Founded in the year 2016, Levana Firm has become one of the vastly highly praised firms engaged in manufacturing as well as in wholesaling large variety of Lemon Grass Green Tea, Lemon Grass, Instant Tea and even Lemon Grass Ice Tea. Subtly, these are pure, refreshing, healthy and hygienically processed by this company. Researchers have observed that post manufacturing this entire range is mainly checked on various quality parameters so as to ensure its bona fide quality. Essentially, according to the company’s top management, this entire range is safely packed in an air tight packaging. Moreover, under a strict supervision of the company’s mentor, Mr. Pratik Vyas who is the firm proprietor, the organization has successfully gained huge expertise as well as knowledge of efficiently dealing with the demands of their highly esteemed customers.
Consequently, this report will provide an assessment of firm’s market entry strategy, as well as the organizational design, operational strategy, staffing policy, organizational design and structure, an estimated financial requirement that will help to provide an overview of operating in the new market – Shanghai for Famous Amos.
Table of Contents
Introduction
2.0 About Levana Tea
3.0 Entry Strategy
3.1 Direct Exporting
3.2 Licensing
3.3 Franchising
4.0 Rejected entry mode
5.0 Internal Strengths and Weaknesses
5.1 Strengths
5.2 Weakness
6.0 Overcoming weakness
6.1. Operational Strategy and Theory
6.2 .Organizational Design
6.3. Expansion Scope
6.4. Financial Capital Considerations
6.5. Staffing Policy
6.5.1. Ethnocentric Staffing Policy
6.5.2. Polycentric Staffing Policy
6.5.3. Geocentric Staffing Policy
Objective and Core Topics
The primary objective of this report is to provide a strategic assessment for the expansion of Levana Tea from its Singapore base into the Taiwanese market, focusing on market entry modes, organizational design, and operational sustainability.
- Analysis of market entry strategies including Direct Exporting, Licensing, and Franchising.
- Evaluation of the firm's internal strengths and weaknesses relative to the Taiwanese market.
- Development of an operational and organizational framework for cross-border expansion.
- Strategic staffing policies to facilitate successful international integration.
- Financial considerations and bootstrapping mechanisms for new market ventures.
Excerpt from the Book
3.1 Direct Exporting
This strategy implies that an organization utilizes a beeline route and takes its product directly to its intended destination. Furthermore, it means that the goods or services that are conveyed to the prerequisite market have met all the legal requirements. Factors such logistics, shipment, market research, invoicing, billing and also marketing are done by the company in question. In direct exporting, the element of third parties is eliminated (Kirschenbaum, 2011). Contrary to direct exporting is indirect exporting.
Levana Tea should adopt this entry because it will give clear access to their potential new clients. With the elimination of intermediaries, it means that information received from the customers is not tempered with or pampered. Profits will be highly generated since there is no third-party. Greater success will be achieved with the fact the customer will be in a direct communication line with the company . With the Taiwan government being very lenient in terms of legal requirements when it comes to investors, exporting directly will pose to a very good strategy. Once Levana Tea is set-up within the Taiwanese market, it will enable it to be more flexible in its operations and also other ventures. This strategy is beyond reasonable doubt the best approach that can effectively lead to high performance compared to the following two approaches namely: licensing and franchising.
Chapter Summaries
Introduction: Provides an overview of Levana Tea's manufacturing quality and the scope of the report regarding market entry into Shanghai.
2.0 About Levana Tea: Details the company's origins in Singapore and its core business of producing high-quality tea brands.
3.0 Entry Strategy: Examines various market entry modes and justifies the selection of specific strategies for the Taiwanese market.
3.1 Direct Exporting: Explains the logistics and benefits of direct market entry, emphasizing the elimination of intermediaries.
3.2 Licensing: Discusses the contractual aspects of leasing assets and protecting intellectual property in foreign markets.
3.3 Franchising: Defines the concept of granting business rights to third-party franchisees in exchange for fees and royalties.
4.0 Rejected entry mode: Compares alternative entry modes to demonstrate why Direct Exporting is the superior choice for Levana Tea.
5.0 Internal Strengths and Weaknesses: Applies an analytical framework to evaluate the firm's internal capabilities and constraints.
5.1 Strengths: Highlights the company's production capacity and strong consumer-facing communication strategies.
5.2 Weakness: Addresses challenges such as lack of market knowledge in the Taiwan tea industry and changing consumer preferences.
6.0 Overcoming weakness: Proposes human resource and operational solutions to mitigate identified market knowledge gaps.
6.1. Operational Strategy and Theory: Defines the role of operations management in effectively converting resources into market offerings.
6.2 .Organizational Design: Explores the implementation of matrix structures to coordinate cross-functional tasks during expansion.
6.3. Expansion Scope: Outlines the geographic rollout plan, starting with the capital city, Taipei.
6.4. Financial Capital Considerations: Discusses the costs of expansion and the potential for bootstrapping to reduce financial risks.
6.5. Staffing Policy: Introduces international staffing concepts for managing expatriates and local personnel.
6.5.1. Ethnocentric Staffing Policy: Describes the strategy of staffing management positions from the parent headquarters.
6.5.2. Polycentric Staffing Policy: Analyzes the benefits of recruiting host nation talent to run local subsidiaries.
6.5.3. Geocentric Staffing Policy: Explains an inclusive recruitment approach that prioritizes competence over national origin.
Keywords
Levana Tea, Market Entry, Direct Exporting, Taiwan, Licensing, Franchising, Organizational Design, Matrix Structure, Operational Strategy, Staffing Policy, Ethnocentric, Polycentric, Geocentric, Business Expansion, Bootstrapping.
Frequently Asked Questions
What is the core focus of this publication?
This report focuses on the strategic planning required for Levana Tea to enter and compete in the Taiwanese market, covering operational, financial, and organizational aspects.
Which market entry strategies are analyzed in the book?
The book analyzes eight known entry strategies, specifically prioritizing Direct Exporting, Licensing, and Franchising for the Taiwanese expansion.
What is the primary objective of Levana Tea's proposed expansion?
The primary goal is to successfully penetrate the foreign Taiwanese market and achieve a competitive advantage by leveraging the firm's manufacturing strengths and tea expertise.
What scientific methods are utilized for this analysis?
The report utilizes business analytical tools, including SWOT analysis, PESTEL analysis, and organizational design theory to assess internal and external business environments.
What topics are covered in the main body of the work?
The main body addresses market entry strategies, organizational design (specifically matrix structures), expansion logistics, financial capital considerations, and international staffing policies.
How are the key terms in this document characterized?
The work is characterized by terms such as market entry, direct exporting, organizational design, and various international staffing strategies like ethnocentric, polycentric, and geocentric models.
Why does the author recommend Direct Exporting over Franchising?
The author argues that Direct Exporting provides greater control over operations, eliminates the risk of third-party issues, and ensures direct communication with customers, which is considered safer for the brand.
What role does the 'Matrix design' play in the company's strategy?
The matrix design is recommended to pool resources and galvanize a high-performance taskforce, ensuring effective coordination and information flow across departments during the market entry phase.
What is the significance of the staffing policy choices discussed?
Staffing policies are critical for managing the cross-border transition; the report advocates for a strategy that balances the need for parent-company culture with the local market expertise gained through host-nation personnel.
- Quote paper
- Dr. Mutinda Jackson (Author), 2017, LeVana Tea Company. An overview of operating in the new market Shanghai for Famous Amos, Munich, GRIN Verlag, https://www.grin.com/document/437928
