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Starbucks Strategy report

Part 1: Macro and Micro environment analysis
Introduction
Starbucks is the name that every American is aware of because in the nation and across the world, it is one the largest coffee chain. Mentioned firm is known for providing high quality of coffee at a premium price. The company is operating in a number of the nations of the world. The company was established in the year 1971 and its business owners dream was to do trade in coffee beans that have a good and high quality of taste. Major USP of the Starbucks is that consistently do innovation in its product line and offer coffee with new and better taste to the customers at its workplace (Anders and Fedoseeva, 2017). Firm also take care about change in the people value system and accordingly it offer coffee to them & main reason behind company fast growth.
Out of varied product lines company currently is focusing on specialty coffee. As per available statistics specialty coffee cover 50% of company’s total revenue and 30% of total cups consumed in Starbucks premises relate to the Specialty coffee. Presently, the firm is offering wide variety of coffee, soft drinks, tea and snacks. The firm is doing so because some of its rivals are offering quality coffee at low price likes Mc Donald. In order to compete with these rival firms is also offering snacks to people in its premises. In last fiscal year, Starbucks earns revenue of $26,508 million and firm operating income is $4,077 million. Net income earned by the company is $3,594 million. Total assets of the business are $19,219 million. It can be said that firm is operating its business at large scale.
Starbucks is offering coffee at high price relative to rivals and higher class people are its major target customers. Due to high price only, high class people can afford a company wide variety of coffee (Jang, Kim and Lee, 2015). Costa Coffee and Dunking Doughnuts as well as Mc Donald are major rivals of the Starbucks. In terms of quality and price Starbucks is ahead of its rivals as Starbucks is offering much high quality of coffee then rivals at very high prices. In order to prepare high quality of coffee firm make purchase of coffee beans from areas where the natural environment is very suitable for growing coffee. Firm after due quality checking make purchase of coffee beans from the farmers.
Starbucks has a strong supply chain network across nations and it has direct access to the farmers. There is no middle man through which coffee beans are purchased. Thus, at the right price firm procure very high quality of coffee beans and due to this reason able to offer high quality of coffee then rivals in its premises (de Luca, Pegan and Vianelli, 2020). This gives a competitive advantage to the Starbucks over rivals.

Suppliers have a huge interest in the Starbucks because it is this company which directly makes a purchase of coffee beans from them an appropriate price. With an increase in revenue or growth of the company demand for coffee beans increase, which means more earning opportunity for the suppliers. They have less influence on Starbucks and they come in the minimal effort quadrant. Investors and creditors have direct influence on the company because they directly provide fund to the business firms and assist it to meet working capital needs and capital expenditure needs (Abdurrahman, 2018). These stakeholders have higher interest in the company and due to this reason come in the key players quadrant. Without the support of these stakeholder companies cannot grow. Starbucks pays interest to the creditors and dividend to the shareholders (Introducing Mendelow matrix., 2020). More firm grows, demand of loan and dividend payment increased. Thus, both these entities have an interest and influence on the Starbucks.
Communication strategy
Starbucks employees should personally interact with the customers and according to their needs serve them coffee and also educate them about coffee beans (Isnuwardiati and Sugito, 2017). Starbucks must aggressively advertise its offers and provide information about its products on social media. On an annual basis AGM is conducted where company CEO interacts with the shareholders. Time to time meeting must be conducted with creditors and information is given to them about the company condition and loan is obtained from them.

REFERENCE
Books and journals
Abdurrahman, A. 2018. ESTABLISHING COMPETITIVE ADVANTAGE TO IMPROVE BUSSINESS PERFORMANCE. Jurnal Ekonomi dan Bisnis Indonesia. 3(1).
Anders, S.. and Fedoseeva, S. 2017. Quality, Sourcing, and Asymmetric Exchange-Rate Pass-Through into US Coffee Imports. Journal of agricultural and resource economics. 42(1835-2017-2103). 372-385.
Borrella, I., Mataix, C.. and Carrasco‐Gallego, R. 2015. Smallholder farmers in the speciality coffee industry: opportunities, constraints and the businesses that are making it possible. IDS Bulletin. 46(3). 29-44.
Bovea, M. D., Pérez-Belis, V.. and Quemades-Beltrán, P. 2017. Attitude of the stakeholders involved in the repair and second-hand sale of small household electrical and electronic equipment: Case study in Spain. Journal of environmental management. 196. 91-99.
De Janvry, A., McIntosh, C.. and Sadoulet, E. 2015. Fair trade and free entry: can a disequilibrium market serve as a development tool?. Review of Economics and Statistics. 97(3). 567-573.
de Luca, P., Pegan, G.. and Vianelli, D. 2020. Customer Experience in the Coffee World: Qualitative Research on the US Market. In Handbook of Research on Retailing Techniques for Optimal Consumer Engagement and Experiences (pp. 257-283). IGI Global.
Fuller, M.. and Rao, N. Z. 2017. The effect of time, roasting temperature, and grind size on caffeine and chlorogenic acid concentrations in cold brew coffee. Scientific reports. 7(1). 1-9.
Guimarães, E. R. and et.al., 2019. The brand new Brazilian specialty coffee market. Journal of food products marketing. 25(1). 49-71.
Han, H. and et.al., 2018. Drivers of brand loyalty in the chain coffee shop industry. International Journal of Hospitality Management. 72. 86-97.
Isnuwardiati, K.. and Sugito, P. 2017. Demand chain management: An effort to improve competitiveness and business performance. International Journal of Science and Research, 6(8), 983-987.
Jang, Y. J., Kim, W. G.. and Lee, H. Y. 2015. Coffee shop consumers’ emotional attachment and loyalty to green stores: The moderating role of green consciousness. International Journal of Hospitality Management. 44. 146-156.
Linh, D. H.. and Anh, T. V. 2017. Impact of stakeholders on the performance of green banking products and services: The case of Vietnamese banks. Economic annals-XXI. (165). 143-151.
Mighty, M. A. 2015. Site suitability and the analytic hierarchy process: How GIS analysis can improve the competitive advantage of the Jamaican coffee industry. Applied Geography. 58. 84-93.
Murray, J. 2017. Adopting stakeholder advisory boards. Am. Bus. LJ. 54. 61.
Neacsu, A. N. 2018. Quality management on the coffee market. Bulletin of the Transilvania University of Brasov. Economic Sciences. Series V. 11(1). 109-118.
Nguyen, D. K., Sousa, R. M.. and Uddin, G. S. 2015. Testing for asymmetric causality between US equity returns and commodity futures returns. Finance Research Letters. 12. 38-47.

STRATEGY AND SUSTAINABILITY IN GLOBAL ECONOMY: Reliance Jio

Executive summary
Reliance Jio is one of the largest telecom companies in India and it acquires Radisys to obtain 5G and IOT technology. Political environment, social factors and technology factors are creating opportunity for the firm. The Indian Government is fully committed towards growth of business. Socially, people are spending more time on mobiles and the internet. Hence, social environment positively affects firm. Reliance Jio have a sound technology base, then rivals. Economically, India condition is not so good and it to some extent may affect mentioned firm. It is difficult for rivals to imitate technology base of the company. The company has well organized structure and rare capability in its business which assists to remain on top of the market.
INTRODUCTION
Reliance Jio is the one of the Indian company that is operating in the telecom sector. Mentioned firm recently acquires Radisys and obtain IOT and 5G technology. In present research study external and internal environment analysis is done (Mumtaz, and et.al., 2018). In the middle part of the report, VRIO analysis of Reliance Jio is done and competitive advantage of the firm is evaluated. At the end of the report, concluding section is prepared.
External and internal environment analysis
Business firm performance is affected by a number of factors like external and internal factors. All these factors affect companies in a number of ways. Components of the external environment are explained below.
• Political environment: It is the component of the environment that greatly affect business firm. Political environment refers to the political parties and their ideologies as well as their actions on varied issues that are matters of concern for any nation. There are many nations where Central and State Government give priority to the business firms and prepare business friendly policies. On the other hand, there are many other nations where due importance is given to the social issues, then business and in those nations Governments prepare less business friendly policies. In such kind of nation high level of red tapism is observed, which is not considered good for the business firms. All these things send a message to the business community, whether the nation is best option to commence business (Osseiran, Monserrat, and Marsch, 2016). It can be seen that in the summit that was organized in the Davos CEO’S commonly believed that in the last three years the Modi Government remove many unnecessary rules and regulations ad due to this reason it’s become very easy to do business in India. Modi Government to great extend reduces red tapism Indian market. In order to promote business in India, Indian Government is consistently focusing on reducing business and trade barriers in India. Reliance Jio is working in telecom industry and intend to develop leadership in the industry in terms of technology at the global level. Reliance Jio acquire Radisys so that Jio Global innovation and technology leadership plan can be implemented effectively in areas of 5G and IOT. The Indian Government is fully committed towards the growth of the telecom industry in India and in this regard it is also providing as much as support to the business firms. In upcoming time period, it will surely issue license for 5G in India. Acquisition of the Radisys lead to acquisition of 5G technology and by the time Government of India will issue licenses for 5G Reliance Jio will already have such kind of technology. This will assist firm is increasing its business at a rapid pace in the Indian market. It can be said that the political environment is creating opportunity for the Reliance Jio.


CONCLUSION
On the basis of the above discussion, it is concluded that business environment greatly affects business firms. Internal and external factors to large extent impact company profitability in multiple ways. External environment factors are in favor of the company and due to this reason on this front there is no problem. However, economic environment to some extent is not business favorable but capabilities that Reliance Jio have will assist it remain at top position in the market. It is also concluded that firm must expand its business in the international market because it have sufficient resources in its business. Hence, by going in international market firm will earn huge amount of revenue and profit in the business.

REFERENCES
Books and Journals
Chikermane, G. and Jinping, X., 2019. 5G Infrastructure, Huawei’s Techno-Economic Advantages and India’s National Security Concerns: An Analysis. Occasional Papers.
Goudos, S.K., and et.al., 2017. A survey of IoT key enabling and future technologies: 5G, mobile IoT, sematic web and applications. Wireless Personal Communications 97(2). pp.1645-1675.
Javaid, N., and et.al., 2018. Intelligence in IoT-based 5G networks: Opportunities and challenges. IEEE Communications Magazine. 56(10). pp.94-100.
Liu, G. and Jiang, D., 2016. 5G: Vision and requirements for mobile communication system towards year 2020. Chinese Journal of Engineering, 2016.
Mumtaz, S., and et.al., 2018. Guest editorial 5G and beyond mobile technologies and applications for industrial IoT (IIoT). IEEE Transactions on Industrial Informatics. 14(6). pp.2588-2591.
Osseiran, A., Monserrat, J.F. and Marsch, P. eds., 2016. 5G mobile and wireless communications technology. Cambridge University Press.
Prasad, A.R., Lakshminarayanan, S. and Arumugam, S., 2017. Market dynamics and security considerations of 5G. Journal of ICT Standardization. 5(3). pp.225-250.
Suri, S., 2019. The Indian telecom sector: Focus over the next decade. World Affairs: The Journal of International Issues. 23(2). pp.140-145.
Tyagi, K., 2019. Setting Standards for a Competitive Economy: In the Era of 5G, Internet of Things and the Blockchain Technology. IIMS Journal of Management Science. 10(1and2). pp.82-97.
Varga, P., and et.al., 2020. 5G support for Industrial IoT Applications–Challenges, Solutions, and Research gaps. Sensors. 20(3). p.828.
Wang, D., and et.al., 2018. From IoT to 5G I-IoT: The next generation IoT-based intelligent algorithms and 5G technologies. IEEE Communications Magazine. 56(10). pp.114-120.
Online
Reliance industries acquire Radisys to push Reliance Jio’s 5G, IOT efforts, 2018. [Online] Accessed through < https://telecom.economictimes.indiatimes.com/news/reliance-to-acquire-radisys-drive-jios-5g-iot-efforts/64802762>
Reliance Industries to acquire Radisys, 2018. [Online] Accessed through < https://www.radisys.com/press-releases/reliance-industries-acquire-radisys>
Reliance acquires Radisys for 5G and IoT, 2018. [Online] Accessed through

