One of the Companies that are not currently in my country is McCarthy Construction Company. McCarthy is a Construction Company that was founded in 1864 in the United States of America and is therefore one of the nation’s largest provider of construction services. It first started by building farmhouses. The Company is a pivotal partner that is involved in the building and construction of the country’s civil and industrial infrastructure. The company’s portfolio is further marked with the construction of railways, key roads, dams and ports. The Company has been listed as one the leading construction Company in United States. If the company was to enter into my country with a view of taking construction contracts, then it is vital for it to change its business model in order to succeed in its business. With the globalization of markets as well as production, it is essential for the company to evaluate its international strategy when entering new markets through the use of various options.
In order to compete on the global arena, the company will have to change its business model through employing and implementing the 3A’s strategy in order to succeed. This refers to Adaptation, aggregation and Arbitrage. The use of Adaptation by McCarthy Construction Company when entering a new market in my country will be aimed at boosting the company’s market share and revenues through maximization of the company’s local revenue. Adaptation will also enable the company to adapt towards the different cultures of the societies that it has established in their operations making it easier for it to make sales locally. This will be done through the creation of local units responsible for handling the supply chain in each of the national market. In addition, McCarthy Construction Company, as it seeks to enter into a new market in our country will have to use aggregation as a strategy for its expansion. This will ensure that the Company make attempts at delivering economies of scale through creation of either regional or global operations which will involve standardization of services or products grouping and offering together with the production and development process.
McCarthy Construction Company will have to make the necessary changes in its business model when entering the new country and market through application of arbitrage. This will involve the exploitation of existing differences between regional or national markets through the location of separate parts in the supply chain that is prevalent in different places. McCarthy Construction Company will therefore be obliged to choose one or more of the 3 major strategic options of Aggregation, Adaptation and Arbitrage because they are associated with different types of organizations. However, McCarthy Construction, as a company must place major emphasis on Arbitrage because being functional and vertical, it will put explicit attention towards the balancing of demand and supply across and within organizational boundaries. Business leaders in the company should therefore figure out the elements which will meet McCarthy Construction Company’s needs and accordingly prioritize them (Ogbor, 2009).
In conclusion, the entering of McCarthy Construction Company in my country and the subsequent changes that will be made by the company on its business model will either break it or make it to succeed. If the changes made to the company’s business model are carried out positively, it is definite that the company will succeed in its business endeavors in the country. However, if such changes on the company’s business model are not done carefully, then it is obvious that it will be difficult for the company to succeed in my home nation. In order to succeed, the company should therefore ensure that the new elements meant to change its business model become good organizational fits and focus is placed on either one or two of the three A’s. The McCarthy Construction Company’s Business Model should therefore be done carefully and strategically with a view of enabling the companies succeed in its business career in the new country.
First Solar’s Multinational Business Context (Technology, Competition, Markets e.t.c) and its internal resources
First Solar was founded as a glass company by Harold McMaster who was a “glass genius”. The company is known for changing the way through which the world is powered through creation of sustainable solutions of solar energy.
The current photovoltaic industry was categorized into two technological camps namely: those that believed in the achievement of lower costs through the application of high efficient but high costs cells and those that believed in low cost, moderately efficient solar aimed at reaching these goals. First Solar therefore made use of much cheaper glass commodities to back its cells instead of making use of high-cost c-Si that was ultra pure. Only a small amount of expensive semiconductor material which was light-converting was used to coat the cells.
First Solar’s Market Strategy
First Solar, during its first decade of operation depended on markets having large current subsidies in order to sell its modules. Subsidies were the only channel of encouraging investment in technology because solar had not yet been cost competitive with generational conventions. Shifting towards sustainable markets that supported the demand of PV solar with economic fundamentals and transition became the long term plan for First Solar as a company. Experience curve learnings were provided through subsidy markets which allowed the company to increase their competitiveness in relation to conventional generation. Scaling up enabled the company’s cost to drop fast (Winslow, 2011).
First Solar Started talking openly about its intentions of pursuing sustainable markets and transition in 2009. For the company, transition markets are those with a light subsidy like for instance the ITC in the United States together with favorable conditions for generation of solar. These transition markets resulted in high cost applications and competition in PV solar costs having peak loads. On the other hand, sustainable markets regard those ones which needed no subsidy and whose conditions are favorable enough to manufacture PV solar costs at competitive prices and conventional generation. The application of this strategy by First Solar was different with that of its competitors who sought their expansion by growing within the existing subsidy markets. First Solar was therefore capable of accessing markets with the lower price points as compared to its competitors because of its superior cost position in the industry.
First Solar attained a sustainable competitive advantage over its rivals because of the downstream integration. The company was able to maintain profitability even though the United States Solar market matured to the extent that the company could no longer find it necessary for it to participate in EPC and development to drive the volume growth. The use of the integrated model by First Solar abolished conflicts as well as helped the company achieve all its benefits.
How First Solar should use home base, portfolio, hub, platform, and/or mandate approaches as options for its multinational business structure in the next decade
First Solar should use a Homebase approach in its multinational business structure by establishing a base of its major operations or headquarter to enable it coordinate its business from both local and international chains. This will enable the company be better placed in addressing the challenges facing its branches in various parts of the world. The creation of a home base will serve as an office or administrative centre for the company. First Solar should also use portfolio management to make decisions regarding policy and investment mix, match its investments to objectives, asset allocation for institutions and individuals and to balance risk against the company’s performance. The company should therefore use portfolio management to ascertain its weaknesses, strengths, threats and opportunities in order to maximize returns.
