Discuss about the Strategic Management for International Business.
In the present competitive business environment, organization has tried to diversify its entire business process so that it can eliminate market risks in an effective manner. Many studies have highlighted the fact that effective utilization multiple business units allows organizations to get closer to more number of potential customers (Becker, Kugeler and Rosemann 2013). For that reason, it allowed organizations to increase the present level of revenue in an appropriate way. On the other hand, development of multiple business units requires huge amount of investment from the organizations. Therefore, organizations will have to develop long-term plan in order to cover up all the investments in an effective way. Now, in order to utilize effective multiple business units effectively, organizations will have to use discrete marketing plan. It has been assessed that discrete marketing plan has the capability to increase the popularity of all the business units in an appropriate way. In this report, the focus will be on IDP Education Australia and its multiple business units all across the world. The IDP Education is a popular international education organization that focusing on providing effective placement opportunities to the students in New Zealand and Australia. The organization has multiple business units all across the world that has induced to implement several strategies so that it can able to fulfil the business goals in an effective way.
Business Unit Research:
Business Unit Identification:
As per the article by David and David (2016) effective utilization of business research unit requires proper utilization of the business strategies in order to achieve sustainable growth in the market. In this report, the prime focus will on the Melbourne branch of IDP Education and also the kind of business strategies it is enforcing in order to increase the present level of business in an effective way. The focus organization is a world leader in providing international student placement services. For that reason, it has developed 89 offices in 30 countries that have helped to establish a strong global network for the organization (Idp.com 2016). IDP Education is ASX listed organization, whose 50% of the shares is owned by 38 Australian universities. The Melbourne branch of the organization is one of the oldest centres that have been present around 45 years in the market. The prime responsibility of Melbourne branch is focused towards maintaining strong relationship with different universities of Australia and New Zealand so that it can continuously able to provide effective placement services to the foreign students. It also maintains effective communication process with other offices so that all the branches can able to have details of the potential students in an effective manner (Hill, Jones and Schilling 2014). Furthermore, as the focus business unit of IDP Education is situated at the heart of Australia, it has to take additional responsibilities of implementing effective marketing and promotional strategies for the organization in order to increase the popularity in the market.
Identification of Products and Service Lines:
As per the article by Kaplan and Atkinson (2015) effective utilization of organizational products and services requires implementation of appropriate business strategies. Otherwise, it might not able to fulfil all the business objectives in an appropriate way. In this report, the focus organization is trying to develop an effective global network so that it can able to provide support to those students who are looking to develop career in Australia and New Zealand. Thus, the business of IDP Education is based on the development of trust level regarding the kind of opportunity it will able to provide in the mentioned countries. Furthermore, the focus organization is also a proud co-owner of “International English Language Testing System” (IELTS) that has emerged as one of the most popular language proficiency test in Australia. IDP Education has conducted around 2.5 million tests on over 9,000 organizations for testing the proficiency level of English of the professionals (Idp.com 2016). Thus, the business of the focus organization heavily depends on the effective utilization of promotional campaign and marketing campaign that helps to develop strong bonding with the existent clients. Furthermore, IDP Education looks to utilize direct marketing campaign in order to convey the message to the potential customers in order to increase the business level in an effective manner. The Melbourne branch of the organization also has implemented different types of strategies so that students who are coming from foreign countries do not have to face any challenges in achieving effective placement services in Australia (Hill, Jones and Schilling 2014). Furthermore, IDP Education also has consciously tries to place students at their preferred locations in Australia and New Zealand so that it can able to improve satisfaction level of the potential customers.
Business Unit Revenue:
In the present competitive business environment, several organizations has tried to evaluate the revenue level of each branch in order to assess the kind of impact a particular unit is making on the overall business level (Kerzner 2013). IDP Education has also implemented similar types of strategies in order to increase the effectiveness of each business units in an appropriate manner. Now, the prime objective of the Melbourne branch is maintain proper co-ordination with other offices so that customers that are coming to Australia can able to have proper level of guidance from the organization. However, the Melbourne branch has been responsible for conduction huge number of language proficiency test in different organizations (Purce 2014). As a result, it is regarded as one of the top business units for the organization in providing effective revenue level. However, it is obvious that major share of the revenue level for the focused business units comes from providing effective placement services to the students. Melbourne unit has focused on maintaining strong relationship with both universities and organizations in order to continuously improve the quality of placement services. Thus, the focus business unit will also have to invest more amount compare to other units in order to implement effective promotional campaigns that are capable of fulfilling organizational goals and objectives. It has been assessed that the mentioned unit has able to increase the revenue level in continues manner for past few years (Grant 2016). Presently, it has also trying to implement much more aggressive promotional technique on the social media and internet platform in order to emerge as one of the trusted placement services providers in Australia and New Zealand, which is expected to create positive impact on the overall revenue level of the organization.
