Sunday, December 8, 2019

Comparative Advantage Targets and Goals

Question: Discuss about theComparative Advantagefor Targets and Goals. Answer: Introduction As stated by YouTube (2016), Strategies are formulated by organization in order to formulate the projected growth of the organization to achieve the goals and objectives of the firm. It is often seen that the organization have misinterpreted their tactics, targets and goals as their strategies. The strategies that are often listed by the organization are mere strategic threads. These threads represent small pieces of the overall business strategy. Strategy has been originated from strategos, a greek word. Framing the current market situation as war zone, the executives of the firm must act as the generals, thereby formulating the strategy that would suit the bets in order to achieve the goals of the firm. A good strategy is often able to answer the four questions, which deals with the competition of the firm, the unique value of the products developed by the firm, resources and capabilities utilized by the firm and the sustenance factor of the firm. Strategy helps in providing the fi rms with the clear boundaries between what must be done and what must not be done depending upon the strengths and weaknesses of the organization (Grant 2016). A strategy must be framed within a well-executed plan that suffices the time provided. If the time limit is not followed, this may result into a failure for the organization. Strategy could be defined as an adaptation, which serves the vital function of the organization in order to achieve evolutionary success. Paddington Furniture Company is a boutique furniture manufacturer based in Sydney. The organization produces leading edge designs of superior style and comfort furniture for the Australian market (Paddingtonfurniture.com 2016). I had been working under the sales department of the company for a year. The goal of the firm was to be the leading manufacturing company in the country. This goal of the firm could be achieved by analysing a strong strategy of the organization. The strategy of the firm must be efficient enough to answer the four vital questions, which deals with the competition of the firm, the unique value of the products developed by the firm, resources and capabilities utilized by the firm and the sustenance factor of the firm. The competition of the firms are able to produce high class Australian made sofas, with their unique value of greater flexibility, superior choice, world class finishing and fast reliable service. The resources that are utilized in by the firm are o f finest quality raw materials, found locally where possible, and thereby ensuring consistently high standards of production. They must utilise high quality timber from renewable resources. The sustenance factor of the firm must be in its competitive pricing techniques of approaching the products with comparatively low cost (Slack 2015). This would help in attracting the consumers and raising their market share. This would provide the organization with an advantage among its competitors. Hence, an efficient strategy of an organization seems to be an important aspect for the long run growth of the firm. Pankaj Ghemawat has framed the CAGE theory about international trade opportunities (YouTube 2016). The concept of international trade is developed among the w countries, in which both the countries have a comparative advantage of producing the goods that it exports (Feenstra 2015). This provides the countries with an incentive to produce the goods more efficiently by utilising the resources accurately and producing more. According to the cage theory stated by Pankaj Ghemawat, the international trade between two economies could flourish well when the two countries are share similar attributes. These similar attributes are culture, administrative, geographic and economic. According to the professor, the two countries form into an alliance of international trade only when they have greater similarities with respect to these aspects. The probability of these two countries who are have greater similarity, share the same boundary, speak the same official language, tend to trade with each o ther more than that with the other countries (McGovern 2016). According to the earlier researches that have been conducted, it could be stated that international trade is more favourable between those countries who share equivalent attributes among eah other. The similarities that persists between the countries throw a positive impact on the economy and the society. The cage framework that has been developed by Pankaj Ghemawat offers a broader view of the distance between two countries. It analyses the thought of location and opportunities enlisted with the international trade between two countries with global arbitrage. Dick Smith Foods is a food brand based in Australia that produces varieties of bread spreads and sauce. This food brand is quite famous in Australia as it produces the best quality edible products using fresh and natural ingredients (Dick Smith Foods 2016). The organization is quite famous within the territory of Australia. Dick smith has planned to expand its business globally. This global expansion of the organization would be quite efficient if they choose the accurate country to expand their business. In order to make the correct selection, the cage theory analysis as framed by Pankaj Ghemawat should be taken into consideration. According to this theory, dick smith food must choose such a country that would be quite similar with respect to the cultural, administrative, geographical and economic aspects of Australia (Ghemawat 2015). For example, if Dick Smith Foods has an option of exporting its products to united states or middle east countries, the company must analyse the choic e of the country with respect to cage analyses. On performing the cage analysis, it could be interpreted that exporting the products to United States would be more beneficial for the organization. The similarities between United States and Australia are greater with respect to the cage theory, than with the Middle East country. Reference Dick Smith Foods. (2016). Dick Smith Foods | Magnificent Australian Food Products. [online] Available at: https://www.dicksmithfoods.com.au/ [Accessed 15 Dec. 2016]. Feenstra, R.C., 2015.Advanced international trade: theory and evidence. Princeton university press. Ghemawat, P., 2015. From International Business to Intranational Business. InEmerging Economies and Multinational Enterprises(pp. 5-28). Emerald Group Publishing Limited. Grant, R.M., 2016.Contemporary strategy analysis: Text and cases edition. John Wiley Sons. McGovern, E., 2016.International trade regulation(Vol. 2). Globefield Press. Paddingtonfurniture.com. (2016). Furniture manufacturer. Australian made lounges, leather sofas and designer furniture. [online] Available at: https://www.paddingtonfurniture.com/ [Accessed 15 Dec. 2016]. Slack, N., 2015.Operations strategy. John Wiley Sons, Ltd. YouTube. (2016). Pankaj Ghemawat: CAGE framework to evaluate international trade opportunities. [online] Available at: https://www.youtube.com/watch?v=7FpUJaG7uMk [Accessed 15 Dec. 2016]. YouTube. (2016). What is Strategy?. [online] Available at: https://www.youtube.com/watch?v=TD7WSLeQtVw [Accessed 15 Dec. 2016].

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