Company Background
Bidvest Company offers vegetables and organic products everywhere throughout the nation. The organization is situated in the city of Sydney in Australia and it was established in the year 1995. It works as the Bidvest Group Limited (Bidfood 2018). The significant motivation behind this report is to direct an examination to recognize abroad development open doors for the Bidvest items. Different nations were put under research including Malaysia. Malaysia was recognized as the best alternative because of the appeal for the vast majority of the items provided by the Bidvest organization consequently giving abroad market. The report will give a short depiction of the Company’s experience, items go, momentum conveyance channels, its qualities, markets/clients and further why the nation is viewed as the best abroad market for their items. Additionally, the lawful, political, and monetary condition of the nation will likewise be dissected.
The below presented research is focused on discussion on the International strategy and multinational structure of the Bidvest Company in Australia. The report comprise of analysis of the international strategies and multinational structure of the firm. Further the report also consists of the methods and strategies used for motivation.
A standout amongst the most perceived and most mainstream sustenance organization in quality items and administrations conveyance in the nation. It was built up in the year 1995 and offers the administration and items at aggressive costs (Bidfood 2018). The organization has grown in excess of 50 specialty units in the nation having some expertise in different divisions in discount crisp deliver, foodservices, and meat. With the manageability of the items’ interest in the nation, the organization buys in to the rationality of brilliance, straightforwardness, uprightness, development, and responsibility in the entirety of its organizations. Its key items are the correspondence, business enterprise, decentralized administration, and boost. The organization offers a scope of items to the clients, for example, Biscuits Beverages (Bidfood 2018), Finger nourishment, Sausages, Potatoes items, Poultry, Ready suppers, Herbs, Spices, Burger patties, International sustenances, Brads, items, Baking apples, Vegetables, Frozen natural products, Ice cream, Condiments, Meat, Oil, Dairy items, Snacks, Eggs and Vinegar and Pastry.
Lower prices and a slowdown in the rate of economic growth are some of the problems that are faced by the Malaysian region. And this is the reason due to which the management and other authorities will have to execute a proper analysis over the macro environmental factors. These macro environmental elements are uncontrollable and thus have direct influence on the desired objectives and targets of Business Corporation (Armstrong, Kotler, Harker & Brennan, 2015). The mentioned factors directly have impact over the operational activities of the business organization and which will create problems for the business while making accomplishment of their business objectives. And for tackling from these problems and challenges Bidvest will have to develop strategies and plans so as to cope up with the changes. The major issues in macro are-Employment and Unemployment, Inflation, The Trade Cycle, Economic Growth, the Exchange Rate and Balance Of Payments. The PESTAL analysis are explained as below:
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Political and Legal Environment |
These factors are related with the management of public affairs which affect the organisation objectives (Babin & Zikmund, 2015). They have close relation with the economic policy and economic system of the country. The organisation has to follow all the rules and regulations which have been made by the government of Malaysia. There are number of laws which should be regulating by Bidvest to grow their business in Malaysia are:
There are different elements of political and legal environment which are associated with it are: Government- The organisation should follow the government rules and regulation which are controlling and monitoring the business activities in the states. They should know about the tax policies which are critical and affect the business in the state. Legal- The organisation should aware about various business laws which are protecting consumers, competitors and organisation. Political- It influences the business activities. They should pay more attention to the consumer needs, rights and services (Chang, Yu & Lu, 2015). Economic Environment- The economic environment consists of economic policies, economic system and economic condition which are important factor for the business. There is economic condition of Malaysia which includes: Nature of the economics of country
For controlling, implementing and formulating the economic policies these are considered as important determinants for business strategy in organisation. If Bidvest Company has to operate their business in new market then this company has to considered as important factors which are related to economic policies (Foxall, 2014). In developing country, low income of people may be considered as high demand in products and services and this may be benefit for the organisation to satisfy the needs of their customers with in a period of time. In some countries, if investments and income are rapidly increasing then chances of company are increased for making further investments. |
Product Range and Distribution Channels
Figure 1 Political environment of Malaysia
[Source: Political environment of Malaysia, 2018].
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Social-Cultural Environment |
This is an important factor which is related to the human relationship and the impact of the social attitudes and cultural values. This factor should be analyses while formulating company business strategy (Hollensen, 2015). Company should aware about the needs, taste of the consumer and their preference. There are some factors which influence the business related to environment:
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Technology Environment |
Bidvest should use the latest technology which are using by the government or other companies to promote their business (Kleinaltenkamp, Plinke & Geiger, I2016). This is the most important factor for business. The organisation should use advance technology which increase the product improvement and introduction of new product and have considerably improved the marketability of products. Bidvest Company must consider some technology to promote their business in the new market. They are:
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Approaching in foreign market is difficult task especially with its rules and regulation. There are different methods for the entry in the market. The organisation can adopt much strategy to establish a market in the country (Malhotra, 2015). The most important method they can use is Strategic Alliances (SA). This method is best for the Bidvest to take entry in new market.
