The paper “ Air Products - International Business Management Process, the Concept of Strategic Alliance and How It Helps an Organization in Maximising Its Profits” is a breathtaking example of a case study on management. The report provides an in-depth analysis of the Packaged Gases business of the company Air Products. Intensive research on the company was undertaken to understand the current standing of the organization and the environment within which it is operating while applying relevant theory to the data collected on the firm. The paper focuses on four key elements, first and foremost, analysis of the significant external and internal drivers for globalization or localization for this business is being undertaken.
This was followed by an analysis of various international strategies that the company may undertake to enter into new regions or expanding its reach in the existing areas. Further, recommendations for the strategies are also developed, while focusing on the major implications for functional strategies of the corporate strategy. In order to maintain its competitive position in the market, an organization needs to analyze its external and internal business environment on a regular basis.
Such an analysis would help in measuring its goals against the current market dynamics and create a differentiator for itself in the marketplace. The external business environment is defined as the factors that are external to an organization wherein the company needs to compete and survive. The report focused on the concept of international business management and discussed the various aspects of undertaking a business venture abroad. It was found that in order to conduct businesses in the international markets, it is essential to formulate a comprehensive strategic management process and consider issues such as dealing with various governments, different currencies, various political and legal systems, diverse cultures, language barriers and difference in accounting systems. The report further discusses the various modes or channels through which Air Products may enter into the international market.
Some of these channels include exporting, international licensing, international franchising, specialized modes of entry such as contract manufacturing and turnkey project and foreign direct investment. It was found that every process has its own advantages and disadvantages and the organization should adopt the mode that is the best fit for its business model. The paper also focused on the concept of strategic alliance and how it helps an organization in maximizing its resources and profits by sharing information, expertise, knowledge, and expenses with its alliance partner.
It further elucidated on the major factors that firms engaged in international business need to take into consideration in communicating with overseas clients and partners which included understanding the cultural differences. The manager should also be able to address the issues of motivating staff and handling workplace diversity.
The concept of strategic control is also discussed in the paper and recommendations were provided on how to address the issues arising from international strategic control. The report would discuss the concept of international business management and the various aspects of undertaking a business venture abroad. It would deal with the process of creating a comprehensive strategic management process and the components that are essential to be analyzed before formulating such a process. Communication with the partners and clients is an important component of the success of an international venture. Therefore, the paper would focus on the various elements of effectively communicating with the partners and clients.
The concept of strategic control would also be discussed in the paper and recommendations would be provided to address the issues arising from international strategic control.