The paper 'Elements of Global Strategic Management That Is Apparent In MHI's Initial Expansion into Australia" is a good example of a management case study. Globalization is a great thing that has happened in the recent past. The greatest impact of globalization has particularly been felt in the business environment, where it has opened up numerous opportunities for big businesses. Today, as the business environment increasingly becomes competitive, no single firm can survive without recognizing and appreciating the global markets. Nevertheless, even though most companies understand the benefits that come with the global markets, expanding beyond the domestic market still pose a huge challenge to most businesses because of the issues associated with doing business in an overseas market.
Therefore, to succeed, a firm needs to have studied international strategic management. Michael Hill International (MHI) is one of the companies that have taken advantages of the opportunities offered by globalization by expanding its business beyond its domestic market. The New Zealand jewellery retailer currently operates many stores in North America and Oceania and is currently considering opening additional stores in Canada, Australia and the United States through controlled expansion in order to achieve sustainable growth (Grant et al.
2014, p. 450). However, MHI’ s management reveals that expanding the business into the international market, such as the U. S. was very difficult as the company encountered many challenges, including global financial meltdown and economic recession of 2007/2008. This case study will begin by analyzing the elements of global strategic management that were manifested by MHI in its initial expansion into the Australian market and proceed to analyze MHI’ s diversification into the shoe market.
The document will also compare and contrast the entry models used by MHI into Australia, Canada and the U. S., and highlight the factors that MHI included considered when moving overseas. Lastly, the paper will make recommendations on what a company like MHI should do to compete effectively in a fragmented industry. Elements of Global Strategic Management That Is Apparent In MHI's Initial Expansion into Australia Bonn and Fisher (2011, p. 5) note that strategic management is the key to business success. Strategic management involves planning, setting targets and analyzing the goals to ensure success.
Strategic management has particularly become very critical for global businesses. This is because businesses that operate in the international market usually face a number of challenges, such as external forces. As can be seen in the case study, MHI faced many challenges in its bid to expand and establish a position in the overseas markets, such as Australia. Therefore, to succeed in the Australian market, certain elements of global strategic management became apparent. The first element of global strategic management (GSM) that became apparent during MHI’ s initial expansion into the Australian market had to do with result-oriented strategic management.
It can be seen in the case that MHI’ s expansion model was based mainly on the result-oriented aspect of strategic management. The business owner, Michael Hill demonstrated a high level of consciousness when coming up with a new strategic plan for expansion into the Australian jewellery market. Hill states that the company has always consciously kept stiff competition in mind when expanding its business into an overseas market (Grant et al. 2014, p. 450). Therefore, to ensure success, the company do not rush, but expand into one city after the other, notes Grant et al.
(2014, p. 450).
Bonn, I. &.Fisher, J 2011, Sustainability: the missing ingredient in strategy. The Journal of Business Strategy, vol. 32, no. 1, pp. 5-14., 32(1), pp.5-14.
Fitzroy, P. & Hulbert, J 2005, Strategic management: creating value in turbulent times. John Wiley & Sons, West Sussex.
Fleischer, C. & Benoussan, B 2003, Strategic and competitive analysis: methods and techniques for analysing business competition. Pearson Education, Upper Saddle River, NJ.
Grant, R, Butler, B, Orr, S & Murray, P 2014, Contemporary strategic management: an Australasian perspective, 2nd edn, John Wiley, Milton, Queenslandv
Johnson, G., Whittington, R. & Scholes, K 2011, Exploring corporate strategy: texts and cases. 9th ed. Prentice Hall, Harlow, England.
Lengen, X 2012, A feasibility study of market expansion for company X. Laurea University of Applied Sciences, New York.
Lutsenko, E 2012, Positioning strategy of service SME in foreign fragmented market: a case of UK company entrance into Russian language services market. Lap Lambert Academic Publishing GmbH KG, London.
Porter, M., Magretta, J. & Kramer, M 2014, Strategy and competition: The Porter collection. Harvard Business Review Press, Cambridge, MA.
Sudi, S., 2003, Creating value from mergers and acquisitions. Pearson Education India, New Delhi.
Wagner, T 2009, Foreign market entry and culture. GRIN Verlag, Berlin.