Strategic Alliance is the arrangements between the two countries that are agreed to share its profit and resources to undertake a specific, mutually beneficial project. When this method is adopted by company these alliances create some important value foe the business are:
- They improve the current operation of the company.
- Helps in Changing in the competitive environment
- Easy to entry and exit for the company (Meffert, 2013)
This method allowed the company to involved in the purse opportunities at a faster rate than if the organisation functioned alone. They provide additional knowledge and resources to organisation which may help in relieve setups time and cost. In this method the Bidvest cannot merge their assets or funds to proceed with other companies which are helpful for company (Pasquier & Villeneuve, 2017). They can use their own funds or assets in any way they want to use. This create a positive relation between the two companies that increase the revenues, industry reach and internal knowledge.
When Bidvest Company will do works with other company, a different type of partnership will occur in organisation (Reich, 2017). While creating the internal relation or partnership will have to clarify the partnership efforts of alliances department actively support and which can fall out of scope.
It is important for the Bidvest to clear the terms while working with partners. Miscommunication or assumption can cause the falling of the alliances attempts. The challenges also face by the Bidvest is partners may misrepresent what they bring to the table (Ryan, 2016). They may fail to commit resources and capabilities to other partner. Bidvest commit the heavily to alliance while the other company will not. They may also fail to use their complementary resources. The differences can create the conflicts between the two parties that how the business should operate. There must be a high level of trust between the leadership of the alliances entities. In the long term alliances, the involved parties may become mutually dependent.
The business entity is committed to conducting healthy business practices which support our Company values of respect, honesty, integrity and accountability, ensuring a stable employment environment and the on-going sustainability of Bidvest (Banerjee & Banerjee, 2017). We subscribe to a philosophy of transparency, excellence and innovation in all our business dealings.
The Bidvest track all the records that indicate the strategy or business model. Bidvest can expand their business in Malaysia by different ways:
Customise your approach per country- Bidvest should know all the different cultures, government and infrastructure of the country (Büyüközkan, Mukul & Uztürk, 2016). The employee of organisation takes time to fully understand the market and the consumers before launching the business in Malaysia.
Find local talent- The organisation also need some experts who can help them in their strategy for international business who knows the details of that specific country. Trust the people with whom you want working (Luthans & Doh, 2018). Once trust is develop provide them a training and up skilling these employees.
Market Strength and International Expansion Opportunities
Infrastructure and logistics- The need of employee should be taken first like water, energy, transportation network and telecommunication. But there are different creative ways around these and they can become part of your key offering.
Bidvest Company is known for its flexibility of services. The company has never been rigid in its approach; they are always flexible with its tactics and strategies. And with the growing time, the company has expanded its business globally (Taoketao, Feng, Song & Nie, 2018). As the food services are targeting critical mass, the company has further established its place in the international growth. There is a very simple strategy of Bidvest which is it always considers what is best for the shareholders and stakeholders and eventually what is best for the business. It can be seen that over the course of all these years since its foundation, the firm has proven to be significantly beneficial for the stakeholders and has provided them with significant benefits and meaningful gains. In order to maintain its position in the international market, Bidvest never leaves a room, for complacency.
It constantly examines the effects of all its marketing interventions. As the world is evolving with time and the competition in the market is growing, it is necessary for the company to ensure that it has the right platform in the international market. There is no scarcity of vision for the company (Thomas, Barraket, Ewing, MacDonald, Mundell & Tucker, 2016). The main thing is how to convert the vision into reality. The ability to move forward is the important for any company. For the overall efficiency and growth in the international market, the firm is continuously refining its model. The company is working efficiently towards sustainable growth and for the long run in the global market. The company is has a domain position in the ongoing organic growth in the market these days. There have been changes in the senior management of the company to further its growth and establish a platform in the global market. For the continuation in delivery of robust cash flows and dividend payments, the company is further working towards amendment in the structure. For the growth in any business across all the global businesses, there should a planning of resources and timing always. The company comprises of various energetic leaders, who has total support of the newly appointed mangers, who are capable of taking the business at a higher place in the international market.
Figure 2 Multinational Structure of Bidvest
[Source: Multinational Structure of Bidvest, 2018]
There are different method and strategy for motivation and leadership which can be followed by Bidvest for their team in other new market (Palmatier & Sridhar, 2017). Bidvest increase the motivation to improve their performance, raise morale and boost productivity.
1. Create positive environment- Motivate employee by giving them a upbeat, positive work environment. Bidvest should encourage their teamwork, ideas sharing and provide them a tools and knowledge to perform well. Whenever the employee need help be available always for them. Give employees opportunity to work independently so that they can build their confidence which is helpful for the entity.
