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Introduction of Global Business Strategy For 24 Hours Fitness Assignment
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The best strategic actions for the organisation to complete over the next 3 to 5years
The “24 hours fitness” company is one of the most popular and well-known small business bodies in the UK. The company is operating a good business in the local markets of the UK and they are earning a huge profit from it. The company mainly operates its business with “Aircare” and “hygiene” products and this makes a perfect business for the company. The company is planning to expand its business to the international markets and they are looking for strategies to make a perfect business (Miranda, 2020). Expansion of the company to the international market helps the company to make more profit and earn good revenue for the economic sectors of the UK.
The important strategies used by the company to make a perfect business are as follows-
The company must set proper financial and promotional goals to make a perfect international market. This is important to understand the “vision” and “mission” of the company. This also helps to make a perfect strategy accordingly and engage the employees in the international business of the company.
Thorough market research is important for the company to make a perfect business plan. The company must know about the factors in the international market before expanding the market globally. The market research will help the company to understand the important factors for the business.
Different “global expansion strategies” are there to help the company to make proper business expansion. The company must study the strategies properly and make a perfect plan to expand the business to the biggest markets. The strategies also help the company to understand the risks and challenges in the market.
Make local employment
This will be helpful to make a perfect international business for the company by recruiting the local talents to the company. This can support the company with ethics and they can make a good reputation in the international market.
The company can make partnerships with the local companies to expand their business globally. This will help them to understand the local laws and regulations for the company and they can make a perfect business with it. However, there may be some risks the company faces while making partnerships with the local companies. The company must choose its partners carefully.
This is important for the company to monitor the business carefully and continuously in the international market to avoid any risks in the market. This will help the company to handle the business perfectly and to make changes according to the demands of the market.
Financial and business performance over the past 3 years of the company
“24 hours fitness” is one of the successful SMEs in the UK. The company has been working on a business in “Fitness” and “hygiene” and they have a good business in the UK. The company started its journey in 1983 and they are making a good business.
“24 hours fitness” has made a good business in the local market in the UK and they are earning a good profit. The company is planning to make a business in the international markets (Ukko, 2019). The company is planning to make a perfect international market with their financial position
The “24 hours fitness” company is facing some problems in business in the market and the financial report of the company makes an idea about the condition of the company in pandemic. This is making some problem in business for the company and they are facing a financial loss in pandemic. The business performance of the company over 3 years is as follows-
The annual income of the company in 2020 was nearly 2 billion dollars only (24 hours fitness, 2022). The company is making a tottering business with this and they are having a less number of customers in the market. The company is having a good “CSR” report and they are performing with sustainability. The promotional value of the company is good which makes a good business for the company and proper branding for them. However, this is not helpful to make a perfect business for the company making a proper global expansion. Apart from that, the business performance of the company helps to understand that the company is failing to make a perfect global business.
The company has faced problems in business over three years and they are in a poor financial performance. This makes a huge challenge for the company to make a perfect global business. The annual financial report for the company for the year 2020 is as follows-
The company had an asset value in 2020 of nearly 1.4 billion of debt in total. This makes the business for the company problematic in the next year. According to the reports published in March, 2020, nearly 450 outlets of the company is mandate closure. This brings the company a situation of bankruptcy in 2020 due to pandemic.
The company invested nearly 1.9 billion dollars in different portfolios of the company. Less than 1 million dollars was gained in total. “Net realised gain” for the company in 2020 was 1.5 million dollars.
This makes a challenging scenario in the year 2021 for the company. The company tried to make a good business in the market in the year which backfired and caused financial deprivation for the company. The financial scenario for the company in 2021 is as follows-
The company lost more than half of its assets in 2021 due to bankruptcy which causes some challenge for them. The pandemic situation affected the company badly and they came to this situation.
Explains and justify the strategic actions you have identified in the Executive Summary
As it is mentioned in the above section that certain strategic ways can be of great help if implemented by the “24 hours fitness“. However, it can help the concerning company to expand its coverage across the world which ultimately increases the productivity and profitability of the company. The main purpose of these strategies is to increase the sales of the services and products that the company provides. Nevertheless, it can be driven by the term that the “Global Strategy” assimilates “standardization”, “international” and “multinational strategies” (Welch, et al., 2022). Here are some of the most effective strategic actions using them. The concerned organisation can successfully expand the business across the world to increase the organisational performance and it will also help the company to generate impressive profit.
