Analyzing And Assessing The Regional Markets And Identifying The Changes The Company Can Bring In The Region. Essay Sample

The case study’s purpose is to analyze a global agricultural implement company, to help identify the changes they can make so as to move forward. The case analysis will facilitate and assist in regional market integration. The problem that exists is the lack of a leadership position in any specific regional market. The problem puts the company in high risks. The global agricultural implement company risks losing their market to another company that has leaders present in the regional market. That is because, unlike global agricultural company leaders, the other leaders are aware of the vision of the company and articulate it to the organization. Therefore, they satisfy the needs of the consumers regionally and globally. In turn, this will create stiff competitive in the regional markets. Due to the lack of regional leaders, the global agricultural company may not keep up with the existing competition leading to a decline in sales and profitability. The case analysis intends to give recommendations that will transform the global agricultural company into a new, improved, and competitive entity by:

Identifying the key areas for the regional integration that the company can focus on to drive the real change.

Thus, blue sky analysis will develop ideas on the leadership integration process which can be implemented to improve the regional malaise that is due to the company’s stagnation in regional governance.
Serious blue sky analysis brings about interesting proposals on how to drive improvement on the regional market and the vital roles that can be played by different stakeholders in achieving a more effective regional integration. The executive team needs to try out ideas to deal with problems existing due to lack of leadership. These problems comprise of the weakening of the regional industries, climate changes, and governance challenges and can only get solved by addressing regional markets. The inability to decisively, coherently and immediately act regionally could be the beginning of the degeneration of the global agricultural company. The executive is implementing these decisions because it recognizes that the global economic world has changed, and regional integration is taking place at different levels. The integration process is very critical since it will set a new path for the regional companies to develop. Such an opportunity may not be there later.
The company should consider offering the positions of regional leaders to people with gravitas and vision, and who can command respect from other regional leaders in that sector and the wider region. They can empower those leaders to undertake a wide-ranging review of the regional commitments the company should have in every region. The company can also give legal space to drive implementations of decisions agreed by regional leaders. Another key recommendation is to seek to solve the tension between global sovereignty and regional autonomy by taking some courageous, small, experimental steps. These ideas will be of greater value to the company because they will harmonize policies and regulations to make a regional project by the regional leaders feasible and attractive to private participation. The strategies will also establish an agreement to appreciate the importance of regional infrastructure projects and also the responsibilities that they require for all stakeholders.

Risks Involved With the Current Problem

Lack of competitive advantage
A competitive advantage is a plus that a firm has over its competitors allowing them to produce greater sales and maintain more customers than its rivals. Lack of regional integration in the global agricultural company gives a competitive advantage to its rivals and the capability to create better value for their firms.

Lack of customer satisfaction

Customer service is a crucial but often ignored aspect of business that is swiftly becoming a competitive requirement for competitiveness. Customer satisfaction nurtures and retains the distinctive opportunities that each customer presents. Due to lack of regional integration, the company will face the following financial risks:
Customer relationship management fragments. Lack of knowledge on the regional market on how to relate to customers in the region frustrates and embarrasses the customer and the company. The inability of the company to meet the demand in the markets due to lack of regional market demands frustrates the consumers. Regional integration will lead to competition and consumer satisfaction.

Financial loss

It is another risk that can occur because no one is managing the company’s regional investments or assessing the right investment to make.

Gains the Company Incurs After Regional Integration

It will improve profitability
A company can increase its profit by minimizing the input while maximizing the output, integrating new technological methods in the company, and re-engineering the company systems. The company can also solve problems that arise instantly, motivate the workers or employees, and make the right investments.

Increase in sales, market share, and investments

Increase in sales means that the company will operate on profit. The company will be consistent with the regional and the global mission or strategy. The company will maintain customer satisfaction and corporate image.

Strategies Considered In the Decision Process

The executive considered the objectives of the company because any decision process is expected to meet the objectives of a company. The decision to be made is expected to carry with it the mission of the company. Level of competition is a deterministic factor in decision-making (Albright, Winston, & Zappe). The global agricultural company did not have a competitive advantage in the region. The Executive also considered the economic stability of the region. If the region is stable economically, the Executive will implement ideas. Income on investment is one of the most obvious factors that influence decisions because it has an effect on profitability. Many organizations have formalized policies and procedures that have been developed to resolve common problems and to guide managers when making decisions. The executive considered the policies and regulations. Organizational politics influences the decision-making; who to send to the regional market. Organizational politics refers to behavior displayed by individuals and groups, which are designed to influence others. Environmental issues like the market in which the regional organization operates, the economy, government legislation, customers’ reaction to the organization’s products and services affect the decision process.

Strategies They Could Have Considered

They could assess how other companies operate in the regional markets and implement their strategies in a more modified manner. The economy of scale, expanding in the regional markets expands the economies of scale. Assessing the financial risks and costs. The executive could have also considered the following questions. Will other competitors expand, in the same way? Will regional integration bring profits to the company?

References

Albright, S. C., Winston, W. L., & Zappe, C. J. (2011). Data analysis and decision-making. Mason, Ohio: South-Western/Cengage Learning.