External Environment Analysis:
As per the article by Ball et al. (2012), political environment is very much open regarding including foreign students in educational as well as organizational structure. Many students have come from several parts of the world to have effective education and professional life in Australia and New Zealand. However, the focus countries have made certain political rules and guideline for the universities regarding the number of students from the foreign countries can be included within a particular year. Recently, Australia have faced some issues regarding providing proper educational support the foreign students. For that reason, government of Australia have implemented several support services so that people from all across the world can able to effective opportunity to develop effective professional career.
As per the article by Aspara et al. (2013) several universities of Australia have invested huge amount in order to increase the facilities that students will receive in an appropriate manner. Therefore, it has influenced people from all across the world to develop effective professional career in the focus countries. Furthermore, the focus countries have also able to eliminate amount of adverse impact of the recession in an effective manner. Therefore, it has able to provide effective opportunities for the students to develop an effective professional career (Schneider and Spieth 2013). Thus, it has also created positive impact on the business level of the educational placement services provider.
As per the article by Hitt, Ireland and Hoskisson (2012) the focus countries have able to maintain effective birth rate in the community. Therefore, it has created positive impact on providing proper opportunities to all the students in order to develop an effective professional career. Therefore, it has induced students from different countries to come over the focus countries in order to have proper professional career. Furthermore, increasing per-capita income is influencing the people to look for better alternative opportunities that are also creating positive impact on the business perspective of the international placement services providers.
As per the article by Jeston and Nelis (2014) technological evaluation has played significant role in influencing students to focus on the effective utilization of the foreign study. Technological evaluation has increased the knowledge level of people regarding the kind of atmosphere they will face at the foreign countries. It has also helped to develop business opportunities in providing proper help to the foreign students. Thus, technological evaluation has played major role in developing business opportunities in the foreign consulting and placement services. It also has played major role in developing trust among the potential customers from all across the world.
Government of Australia has implemented several rules and regulations regarding the inclusion of foreign students in the economy. Therefore, foreign placement service providers have to follow a specific process in order to conduct the business in an appropriate manner. Different types of legislative rules also have been implemented in order to eliminate the risk level that students have to face in the foreign country atmosphere (Verbeke 2013).
Source of Sustainable Competitive Advantage:
IDP Education is among the popular names that provide foreign placement services in Australia and New Zealand (Trigeorgis and Reuer 2016). Therefore, it has helped the organization to expand the business in different parts of the world in an effective manner. Furthermore, lesser amount of competition also has helped the organization to implement effective marketing and promotional strategies that eventually creates positive impact on the overall business level of the organization. Furthermore, IDP Education has able to develop effective brand image in the market that has created positive impact over the trust level of the people. As per the article by Amit and Zott (2012) sustainable competitive advantage depends on the implemented strategies of the organization. Therefore, business strategy of IDP Education to introduce multiple business units has able to create huge amount of positive impact on the business level of the organization. Furthermore, IDP Education has also focuses on the effective utilization of the social media and internet platform in order to reach to the potential customers in an effective way, which has created positive impact on maintaining sustainable competitive advantage in the market.
As per the article by Markides (2013) strategic decision allows organization to move forward to a particular goal. Therefore, it is necessary for the organizations to take decision strategically in order to maintain proper business environment. IDP Education also has implemented strategic decision of developing multiple business units in order to capture the world market in an effective way. Furthermore, the organization also has implemented different promotional strategies for different units so that it can goes with the focus community in an effective manner (Jenkins and Williamson 2015). Furthermore, has consciously developed all the branches in major cities, as students from cities are expected to look for effective development of educational and professional career in the foreign countries. The organization also has recruited people from host countries so that they can able to communicate with the potential customers in an effective way. The organization also has utilized several offers and schemes so that it can able to influence potential customers in an appropriate way (Chang 2016). IDP Education also has targeted all the prime Asian countries, as many people from these countries come to Australia to have better educational and professional life.
The above discussion has highlighted the fact that effective utilization of multiple business units can provide assistance in increasing the business level of the organization. IDP Education has able to utilize the multiple business units concept in an effective manner that has helped the organization to emerged as the most popular names in providing international placement services in Australia and New Zealand area.
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