Global Environment of Business

Discuss about the Global Environment of Business.

Introduction

In the global business landscape, the entrepreneurs are focusing more on the international operational aspects like supply chain management system, team management, multicultural interaction, production and the examining the marketing channels. In the background of the existing concept, Anderson et al. (2010) denoted that the textile industry in India holds a significant status. Although the specific sector was predominantly unorganised initially, yet, the scenario started changing after the economic liberalisation of the Indian economy. The revolution in the economic margin has increased the scope of the textile industry in the Indian market. The current statistics forecast that the India has become one of the largest regions in dealing with the textile division successfully.

However, Hinterhuber and Bertini (2011) determined that in 2008, the Indian market experienced a sudden downfall in its economic margin along with the global financial crisis. The specific scenario had led the GDP (Gross Domestic Product) of India to slow down to a margin of 6.5%. The Indian governing authority has abandoned its deficit target and increased its margin by 6.8% in 2010 (Saikia, 2012). The present study attempts to identify the current condition of Welspun Group and the challenges faced by the similar group. Furthermore, the study evaluates on the sustainability of its growth rates and the strategies adopted by the management to serve the brand as a ‘role model’. Finally, the project recognises the factor that has created the significant impact of the company’s growth trajectory.

The challenges faced by Welspun Group

The transformation into a global entity in a short time span has been the major challenge of the Welspun Group. In the framework of the existing subject, Ying Zhang (2012) asserted that the Welspun group has targeted on the product and geographical diversification strategy for its further growth. The brand has embarked on the product diversifying range, which led the brand to its expansion to the leading geographical market. In 2006, the brand initiated an acquisition strategy with Christy, the leading towel brand in the UK market. The acquisition had helped the group to make a smooth penetration into the European market.

In 2007, the management took its second acquisition policy with Sorema, the bath rug enterprise of Portugal. According to Conklin (2010), Mexico produces the decorative bedding lines that are majorly supplied to the retailers of US. Thus, the brand has targeted to capture the Mexican market as well for increasing its product lines. Furthermore, the management has taken the risk of increasing its operational capacity by focusing on the industrial sector of India (Thackeray et al. 2007). Inference can be drawn from the latter context that the management has taken a quick decision of hopping into the different market with indifferent product categories. Thus, high product and market shifting frequency often increase the risk factor of the brand. Hence, the brand has experience the primary challenge of allocating its internal resources and assigning the new job roles to the employees. The acquisition and the product increasing measures with a short time tenure often misleads the brand to experience a slaughter in the market due to a sudden impulsive reaction.

Identification regarding the potency of high growth rate

The condition of the Welspun Group states that the brand might fail to convert its high growth rate into its sustenance. The product switching actions are done with a high frequency margin. Thus, the quick actions have a high chance of getting converted into impulsive decisions (Kumar and Steenkamp, 2007). Therefore, the inclusion of the risk factor for the brand is relatively high, which decreases its sustainability rang in its growth high margin. 

Recommended future group strategy

Steady growth

The Welspun Group was penetrating into different product diversification ranges to increase the growth margin of the firm. Considering the opinion of Markey et al. (2007), the management of a brand needs to take a considerable time span to get settled with its new product categories. The specific scenario often misleads the enterprises to channelize the new product lines in the correct direction. The chosen brand has made the mistake of hopping into several sections and product categories within the short time tenure (Hinterhuber and Bertini, 2011). Thus, the sudden rapidity in the operational criteria often increases the chances of hampering the executive actions. Therefore, the management of the particular organisation is highly necessitated to make a steady initiation in the product diversification aspects.

Understanding of the market scenario

Welspun Group has initiated several acquisition policies with different multinational enterprises to initiate a smooth penetration in the international market. According to Grefen (2013), the Welspun Group aims at expanding its brand present in the global scenario. Thus, the quick and random initiation has been taken by the management to serve the brand expansion purpose. On the other hand, Hinterhuber and Bertini (2011) claimed that the product lines of the organisation are not overstretched. Thus, it remains to a margin of limited resources. The brand specifically emphasised on establishing a strong brand presence in the US market. In the context of the similar statement, Anderson et al. (2010) denoted that the two flagships of the enterprise are textile and pipelines and the cotton and steel. The brand needs to identify the accurate market scenario to continue its flagship in the sustainable growth margin.

Developing the potential base in the new segment

Markey et al. (2007) stated that with the acquisition initiations, the brand has already included certain new product lines. Thus, the primary action of management needs to be creating wider prospects for its new product lines. However, Welspun Group is focusing majorly on the brand expansion in the global market. Thus, it is not providing sufficient time to the new product base to generate its authentic customers. Due to the specific scenario, the brand failed to attain competency in the market, which had simultaneously decreased its sustainability margin (www.welspun.com, 2016). Therefore, it can be assessed that the brand needs to increase time span to provide adequate time to the new products to create a strong customer base.

Identification of the conditions that lead the group to serve as a ‘role model.’

