobz is in England is to be critically evaluated by me and provide the recommendation for the same. I would like to grade myself in above 80, as according to me I have contributed in the processing of the business in an efficient way. This efficient way of evaluation of the project brings into the project the term of efficiency regarding the aspects such as giving all the employees of the organization a clear understanding of their job prospect that enables the employees to perform their jobs wih better profficienncy. I have further stated the procedures to overcome the problems that Asif might fae during expanding his business abroad. The solutions regarding the process off FlashMobz acquisation with the PhonesRUS hasv also been stated by me. The procedural method that I have state will be of immense usage for the successful progression of the project that is initiated by Asif. The refernence that I have provided in the report are all scholarary references that will indicate the proffeciency of the report that I have prepared for the organization. The source of references are authorized hence indicating the authentication of theb project. Solutions for the problems that might arise due to the online aspect of the projec t is well discussed by me in the report wich will enable the clients located in the differentb parts of the globe to get prper access to the organization. The hindrances regarding the online payment issues and the mode of communication among people of different linguists have also been solved by me in the report.
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