Business management is the functional application of marketing techniques. It refers to the analysis, planning, implementation, and control of programs designed to create, build, and maintain mutually beneficial exchanges with target markets. Basically, this paper aims to describe and study the progress of TCL Corporation with respect to its strategies particularly in its international business strategies. In addition, this paper attempts to analyse the issues related to strategic planning, merging and acquisition issues. Thus, the importance of appropriate business techniques for international ventures such as analysis, planning, implementation, and control of programs should also be considered.
Perhaps, every organisation wants to initiate a management system and strategy that could maintain the organisation’s capability, strength and competitiveness. It is important that the management team and the organisation per se should always open their mind for changes that they might encounter in order to cope and adapt to the latest development that are happening within and outside their environment.
This paper discusses in detail the research proposal that examines the perception of the consumers regarding the appropriateness of the current business strategies employed in TCL Corporation. Basically, the researcher attempts to identify the different factors that significantly contribute to the progress of the said organisation in international market. This includes discussion of its history, the current status of marketing strategies, and its relationship to consumer satisfaction. Specifically, this proposed research explores the perceptions of the respondents and their view regarding TCL Corporation’s performance.
This research proposal discusses in detail the background, general purpose of the study. Moreover, the objectives of the study and the research statements are presented. Here, vital concepts, questions and assumptions are stated. Finally, the scope and limitation of the study, overview of the methodology used and the significance of the research are discussed.
Statement of the Problem
Generally, the purpose of this study is to conduct a study on the quality of service related to TCL Corporation’s international business strategies. This study tries to answer the following queries:
1. Does merger and acquisition strategies is useful for TCL Corporation’s development in International Business?
2. Does appropriateness of business strategies significantly affects the progress of certain organisation?
3. Is there any significant relationship between international business strategy and organisation’s progress?
Hypothesis of the Study
Based on the research questions the research project works out on the following null hypotheses:
1. Appropriateness of international business strategy has no significant effect to the progress of TCL Corporation.
2. Respondent’s perception regarding merger and acquisition strategies has no significant relationship to the progress of TCL Corporation.
Significance of the Study
This study will be a significant endeavour in understanding the importance of appropriate business strategies in a certain organisation. This study will be helpful to international business administrators and management practitioners for this will be a guide for them when they employ effective business approach to their organisation particularly to those who plan to explore international business ventures. By examining the risks and other factors involved in marketing strategies, business administrators and management practitioners will be able to design measures to minimise the risks. Further, through the understanding of the needs of their consumers in terms of satisfaction, this study will help different manufacturers to satisfy their consumers/costumers. Moreover, this study will be a significant endeavour in promoting effective international strategies that suffice the needs of both local and international consumers/customers.
This study is deemed useful for future researchers on international business strategies and its application to different business organisations. This study could also serve as an academic tool in informing its reader about the business development and organisational change. Moreover, this research will provide recommendations on how to value business development as they are taking a large part in the organisations success. In addition, this study will provide information to business leaders regarding business progress and development. Knowing how consumers perceive development of an organisation will assist business leaders in establishing programs, policies, and staff development.
The primary objective of this study is to examine and determine the perception of the respondents regarding TCL Corporation’s development. To address this objective, the researcher explores the nature of TCL Corporation and marketing and management programs: its benefits and advantages to different consumers both local and international. Moreover, this study will focus on respondents’ perceptions to TCL Corporation international business strategies.
The objectives of this study will be to:
Apparently, a survey is conducted to determine what attributes affects their criteria in identifying the progress of TCL Corporation’s development in International Business. An interview takes place to know what are their problems and concerns regarding the business programs. Finally, this research comes up with pertinent findings, and provides insightful recommendations on business programs.
Background of the Study
Today’s organisations are experiencing change like never before as a result of competition which had created uncertainty for the organisations. Moreover, the pace of change is so rapid particularly in international market, only organisations that can adapt to this changing environment can survive, getting a profile of the current problems can enable organisations to thoughtfully bring the elements of the change into alignment and move forward towards an ideal. Because of this fast pace of development, appropriate business strategies tends to become an important tool in survival. Different business institutions in China particularly the TCL Corporation needs to consider the present business traits particularly its management style and marketing strategies.