Make goals to guide the global business strategy
It is very important for any company before entering into the market or business atmosphere that they have to draw a proper outline regarding the goals and objectives of their business. In addition to that, the concerned organization should also focus on certain goals to increase the performance and maintain the sustainability of the company in the long run, as the goal and gives an urge to the employees or the workforce a sort of force that drives them to work more diligently with soul engagement which provides them a specific purpose for short, long, mid and short terms which ultimately to the greater extent ensures the aspect of the sustainability of the organisation universally(Welch, et al., 2022). Furthermore, if the organisation makes up an effective goal for the expansion of the company’s functionality it will help the organisation to comprehend and acknowledge whether the goals that have been made by the company will be adequate for the business expansion and specifically which one among the goal can be useful for getting the reach over the ultimate goal regarding of the expansion of the business. In addition to that, the goals also assist the organisation to prioritise certain elements which lead to the expansion of the business (Masuchet al., 2022). However, there is so much assistance besides the appropriate budget and it also provides a clear time frame that can help accomplish each step of the organisational expansion.
Moreover, while setting up the goals the organisation must attentively focus on the principal aim of the global expansion of the business. For example, the concerning company must take certain factors into account like the company must widen the pool of skills so that they can acquire a diversity of the resources and an efficient workforce, the organisation must introduce the business in the new lucrative markets, and also the organisation must take impactful steps to increase the awareness of their brand to the wide range of the people .all of these factors will help the concerning company to make an impactful business in the market and also support in increasing its performance across the globe (Brown et al., 2022).
Thorough Market Research
It is also an important action that the 24 hours fitness” must follow to develop its future business scenario. Once the goal and objectives are determined by the organisation it becomes an important task for the management of the organisation to do intensive research on the functioning of the organisation. It will allow them to evaluate whether the plan of global expansion is going well or whether there are places that need to be more attentive (Masuchet al., 2022). Furthermore, the company should also make the proper study of the current market they are wishing to expand in, this will help the concerned organisation to know many aspects of the new market and also update them about the crucial aspects through which the organisation can gain an immediate increase in the organisational performances (Pereira et al., 2022). In addition to that, the through the research three management of the concerning organisation will be able to recognise and come to know about the different obstacles and the opportunities before they dive into the new market at the new place, which will be a great help for them to invest money and also allow them to make a proper strategy to defeat the obstacles that get in the way.
Several advantages can be derived from market research as it helps in various ways. For example, it contributes to increasing the organisational profitability to a greater extent and also reduces the probability of risk. In addition to that, it also makes sure that all the investors and stakeholders that the plans and strategy of the global business expansion are going to be prolonged and sustained.Furthermore, several tools can be utilised to get better research target markets.The organisation can take up a database concerning the laws and acceptances of the specific country for example “OECD” (Pereira et al., 2022). Once these aspects get cleared the organisation will be able to make a proper decision and also efficiently prioritise which market will be helpful to implement the strategy of the global expansion of the business.
Evaluation of the strategies
This strategy also plays an unimportant role in the growth of the business and its excellent performance throughout the world. As per the survey, there are multiple ways through which “24 hours fitness” can lead its functioning to a foreign land, however, it is also so true that every organisation cannot adapt and implement the same strategy. One way of strategizing the plan that can help an organisation to expand the business might not be effective for the other company (Gimenes and Piao, 2022.). However, it is very important for the concerned organisation to selectively implement the strategy after doing thorough research of the market. It will help them to efficiently run the business outside the host nation. Furthermore, the company can select the best possible strategy after doing the complete evaluation of the market research, goals of the company and the budget to be determined, all these will surely help the organisation to take the best approach to internationally expand the business and allow them to establish the company’s brand stand out.
Employ an efficient local talent
This is one of the most fundamental needs for “24 hours fitness” to run the business efficiently. According to business experts, it has been driven that having local talent can bring a difference to the organisation in favorable ways. In addition to that, employing the local employees of the nation where the company is wishing to do the business can yield various positive results. Generally, in the new place, multiple issues arise in terms of cultural harmony, lag in the exchanging of the ideas due to the linguistic issues. In that scenario hiring a local talent helps the organisation to cope and adjust to a lot of things that exist in the current market. Furthermore, it might seem daunting to hire employees from one place too far away. Gathering the local entity for each market might take a lot of time and it also needs to have a piece of a sound knowledge of the surrounding environment to accurately comprehend the local rules and regulations for better compliance. The concerned organisation should collaborate with an “Employer of Record“ service which makes the employment deal for the organisation and helps in handling all the administration-related works on the behalf of the concerned organisation. (Manfredi and Capik, 2022)
Choice of reliable partners
“24 hours fitness” must carefully choose another company or an individual in terms of partnering with them because it plays a decisive role in regulating the performance of the company. In addition to that, if the company finds good and interested partners in the form of investors and stakeholders it will help the company to flourish in a short period, it will also allow them to introduce new products and services in the market concerning the consumers’ demand (Manfredi and Capik, 2022.). As a result, the concerning company can experience a massive rise in performance and profitability through the expansion of the business throughout the land. Moreover, as per the opinions of business experts business not only runs on the base of its employees rather it also has to establish a good relationship with the local partners to some extent. It helps the organisation to know several aspects which assist the organisation to perform in that particular region efficiently as it knows the requirements of the public of the very same region. In addition, the organisation needs to have a third party “logistic partners”, “legal advisors”, or “marketing”&“PR agencies” which can support, regulate and execute the strategy of the global expansion in a much more efficient way.