Strategy and Sustainability in Global Economy: Oyo

EXECUTIVE SUMMARY
Oyo is one of the largest Indian Company that is operating in the hospitality industry. For analysis of business environment, it is observed that political and social as well as technological conditions are in support of the business firm. Economic conditions of the nation are not good and this will surely affect revenue and profit of Oyo. Further, corona virus will certainly affect tourism industry which will lead to loss in Oyo business. Oyo has sufficient IT and human resource in its business which are valuable, but not rare and are easy to imitate. Oyo must further expand its business in the international market because it has sufficient resources in its business. By doing so it can easily tap the opportunities that are available in the international market.
INTRODUCTION
Business always operates in uncertain business conditions and these greatly affect business firm performance. This is the reason due to which consistent analysis of business conditions and available resources is required. In this regard, firms usually do PESTLE analysis and VRIO analysis. In the present research study, business environment analysis from Oyo is done. In the middle part of the report, VRIO analysis of Oyo is done. Thereafter, by taking into account business environment and VRIO analysis results recommendation is made in Oyo. At the end of the report, concluding section is prepared in the research study.
External and internal environment
Management of single time faces multiple issues in the business. This is because the business environment is uncertain in nature. Due to uncertainty in the business environment, it becomes difficult to make accurate decisions. Thus, it becomes very important for the companies to analyze the business environment constantly, so that particular course of action can be developed to improve business performance. External environment factors are explained below.
• Political environment: Business in any nation increase when there is the suitable business related environment in the country. More is congenial environment for the business, the firms’ business rapidly grows in any nation. Political parties play a crucial role in the development of congenial environment for the business. In most capitalist economies from many years business friendly ruling Governments comes in power and due to this reason there large corporations come in existence. On the other hand, nations that are in Africa have corrupted Government and dictator Government which work for social and self welfare. Due to this reason African nations are underdeveloped and small numbers of firms are there. It is clear that political environment plays crucial role in promoting business in the nation. If political party’s ideology is to support business, then many new start ups come into existence in the nation. Thus, growth of business in the nation depends on business friendly policies of central Government that is operating in the nation (Prajogo, 2016). Oyo is one of the Indian Company that is operating in the hospitality industry. It can be observed that Oyo recently acquire Data science company of Denmark namely Danamica. Danamica is basically a data science and business intelligence company that assists firms operating in the hospitality industry to do business decisions and earn more revenue in the business (Oyo acquires Copenhagen-based data science company Danamica for an undisclosed sum, 2019). Modi Government understands the significance of tourism and due to this reason it is paying special attention on the growth of the tourism sector in India. With the passage of time tourism sector in India is growing at a fast pace. Hence, it can be said that the political environment is congenial to Oyo and acquisition will surely help firms to earn more revenue in the Indian market (Bitkowska, 2015). Hence, there is opportunity on this environmental factor.
• Economical environment: The economy of the nation directly affects people spending pattern and income level of the people. It is the spending pattern of the people and propensity to save that greatly affect company’s revenue and profitability. Spending pattern depends on multiple factors like employment opportunities, salary and economic growth of the nation. During economic crisis, many people lose their job or earn less and consumption decline. Due to decline in consumption firms earn less revenue and profit I the business. It can be said that economic environment greatly affects companies’ revenue and profit. The GDP of the India declines from 7% to 4%, which is one of the major matters of concern for the firm (Bah, and Fang, 2015). Low growth of GDP is indicating a slowdown in the Indian economy and less consumed by the people. When people consume less reduced amount is spent in the market. This directly affects companies’ revenue and profit in the business. Oyo acquires data science company, but if further economic growth, reduced then it will lead to decline in the company revenue growth rate. Corona virus is prevailing across the globe and due to this reason tourism sector will observe the sharp decline in its business for few months. It can be said that it will take long time to cover investment amount (Bocken, Rana, and Short, 2015). Due to poor economic condition of India it low profit is expected in the business. Hence, there is threat on this environment factor.

CONCLUSION
On the basis of the above discussion, it is concluded that there is significant importance of business environment for the business firms. Oyo does not have threat from any component of business environment other than economic factors. Oyo has sufficient resources in its business. It has well trained IT team and data science as well as BI technology, which assist companies to take decisions on a real time basis and recommend accurate things to traffic according to their needs. All such kinds of technological advancement assist firms to create customers in the business at a fast pace.

REFERENCES
Books and journals
Bah, E. H. and Fang, L. 2015. Impact of the business environment on output and productivity in Africa. Journal of Development Economics. 114. 159-171.
Bitkowska, A. 2015. The orientation of business process management toward the creation of knowledge in enterprises. Human Factors and Ergonomics in Manufacturing and Service Industries. 25(1). 43-57.
Bocken, N. M. P., Rana, P. and Short, S. W. 2015. Value mapping for sustainable business thinking. Journal of Industrial and Production Engineering. 32(1). 67-81.
Evans, S. and et.al., 2017. Business model innovation for sustainability: Towards a unified perspective for creation of sustainable business models. Business Strategy and the Environment. 26(5). 597-608.
Georgescu, M. and Popescul, D. 2015. Social Media–the new paradigm of collaboration and communication for business environment. Procedia Economics and Finance. 20(1). 277-282.
Janković, M., Mihajlović, M. and Cvetković, T. 2016. Influence of external factors on business of companies in Serbia. Ekonomika. 62(4). 31-38.
Kim, S. C., Lee, J. S. and Shin, K. I. 2015. The impact of project management assets on the VRIO characteristics of PM process for competitive advantage. International Journal of Productivity and Quality Management. 15(2). 153-168.
Kozubikova, L., Homolka, L. and Kristalas, D. 2017. The effect of business environment and entrepreneurs’ gender on perception of financial risk in the smes sector. Journal of Competitiveness. 9(1).
Mihaela, D., Amalia, D. and Bogdan, G. 2015. The partnership between academic and business environment. Procedia Soc. Behav. Sci. 180. 298-304.
Mollan, S. and Tennent, K. D. 2015. International taxation and corporate strategy: evidence from British overseas business, circa 1900–1965. Business History. 57(7). 1054-1081.
Prajogo, D. I. 2016. The strategic fit between innovation strategies and business environment in delivering business performance. International journal of production Economics. 171. 241-249.
Roy, V. and Singh, S. 2017. Mapping the business focus in sustainable production and consumption literature: Review and research framework. Journal of Cleaner Production. 150. 224-236.
Seraphin, H. and Yallop, A. 2019. Proposed framework for the management of resorts Mini Clubs: an ambidextrous approach. Leisure Studies. 38(4). 535-547.
Vargas-Hernández, J. G. and Garcia, F. C. 2019. The Link between a Firm´ s Internal Characteristics and Performance: GPTW and VRIO Dimension Analysis. REBRAE. 12(1). 19-30.
Veselovsky, M. Y. and et.al., 2017. Business environment in Russia and its stimulating influence on innovation activity of domestic companies. Journal of Applied Economic Sciences. 12(7).
Online
Oyo acquires Danish data science firm Danamica, 2019. [Online] Accessed through
Oyo acquires Copenhagen-based data science company Danamica for an undisclosed sum, 2019. [Online] Accessed through < https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/oyo-acquires-copenhagen-based-data-science-company-danamica-for-an-undisclosed-sum/articleshow/70947320.cms>

Strategy and Sustainability in the Global Economy

Executive summary
There are a number of components of the business environment and all of them have an impact on HUL. It is identified that ruling Government of India is preparing a business friendly policy. Socially, people of India no longer remain money saver and due to this reason, in future demand for FMCG products will increase. HUL has a good R&D team and it develops innovative products. The economic environment is the factor that severely affects business performance. Firm distribution resource is rare and valuable. Financial resources are valuable to the firm. It is hard to imitate HUL product portfolio. HUL must expand its business in international market considering strength.
INTRODUCTION
The business environment has huge importance for the firms because it to large extent affect business performance. In the present research study, business environment analysis is done and comments are made on the HUL and external and internal environment factors on it. In the middle part of the report, VRIO analysis of HUL is done and comments are made by the company. At the end of the report, reasons due to which firm must expand its business in the international market are discussed in detail. Finally, conclusion section is prepared in the report.
External and internal analysis
Business environment time to time required to be analyzed by the business firms because it greatly affects firm operations and its profitability. The extent to which company will be successful depend on business environment factors conditions. If business environment is favorable to business, then in that case there will be an opportunity for the firm and on the other hand, if business environment particular component is not favorable for the firm, then in that case it can be said that there is a serious threat to the firm. External environment analysis is given below.
• Political environment: Ruling Government greatly affects any nation growth in varied areas. This is because every ruling Government has its own thinking, belief and value system. Every ruling Government has its targets and objectives and desire to work in particular direction to work for the benefit of society. It is the ideology and value system that influence ruling Government actions and thoughts. If the ruling Government prefers to prepare business friendly policy then in that case business firm get proper support from the Central Government. Consequently, business firms flourish at a rapid pace in the nation. Such kind of business friendly policy is mostly prepared by the capitalist economy (Rastogi, & Trivedi, 2016). There are many nations where Central Government gives more priority to the social welfare more and focus on more on social security, etc. In such kind of nations business firms receive less support from the Government and due to this reason in such kind of nations only few firms operate. The Indian Central Government has fully focused on promoting business firms in the nation. In the last 3 years Indian Government takes many steps to ease doing business in India. Such kind of things motivates firms to make investment in India and also develop confidence among investors. HUL acquire Horlicks from GSK for Rs 3045 crore (HUL-GSK merger complete, FMCG giant buys Horlicks brand for Rs. 3,045 crore, 2020). Modi Government is promoting more and more Indian firms to do business cross border and in this regard provide a varied sort of facilities to the firms and enter into the trade agreement with foreign nations. Ease of rules in India promotes merger and acquisition deals from side of Indian companies. Hence, it can be said that the political environment is creating opportunity for the firms.


CONCLUSION
On the basis of the above discussion, it is concluded that business firms must constantly monitor the business environment because by doing so they can immediately take action and respond early to any threat or opportunity. HUL is the one of the leading FMCG Company in India and it have product portfolio. The company also has a good R&D team. All business environment components other than economic factor have a positive impact on the business firm. HUL has ample valuable and rare resources in its business. Some of its resources are possible to imitate and some not. HUL must expand its business in the international market as it has a large product portfolio.

REFERENCES
Books and Journals
Aithal, P. S. 2017. ABCD Analysis as Research Methodology in Company Case Studies. International Journal of Management, Technology, and Social Sciences (IJMTS). 2(2). 40-54.
Aithal, P. S., Shailashree, V., & Kumar, P. M. 2016. Application of ABCD Analysis Framework on Private University System in India. International Journal of Management Sciences and Business Research. 5(4). 159-170.
Ariyani, W., & Daryanto, A. 2018. Operationalization of Internal Analysis Using the VRIO Framework: Development of Scale for Resource and Capabilities Organization (Case Study: XYZ Company Animal Feed Business Unit). Asian Business Research Journal. 3. 9-14.
Cong, N. 2015. Driving Forces of the Mobile Phone Industry Growth in India: Based on the PESTLE Framework. International Journal of Management Sciences. 6(7). 332-339.
Das, R. 2016. United Bank of India: A Strategic Analysis Using the VRIO Method. IUP Journal of Bank Management. 15(2).
Hegde, D. 2015. Entrepreneurial Opportunities for E-Commerce in the Retail Sector in India. In Symposium on “Growth and Prospects of Msme Sector in Emerging Scenario”, JANUARY (pp. 08-09).
Indartono, S., & Wibowo, F. W. 2017. VRIO and THES based development of university competitive advantage model in formulating university strategic plan. International Information Institute (Tokyo). Information. 20(10A). 7275-7283.
Maity, S. K., & Maiti, R. 2016. Understanding the sediment sources from mineral composition at the lower reach of Rupnarayan River, West Bengal, India–XRD-based analysis. GeoResJ. 9. 91-103.
Patil, D. A. 2018. Sustainable bio-energy through bagasse co-generation technology: a PESTEL analysis of sugar hub of India, Solapur. Journal of Emerging Technologies and Innovative Research. 5(12).