In order to establish a good multinational business structure, First Solar should establish a hub, or a city in which its major operations or facilities should be housed so that the company’s operations are efficient. The company should also use relevant platforms like facebook, Google, Windows Mobile, twitter and other social networking to market its products. This will help the company to manage and deploy its range of products in a competitive manner. Platform strategies will also enable the company to achieve generation and innovation of new revenue growth through leveraging of existing modules, brands and sub-system technologies.
Anatina Toys’s Value Chain and Key Competencies
Since the year 1949, the Anatina Toys is known to have manufactured close to 400 billion tiny tyres, plastic bricks and inter-compatible play pieces making it to become the fifth largest toy maker in the world. In 1992, the group was able to achieve remarkable success by attaining or capturing 80% of the United States toy market. However, from the year 2001 to 2004, the group underwent significant financial difficulties because of internal problems and adverse industry changes. As a result, the group has launched a turn around strategy aimed at the establishment of a profitable core platform to prepare the Group for growth. Further, the company aims at using the best offshoring or outsourcing in order to increase the company profits (Ireland, et al, 2008).
Despite the fact that ANATINA TOYS brand is a unique resource in the Group, the Group’s former portfolio which was horizontally integrated did not become the best alternative strategy of leveraging the Group’s name. Key themes are run known to run through the Anatina Toys’s changes to its value chain. This is through changes in the Company’s Sales, Marketing and Product Generation. The Company refocused on its brink products in order to differentiate itself from its rivals with lower quality. Through making relevant changes in manufacturing and distribution, the Company was able to drive its costs down in order to move closer to the Group’s efficiency frontier. Anatina Toys has been successful in pushing for Willingness to Pay Volume and Cost through refocusing on the company’s core competency of marketing and developing creative products while cooperating simultaneously with its partners across the company’s Value Chain.
In order to augment the company’s position in the industry as a premium toy brand, Anatina Toys has established a long term operating margin for Manufacture, Distribution, product generation and generation sourcing. Good performance was sustained in LEGO’s single product through building the company’s value chain and thus greatly enabled it to succeed. The Anatina Toys, having a production of about 24 billion annually, rationalized sourcing using economies of scale together with the opportunity of drastically reducing production complexity through targeting large sub-contractors. A decision was made that Production was to be outsourced to various partners. For instance, most of the products were outsourced predominantly to Flextronics.
Flextronics, which was a leading multinational company dealing in electronic manufacturing services and based in Singapore became Anatina Toys’s biggest partner in production that was undertaken. The outsourcing and offshoring services offered by Flextronics did not satisfy or meet the needs of Anatina Toys and thus the company withdrew from the deal. However, at the end, ANATINA TOYS was not satisfied with the effectiveness offered by Flextronics in the facilities that were outsourced. It was learnt by the company that even though outsourcing looked liked the best solution towards their problems, it was later ascertained that this was not to be.
LEGO’s production Value Chain is based on the Development function, Molding, Development of Molding Machines, Pre-pack, assembling, Post-pack and distribution. Given the three stages of Anatina Toy’s’ Outsourcing or offshoring, there is need for the company to adopt the best outsourcing/off shoring functions that will enable the company to achieve maximum profits. The challenges encountered in the Pre-Flextronics, during Flextronics and in the Post-Flextronics eras should serve as a lesson for the Anatina Toys to select the best outsourcing/offshoring functions of the value chain. This will ensure that Anatina Toys achieves its business targets and increases its profitability.
For a start, the company should back source the plants that were operated by its Strategic partner-Flextronics and maintain its relationships with a small number of its smaller external suppliers. This will enable faster and easier distribution of its products towards the intended markets thus increasing the company’s productivity. However, the company should be ready to overcome some of the challenges that may arise as a result of adapting the new methods of outsourcing. Among some of the possible challenges that may arise includes optimization and stabilization of operations during the various stages of transition. The company should also be capable of predominantly balancing the internal supply capacity with the Group’s market demands. Overcoming such challenges will make it possible for the company to get the best partners for offshoring or outsourcing its products and services.
Anatina Toys should apply the district forms of global strategy of the three A’s of Adaptation, Aggregation and Arbitrage in order to succeed in its business activities. By maximizing the Group’s local relevance, the company’s market share and revenue will be greatly boosted. This can be achieved through creating of local units or branches in each of the company’s national market to carry out the task of supplying. This strategy should be used by the company as it starts its new expansion strategies beyond their markets based in home. In order to achieve economies of scale and therefore ensure that the best outsourcing channel is selected, attempts should be made to achieve economies of scale through aggregation. This will involve the standardization of Anatina Toys’s service or product offering together with the production and development process. In addition, Anatina Toys should also exploit the differences between its regional and national markets when selecting the best methods of outsourcing or offshoring. This will involve the location of various parts of the supply chain located in different places of the Group’s operations.
Through the use of the AAA triangle, Anatina Toys will be having a clear strategy for its managers and thus be better placed in choosing the best strategies for outsourcing or offshoring. The percentage of sales that is spent on the company’s advertising costs will be an indication of the importance of adaptation for the company while the percentage that is incurred in R& D will serve as a proxy for the importance that aggregation has on the Anatina Toys. The importance of arbitrage is gauged through the percentage that is spent on labor. The Anatina Toys should therefore strive at achieving best production and distribution standards and select best outsourcing and offshoring partners which will ensure that the company is driven towards greater heights.