It becomes very problematic for “24 hours fitness” to smoothly run the organisation and its performance falls at stake so the sustainability of the organisation also comes in forms as a great challenge for the organisation if it fails to do the proper and continuous monitoring of the functionality of the company’s activity. Furthermore, when the company partners with the other company it intends to launch new products and services in the market and provide that to the company’s potential consumers it will help them to draw a huge customer base. In addition to that, it is inevitable for the concerning company to monitor the progress of the plan and organisational performance once new products and services are introduced in the market, this will also inform the management about the effectiveness of the strategic plan that has been implemented and through regular monitoring, it will be notified with area to be focused more to make the best out of the running market (Sari et al., 2022). Nevertheless, if the organisation takes a record of customers’ responses to the services that have been provided to them it comes to know about the obstacles that are impeding the growth of the organisation somewhere, and this collection of feedback will provide them the opportunity to improve the area that is essentially important for organisational development and expansion.
Learning whilst completing the management report
The management report of the “24 hours fitness” company helps to understand the important factors that are important to make a perfect global business. This is helpful to make a perfect business using the assets and financial outcomes of the local business. The management report serves as a proper idea about the whole business structure of the company (Gomboset al., 2021). This serves as a proper idea about the chances of “24 hours fitness” in the global market. A management report serves a company with a proper scenario of the business and financial position of the company and helps to make a perfect plan for global expansion. The importance of a proper and excellent management report is as follows-
- This report serves a perfect financial and management of the company which helps to make business decisions.
- This helps to make improvements in the company accordingly.
- This helps to make the management efficient for the company.
There are huge positive effects to making a management report in academics (Kock et al., 2020). The importance of a business report in academics is as follows-
Increase business understanding
Creating a management report serves the students with a proper understanding of the management system and this helps to make a perfect business in the future. Students get an idea about the important factors of management from this and grow an understanding of the important factors of the business. This helps them to make a perfect business in their future.
Helps to understand the business situations
This makes a perfect understanding of the business situations in the company. This helps to make a perfect business understanding of the business situations in their respective countries and also in the international markets. This helps to understand the perfect business and marketing situations. The students can apply their learning in their future growth which makes a perfect business.
Business and management ethics
Business and management studies in education help to understand the ethics in the business and help to manage a company. This helps to make a perfect business organisation in the future and also to follow the best organisational culture in any company.
Recommendations and Conclusions
There is a huge chance for the “24 hours fitness” company in the global market and they can make a huge expansion with their financial and business outcomes. This helps them to understand the factors to make a perfect business for them. The company is operating a perfect business in the local market of the UK and this is helping them to earn a huge profit. According to the annual report of the company, there is an amount of nearly 32 million dollars the company would have earned in 2021. This makes a perfect business for them and helps them to expand their business in the international markets
However, there are some risks associated with the international markets that can make the company vulnerable and they can face difficulties to make a perfect business. The risk factors are higher in the international markets than in the local markets. Thus, the company must take action accordingly and make plans to mitigate the problems. The company can face problems with the taxation process in the different international markets and they can face conflicts with the local government of the international market. The company also can have difficulties in distribution and this can hamper its international business of the company.
This is important for the company to make a perfect business and mitigate these risks. Some recommendations for the company are as follows-
- The company is recommended to make a perfect and innovative plan to understand the competitive market in the international country.
- The company is recommended to make proper research on the rules and regulations of the international market before entering the global market.
- The company is also recommended to understand the international markets and make a proper distribution channel to support the business in the international market.
- The company is also recommended to use important entry strategies to enter the international market of the company.
- The company is recommended to serve all their debts before launching the new plan and proceed to a “new start” for their future.
The “24 hours fitness” company was operating a good business in the local markets of the UK and they were planning to expand their business to the global market. However, some challenging situations like pandemic and bankruptcy made the company to close down the business. This can be taken as a temporary situation. The company needs strategies and plans to restructure the business and apply all its business assets and knowledge to achieve success in the international market. The company has a good reputation in the local markets of the UK and this can help them to expand their business. The important strategies are helpful for the company to make a perfect business in the international market.
The financial and business performance of the company helped the “24 hours fitness” company to plan a perfect strategy for business restructuring. These factors also serve the company with the strengths and weaknesses of the company and help them to make a proper innovative plan using the financial outcome of the company. This report found the important business strategies taken by the “24 hours fitness” company to enter the international markets along with the financial and business audit of the company. This report also found the justifications for the strategies used by the “24 hours fitness” company. Furthermore, this report found the important recommendations for the company to make a perfect international business.
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