Basically, the TCL Corporation is a Chinese electronics manufacturer headquartered in Huizhou of Guangdong Province, southern China. TCL Corporation products include mobile phones, personal computers, home appliances, electric lighting, and digital media sold to domestic and oversees markets. TCL is listed on the Shenzhen Stock Exchange and Hong Kong Exchange as TCL Corporation and TCL International Holdings Limited (www.tcl.com).
In addition, TCL Corporation aims to meet the customers’ needs effectively and thereby provide shareholders with good, sustainable financial returns. The organisation also attempts to ensure that all colleagues have opportunities to develop their abilities and are well rewarded for their contribution to the success of the business. The organisation policy is to work with all of their suppliers fairly, recognising the mutual benefit of satisfying customers’ needs. It also aims to fulfil their responsibilities to the communities and environments in which we operate.
Actually, finance and growth strategies for TCL Corporation are very essential to its progress. In accordance to this progress, the issues about mergers and acquisition should be considered. Basically, www.encyclopedia.com defined merger as a combination of two companies into one larger company. Such actions are commonly voluntary and often involve stock swap. A merger can resemble a takeover but result in a new company name (often combining the names of the original companies) and in new branding; in some cases, terming the combination a “merger” rather than an turnovers is done purely for political or marketing reasons. On the other hand, takeover has significant effect to a business and www.encyclopedia.com explained that:
“There are a variety of reasons that an acquiring company may wish to purchase another company. Some takeovers are opportunistic: the target company may simply be very reasonably priced, for one reason or another, and the acquiring company may decide that in the time period that’s important to it, it will end up making money by purchasing the target company, because of its normal profitability.”
On the other hand, companies are not stopping in finding ways to achieve the desired growth in their business venture particularly TCL Corporation. There are various reasons why companies aim for these growths including the desire to earn and create big profits through presenting their product lines and services. Growth also can be equated in achieving the business stability and the aspiration to establish or mark the company’s name in the business arena.
With this regard, TCL Corporation should carefully evaluate its international business strategies. The said corporation should determine the effectiveness of their current management practices in order to attain international business success. Actually, effective business management involves: understanding the economic structure of the industry; identification of segments within the market; identification of the Marketing strategy which best fits the company; identification of the target market; do marketing research to develop profiles (demographic, psychographic, and behavioural) of the core customers; Understand the competitors and their products; develop new products; establish environmental scanning mechanisms to detect opportunities and threats; understand the company’s strengths and weaknesses; audit the customers’ experience of your brand in full; develop marketing strategies for each of the products using the marketing mix variables of price, product, distribution, and promotion; create a sustainable competitive advantage; understand where you want your brands to be in the future, and write marketing plans on a regular basis to help you get there; and setup feedback systems (management information system) to help the business administrator monitor and adjust the process (Levitt, 1983).
Moreover, proper management of a certain business becomes more effective if the ethical issues in bidding process was completely analysed that includes risk analysis and suppression. www.encyclopedia.com defined risk management as the process of measuring, or assessing risk and then developing strategies to manage the risk. Actually, an ideal risk management refers to prioritisation process that is trailed whereby the hazards with the maximum loss and the maximum probability of stirring are handled first, and risks with minimum likelihood of incidence and minimum loss are handled later.
In addition, risk management also countenance a difficulty in allocating resources appropriately which is the idea of opportunity cost. The resources exhausted on risk management could be as an alternative spent on more beneficial activities. Once more, ideal risk management spends the smallest amount of resources in the process while plummeting the effects of risks as much as possible.
In accordance to this, TCL Corporation should also consider the following variables to maintain the status of the organisation: i.e. social responsibility, consumer/customers, employees, and competitors.
In a globalised economy where tough competitions occur among businesses, companies are exploiting the benefits of social responsibility. These social activities: include charitable contributions, discounts to senior citizens, expenditures on employee alcoholism and substance abuse treatment, responses to customer complaints, product warranties, processes for exchanging purchases, community service in volunteer or governance capacities, employee education, child care or flexible hours for employees with children, advertising or promoting community events, sponsoring sports teams, recycling, special services to the handicapped, and so forth (Smith, Thompson & Kenner, 1991).
