IntroductionRoyal manufacturers will be an automobile maker based in the United States. The company will be headquartered in Los Angeles and it will focus on the manufacture of automobiles. Royal will ensure that all its products evolve to suit consumer needs and prevailing conditions in the market. Royal Manufacturers will focus much on marketing and selling the car in the international market. The main aim of this business plan is to establish a strategy that can be used by Royal Manufacturers to tap into the international market. It is the aim of every business to increase its market share as a way of ‘maximizing profits.
A business also extends in markets to increase the amount of products produced and service offered in order to enjoy the economies of scale. It is important for an organization to look at the concept of international trade as an opportunity whenever it is carrying out an analysis of its opportunities, Strengths weaknesses and threats (Zimmerer 2005). On the other hand, attaining global recognition is a way of increasing local pride though certain scholars argue that, expanding to global level may have an effect on local responsiveness.
This is due to the fact that such organizations end up focusing on attaining maximum global recognition. However, an organization can expand to global levels considering the concept of autonomy. This includes ensuring that each branch in every country works independently; this will reduce the risk of decreased local responsiveness. It is important for a company to look at international trade as a market security. Looking at the automobiles industry in United States the ‘big three’ i. e.
General Motors, Ford and Chrysler, focused on local markets. This had an impact on their performance during the financial downturn. Therefore, it is vital to focus on different markets to help ensure that the company is always in a good position considering the fact that at a given time a certain market may perform poorly. International and domestic marketing environment analysisThis form of analysis is used to study the organization’s environment. This form of analysis looks at the Political, Economic, Social, Economic and Technological factors surrounding the business (Vaughn 1997). This is another key tool of strategic management since the management can use to make vital decisions when it comes to product, promotion, pricing and forecasting.
Applying SWOT analysis on Royal Manufacturers, we are able to see that some of its key strengths include, a good brand name, huge capital base which gives it an opportunity to expand its market share and the ability to produce models which have not been produced by other companies. Looking at its opportunities include, expansion to other markets e. g. Africa and increasing its product line to include other forms of electronics.
Royal Manufacturers will have a Board of Governors which assists the chief executive officer in making important business decisions. The following is an environmental analysis of the automobile industry across the globePolitical issues: The main political issue surrounding the industry is the regulations formulated by the government to regulate the income and activities of the organizations. For example, the government may review the tax principles governing consumers or the company. Other major issues include environmental conservation and rates. It is vital to understand the fact that the company will now be operating in the global market.
This shows that it will have to adhere to rules set in the global market and whatever changes that the rules may undergo during its period of business in the international market. Economic environment: The organization is going to operate in different markets. Therefore, it is expected to incur different rates of inflation, taxation and even monetary policies. The company is also likely to be affected by constant changes of the same. Socio-cultural issues: Royal Manufacturers is likely to experience a lot of differences when it comes to the social environment of its business.
This is due to varying demography and consumers’ cultural make up. Therefore, the company must always work towards ensuring that they deliver products while considering the cultural preferences of respective consumer groups. Technology: Consumers across multiple industries would like to be part of the advantages brought about by the new technology. This includes the use of more convenient marketing and payment methods; another major invention that has shaped the world in terms of business is the internet.
This is a vital resource that can be used for wide range business activities which includes making sales. Estimated market size and gap analysis