M&S Textiles Australia

M&S Textiles Australia

M&S Textiles Australia is known for the dream of empowering Australian Aboriginal Designs clothing. The purpose was to relate on-demand custom-designed textiles. The designs were created by the Australian Aboriginal artist who was experienced in crafting the designs that meet the demands of the market. The business has, however, faced significant market challenges due to the rising competition from cheaper and imported goods. Therefore, the company plans to strategize on a new market that has a low cost of production. One of the potential countries is China. The market provides a significant opportunity to facilitate the creation of quality products that would gain market across the world.

The new plan would choose the best overseas manufacturer in China. The reason for selecting the country is that it has a dynamic manufacturing capability and economic landscape that has proven skills and strengths in manufacturing. Therefore, the state is liable for the new plan China has an attractive market and would provide cheap labor thus addressing the problems that were initially faced in Australia. Its vast populations offer an opportunity for accessing cheap labor. Also, its profits margins are higher as compared to any part of the world. Thus, the plan would provide positive outcomes that would increase the company’s revenues and provide new markets for the commodities. Also, China is known for the availability of skilled talents. The case would offer an opportunity for the company to acquire a trained and experienced workforce.

The plan to establish new manufacturing plan would be conducted with an aim of acquiring cheap labor while creating new markets for the products. Following the current challenge faced by the company, the sales and marketing board decided to consider a country that would address the significant problems that were encountered in Australia. China is one of the markets with viable opportunities due to its economy, market and its profits marketing. The business policies in China are also favorable thus providing an opportunity for fast and efficient. The company should strategize toward developing an appropriate system meant to address the significant problems faced by the company. A team of stakeholders decided to come up with different views regarding the methods that would be used for the accomplishment of the new plan

  1. After consideration of different market forces, policies and suitability of the markets the team of stakeholders came up with new strategies on accessing the new market. Some of the points that were drawn and concluded from the group include the following.

Cheap labor is one of the major features identified with the Chinese market despite the rising labor cost. The production cost remains much lower as compared to that of Australia. With cheaper nonmanufacturing and production value, the operation would translate to significant savings at home especially those spent on the inputs. The project would attract more revenue since China has an attractive market to countries such as Australia. For instance, it draws the markets such as the USA, the Middle East, and the African countries.

Furthermore, the profit margins of conducting the business are still high. China has a skilled and competent workforce. Many graduates are trained and impacted by the skills required in different fields of manufacturing. Besides most of the Chinese students have adopted the multilingual system of leaning and English is part of the languages being taught in the country. This then provides an opportunity to hire graduates even with cheap labor cost. China manufactures goods that compete in the global market. However, the company would have to consider means was of retaining the employees to develop consistency means of production.Retaining talents require consideration of both market-competitive strategies and internal consistency hiring.

China is known for its economic and political stability. These are the factors that would guarantee safe and healthy operation of the business. Furthermore. The company would get a chance of exporting upon the products they are offering. To benefit from this advantage, the company can utilize existing skills in planning on the economic impact that the projects would have on the economy.

China presents an opportunity to adopt different entry strategies. For example, since the company seeks to conduct production from the country, it should draft a plan on whether to partner with other companies or using the licensing on franchising methods. The company can partner with other textile manufacturing companies existing in China.

On the other hand,  the country has a  weak law enforcement strategy. This is one of the challenges that the company would face if the law fails to protect intellectual property rights. Instances of IP leakage have also threatened the establishment of business in China. There is a significant problem in the systems and the methods they use in enforcing the laws to the company. For example, the regulatory laws mostly apply to foreign companies unlike those from China. To address the problem, M&S should secure its property. Also, it should take precautions measures in adhering the required law. Acquiring its property would limit the rates of IP leakage.

The increasing cost of human capital is most likely to threaten the case of cheap labor. China is gradually increasing its minimal wages. Besides, the value of the tax is on the rise, and this threatens the entire means of maintaining the cost of running the business in the country. The company should develop strategies for identifying cheap talents and training then. The process then allows the company to reduce the cost of hiring the experienced graduate who might require higher wages. Alternatively, it could import labor from countries whose labor cost is cheaper than China.

Also, China has a fierce market competition. The increasing number of foreign companies has threatened the operation especially those that are required to sell goods to the Chinese consumers. The country has a large number of entrepreneurs thus increase the level of competitions. As a result, most of the Chinese companies are looking forward to improving the quality of their commodities which instead has increased the results. M&S can overcome the challenge by offering unique products and use of innovation strategies. The opportunity would provide an opportunity for the company to offer unique products. Furthermore, there is a need to develop unique products that are difficult for the competitor companies to copy. Instead, the company should focus on maintaining its quality thus providing an opportunity for gaining more opportunities for expanding the market.