Companies view social responsibility as a corporate investment that will result in a long-run corporate profit and not a corporate expense. Businesses supporting social responsibility activities claim that it is in the best long-run interest of the business to become intimately involved in and to promote and improve the communities in which it does its business. Moreover, it can and should improve the corporate and local image of the company, and it is in the stockholders best interest. Further, companies believe that by making communities a better place to live in, it can entice superior and happier workers to the company who in turn will put out better products and increase profits.
However, it is important to point out that the primary reason why businesses turn into socially responsible activities is to maximise their profits; public interest comes in second.
Johnston (1999, 52) states that the workers are viewed as the greatest source of improvements. Therefore, it means that workers who are managed correctly will take responsibility for their work, be committed to the organisation, and have ownership of the service or product. Companies and organisations feel that employee compensation is the dominant factor in employee satisfaction. Consequently, employers attempt to “buy” employee satisfaction with increased pay and benefits.
Again, in maximising their profits, companies are increasing their employee satisfaction by providing rewards and incentives and implementing employee-friendly training. Companies consider the need to address workers’ increasingly demand for change, choice, flexibility, and variety in their work. According to Seidler (1996), in a business organisation, the value of the individual is developed as human capital (Seidler, 1996).
Creating an environment in the workplace that results in employees feeling better about themselves when they are in it, than when they are not, results in similar “love” of their work. A work environment that constantly raises an employee’s self-esteem, above that she/he experiences anywhere else in their life, will be where she/he most desires to spend their time and yields very high employee satisfaction with their job and costs next to nothing. People do more of what they enjoy and less of what they don’t enjoy. The results also show that people who enjoy working are more productive. Companies build an environment where there is increased employee satisfaction. As a result, job satisfaction is high, thus there is an increase in employees’ productivity. Further this leads to rewards for an impressive performance. Consequently, the employees’ trust and loyalty with the company also increases. Companies who value their employees gain maximum profit.
In today’s business world, the value and importance of customers is not something that should be set aside by companies. Marketing plans and strategies would be incomplete without paying much consideration to the customers. Customers will always be a part of the agenda in any marketing plan of any company. Because of the implications for profitability and growth, customer retention is potentially one of the most powerful weapons that companies can employ in their fight to gain a strategic advantage and survive in today’s ever increasing competitive environment (Lindenmann, 1999).
Another ethical issue on business ethics to be considered in TCL Corporation is the behaviour towards a competitor. In order to collect secret information from their competitors, companies are practicing industrial espionage. Industrial espionage of all varieties is an elusive and secretive field that must be given careful attention by industrial managers and corporate executives worldwide (Madsen, 2003). Meyer (1987) contends that throughout the world of commerce and industry, intelligence is on its way to becoming a key management tool for the corporate executive. Meyer (1987) suggests that the emergence of business intelligence systems is the most striking and potentially significant business trend of our time. Here, intelligence becomes the means by which companies chart their future course (Joyal, 1996). Because of the intensifying economic the importance of acquiring information concerning economic plans and intentions becomes more acute (Joyal, 1996).
According to Michalos (1995), the best argument for business ethics include:
1. In order for business or a market economy to exist, there must be some sort of community of potential buyers and sellers.
2. In order for a community of potential buyers and sellers to exist, there must be morality.
3. Anyone with an interest in preserving business or a market economy should help maintain those conditions, like morality, that are necessary for its preservation.
4. Business people have such an interest.
The worst argument is said to be that it is profitable to conduct business in accordance with principles of morality. This is bad according to Michalo’ (1995) because it dangerously combines “one’s interest in sustaining a market economy” and “one’s interest in increasing one’s own profits,” so that if profits in fact fall while one is trying to be moral, one may be tempted to abandon morality.
The theoretical framework that will be used in the study is the Input-Process-Output Model. In the IPO model, a process is viewed as a series of boxes (processing elements) connected by inputs and outputs. Information or material objects flow through a series of tasks or activities based on a set of rules or decision points. (Harris & Taylor, 1997) Flow charts and process diagrams are often used to represent the process. (Harris & Taylor, 1997) What goes in is the input; what causes the change is the process; what comes out is the output. (Armstrong, 2001) Figure 1.1 illustrates the basic IPO model:
The IPO model will provide the general structure and guide for the direction of the study. Substituting the variables of this study on the IPO model, the researcher came up with the following:
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