2. Set goals- the organisation set the goals before starting that work. The goals should be clear and understand by all employees. Goals should be reasonable and achievable so that it encourages the employees.
Political, Legal, and Economic Environment of Malaysia
3. Provide incentives- Bidvest should provide the incentives to the employees by motivating towards the work. They can create incentives for employee or team work to motivate employees as a group. Incentives can be include prizes, cash, gifts etc.
Bidvest has an influential market presence in the international market. It has a strong presence in Western Europe and South America. Although in the Western Europe the company is facing several challenges due to its poor policy considerations and decision making; the firm itself claims. But other than these factors, the company is doing a tremendous business over there and finds Western Europe as an attractive region to do future investments which are going to be selective. The main features for doing business are that the workforce present over there is very well educated. Another chief reason would be the infrastructure is well developed (Palmatier, Stern & El-Ansary, 2016). Therefore, in the international marketing strategy the company has to consider the policy environment over there.
In Eastern Europe, the company has started its food services in the main regions like Estonia, Latvia and Lithonia. The business environment in Eastern Europe has been very friendly for the company. It has done significant business investments in the region. It is further giving the company a platform to further expand its business in central Europe. The entrepreneurship of the company in Eastern Europe has given significant results. The company is working hard towards establishing its base in the region.
In South America, the company started its business by just beginning a small food service operation and found a tremendous growth in that. The main factor is also South America’s economy. It has even beaten the economy of UK, which further draws the attention of the company Bidvest. There is growing momentum in this region. Bidvest will gain larger profits from this growing economy of South America. It is not an easy task to manage international business, it is way too tough than that of domestic business. The effective marketing strategy of Bidvest has helped it to champion international market.
Bidvest is such a company which is working successfully in various national markets because it has no centralized business. It operates as a multinational company in various international markets, rather than focusing just on a single space. The main focus of Bidvest is to provide various national economies with basic necessities. The company earns its revenue in various currencies, many of which are demonetized into us dollars. It will be the major suggestion for the company to convert their earnings into us dollars. Bidvest has skills and it can effectively tackle the global competition. Its trading profits is from the international branches present worldwide. The main factor which the company focuses is the economic stage of the host country. It has not shown any special interest in a particular geographical region. The company has benefited from the presence of urbanization in all the foreign countries. The company should use its Australian heritage and there should a respect for diversity; as it has its strong business presence in international regions. Despite there are various challenges imposed on the company from countries like India and China, but it will continue its effective presence; despite of these barriers.
Analysis of Macroeconomic Factors
One of the significant recommendations that can be made by the HR team of Bidvest is that making provisions or encouraging cross-cultural communication within the organizational structure. This will aid the business entity on various grounds, as Bidvest is planning to make business expansion in Malaysian regions, by making use of cross-cultural communication strategy the employees will be able to communicate with the staff of different regions.
Developing a multi-cultural environment will be an advantageous recommendation for Bidvest as it will develop more understanding, and respect for the varied cultures and for the employees which are of different religions, caste, and creed.
Increasing the efficiency and effectiveness of the workforce is the prime most requirements for any of the business entity and for which the HR team is held responsible and liable for the same. The below presented are the recommendations which are given by the HR team of Bidvest:
HR team will recommend the management of the Bidvest for developing managerial strategies which will align with the HR strategies. This will aid in the development of a more flexible environment and which will be proven advantageous for the business firm on various aspects.
The HR team can also recommend the management for making provision of advanced training sessions for the managerial staff and also for the other entire workforce which will increase the efficiency of the employees and thus enhancing the effectiveness of delivery of services.
Bidvest also ought to have a worker handbook whether there are 10 representatives or a huge number of representatives. The representative handbook gives data on the organization’s arrangements, systems and advantages. It traces administration and human asset best practices and furnishes the representative with a comprehension of organization desires.
The substance of the representative handbook may change contingent upon the quantity of workers at some random organization. For instance, an organization with under 50 workers isn’t required to conform to the Family and Medical Leave Act (FMLA) and isn’t required to have a FMLA approach in the handbook. Handbooks ought to be looked into and refreshed to guarantee consistence with changes in laws and controls and to reflect changes in organization advantages and arrangements. Each representative ought to get a duplicate of the worker handbook and sign an affirmation shape expressing they have gotten and perused the handbook
The below mentioned are some of the primary considerations of marketing team of Bidvest:
- A detailed research and investigation of industry trends should be executed.
- Bidvest should also try to3 quantify the total market for the products and services.
- Good knowledge of the target market is also one of the significant marketing considerations.
Conclusion
After summing up the above presented report it has been inferred that management of a business is a crucial and complicated task and which should be executed with a greater level of efficiency and effectiveness. The above presented report is focused on Bidvest which is a one of the largest trading companies in the Australian region.
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