BUSM4306 Strategic Analysis of a cross-border merger or acquisition from a company originating from a developing/emerging market: HCL

Executive summary
HCL is the one of the leading Indian company that is operating in the IT sector. Company acquires IBM 7 products. Most of business environment factors are favorable to the company. Political party ruling India is preparing business friendly policy and IT sector is growing at fast pace. India Government is giving full assistance to the firms that are in IT sector. HCL technologically is advanced company and due to this reason on this front also there are ample opportunities available for the firm. More and more time people spend on mobile and internet and due to this reason there is lot of scope for internet marketing. Social environment is also supportive to HCL. Company have huge loyal workforce which have years of experience. Most of IT firms have low retention rate. Thus, it is sort of rare capability firm have and it is difficult to imitate it by rivals. It is concluded that firm must expand its business in the foreign market.
INTRODUCTION
HCL Technology is the one of the world leading IT firm that is operating in multiple areas or provides IT based solutions to multiple firms operating in varied industries. Recently, HCL Technology has acquired IBM 7 products. In the present research study external and internal environment analysis is done and the impact of these on HCL Technology after acquisition of IBM 7 products is explained in detail. On the middle part of the report value chain analysis is done and areas where the firm has competitive advantage are identified. At the end of the report, recommendation is given whether must expand its business in the international market.
External and internal environment analysis
• Political environment: Government is the entity in the nation that make decisions that directly affect people and corporate. Government taxation policy, incentives to open a business and support provided to the business community, trade pact and related agreements with the foreign nations are some of the factors that come with this component. Policies Government prepare in its tenure reflect its approach and level ot attention it paid to the business community (Prajogo, 2016). In India, in last three years Central Government is focusing on giving immediate response to the problems that business community faced in the nation. Due to this reason HCL will observe the benefits in its business by acquiring IBM products. In India due to the support of local Government it becomes easier to commence business. In Davos in Summit Global CEO’S state that doing business in India become easy in last three years than before. Removal of red tapism for business firms is the Indian Government major priority. Apart from this, the Government also prepares business friendly policy to promote local business firms (HCL Technologies to acquire select IBM software products for $1.8B., 2018). In Acquisition HCL acquire 7 IBM products like AppScan, BigFix, Unica, Commerce, Portal, Notes and Domino, connections. All these are IT related products and due to Government support in the past few years, IT industry grows at a rapid pace in India. It can be said that Government initiatives to promote business are creating huge opportunity for the business firm. Hence, HCL through these products surely will be able to create new clients in the Indian market and multiple in its earnings will be observed. It can be said that political environment is in favor of the HCL Technology.
• Economic environment: Economic environment refers to the economic condition of the nation and its performance on varied parameters like GDP, inflation rate, PMI and IIP. Automobile sector is witnessing downtrend due to consistent reduction in demand for cars in the Indian market. In past few months some of banks in India are identified to be involved in corruption. Many banks tighten their rules considered to issue debt to the company (Bah and Fang, 2015). If economic condition of the nation is good then it means that there is balance between demand and supply and firms are getting abundant opportunity to earn higher amount of revenue and profit in the business. At the India GDP growth rate decline at sharp rate from 7% to 4.7%. This is one of the major matters of concern for HCL Technology. This reflects that demand decline or due to less availability of finance or unfavorable global economic conditions business firms is not getting clients in business or are not able to satisfy demand of clients and customer base. Hence, due to poor economic conditions of the nation and global market after the acquisition of IBM products by paying large amount, it may be difficult for IBM to get a higher ROI on services provided through IBM products. Thus, on front of the economic factor firm is facing threats on a large scale.


CONCLUSION
On the basis of the above discussion, it is concluded that there is significant impact on the business environment on the business firms. HCL Technology has a strong technological base and due to this reason it can compete with any rivals. The business environment is favorable and creates opportunity for the firm. However, there is a threat to the economic environment. The firm has a large client base and a strong patent portfolio. Apart from this, the company has loyal workforce have years of experience. Hence, firm must expand its business in the foreign market.

REFERENCE
Books and journals
Akhmetshin, E. and et.al., 2017. Analysis of innovation activity of enterprises in modern business environment. Journal of Advanced Research in Law and Economics. 8(8 (30)). 2311-2323.
Bah, E. H. and Fang, L. 2015. Impact of the business environment on output and productivity in Africa. Journal of Development Economics. 114. 159-171.
Banica, L. and Hagiu, A. 2015. Big data in business environment. Scientific Bulletin-Economic Sciences. 14(1). 79-86.
Calabrese. And et.al., 2018. From mechanical to cognitive view: The changes of decision making in business environment. In Social Dynamics in a Systems Perspective (pp. 223-240). Springer, Cham.
Georgescu, M. and Popescul, D. 2015. Social Media–the new paradigm of collaboration and communication for business environment. Procedia Economics and Finance. 20(1). 277-282.
Grigore, A. M. and Drăgan, I. M. 2015. Entrepreneurship and its economical value in a very dynamic business environment. Amfiteatru Economic Journal. 17(38). 120-132.
Groşanu, A and et.al., 2015. The influence of country-level governance on business environment and entrepreneurship: A global perspective. Amfiteatru Economic Journal. 17(38). 60-75.
Huang-Horowitz, N. C. 2015. Public relations in the small business environment: Creating identity and building reputation. Public Relations Review. 41(3). 345-353.
Khan, E. A. and Quaddus, M. 2015. Examining the influence of business environment on socio-economic performance of informal microenterprises. International Journal of Sociology and Social Policy.
Kozubikova, L., Homolka, L. and Kristalas, D. 2017. The effect of business environment and entrepreneurs’ gender on perception of financial risk in the smes sector. Journal of Competitiveness. 9(1).
Moroni, I., Arruda, A. and Araujo, K. 2015. The design and technological innovation: how to understand the growth of startups companies in competitive business environment. Procedia Manufacturing. 3. 2199-2204.
Prajogo, D. I. 2016. The strategic fit between innovation strategies and business environment in delivering business performance. International journal of production Economics. 171. 241-249.
Online
HCL Technologies to acquire select IBM software products for $1.8B., 2018. [Online]. Available through:< https://www.hcltech.com/press-releases/products-and-platforms/hcl-technologies-acquire-select-ibm-software-products-18b>.

BUSM4306 Strategic Analysis of a cross-border merger or acquisition from a company originating from a developing/emerging market: Infosys

Executive summary
The business environment has a profound impact on the company’s business operations and whether the firm will get success or become failed on the domestic or international market is determined by it. The majority of external factors are creating opportunity for Infosys. People in India, become tech savvy and company have a strong patent portfolio as well technological infrastructure. The economic condition of India is not good and it may create a threat for the firm to some extent. Infosys has sufficient financial and human resources as well technical resources which valuable and rare, but possible to be imitated by rivals. In the short run, rivals cannot imitate Infosys technological base. Hence, Infosys has competitive advantage over rivals.
INTRODUCTION
Infosys is the one of the leading company in Indian IT sector. Recently, the company has acquired management consultancy firm Lodestone based in Switzerland. In the research report, business environment analysis is done and threat and opportunity that it creates for the firm is identified. Thereafter, VRIO analysis is done extent to which Infosys has a competitive advantage over rivals is identified. Finally, considering business environment and VRIO analysis recommendation section is prepared and conclusion is given.
Business environment
• Political factors: Political environment of any nation has huge impact on the business firms. Countries whose Government prepare business friendly policies new start ups comes into existence at a fast pace. Every nation Central Government has some priorities and its work around it during entire tenure. Government taxation policy, excise duty or tariff charged etc. is some of the core factors that greatly affect business firm’s profitability (Saleem, 2015). More political party is supportive for the business firms it becomes easy for companies to operate in the nation and trade with the foreign nation. Central Government enters into the trade agreement with foreign nations and by doing so create ample opportunities for the firms. Company by acting on these opportunities increase business at a fast pace. Hence, political factors have impact on business firm’s growth in the nation. In India, the Central Government has consistently prepared business friendly policies and due to this reason mentioned nation jump in the ranking of the ease of doing business from 77 to 63. This attracts foreign investors to make investment in the Indian market and consequently IT firms and other company number will increase in the Indian market. Infosys an Indian IT company acquire Lodestone Holding which is based in Switzerland. Lodestone is basically a management consultancy company. Number of business and size of companies will increase in Indian market due to the optimum business friendly environment (Hampel-Milagrosa, Loewe and Reeg, 2015). This creates opportunity for Infosys as it can give management consultancy services to companies and can assist them achieve efficiency and effectiveness in their business operations. Infosys revenue will increase due to exploitation of such kind of opportunity.
• Economical factors: The economic condition of the nation and people desire to spend in the market and firm’s business performance is interlinked to each other. If economic conditions of the nation are not good, then in that case unemployment and inflation rate increased in the country. Due to rise in the inflation rate and unemployment rate peoples’ propensity to save increase and they tend to save more money. This directly led to decline in demand of the product in the market which directly affect firms revenue and business profit. In this way, the economic condition of the nation has a direct impact on the business firm’s profitability. The economic growth rate of India decline from 7% to 4%, which reflect that demand in the domestic market decline which affect firms’ revenue and demand of service (Sharma and Singh, 2015). This creates an opportunity and a threat both for Infosys. Due to a reduction in revenue firm may receive less IT projects from its clients which is a threat from the economic environment. In such situations, firms need to adopt specific strategies in their business so that even in a negative environment profitability can be maintained. In such kind of condition demand for management consultancy services increased. This creates opportunity for the Infosys to create new clients for its management consultancy segment in its business at rapid pace.

CONCLUSION
On the basis of the above discussion, it is concluded that firms need to keep watch on the internal and external factors and must respond very fast if any change happened to them. This is because these factors create both opportunity and threat for the company. If it is an opportunity then by working on it firming can take first mover advantage. Resources must also be analyzed time to time so that they can manage in better way in the business. It is the resources that assist firm to remain competitive in the industry and remain ahead of rivals in the industry.


REFERENCES
Books and journals
Das, A. 2019. Corporate governance in India. Routledge.
Garlapati, V. K. 2016. E-waste in India and developed countries: Management, recycling, business and biotechnological initiatives. Renewable and Sustainable Energy Reviews. 54. 874-881.
Hamilton, L.. and Webster, P. 2018. The international business environment. Oxford University Press.
Hampel-Milagrosa, A., Loewe, M.. and Reeg, C. 2015. The entrepreneur makes a difference: Evidence on MSE upgrading factors from Egypt, India, and the Philippines. World Development. 66. 118-130.
Kaur, H. 2016. Ease of doing business in India: A big ‘Unease’for ‘Make in India’programme. International Journal of Applied Research. 2(1). 697-702.
Khan, R. 2015. Small Hydro Power in India: Is it a sustainable business?. Applied energy. 152. 207-216.
Saleem, S. 2015. BUSINESS ENVIRONMENT, 3/e. Pearson Education India.
Sharma, M. K.. and Singh, M. K. 2015. Impact of Changing Socio-Economic Environment on Business in India. International Journal of Research. 21.
Sharma, V., Garg, S. K.. and Sharma, P. B. 2016. Identification of major drivers and roadblocks for remanufacturing in India. Journal of Cleaner Production. 112. 1882-1892.
Sinha, S.. and Panda, A. K. 2018. Corporate social responsibility in India. ZENITH International Journal of Business Economics & Management Research. 8(4). 97-106.
Online
Industries., 2020. [Online]. Available through:< https://www.infosys.com/industries.html>.
Infosys completes acquisition of Lodestone Holding AG., 2020. [Online]. Available through:< https://www.infosys.com/newsroom/features/2012/infosys-to-acquire-lodestone-consultancy.html>
Patents and trademarks., 2020. [Online]. Available through:< https://www.infosys.com/trademarks.html>

Strategy and sustainability in global economy : Zomato

EXECUTIVE SUMMARY
In the present research study it is identified that weak economic conditions of the nation and further due to worldwide Corona Virus disease in the upcoming time period firm will earn less profit in the business. In front of other components of the business environment there is no threat to the business firm. There are multiple valuable resources in the company, but they are easy to imitate and due to this reason firm does not have competitive advantage over rivals. Zomato need to generate more economies of scale in the business so that maximum profit can be gained in the business.