Diversification into the new line of business

Hinterhuber and Bertini (2011) claimed that emerging into the diversified lines of business is not a common action of the Indian brands. The management of Welspun Group has tapped into the opportunities of wide spreading its product lines and brand presence into different geographical context. According to Conklin (2010), the strategically planning includes the factors like overcoming the risk possibilities, creating a new manufacturing plan into the foreign property and creating a unified set of the prospective customers. The specific aspects differentiate the enterprise from the other relative brands operating in the similar industry.

Business initiation with the famous international retailers

The particular group has capitalised its growing trend and become a key supplier of retailers of the US textile market. In the opinion of Anderson et al. (2010), the retail giants line Walmart and Target prefer getting into business with the brands that are typical that are situated in the low-cost regions. The specific actions serve the enterprise to retailers to produce the individual product lines with a minimum investment (Hinterhuber and Bertini, 2011). Since Welspun Group has a wider brand present in the international market, therefore, the brand remains in the beneficial position of receiving the contract orders from the retailers.

Factor creating an enormous impact on the company’s high growth trajectory

The first international venture the enterprise in 2000 has been the first trajectory for Welspun Group. The brand specifically has an exclusive interest of creating a strong business action in the US market. Therefore, it has moved into the action of exporting sales to the US enterprises. The specific action has benefitted the organisation to increase brand prospect before the targeted clients. Moreover, along with the supplying the export materials, the brand have also increased its product range into diversified categories. Therefore, the product expansion policy often facilitated the enterprise to increase customer base. The specific aspect has been the major criteria that helped the brand to reduce the chances of product stagnancy.

Conclusion

The current study emphasises on the present market scenario of Welspun Group in the Indian market. It further determines on the other regional criteria where the brand has penetrated and initiated a brand expansion. Evaluating the study, an inference can be drawn that the management of the emphasised majorly on the brand development. Thus, frequent product diversification and brand acquisition policy have been undertaken. The quick decision regarding the brand extension policy has been the major slaughter for the enterprise, where the new product lines failed to receive sufficient time to create its unified customer base. Moreover, the brand till far has managed to sustain its growth rate in the international regions. Thus, an inference can be drawn that a matured and the steady decision would be the effective criteria to uphold the steady profit margin of the enterprise.

References:

Anderson, J., Kupp, M. and Vandermerwe, S. (2010) ‘Good Business Makes Poor Customers Good Customers’, Business Strategy Review, 21(4), pp. 46–51.

Conklin, D.W. (2010) The global environment of business: New paradigms for international management. Thousand Oaks, CA: Sage Publications (CA).

Grefen, P. (2013) ‘Networked business process management’, International Journal of IT/Business Alignment and Governance, 4(2), pp. 54–82.

Hinterhuber, A. and Bertini, M. (2011) ‘Profiting When Customers Choose Value Over Price’, Business Strategy Review, 22(1), pp. 46–49.

Kumar, N. and Steenkamp, J.-B.E.M. (2007) Private label strategy: How to meet the store brand challenge. Boston, MA: Harvard Business School Press.

Markey, R., Ott, J. and du Toit, G. (2007) ‘Winning new customers using loyalty‐based segmentation’, Strategy & Leadership, 35(3), pp. 32–37.

Saikia, D. (2012) ‘India’s outward foreign direct investment’, International Business Management, 6(1), pp. 55–59.

Thackeray, R., Neiger, B.L. and Hanson, C.L. (2007) ‘Developing a promotional strategy: Important questions for social marketing’, Health Promotion Practice, 8(4), pp. 332–336.

WELSPUN: (2013) Available at: http://www.welspun.com/ (Accessed: 30 August 2016).

Ying Zhang, k (2012) ‘A new automatic image segmentation method based on combined strategy’, International Journal of Advancements in Computing Technology, 4(21), pp. 445–451.

MyAssignmentHelp.co.uk is
one of the leading academic solution providers in the United Kingdom which has
assisted a countless number of students to achieve their academic goals with
unmatched
academic
writing help
. With the proficient academic
writing services
from our
expert writers
, you won’t have to worry about those stringent
deadlines, complicated essay topics, or clashing assignments anymore.

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Boom Grades
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Literature
Absolutely LOVE having help especially from the person who wrote this last one. THANK YOU
Customer 452529, November 19th, 2021
English comp
Got a 94% thank you!
Customer 452509, June 27th, 2021
Classic English Literature
Awesome Job... you are the best!
Customer 452531, November 27th, 2021
english comp
Great paper and done before the deadline. Thank you
Customer 452509, June 15th, 2021
Gerontology
Thank you so much this looks great !!!!
Customer 452585, November 4th, 2023
Exercise Science
Thank you so much for your time.
Customer 452545, December 5th, 2021
Classic English Literature
Absolutely LOVE the essay I received. I really appreciate it so much.
Customer 452529, October 25th, 2021
Religious studies
I recommend this service they always help. I got an A in this project thanks.
Customer 452507, October 5th, 2021
english comp
Thank you for all your hard time.
Customer 452509, June 27th, 2021
English 101
perfect! thanks!
Customer 452543, December 1st, 2021
Public Health
Thank you so much !!
Customer 452589, November 28th, 2023
Medicine
Great content.
Customer 452549, February 8th, 2022
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat