MGT/576 WEEK 6: Summative Assessment: Strategic Recommendation Memo Assignment Content: Write a 4 page (content) memo to the CEO of the company you’ve bee

MGT/576 WEEK 6: Summative Assessment: Strategic Recommendation Memo

Assignment Content: 

Write a 4 page (content) memo to the CEO of the company you’ve been assessing throughout the course, outlining your plan to create economic, social, and environmental value. Make sure In your memo, to include the following items: 

  • An executive summary of the memo
  • A summary of the organization’s strengths and weaknesses, and recommendations for converting weaknesses into strengths
  • A summary of your Week three findings on Porter’s Five Forces
  • A summary of your week four findings on the Diamond of National Advantage
  • A summary of your week5 analysis of the firm as a learning organization
  • Strategic recommendations based on your previous work in this course. Include the opportunity identified in week 2, the move into the country identified in week four ,and any recommended moves toward being a learning organization. Provide a rationale for each recommendation.

NOTE: The bullet points are not the core of the assignment they are in addition and/or part of your plan

****THIS IS A BUSINESS MEMO so format and write it as a business memo****

THE COMPANY I CHOOSE IS TARGET

EXPANDING THE ORGANIZATION 3

Expanding the Organization

Kendra Thorpe

MGT/576

March 6, 2022

Target Corporation is an international brand with intentions of establishing in all countries across the globe. It remains an unachieved mission because Target Corporation records a low global presence something that exposes the corporation to its competitors. Nevertheless, there is still hope since there are a lot of developing and potential countries that the company is yet to venture into and make its products and services more accessible. One of these countries is Japan which has in the recent years proven to develop economically and also has a relatively high population the corporation can capitalize in and attain its global expansion

Potential International Market Analysis

Japan is a potential international market that the company can use to get deep into Asia a continent that has proven to overpower superpowers in the recent future. According to Yang, & Greaney, (2017), Japan since 1980 to 2020 has recorded a GDP growth rate of 0.04 and the consistent growth has played a major growth in boosting its economy. In Japan, there are limited international brands and locals have taken advantage of the retail market thereby establishing their local brands that appears to dominate the market. However, even the few international brands in Japan’s retail market have proven to attain some levels of success. The fact that Japan enjoys a good economy, the political climate is favorable, there is high demand for retail industry products, and a reliable supply system in place makes Japan a suitable country Target Corporation should consider establishing (Yang, & Greaney, 2017). Additionally, there are many potential cities within Japan in which Target can establish outlets not ignoring high skilled labor availability and a lot of companies willing to merge with international brands to increase their levels of competitiveness.

Home and International Market Forces Analysis

It is a good thing that America has a good market for the retail products due to the high number of people, great economy, and healthy competition among other forces. It is the quality external environment in the American market that has made it possible for Target to remain relevant and thrive to the level it has attained so far (Shapiro, 2019). The perfect good legislations have made it possible for the business to establish leading to quality economic growth that would make it possible for the business to establish in potential international markets. It is also good that the healthy competition which is completely stiff in America comes as a great push for the business to consider other potential markets with much lower but healthy competition.

On the other hand, Japan also has a diverse market forces that affects businesses in the retail sector both positively and negatively. First, Target is known for dealing in original and quality products something that the Japan government appreciates and allows such companies to establish and compete with local companies. This is to mean that the Japan business environment is positive making it easier for the company to establish and thrive. Secondly, there is also some competition but the Japan government has ensured that healthy competition is applied and investors dealing in substitute or contraband products arrested to eliminate unhealthy competition (Council, 2012). The legislature in Japan has established and implemented trade laws and policies that foreign investors must comply with for their businesses to be considered legal in Japan. The good thing is that the laws and policies are manageable which means that Target has a chance of establishing legally and attaining all relevant operating documents. It is a challenge that Target does not have staffs with perfect understanding of Japanese languages something that comes as a major barrier. Nevertheless, Japan has a high rate of skilled labor and this means that Target can recruit locally and take the recruits through intense training.

Necessary Adjustments Evaluation

There are important adjustments leaders must make when it comes to expanding internationally. This is because the strategies applied in one country of operation might not work in favor of the business in another country. These adjustments are; cultural, legal and regulations, foreign considerations, and business case (Burkus, 2012). It is important for the business to make adjustments in terms of culture to make sure that everything is done in alignment with selected country’s culture. For instance, goods and services sold, marketing applied, and everything the business would have to do. Secondly, it is important for the business to adjust legally to make sure it is in full compliance of selected country’s laws and policies. By so doing, the company would be on the right side of the law. The business must also adjust in terms of leadership to understand that it has to expand its leadership ability to a new country to avoid experiencing negative effects from the new investment. Lastly, the business case should match of the selected country and this is a major adjustment because business cases differ from one country to the other.

Nevertheless, to make the right adjustment, there is one major recommendation that leadership should embrace and this is the development of a global mindset. This is important because it is the only way leaders would come up with different strategies to suit each country of expansion. A global mindset is critical because leaders are able to perceive and handle issue from the selected or targeted country’s perspective and does not compare one country to the other. By so doing, the company is able to embrace diversity and fit from a global perspective.

Recommendation for Expansion

Japan has over the years proven its economic ability and this is something that any investor willing to go global should consider. It is a country with a high population and from the booming economy, the purchase power rates high (Yang, & Greaney, 2017). The fact that Target has a low international presence means it is important to act strategically in a manner that would not affect the business. Japan has all the necessary features and forces in the market that would push the business towards achieving desired short and long-term goals. The company should make a decision and push through with an expansion in Japan.

References

Burkus, D. (2012). Essay: Developing Global Leadership: A review of barriers and adjustments for international expansion. International Management Review8(2), 83.

Council, M. S. (2012). Harnessing market forces for positive environmental change.

Shapiro, C. (2019). Protecting competition in the American economy: Merger control, tech titans, labor markets. Journal of Economic Perspectives33(3), 69-93.

Yang, Y., & Greaney, T. M. (2017). Economic growth and income inequality in the Asia-Pacific region: A comparative study of China, Japan, South Korea, and the United States. Journal of Asian Economics48, 6-22.

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