INTRODUCTION
Zomato is the Indian company that is providing online food ordering service. External and internal environment analysis of Zomato has done in the research work. It is observed that most components of the external environment are positively affecting Zomato other then economic factor. VRIO analysis is done on Zomato and the resources of the company are identified and analyzed to find out whether the company has a competitive advantage over rivals. At the end of the report, recommendation is given for Zomato and conclusion section is prepared.
External and internal environment analysis
Business environment and company performance are closely connected to each other. It is the business conditions that severely affect company performance and also assist them to earn huge amount of revenue and profit in the business when business conditions are congenial to the company (Prajogo, 2016). Every large size company has its own system by using which it analyze entire business conditions and take steps accordingly to handle business. External analysis of Indian market is done below.
• Political environment: Political conditions of the nation determine direction in which particular industry will work. This is because Government that governs any nation play a crucial role in creating a positive environment for the industry or business firms to do business in any nation. Many nations like USA and European nations have a large number of startups and well settled business firms just because of Government of relevant nations always prepare business friendly policies. This clearly reflects that the political environment of the nation greatly affects any business firm. Political environment contains Government that is in power, ideology and attitude, belief as well as the value system. Whether there is a coalition or single party Government in the nation also greatly affect the political environment of the nation (Hawn .and Ioannou, 2016). If there is single party Government business firms receive immediate and sufficient support. On other hand, if there is coalition Government then in that case it takes time to make any decision and due to this reason delay happened in receiving support or any sort of decision from Government. Such kind of things create positive or negative image of the Government in the eye of the business firms and this directly affect investment by foreign companies in the nation. Hence, it can be said that the political environment greatly affects business firms. Political conditions of the India are congenial for Zomato. The Indian Government is taking every step to promote business firms. The Indian Government is promoting people to do more online transaction and online business so that more and more people can be bringing to digital platform. Indian Government is preparing business friendly policies for IT industry and due to this reason IT firms are able to expand business at fast pace in the Indian market. Zomato acquire Uber Eats and by doing so it intends to expand its business in the Indian market (Pati. and et.al., 2018). Uber Eats currently have 30% market share in the Indian market. By acquiring Uber Eats Zomato intend to achieve that market share. This acquisition will lead to obtaining well developed business intelligence system in the business which assists in making more accurate business decisions. Indian Government is making it easy for the firms to operate in the Indian market. Hence, there is ample opportunity for Zomato in Indian market.

CONCLUSION
On the basis of the above discussion, it is concluded that there is significant importance of the business environment factors for the business firm because such kind of factors positively and negatively affect the company. Political, social and technological environment is creating opportunity for the Zomato but economic factor is creating threat for the mentioned company. Global epidemic caused by Corona Virus will severely affect Zomato business and will lead to earning of less profit in the business. Zomato have sufficient resources in its business but they are easy to copy for rivals and due to this reason Zomato does not have competitive advantage on rivals. It is also concluded that Zomato must expand its business in the foreign market.

REFERENCE
Books and journals
Ariyani, W.and Daryanto, A. 2018. Operationalization of Internal Analysis Using the VRIO Framework: Development of Scale for Resource and Capabilities Organization (Case Study: XYZ Company Animal Feed Business Unit). Asian Business Research Journal. 3. 9-14.
Bouazza, A. B., Ardjouman, D.and Abada, O. 2015. Establishing the factors affecting the growth of small and medium-sized enterprises in Algeria. American International journal of Social science. 4(2). 101-115.
Buzatu, A. I., Pleșea, D. A.and Iulian, C. 2019. MANAGING ORGANIZATIONS FOR SUSTAINABLE BUSINESS DEVELOPMENT: INTERACTION BETWEEN VRIO FRAMEWORK AND McKINSEY 7S FRAMEWORK. New Trends in Sustainable Business and Consumption. 243.
Hamilton, L.and Webster, P. 2018. The international business environment. Oxford University Press.
Handrimurtjahjo, A. D. 2016. Model Pembelajaran Kewirausahaan di Perguruan Tinggi. Jurnal Universitas Paramadina. 10(2). 729-755.
Hawn, O.and Ioannou, I. 2016. Mind the gap: The interplay between external and internal actions in the case of corporate social responsibility. Strategic Management Journal. 37(13). 2569-2588.
Indris, S.and Primiana, I. 2015. Internal and external environment analysis on the performance of small and medium industries (Smes) in Indonesia. International journal of scientific & technology research. 4(4). 188-196.
Leonidou, L. C. and et.al., 2017. Internal drivers and performance consequences of small firm green business strategy: The moderating role of external forces. Journal of business ethics. 140(3). 585-606.
Litavniece, L. and ZNOTIŅA, D. 2015. External business environement problems and opportunities in rezekne city. Latgale national Economy research. Journal of Social Sciences. Research papers. 107-119.
López-Gamero, M. D.and Molina-Azorín, J. F. 2016. Environmental management and firm competitiveness: the joint analysis of external and internal elements. Long range planning. 49(6). 746-763.

STRATEGY AND GLOBAL COMPETITIVENESS: Telcom Industry

INTRODUCTION
The telecom industry is the one of the fastest growing industry across the globe. In current time period, many technological developments happened in the telecom industry. Some of plausible trends are AI, big data, virtual assistant and RPM. AI is considered as best plausible trend because in comparison to other one it assists firms in better way manage assets and handle infra related issues proactively and provide service without any interruption. In the report, in first section plausible scenarios are explained and in second section justification is given behind selection. In this way, entire research work is carried out.
Plausible scenarios
The telecom industry is the one of the UK fastest growing industry. In the past few years technology development happened at a fast pace in the industry. There are a number of new advanced technologies that firms operating in this industry are using or intend to use. These technologies assist firms to cut down HR cost and become more efficient in the business (Ahmadi, Petrudi and Wang, 2017). In future some technologies will be rapidly adopted by the firms operated in the telecommunication sector. These technologies are Big data, IOT, RPA and AI. Plausible scenario in respect to these technologies is explained below.
• Big data: In current time period telecommunication industry is going through a phase of transformation in the business by using advanced analytics and big data technologies like Map R Data etc. Use of Big data assists business firms to optimize network services and deliver better experience to the customers. By using Big data technology and analytics telecommunication companies are able to predict duration or time when network use increases heavily and firm can become proactive and can take steps immediately to reduce congestion over network. Using mentioned technology, business firm can identify areas where customers can face service related issues and by taking action on time churn rate can be controlled in the business (Schoen, 2016). Firms operating in the telecommunication sector are spending heavy amount on their IT infra and try to improve their services. Being able to process gold distributed events on a real time basis enable companies to understand service issues that are going on in the specific geographic area. Using Big data technology, business firms can optimize services with equipment monitoring and can take preventive actions in respect to dropped calls, less network coverage, bandwidth issues, poor download times, switching, frequency utilization and capacity usage. By using data that are generated in the network firm can identify and understand customer demographics, sentiment analysis of social media, calling circle data, browsing behavior from click stream logs and churn analysis (Sujata and et.al., 2015). By doing such kind of analysis firms can predict and improve customer experience and can prevent churn and prepare marketing campaigns in effective way.
• RPA or Robotic process automation: RPA can be assumed as technologies that automate business tasks by configuring robot or bot. This technology is able to perform many human related tasks. Tasks that are rule based and repetitive in nature are performed using RPA. In telecom industry few firms adopt this technology. RPA use assists in reducing cost, boost customer services and drive operational efficiency as well as improving data quality. It can be said that RPA saved human efforts by automating varied tasks. RPA is used in telecommunication industry in multiple ways (Imtiaz, Khan and Shakir, 2015). RPA performs customer on boarding and off boarding tasks. It is very easy to add any customer when new one tries to join and remove them when they leave. Thus, the entire process is automated and in this there is no need to employ an HR for performing this task. RPA automate maintenance of billing records of the customers. Without any sort of error RPA perform this task and this is another area where firm did not need to employ any individual for billing related business task. This leads to huge saving of cost in the business. By using RPA firms are able to serve customers immediately and provide them required info instantly. This leads to improvement in the customer service. All employees cannot be considered as equally efficient in service delivery and they many times make a mistake due to which customer remains dissatisfied with the service provided by the company (Petajajarvi,. and et.al., 2015). Use of RPA ensures that customers will be served in proper manner.


CONCLUSION
On the basis of the above discussion, it is concluded that there are multiple plausible trends in the telecommunication sector like AI, big data, RPM and virtual assistant, etc. Out of all these plausible trends AI is the one of the most plausible trend. Due to use of AI telecom companies are able to predict performance of their assets and chances of failure in networks and equipments. Firms by taking proactive action easily handle the situation before it actually comes in existence. Hence, it can be said that AI technology is the most plausible trend due to benefits it provide the company in able to provide services to the customers without any interruption.

REFERENCE
Books and Journals
Ahmadi, H. B., Petrudi, S. H. H.. and Wang, X. 2017. Integrating sustainability into supplier selection with analytical hierarchy process and improved grey relational analysis: a case of telecom industry. The International Journal of Advanced Manufacturing Technology. 90(9-12). 2413-2427.
Collard-Wexler, A.. and De Loecker, J. 2015. Reallocation and technology: Evidence from the US steel industry. American Economic Review. 105(1). 131-71.
Drobyazko, S. and et.al., 2019. Entrepreneurship innovation model for telecommunications enterprises. Journal of Entrepreneurship Education. 22(2). 1-6.
Ghezzi, A., Cortimiglia, M. N.. and Frank, A. G. 2015. Strategy and business model design in dynamic telecommunications industries: A study on Italian mobile network operators. Technological Forecasting and Social Change. 90. 346-354.
Hu, Y. C. and et.al, 2015. Mobile edge computing—A key technology towards 5G. ETSI white paper. 11(11). 1-16.
Imtiaz, S. Y., Khan, M. A.. and Shakir, M. 2015. Telecom sector of Pakistan: Potential, challenges and business opportunities. Telematics and Informatic. 32(2). 254-258.
Krasniqi, X.. and Hajrizi, E. 2016. Use of IoT technology to drive the automotive industry from connected to full autonomous vehicles. IFAC-PapersOnLine. 49(29). 269-274.
Lema, M. A. and et.al, 2017. Business case and technology analysis for 5G low latency applications. IEEE Access. 5. 5917-5935.
Maral, G., Bousquet, M.. and Sun, Z. 2020. Satellite communications systems: systems, techniques and technology. John Wiley & Sons.
Nandi, S. and et.al, 2016. Computing for rural empowerment: enabled by last-mile telecommunications. IEEE Communications Magazine. 54(6). 102-109.