Chinese culture defines its business community. It determines the way a person should act in the workplace. Other aspects include the fact that the traditional values influence the employees’ behaviors, especially in an organizational setting. Additionally, the cultural dimensions of China have high power distance. The society believes that inequalities are acceptable especially in leadership. Therefore, in the cooperate setting, M&S the managers should understand that the employees are grouped on Confucianism since the superiors are supposed to exercise their powers. Besides, China is a highly collective culture. People believe in working in groups. Therefore, people act based on the interest of the group. The practice is a critical observation for the managers since the groups of employees would often act based on such values. One of the other cultural aspects of this is the fact that China is a long-term oriented society. It believes that the rewards of work are sought with persistence and perseverance. Therefore, the investment tends to be oriented on long term goals. It is an important observation for M&S to note when developing both long term and short term goals

Cultural values influence the business ethics and values of business practice. Being a western textile company, M&S would need to consider the Confucian and cultural characteristics if the group. Therefore, when training the employee on the ethical practices within the organization, it is crucial to understand the cultural characteristic of the Chinese people. Thus, M&S would also be required to develop concepts and practices that contribute to organizational business ethics. M&S management should also understand different ethical beliefs such as personal connection and respect. This allows the employees to adopt a good relationship in the workplace. Chinese beliefs on norms and values provide an opportunity to develop an appropriate framework for addressing major ethical issues in the company.

4.China has a major increase in exports. It is one of the good trading partners with the US. It is trading patterns would allow M&S textile to access diverse markets across the world. Apart from the US and other western countries, it has significant trading relations with other countries. The expansion of domestic consumer demands is an important factor that has contributed to stable economic growth. Moreover, it has integrated practices that aims to inspect both imported and exported goods thus providing an appropriate opportunity for consistency trading with other countries. The directions of China’s foreign trade provides an opportunity for the company to export its products to new markets across the world. Besides, the trading policies are clear and provide safety and licensing procedures required for trading. Therefore, the company should develop appropriate measures in conducting trade in boosting its foreign markets. China’s trading patterns would provide an opportunity for M&S textile to access trading trends across the world markets. Getting appropriate trading would be easier for the company to establish appropriate strategies aimed at boosting significant productions in Australia.

  1. M&S textile is interested in entering a new market. Thus the company would compare different market strategies. M&S realized that it has several options to fit into the Chinese market. At first, it considered the fact that the market it was entering was a foreign market. Therefore, when selecting a method of expansion, it had to consider significant factors such as culture ethics and cost associated with the new market. It also analyzed the local and international laws adopted in the country. Besides it also explained the trading strategies and systems utilized in the country. Therefore, exploring the market strategies would help M&S to understand the market strategies that would best fit into their new project. For example, exporting is one of the strategies that is used for international expansion. The company would get an opportunity to sell its products to global markets. The process of exportation would take two different forms, and this includes direct or indirect exploration. Exporting, therefore, would be a good strategy for M&S if the company plans to access quick foreign markets. Since it deals in clothing, this would be an appropriate method since the company plans to access significant markets across the world. On the other hand licensing is the process of gaining another company the rights to process and manufactured goods. Therefore, if this is the methods that the company would adopt, then it would require it to have an agreement with the major stakeholders from the other company. The potential and emerging markets for the company provide an opportunity for expansions. It allows the company to access significant steps toward availing its products to the new markets.

One of the most significant margining markets include countries with growing economies. Africa and the Middle East provide potential markets for the company. As a result, it should strategize on establishing methods of selling the products in such countries. China’s market would offer the opportunity to analyze the major trends of the flow of goods trading and trading patterns and other aspects that contributes to the growth of the business. Consequently, the company would be in a better position to offer appropriate producers to the emerging markets and adopt the right market entry strategies aimed at focusing on the right markets access the world.

One of the most viable modes of entry is through overseas manufacturers. It allows the company to invest in plant machinery and labor. It would be a new build thus would require assembling of the products needed in the new plant and exporting the needed components from the home market. The business would become localized. Thus enabling the company to manufacture for the customers in the market acquire other products. Through this entry mode, the company would also gain an opportunity to provide products and services to the local market. Other options available for the entry include the joint venture strategy. This would be an equity-based strategy that would allow the company to set up with parties owning a similar proportion business This would  provide an opportunity for the company to adopt the required procedures in addressing significant challenges and risks linked to the foreign market, As a  result the company would be required to serve the local Chinese partner.

The company is committed to lead a sustainable score in the textile industry.  It has progressively sourced its cotton from the most sustainable sources. Due to the nature of the global trading systems, it is essential to change various links of the supply chain. However, the company is committed to attaining a more significant supply chain that is transparent and traceable. The step is  one of the primary strategies that has boosted the uniqueness of the company’s products

The companies achievement has progressively grown from 20076/7. The company has had good progress except the recent issues linked to the risings labor cost. As a result, it plans to adopt new strategies aimed at addressing significant challenges related to product marketing and supply chain strategies.

Accessing new market provides an opportunity to gain unique experience in marketing and trading patterns across the world. M&S has the chance of identifying the potential markets that would address its major challenge in issues regarding the cost. However, it is required to take significant considerations on the risk associated with each aspect surrounding the new market. China is one of the newly identified markets for the M&S textile compare. The market ha robust trading patterns  It has a stable political and economic environment. Furthermore, the existence of cheap labor and talents provides an opportunity for the company to access the new opportunity in the market.

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