Consultancy Report on Organizational Strategy: Vodafone

INTRODUCTION
Vodafone is the one of the UK largest telecom company. Currently, the firm is operating in multiple nations of the world. In the present research study, Porter Generic strategy and Bowman model is applied. Based on analysis varied strategies that can be adopted by the Vodafone in respect to AI are identified and one of them is picked. Strategy of automation of the task in terms of marketing is explained in detail in the report. At end of the report, conclusion section is prepared in the report.
Appropriate tools and frameworks
Porter Generic strategies
• Cost leadership: This strategy is commonly followed by the business firms and under this they try to reduce costs in the business. Telecom business firms like Vodafone bear the huge cost in their business. These expenses can be classified into category of capital expenditure and operating expenditure. Capital expenditure is a one-time expense, but operating expenditure is the expense that is made most frequently (Albu and Stanciu, 2015). Operating expenses include expenses like the cost of spectrum, hardware and software expenses, permission required for creating infra, rental, HR and marketing expenses, etc. These expenses are made on a large scale and due to heavy competition it becomes a hard task to create and retain customers in the business. Hence, it is very important for the Vodafone to cut down cost in its business so that sustainability can be maintained in the business profit. In this regard, it can use AI technology and can automate multiple operations. Due to automation of multiple operations firm will need less HR in the business which will lead to reduction in expenses in the business.
• Differentiation leadership: This is another important strategy because under this firms focus on differentiating their products and services. Often in cases of telecom companies it is observed that in some locations they SIM receive good signal and in some areas they SIM receive very poor signal (Nadimpalli,. 2017). Thus, providing better service in each geographic area where the firm is present is the one of the differentiation in terms of service in the telecom sector. In this regard, now a day’s few telecom companies are using AI based solutions. By using AI based technology firms are doing network optimization. Such kind of technology assists firms to optimize network quality to the maximum possible extent. By making use of AI based machine learning algorithms, business firms monitor performance of the equipments and comes in position where they can predict health of equipment and by taking steps immediately can provide interrupted service to the customers. AI assists in fixing hardware communication problem in respect to cell towers, power lines, data center servers, and even set-top boxes in customers’ homes (Russell, Dewey and Tegmark, 2015). Thus, by using AI based technology service quality can be improved to maximum possible extent and in terms of service firm can differentiate itself from rivals.
• Focus strategy: In this firm focus on specific markets and accordingly form a price reduction and service improvement strategy in the business. Telecom companies follow a focus strategy in their business. Under this strategy they focus on specific nation or specific geographic area and try to improve service quality by setting up infra or improving it. Thus, it can be said that focus strategy is very important for the business firms because it assist them to cover a specific geographic area in a proper manner. Vodafone is present in the multiple nations of the world and already it is following focusing strategy in its business (Makridakis, 2017). Under this strategy, many business firms develop SBU in their business which is also known as strategic business units. These units have their own management team and these teams look after entire business operations, whether it is related to product or services. Time to time, many changes is made in the business operations so that in each geographic area stability can be maintained in the business performance.

CONCLUSION
On the basis of the above discussion, it is concluded that Vodafone need to reduce costs in its business and need to differentiate itself from the rivals. Hence, in respect to this it can use AI technology. By using AI Vodafone can substantially reduce costs in the business and differentiate its operations from rivals in terms of infra maintenance and can become proactive in solving infra related issues. Out of all strategies, automated performance of task (Marketing) is selected for the Vodafone. This is because by using it firm can do marketing of its services and products in better way and can create customers at fast pace.

REFERENCES
Books and Journals
Albu, A.. and Stanciu, L., 2015. Benefits of using artificial intelligence in medical predictions. In 2015 E-Health and Bioengineering Conference (EHB) (pp. 1-4). IEEE.
Boukabara, S. A. and et.al., 2019. Leveraging modern artificial intelligence for remote sensing and NWP: Benefits and challenges. Bulletin of the American Meteorological Society. 100(12). ES473-ES491.
D’Alfonso, S. and et.al., 2017. Artificial intelligence-assisted online social therapy for youth mental health. Frontiers in psychology. 8. 796.
Gunning, D. 2017. Explainable artificial intelligence (xai). Defense Advanced Research Projects Agency (DARPA), nd Web. 2. 2.
Hassabis, D. and et.al., 2017. Neuroscience-inspired artificial intelligence. Neuron. 95(2). 245-258.
Kibria, M. G. and et.al, 2018. Big data analytics, machine learning, and artificial intelligence in next-generation wireless networks. IEEE access. 6. 32328-32338.
Kostopoulos, L. 2018. The emerging artificial intelligence wellness landscape: benefits and potential areas of ethical concern. Cal. WL Rev. 55. 235.
Lo, W. L. A. and et.al., 2018. The Perceived Benefits of an Artificial Intelligence–Embedded Mobile App Implementing Evidence-Based Guidelines for the Self-Management of Chronic Neck and Back Pain: Observational Study. JMIR mHealth and uHealth. 6(11). e198.
Lu, H. and et.al., 2018. Brain intelligence: go beyond artificial intelligence. Mobile Networks and Applications. 23(2). 368-375.
Makridakis, S. 2017. The forthcoming Artificial Intelligence (AI) revolution: Its impact on society and firms. Futures. 90. 46-60.
Nadimpalli, M. 2017. Artificial intelligence risks and benefits. International Journal of Innovative Research in Science, Engineering and Technology. 6(6).

BSS058-6 Strategy and Global Competitive Environment

INTRODUCTION
The banking industry is the one of the fastest growing industry in the UK. In the present research study, four plausible trends with respect to the banking industry are identified and out of these four one most plausible trends are finding out. Four plausible trends identified are analytics, mobile app, BI and IOT. Out of these three BI is selected. In the first section of the report, all these three plausible trends are discussed. In second section of the report, chosen plausible option is justified and its advantages are discussed. At end of the report, conclusion section is prepared.
Plausible scenarios
In current time period, pressure is seen in every business sector or industry. Due to poor global economic conditions and corona effect business firms are focusing on adoption of advanced technology so that accurate decisions can be taken in the business and cost can be reduced in the same. The banking sector is also facing lots of challenges in its business. With the passage of time many new banks open in the nation and large population is added to banking sector and due to this reason it become hard for banks now to create new customers and retain old one (De Meijer., 2016). Workforce also failed to deliver the desired results and due to receipt of fewer requests for debt banks find it difficult to bear high HR costs in the business. Adoption of digital technology assists firms to control HR cost and make effective use of HR in the business. Some of the plausible trends that will be seen on a large scale in banking sector in the upcoming years are given below.
• Analytics: In the current time period UK Government is also laying down emphasis on adoption of analytics in the business. The UK Government is also using analytics to make decisions (Maffey and et.al., 2015). By using analytics reports are prepared and customer segmentation is done by using cluster analysis technique. Customer segmentation assists banks to take accurate business decisions considering their spending behavior. By using analytics banks make predictions about their performance on multiple fronts like NPA, etc. Thus, by taking action on time firm can improve its condition in the near future and control elevation of the NPA in the business. By using prescriptive analytics banks identify steps they must take to improve their condition. Analytics also assist banks to detect fraud. Using analytics banks are able to predict customer behavior and find out suspicious spending patterns. On real time basis, the bank receives an alert (Harvey, 2016). There are a number of capital intensive industries where already analytics were adopted in large scale because it assists them to make more accurate decisions. With the passage of time many new technological developments are happening in the analytics domain and many new start ups comes into existence which are doing innovations in the technology (Raskin and Yermack, 2018). Hence, it can be said that in the upcoming time period technology development in respect to analytics domain will happen at fast pace.
• IOT: Currently, majority of banks did not adopt IOT in their business. Data related to customers that is available through IOT to the banks will assist financial institutions to find out their value chain like suppliers, retailers and distributors. Availability of customer’s info will assist banks to provide value added services, financial assistance and customized products which prove beneficial for banks and their customers both. By using IOT banks can predict fraud in debit and credit card transactions. By using IOT sensor device installed at borrower warehouse bank can identify inventory. By making use of tracked data bank can ensure that debt is paid when inventory is sold.


CONCLUSION
On the basis of the above discussion, it is concluded that UK banking industry going through a transition phase. Technology changes are happening in the firm business at a rapid pace. Three plausible trends are mobile apps, analytics and BI. Out of all these plausible trends BI is the best plausible trend out of both. This is because by using BI technology at more granular level decisions can be taken by the banks at their branch level and can steps to improve their business performance. Hence, it can be said that BI technology has great use for the banks.

REFERENCE
Books and Journals
Arts, K., van der Wal, R.. and Adams, W. M. 2015. Digital technology and the conservation of nature. Ambio. 44(4). 661-673.
Comunian, R., Faggian, A.. and Jewell, S. 2015. Digital technology and creative arts career patterns in the UK creative economy. Journal of education and work. 28(4). 346-368.
Cortet, M., Rijks, T.. and Nijland, S. 2016. PSD2: The digital transformation accelerator for banks. Journal of Payments Strategy & Systems. 10(1). 13-27.
Dapp, T.. and Slomka, L. 2015. Fintech reloaded–Traditional banks as digital ecosystems. Publication of the German original. 261-274.
De Meijer, C. R. 2016. The UK and Blockchain technology: A balanced approach. Journal of Payments Strategy & Systems. 9(4). 220-229.
Dow, S. 2019. Monetary Reform, Central Banks, and Digital Currencies. International Journal of Political Economy. 48(2). 153-173.
Harvey, D. 2016. Digital transformation in banks: The trials, opportunities and a guide to what is important. Journal of Digital Banking. 1(2). 136-145.
Hornuf, L. and et.al. 2020. How do banks interact with fintech startups?. Small Business Economics. 1-22.
Kazan, E. and et.al., 2018. Disentangling digital platform competition: The case of UK mobile payment platforms. Journal of Management Information Systems. 35(1). 180-219.
Kehoe, K.. and Mateer, J. 2015. The impact of digital technology on the distribution value chain model of independent feature films in the UK. International journal on media management. 17(2). 93-108.
Maffey, G. and et.al., 2015. Digital technology and human development: A charter for nature conservation. Ambio. 44(4). 527-537.
Parise, S., Guinan, P. J.. and Kafka, R. 2016. Solving the crisis of immediacy: How digital technology can transform the customer experience. Business Horizons. 59(4). 411-420.

BSS058-6 Strategy and Global Competitive Environment

EXECUTIVE SUMMARY
On application of Porter generic strategy model and Bowman model it is identified that Barclays Bank must focus on cost control in its business. In order to earn more profit mentioned bank need to curtail cost in the business. Barclays Bank needs to differentiate itself from rivals. In this regard, Bank can use BI technology in its business. As part of business strategy to be more competitive Barclays bank can use BI for optimizing marketing operations and improving performance of sales force. Out of all these strategic options (performance analytics, marketing) online marketing using BI tool as strategy is selected. This strategy is recommended because by implementing it Barclays Bank can create customers at fast pace in its business which will make it more competitive than before. It is recommended that as part of this strategy Barclays Bank must follow AIDA model in its business and must use BI tool to perform marketing efforts in better way.
INTRODUCTION
Barclays Bank is the British multinational investment bank and financial services company. The firm is engaged in investment banking, personal banking, corporate banking, wealth management and investment management. In terms of plausible trends BI is selected for the Barclays Bank because by using it bank can optimize its marketing and internal business operations. By using BI bank will monitor performance of its ad and extent to which its traffic is satisfied from its online consultancy service. In the present research study, porter generic strategy and Bowman model is applied to form a strategy for the Barclays Bank. Four strategies are developed and out of these specific one is chosen for the firm. Ways in which strategy can be implemented by the Barclays is explained in detail in the report. This section is divided into multiple parts like marketing phase and influencer marketing. At end of the report, conclusion section is prepared.
Background of industry
In the UK banking industry currently numbers of banks are present like Barclays, Lloyd Bank, HSBC, Royal Bank of Scotland etc. Industry is very competitive as banks time to time launch new attractive products. Retail banks and commercial banks earn majority of revenue by charging interest on loan (Amuakwa–Mensah and Boakye–Adjei, 2015). Noninterest income is also major source of income for banks in the UK. Demand of the home mortgage loans and other loans decreased significantly in the UK due to poor economic conditions.
Identification of potential market and segment
Barclay bank business structure can be classified into three parts namely investment banking, corporate banking and investment banking. These are main income segments for the bank. Barclays Bank is known all around the world for its corporate banking and investment banking services. Bank also needs to focus on retail segments because due to economic recession and short term jerks profitability in the corporate banking and investment banking decline sharply. Barclays bank is present in the number of nations of the world like UK, USA, India, Germany, Singapore, Hong Kong etc. UK, USA and India are one of the major markets where firm is doing business on large scale. In UK Barclay Bank observe turnover of £12,311 million and in USA Bank earn £7,486 million as well as in India Barclays bank earn turnover of £600 million. Thus, these three nations are potential markets and retail, corporate and investment banking is major segments.


CONCLUSION
On the basis of the above discussion, it is concluded that social media marketing is an effective tool for marketing of the product. By implementing specific strategy using BI technology Barclays Bank can receive multiple benefits in its business. Out of all marketing strategy is chosen because it will give results in the short term and will result in earning of more revenue in the business. NPA and sales force performance below expected level are the some of the problems that Barclays Bank is facing in its business. By using BI technology on time actions can be taken to handle problem. Thus, it can be said that there is huge significance of the BI technology for the Barclays Bank.

REFERENCES
Books and Journals
Allen, F. and et.al., 2015. Moral hazard and government guarantees in the banking industry. Journal of Financial Regulation. 1(1). 30-50.
Amuakwa–Mensah, F.. and Boakye–Adjei, A. 2015. Determinants of non–performing loans in Ghana banking industry. International Journal of Computational Economics and Econometrics. 5(1). 35-54.
Bi, K., Huang, P.. and Wang, X. 2016. Innovation performance and influencing factors of low-carbon technological innovation under the global value chain: A case of Chinese manufacturing industry. Technological Forecasting and Social Change. 111. 275-284.
Bi, K., Huang, P.. and Ye, H. 2015. Risk identification, evaluation and response of low-carbon technological innovation under the global value chain: A case of the Chinese manufacturing industry. Technological Forecasting and Social Change. 100. 238-248.
Coelho, V. N. and et.al., 2017. Generic Pareto local search metaheuristic for optimization of targeted offers in a bi-objective direct marketing campaign. Computers & Operations Research. 78. 578-587.
Dada, A. 2017. Adoption and acceptance of online banking: A comparative study of UK and Nigeria retail banks. In Promotional Strategies and New Service Opportunities in Emerging Economies (pp. 263-293). IGI Global.
De Meijer, C. R. 2016. The UK and Blockchain technology: A balanced approach. Journal of Payments Strategy & Systems. 9(4). 220-229.
Deysel, B.. and Kruger, J. 2015. The relationship between South African CEO compensation and company performance in the banking industry. Southern African Business Review. 19(1). 137-169.
Eriki, P. O.. and OSifo, O. 2015. Determinants of performance efficiency in Nigerian banking industry: A DEA Approach. International Journal of Economics, Commerce and Management. 3(2). 1-13.
Glynos, J., Klimecki, R.. and Willmott, H. 2015. Logics in policy and practice: A critical nodal analysis of the UK banking reform process. Critical Policy Studies. 9(4). 393-415.

Strategic Resourcing and Talent Management

TASK 1: INTRODUCTION
In the current time period HR Solutions are facing quality issues in the business. It is outsourcing call center support service to the Asian firm. From the past couple of time period Asian firm failed to make available quality of service to the HR solutions client and due to this reason firm lost its client. This is the one of the main concern of HR solutions. There are a number of benefits of consistent outsourcing of services to the Asian market. These benefits are explained below.
• Cost saving service: To Asian market cost of getting work done is quite low relative to the European and USA market. It can be observed that in these nations, there is higher unemployment rate and skilled labor is abundant. Hence, skilled labor is available at very cheaper cost. If same labor will be taken in European market then in that case’s firm will need to pay the higher amount (Caporale, and Abilov, 2017). The difference between amounts paid in the European and Asian market is quite high. Moreover, currency exchange rate difference is another factor that makes Asian labor cheaper for the firm that is headquartered in the Europe. Thus, the firm cannot take this factor lightly.
• Skilled and quality staff: In Asia with respect to each and every domain skilled and quality staff can be obtained. In Asia, specifically in India and China there is abundant skilled workforce. Thus, it can be said that Asia is the market where skilled labor is easily available at cheaper cost. In any business every company main aim is to keep sufficient HR at the workplace at low cost. HR expenses cover 30% of total business expenses on an average in any company (Rim, and Setaputra, 2018). In Asia firm have the opportunity to reduce the burden of HR expenses in the business. Thus, this is another reason due to which firm cannot think about leaving the Asia market.
• Latest technology and infrastructure: Latest technology and infrastructure is another factor due to which Asia market is the right choice for the firm. This is because when any service related project is carried out IT infrastructure need to be developed. In Asian countries there are large numbers of firms that are capable to develop IT infrastructure. Thus, it can be said that in the Asia cheaper and skilled labor is available and firms are capable to develop their own technological base to support HR solutions. Hence, on this front it can be said that everything that is needed to carry a project in the proper manner is available in the Asia (Tsukuda, Shimada, and Miyakoshi, 2017).
• Round the clock service: One of the most important characteristics of the Asian companies is that they provide 24*7 services to their clients. Hence, on demand required services are available at any time on any day of best quality. This is another reason due to which most of large and mid size companies prefer to outsource their tasks to the companies located in the Asia continent (Kim, and Kim, 2019).
• Results oriented service: Asian companies have well trained staff with years of experience and high quality of education. This is the reason due to which large multinational companies open their offices in nations like India and China.


TASK 4: Conclusion
On the basis of the above discussion, it is concluded that the Asian market is very lucrative and offer multiple benefits to the company. This is the reason due to which HR Solution cannot think about leaving the Asia market. If it will set business in Europe or keep in – house team then cost will certainly high. Firms must follow the appropriate resource strategy and selection process so as to ensure that company has talented employees in sufficient number. Along with this, varied factors must be evaluated that motivate employees to leave a job in the company. Organizational culture is the one of the major factor that plays crucial role in employee retention. If organization culture is not good, then in that case employees remain dissatisfied and ultimately they leave a job in a short time period. Thus, it can be said that time to time organization culture and other factors must be evaluated closely and corrective action must be taken so as to retain employees for long term in the company. A sufficient facility must be provided to the employees so that they do not face any sort of problem while doing the job. The focus must be on T&D projects and internal hiring. By doing so retention rate can be increased.

References
Arefi, M. and Ghaffari, N., 2020. Five Episodes of Urban Discovery as a Student Recruitment Strategy in Planning. Journal of Planning Education and Research, p.0739456X20903362.
Bernier, P.M., Whittingstall, K. and Grafton, S.T., 2017. Differential recruitment of parietal cortex during spatial and non-spatial reach planning. Frontiers in human neuroscience, 11, p.249.
Caporale, G.M. and Abilov, N., 2017. The Spillovers between the Russian and Other Asian and European Stock Markets A Multivariate GARCH-in-Mean Analysis.
Dahshan, M., Keshk, L. and Dorgham, L.S., 2018. Talent Management and Its Effect on Organization Performance among Nurses at Shebin El-Kom Hospitals. International Journal of Nursing. 5(2). pp.108-123.
Doneley, L., Jervis-Tracey, P. and Sim, C., 2018. Principal succession and recruitment: Trends and challenges. Leading and Managing. 24(1). p.59.
Gitonga, A.G., Kilika, J.M. and Obere, E., 2016. Generation Y Talent Management Strategy and Competitive Advantage: Case of Commercial Banks in Kenya. Journal of Human Resource Management. 4(2). pp.10-18.
Harris, T.B., and et.al., 2018. Advancing holistic review for faculty recruitment and advancement. Academic Medicine. 93(11). pp.1658-1662.
Kaplan, D.M., and et.al., 2018. Recruitment, selection and staffing. In Teaching Human Resource Management. Edward Elgar Publishing.
Kawana, S.K., and et.al., 2019. Warm Water Shifts Abalone Recruitment and Sea Urchin Diversity in Southern California: Implications for Climate-Ready Abalone Restoration Planning. Journal of Shellfish Research. 38(2). pp.475-484.
Kim, M.K. and Kim, D.W., 2019. Leading and lagging natural gas markets between Asia and Europe. OPEC Energy Review. 43(3). pp.383-395.
Latukha, M., 2016. Talent Management in Emerging Market Firms. Editor (s)(if applicable) and the Author (s).
Łukasiewicz, G., 2018. Decomposition of Talent Management Strategy. Human Resource Management/Zarzadzanie Zasobami Ludzkimi. 125(6).
Ngcobo, T., Martins, A. and Martins, I., 2019. Talent Management: Retaining Distinctive Human Capital Sustainably. In Forecasting and Managing Risk in the Health and Safety Sectors (pp. 145-174). IGI Global.
Picardi, C.A., 2019. Recruitment and Selection: Strategies for Workforce Planning & Assessment. SAGE Publications.
Rim, H. and Setaputra, R., 2018. June. Study on the Co-movement between Stock Markets in Asia, Europe and the North America. In Proceedings of International Academic Conferences (No. 6408852). International Institute of Social and Economic Sciences.
Tsukuda, Y., Shimada, J. and Miyakoshi, T., 2017. Bond market integration in East Asia: Multivariate GARCH with dynamic conditional correlations approach. International Review of Economics & Finance. 51. pp.193-213.
van Zyl, E.S., Mathafena, R.B. and Ras, J., 2017. The development of a talent management framework for the private sector. SA Journal of Human Resource Management. 15(1). pp.1-19.
Weil, A., 2018. Terrorist Celebrity: Online Personal Branding and Jihadist Recruitment and Planning.

STRATEGIC ANALYSIS OF STARBUCKS

Part 1- Business environment analysis
Introduction to Starbucks and competitive position
Starbucks is the largest coffee chain in the US market and it is known across the globe for preparing high quality of coffee for the customers. Starbucks was established in the year 1971 by three businessmen to sell high quality coffee beans in the market. In the year 1981 Howard Schultz decides to develop a strong company and expand the coffee business under name Starbucks. The mentioned company focused on consumer habits and accordingly serves coffee too them. This is the reason behind the company huge business success. Specialty coffee covers 50% of Starbucks revenue and 30% of total cups consumed on mentioned company premises. Currently, the company has more than 28000 stores across the globe. There are multiple products that company offered to the customers in its premises like varied variants of coffee, soft drinks, snacks and a few variants of Tea. This reflects that firm by considering multiple sorts of people is maintain its product portfolio (Garthwaite and et.al., 2017). Company earns revenue of $26,508 million and firm operating income is $4,077 million. Net income earned by the company is $3,594 million. Total assets in the business are $19,219 million.
There are many competitors of Starbucks in the coffee market and some of them are Mc Donald, Costa Coffee, Dunking Donuts and Luckin Coffee. Starbucks consistently focuses on specialty coffee and for this its target customers are high and middle income families. The firm is offering specialty coffee at higher prices then rivals. Relative to rival firm is also offering much better quality of coffee to the customers in its premises. The company has a strong network with local suppliers in different nations who grow coffee in a congenial environment (Susanty and Kenny, 2015). By using coffee beans purchased from them firm make available specialty coffee to the people. Other rivals also prepare specialty coffee, but they do not have a network in varied nations like Starbucks have. Starbucks is following product differentiation strategy and under this it consistently does an experiment. This assists firm to innovate its product line and remain ahead of rivals and also develop competitive advantage in its business. Rivals have limited product lines in the coffee market and due to this reason Starbucks is ahead of them.
Starbucks have a number of outlets and all of designed in a systematic way which make company premises good place to enjoy coffee and free time with friends. Firm highly supports trained staff, which interacts with the customers and provides them information about coffee beans taste (Vanharanta, Kantola and Seikola, 2015). Moreover, firm its own IT system which assists companies to improve its business constantly and offer more personalized products to the customers on its app on mobile. Majority of rivals are not making effective use of IT to capture coffee market. Thus, use of IT helps Starbucks to remain ahead of rivals.

Part 2 – Stakeholder Report
Priority group
Customers are the one of the main important stakeholder because of them firm is earning revenue in its business. Starbucks since its inception is focused on observing consumer behavior of the people and according to its company serve products to the customers. This is the main reason due to which firm has a loyal customer base in its business. Out of entire public firm give top priority to those who comes in higher income level category. This group of people majorly consumes specialty coffee in Starbucks chain. Today, specialty coffee covers 50% of total company revenue. Hence, due to this reason high income individuals are a high priority group for the Starbucks (Thompson, 2017). In terms of other demographic factors those who are above 20 to 40 are the target customers of the firm. Youngsters are also on top priority for the firm.
Employees and managers also come in the priority group of the business firm because efforts they make are the main reason behind company success. Managers analyze company’s business operations and if they identify any point where work is not done properly they immediately take action. Employees work with full efficiency and due to this reason they are able to serve customers in a better way. Starbucks top leadership also state many times that satisfied employees are the key of the company success.
Power influence and interest groups
Suppliers have an interest in the company because it is the Starbucks that make purchase of raw coffee beans from the local farmers or suppliers. Growth of the company business means more demand means more revenue for the farmers in their business. Thus, supplier’s interest in the company is heavy and Starbucks performance directly affects their economic condition. Investors and creditors have influence in the company (Mercera, 2015). This is because shareholders by making investment in the company become its owners and if they have higher stake then in that case they can control firm operations by participating in company meetings and influencing Starbucks board members’ decisions. On the other hand, creditors are another important stakeholder who have an interest in the company and also have influence sometimes when the firm failed to pay interest on time for them. Creditors have more interest and little influence on the company
Communication strategy
Starbucks communicates with its customers in multiple ways. Starbucks employees personal contact with the customers and they educate them about coffee beans and varied coffees that are in the menu. Starbucks time to time also advertises its brand and its launch many offers which are communicated to the individuals through social sites or through the premises by placing boards. In this way firm do effective communication with the customers who are company important stakeholders. The company communicates with its stakeholders through its annual general meeting where it in detail describes varied things to them. Apart from this, if any stakeholder likes creditor or large size investor has any query they easily hold a meeting with the company top leadership. Hence, it can be said that Starbucks is following the appropriate communication strategy in its business.

REFERENCE
Books and journals
Atzori, R., Shapoval, V.. and Murphy, K. S. 2018. Measuring Generation Y consumers’ perceptions of green practices at Starbucks: An IPA analysis. Journal of foodservice business research. 21(1). 1-21.
Bangcuyo, R. G. and et.al., 2015. The use of immersive technologies to improve consumer testing: The role of ecological validity, context and engagement in evaluating coffee. Food Quality and Preference. 41. 84-95.
Berger, K. A. and Blake, L. J., 2016. Starbucks Enters India: The Indomitable Competitor or Underdog?. Journal of Case Studies. 34(2). 75-91.
Burdan, F. 2015. Caffeine in Coffee. In Coffee in health and disease prevention (pp. 201-207). Academic Press.
Campbell, K.. and Helleloid, D. 2016. Starbucks: Social responsibility and tax avoidance. Journal of Accounting Education, 37, 38-60.
Dorn, M., Messner, C.. and Wänke, M. 2016. Partitioning the choice task makes Starbucks coffee taste better. Journal of Marketing Behavior. 1(3-4). 363-384.
Garthwaite, C. and et.al., 2017. Starbucks: A story of growth. Kellogg School of Management Cases.
Haskova, K. 2015. Starbucks Marketing Analysis. CRIS-Bulletin of the Centre for Research and Interdisciplinary Study. 2015(1). 11-29.
Jo, A.. and Kim, H. S. 2017. A comparison of Starbucks between South Korea and USA through big data analysis. Culinary science and hospitality research. 23(8). 195-205.
Karman, M. A. 2015. The impact of social media marketing on brand equity toward the purchase intention of Starbucks Indonesia. iBuss Management. 3(2).

Global Management Strategy: Aldi

INTRODUCTION
Aldi is the German retail company that is operating in multiple nations of the world. In the present research study, deep research on the firm is done. In the research report, reasons due to which Aldi intend to do international expansion are explained in detail. In this regard, the economic factor, competition and profit factor in respect to Aldi are analyzed deeply. Apart from this, in the report possible strategic choices that are available to the company are also explained in detail (Kurnia, and et.al., 2015). By using Porter diamond model strategic choice of Nigeria and India is evaluated in a proper manner. India is selected as a strategic choice considering multiple factors and then its business environment analysis is done. Apart from this, probable marketing mix is also developed. Market entry options are explained in the report and the best one is selected for the Aldi. Further, organizational and managerial problem is also explained and solutions are recommended. In this way, entire research work is carried out.
Reasons for parent company international expansion
• Economic factor: Aldi intend to expand its business in the international market like India because it is growing economically. Aldi mainly operates in the European nations and condition of these nations is not good in terms of economy. European retail sales on an annual basis only grew by 2.2%. By expanding business to India firm can create an opportunity for it. India GDP growth rate is 3.1%, which is low, but its fundamentals are strong and it has potential to recover the growth rate of 7%. Moreover, Indian middle class people spend more now than before as economically this group becomes wealthier (Filimonau, and Gherbin, 2017). This makes Indian market lucrative. Retail sector in the India grows at an exponential rate on year on year and due to this reason, to capitalized opportunity Aldi intend to expand into international markets.
• Limited opportunity in domestic market or markets in which firm is already present: Aldi is operating in the multiple nations, but in those nations, there is limited opportunity to grow business as already multiple players are present there. Firm in these nations like the UK is in competitive position, but facing problems in elevating its growth rate. Aldi give tough competition to the Tesco, Morrison etc. Aldi is struggling to earn the target amount of profit in the business there and in respect to elevating market share in many markets. Thus, it becomes very important for the firm to find out new markets where ample opportunity is available in respect to business expansion.
• Gain competitive advantage: Rivals of the Aldi like Tesco, Lidl etc are also exploring new markets to create opportunity for themselves. By moving into new market before rivals like in the Indian or Nigeria market, Aldi will get first mover advantage in the business (Nguimkeu, 2016). Such kind of early step will give Aldi competitive advantage over its rivals.
• Currency difference: There is a huge currency value difference between Euro and INR, Euro and Nigerian Naira. When any company operates in the foreign market whose current value is lower then in that case when it bring back profit at its homeland profit value get increased in the domestic currency. Thus, it can be said that it is another reason due to which Aldi intend to expand its business in the international market.
• Improve profit: Aldi is struggling to achieve determined profit growth rate in the business. Like in the year 2018 Aldi sales grew, but profit decline. In the year 2019 also Aldi observe addition of £1.1 billion in its revenue, but its profit declined by 20%. Such kind of consistent negative or low growth rate in profit is the motivating factor for the Aldi to expand its business in the international market (Jere, Jere, and Aspeling, 2015). By expanding into the market where competition is less or retail industry grow at a rapid pace, firm can earn a large amount of profit in its business. There is less competition in the Indian market as it can be observed that in the Indian market organized retail has only 6% share. Thus, there are ample opportunities in the Indian market. However, in Nigeria there are multiple rival firms, but industry grows at 10% which make it lucrative market. By offering discount and offering more products under a single roof Aldi can earn huge profits in the Indian or Nigeria market. Currently, there is no retail chain in the Indian market that is known for offering an appropriate discount on the products. By starting a business in the India firm will get first mover advantage in the Indian market.

CONCLUSION
On the basis of the above discussion it is concluded that there are a number of reasons due to which Aldi intend to expand its business operations. Cut throat competition and low profit are one of them. Apart from this, less economic growth rate of EU nations is another main reason. Market conditions and external environment as well five forces are in favor of the Aldi and due to this reason firm must commence business operations in the Indian market. Indian Government is preparing business friendly policies and also reduce tax rate which will give boost to demand in the market. Moreover, the Indian retail organized sector is very small in size and due to this reason by entering into the Indian market Aldi will get first mover advantage. Currently, there is less competition in the Indian market and due to this reason, if Aldi comes today in the market it will be able to easily capture market and easily elevate market share in the industry. Aldi follow a low cost strategy in its business and its strategy is according to the value system of the Indians. This is the reason due to which Aldi will achieve huge success in the Indian market. Currently, in Indian market, there is no cut throat competition like seen in the UK and Aldi by offering low price product can gain significant share in the market. Focus will also need to be paid on subsidiary management and under this varied steps must be taken.

REFERENCE
Books and Journals
Anlesinya, A., Eshun, P.. and Bonuedi, A. A. 2015. Entrepreneurial orientation dimensions and profitability nexus: evidence from micro enterprises in the retail sector in a developing country. International Journal of Small Business and Entrepreneurship Research. 3(7). 79-87.
Atulkar, S.. and Kesari, B. 2018. A review on art of creating values in retail for improving business performance. Journal of Business Administration Research. 7(1). 22.
Caritte, V., Acha, S.. and Shah, N. 2015. Enhancing corporate environmental performance through reporting and roadmaps. Business Strategy and the Environment. 24(5). 289-308.
Cheah, S., Ho, Y. P.. and Li, S. 2018. Business model innovation for sustainable performance in retail and hospitality industries. Sustainability. 10(11). 3952.
Dixon-O’Mara, C.. and Ryan, L. 2018. Energy efficiency in the food retail sector: barriers, drivers and acceptable policies. Energy Efficiency. 11(2). 445-464.
Fernandez, A. I. and et.al., 2018. Distinctive competencies and competency-based management in regulated sectors: A methodological proposal applied to the pharmaceutical retail sector in Spain. Journal of Retailing and Consumer Services. 42. 29-36.
Fernie, J.. and Sparks, L., 2018. Logistics and retail management: emerging issues and new challenges in the retail supply chain. Kogan page publishers.
Ferracuti, N. and et.al., 2019. A business application of RTLS technology in Intelligent Retail Environment: Defining the shopper’s preferred path and its segmentation. Journal of Retailing and Consumer Services. 47. 184-194.
Ferreira, A. and et.al., 2019. Decarbonizing strategies of the retail sector following the Paris Agreement. Energy Policy. 135. 110999.
Filimonau, V.. and Gherbin, A. 2017. An exploratory study of food waste management practices in the UK grocery retail sector. Journal of Cleaner Production. 167. 1184-1194.
Govinnage, D. Y.. and Sachitra, K. M. V. 2019. Factors affecting e-commerce adoption of small and medium enterprises in Sri Lanka: Evidence from retail sector. Asian Journal of Advanced Research and Reports. 1-10.
Hartmann, M., Klink, J.. and Simons, J. 2015. Cause related marketing in the German retail sector: Exploring the role of consumers’ trust. Food Policy. 52. 108-114.
Janda, K. B. and et.l., 2016. The evolution of green leases: towards inter-organizational environmental governance. Building Research & Information. 44(5-6). 660-674.

Starbuck’s Business Strategy Report

Part 1 – Starbucks Business Report
Introduction to Starbucks and its competitive position
Starbucks is one of the American coffee and a leading coffee house chain that have over 30,000 locations in different parts of the world (Profile of Starbucks, 2018). It is one of the leading brands in terms of providing quality of coffee that is made on lighter toast. In addition, the business used advanced technological machines to deliver quick services to millions of customers (Schultz, 2012). It products mainly include hot and cold beverages, tea products, juices, snacks and other evening drinks such as beer, wines, etc (About Starbucks, 2018).
In terms of competitive advantage it is leading in terms of providing quality services and offering differentiated products. In addition, it aims to deliver effective customer experience through the well designed stores with offering good ambience and support of well trained staff. Starbucks operate with estimated revenue of $25 billion in 2018 (Profile of Starbucks, 2018). Also, it has support of around 291,000 employees. It also markets its products and licenses its trademarks through portfolio brands such as Teavana, Best coffee, Starbucks, etc. This has led to enhance the brand value in the current competitive market (Elliott, 2014). The key competitors of Starbucks mainly include Costa coffee, Barista coffee, Tullys, etc. According to the CNBC report 2018, Starbucks generated record third quarter revenue and profits because of increase in the spending of the customers. The coffee chain is being focussed to boost its sales through loyalty programme (CNBC report, 2018).
Starbucks also have corporate responsibility in terms of managing profitability along with social conscience. Personal relationships are being formed to build a global network and adopting appropriate method of producing coffee (Table, 2014). The new methods would be sustainable, transparent and effective for the planet. In addition, Starbucks follows the legal policies and procedures concerned with employment. Starbucks is effectively dedicated to work effectively with the partners by paying equity and investing in the success. Starbucks has always maintained the competitive advantage by being the leader in product innovation. It promotes brand name and also cares about health conscious consumers (About Starbucks, 2018).
Starbucks have become exclusive owner of the quality beans that provides a massive competitive advantage. Also it has maintained clear relationships with its partners in terms of having clear tradeoffs and believes treating partners with dignity and respect (Schultz, 2012). In addition, clear plans and policies for the future enable Starbucks to achieve sustainability in near future. From the below image it can be assessed that Starbucks have stronger operations in terms of store sales and excessive revenues is generated from different countries (Alex Eule, 2017). Though, it faces some of the fluctuations in sales and revenue but have strong brand positioning in the market that enables to sustain on the competitive edge.


Communication strategy
For having effective communication with the stakeholders, it is necessary for Starbucks to focus on regular advertising and promotion strategies that will attract consumers towards stores. In addition, employees must be effectively trained to offer politeness and quality service to the customers and meet with their timely needs. Moreover, regular Thank you can be sent to the current customers for visiting the store. Also emails and messages can be sent to the customers regarding any of the festive or seasonal or any other menu discounts (Taecharungroj, 2017).

References
Books and Journals
Aakhus, M. and Bzdak, M., 2015. Stakeholder engagement as communication design practice. Journal of Public Affairs, 15(2), pp.188-200.
Abdel-Basset, M., Mohamed, M. and Smarandache, F., 2018. An extension of neutrosophic AHP–SWOT analysis for strategic planning and decision-making. Symmetry, 10(4), p.116.
Banks, M.A., Vera, D., Pathak, S. and Ballard, K., 2016. Stakeholder management as a source of competitive advantage. Organizational dynamics, 45(1), pp.18-27.
Bressler, M.S., 2012. How small businesses master the art of competition through superior competitive advantage. Journal of Management and Marketing Research, 11(1), pp.1-12.
Brooks, B.W., 2012. Starbucks: maintaining a clear position. Journal of the International Academy for Case Studies, 18(3), p.39.
Duke, D., 2018. Porter’s Five Forces and the Coffee Industry. Management Teaching Review, 3(3), pp.241-251.
Elliott, C., 2014. Consuming caffeine: The discourse of Starbucks and coffee. In Brands (pp. 356-367). Routledge.
Frynas, J.G., 2015. Strategic CSR, value creation and competitive advantage. The Routledge companion to non-market strategy, pp.245-262.
Garthwaite, C., Busse, M., Brown, J. and Merkley, G., 2017. Starbucks: A story of growth. Kellogg School of Management Cases, pp.1-20.

Starbuck’s Business Strategy Report

Part 1 – Starbucks Business Report
Introduction to Starbucks and its competitive position
Starbucks profile
Starbucks is the leading profile that is serving quality coffee and other snacks premium prices. The business was founded in year 1971 and with observing ups and downs the business is on the competitive position with having more than 28,000 stores in worldwide locations. The main products of Starbucks mainly include coffee, espresso caffe, cold drinks, limited snacks and other tea products (About Starbucks, 2018). And also some of the offerings by Starbucks are seasonal. Starbucks also have competitive advantage in terms of offering pleasant and comfortable appearance at stores that attracts millions of customers. In 2018, it operates with effective revenues of US $24.71 billion and has large pool of employees of around 290,000 (Profile of Starbucks, 2018). Starbucks keeps its brand value, quality and its goodwill on the stake. For this, it provides effective services and convenience to customers by offering timely delivery.
Vision of Starbucks is based on not only serving the excellent coffee but engage customers at an emotional level. For this it also offers value added services in the form of Wi-Fi, working environment, pleasant evening experience, soft music environment, etc. In addition, Starbucks have relevant responsibility towards maintaining community relations and working for the social purpose (Geereddy, 2013). Also have effective application of block chain technology; Starbucks is able to maintain its operative functions and also mobile applications offer relevant discounts to the customers.
Competitive position
The top competitors of Starbucks mainly include Dunkin Donuts, Mc Donald’s Mc cafe, Cost Coffee, Luckin Coffee, etc. Starbucks have currently positioned itself on providing high experience and generally offers premium prices by targeting rich class customers. Starbucks offers the finest and quality coffees that attract customers (Competitive advantage of Starbucks, 2018). Starbucks generally apply the strategy of differentiation that is based on delivering unique and valuable products. The customer is attracted through well designed stores, good ambience and has support of well trained staff. With following the differentiation strategy of premium and coffee drinking adds to key competitive advantage. In 2018, Starbucks is also listed among the best places to work as it provides such environment (Jones and Robinson, 2012).

Communication strategy
Starbucks generally communicate with the customers with having the well trained and qualified staff that provide necessary information about the coffee menu. Also according to expectation and needs of the customers and accordingly products are offered. Starbucks communication strategy applies through advertising, launch offers, sales promotion and also it maintains public relations and expenditure. These act as the sources to mainly attract customers. Starbucks mainly appeal to customers with hip and contemporary design and its advertising and decor. It provides the new taste of coffee to the customers and also maintains consistency in decor and layout. IT also maintains effective connections with customers through the use of social media and official website (Taecharungroj, 2017). It maintains effective consistency in maintaining its regular presence by posting photos and videos and also website is updated regularly to provide reliable service to the customers.

References
Books and Journals
Alderman, L., 2012. In Europe, Starbucks adjusts to a café culture. New York Times.
Brooks, B.W., 2012. Starbucks: maintaining a clear position. Journal of the International Academy for Case Studies, 18(3), p.39.
Garthwaite, C., Busse, M., Brown, J. and Merkley, G., 2017. Starbucks: A story of growth. Kellogg School of Management Cases, pp.1-20.
Geereddy, N., 2013. Strategic analysis of Starbucks corporation. Harward [Електронний ресурс].–Режим доступу: http://scholar. harvard. edu/files/nithingeereddy/files/starbucks_ case_analysis. pdf.
Gong, Y., 2013. Rationale Behind Operational Globalization. In Global Operations Strategy (pp. 69-98). Springer, Berlin, Heidelberg.
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STARBUCKS FAILURE IN AUSTRALIA

EXECUTIVE SUMMARY
Starbucks case is analyzed in the current report in respect to its failure in the Australia market. There were number of reasons behind failure of the firm like high price, poor quality, not changing product line according to taste of the people, inexperience staff. Difference in culture of US and AU was another main reason behind failure of the firm in the AU market.

INTRODUCTION
Case study of Starbucks is taken into account which failed into the Australia. The firm failed to make available product according to a value system, culture and taste of the people and due to this reason face heavy loss in Australia. Starbucks is a US based company and it failed in overseas market and due to this reason case study considered for MASB module. Main issues identified in the case study are that firm believes that it is US based brand and due to this reason will easily get acceptance in AU. The firm failed to do accurate market research follow the same business model in AU which it follows in the US. Starbucks does not take into consideration that there is already well developed café culture in AU and the industry is at saturation stage. Firm underestimates loyalty of people towards local brand. This research study will assist in understanding role that any nation, culture play in making a product successful or failed in the overseas market.
Main body
Starbucks is the one of the largest coffee chain across the world. It is basically a US based company. Currently, the firm is operating in a number of the nations of the world and it achieves huge success in the overseas market. However, the firm failed in Australia (Honack and Waikar, 2017). Case study of Starbucks is chosen for the research because Starbucks is one of the most well known brand names known for making available quality of specialty and varieties of coffee to the people. Even though firm provides customers value for money service, then also it failed in overseas market Australia. This is the reason due to which case of “Failure of Starbucks in Australia” is taken for MASB (Managing across international borders). There are a number of reasons due to which firm failed in the Australia market.
Lovelock and Patterson, (2015) state that one of the main reasons behind company failure is that it does not adapt itself according to market conditions. In July 2000 Starbucks opened its first café in Australia in Sydney. By year 2008 firm had 87 stores in the Australia. Major mistake that Starbucks made is that it assumes that its business model will work in every business environment. Due to this reason firm does not make changes in its business model. Opposite to this, Nan and Li, (2017) state that Mc Donald when enter into the Indian market it come up with a menu tailored according to taste of Indian consumers and achieve huge success in the market. It is well known fact that no matter how much well established brand name is. If product firm offer is not according to the people value system firm will fail in the market.

CONCLUSION
On the basis of the above discussion, it is concluded that Starbucks makes several mistakes in the Australian market. First of all it does not change its product portfolio and serve items that it usually serves in the US to Aussies at their home country. The product was not according on people taste and due to this reason firm failed in the Australian market. Moreover, the price was high and there was already café culture in AU and people do not feel that need to pay more for Starbucks coffee as they do not feel value for money. For Aussies coffee is not produced, it is medium of sharing time with friends and relatives. Hence, they prefer to get quality coffee at a reasonable price which Starbucks was not able to give to the customers in its premises. Overall, it can be said that product and pricing strategy of Starbucks was against people value system and culture which is identified based on Hofstede framework where the score for power distance is 38 and indulgence is 71 and due to this reason firm failed in AU.
Recommendation
Based on literature review some of recommendations are given below.
• Slow elevation in branches: Starbucks must increase its business at a slow pace in the Australian market and must do in depth market research. This can be considered as cautious approach in the business. Even if the elevation in sales is observed at a faster rate then also for few years’ business must be expanded at a slow pace. This is because brand loyalty of Aussies towards the local brand is high.
• Experienced staff: This is one of the main areas where Aussies criticize too much at Starbucks. Mentioned firm must change its workforce and hire experienced employees that have years of experience in preparing coffee and dealing with customers. Such kind of employees can give valuable suggestions to the firm regarding changes that need to made in the product line. By making changes according to inputs received from the employing firm can improve its performance in the Australian market.
• Innovate product line according to taste: Starbucks needs to correct its mistake and it needs to innovate its product lines according to the taste of people. Currently, Aussies prefer to drink Espresso but Starbucks can still offer other variety of coffee to the people, but need to make sure that the product line is innovated (Leeming, 2015). By doing so it can be ensured that the products of the firm will be acceptable to the people.
• One or two stores in single city: Starbucks must open its one or two stores within the city so as to develop distinct image among the people that its products are not readily available and possess required quality. Same strategy Mc Donald follows in its business in many nations and it also achieves huge success in those countries.
• Changing layout of café: Starbucks must change the layout of its café and it must open café at locations where on roof café can be served to the individuals. Café of Starbucks has heavy lighting and environment is developed in such a ways that one fell to behave in a professional way. If there will be open space individuals will feel good in natural environment and will enjoy coffee.


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