Critical And Nuanced Implications To Guide International Expansion Location Selection

Operations Location

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Kind Kones Country Selection

Global Clusters

South America

Near East

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South Asian

East Europe

Latin Europe

Nordic

African

Oceania

Far East

Confucian

High Quality of Life (GDP)

Colombia

Qatar

Indonesia

Mauritius

New Zealand

Taiwan

Low level of difficulty to enter the market

Qatar

Mauritius

New Zealand

Criminal Rate

Qatar

Indonesia

Low Aging Population

Indonesia

Mauritius

Taiwan

Environmental Condition

Mauritius

New Zealand

Availability of Resources

Qatar

Indonesia

New Zealand

Ice Cream Consumption

New Zealand

Location Selection

Table 1: Factors of Global Cluster

Comparison Tools countries

 

https://www.heritage.org/index/ranking/

 

Economic Freedom

 

https://rcii.gsu.edu/

Robinson Country Risk Index

 

https://www.doingbusiness.org/en/rankings

 

Ease of Doing Business

Colombia

68.9% (#42)

486 (#73)

#59

Indonesia

64.2% (#69)

505 (#65)

#72

Mauritius

75.1% (#21)

651 (#40)

#64

New Zealand

84.2% (#3)

935 (#11)

#1

Qatar

72.6% (#29)

763 (#30)

#83

Taiwan

76.6% (#13)

563 (#51)

#15

Table 2: Factors for business sustainability

Distance

Mauritius

New Zealand

Qatar

Taiwan

Cultural

Administrative

Geographic

Economic

Total

Table 3: Cultural, administrative, geographic and Economical norms

(Source: Self-Made) 

According to Zhu and Chung (2014), people in Taiwan have traditional values based on Confucian ethics; nonetheless, pressure particularly from industrialization are now challenging these values but some traditional values still remain the same with the inclusion of piety towards the parents. On the other side, New Zealand have unique as well as dynamic culture and the culture is of its indigenous Maori people affect language, arts and accents of all New Zealanders (Paton et al., 2014).  Conversely, when it comes to geography, it has been identified that Mauritius remains as the second largest island that belongs to a groups of islands Mascarenes as called in French and this island is natural enough to attract the attention of tourists and visitors (Sawmy & Damar-Ladkoo 2015).

On the contrary, Qatar is occupying a small desert peninsula which extends northward from larger Arabian Peninsula. Notwithstanding, when it comes to geographic facts, it is identified the climate of Qatar is a significant barrier as the climate is hot and human from June to September with daytime temperature around 50 degree Celsius (Benmamoun et al. 2016). In addition, Qatar’s economic freedom scores 72.5, which makes the economy 29th freest in 2018 but the overall score has decreased by 0.5%. Similarly, when it comes to economic condition, Mauritius economic freedom scores 75.1, which makes economy 21st freest in 2018. Svirydzenka and Petri (2017) mentioned that solid economic policies as well as prudent banking practices in Mauritius helped business to deal with global business crisis.

Hence, table 3 indicates that when it comes to culture, both Mauritius and Taiwan are quite similar in nature as both the nations are favourable towards of small size and scarcity of natural resources. People in both Mauritius and Taiwan are quite social, friendly and this could eventually prevails with visitors as well as locals. Nonetheless, table 3 also indicates that Mauritius and Qatar are totally different than other four nations in terms of culture, administrative, geographic and economic. This means Mauritius’s, for example, economic state is different from New Zealand, Qatar and Taiwan.

Resources Availability

         

Economic Resources

Skilled Human Resources

Technical Resources

Raw materials such as milk, vegetables, coffee beans, sugar, fruits, etc

Ranking

Table 4A: Resources Availability [Green= Attractive, Yellow= Neutral, Red= Unattractive]

(Source: Self-Made)

Competitiveness of the resources

Resources

Taiwan

Mauritius

New Zealand

Qatar

Competitiveness [Green=Offensive, Yellow=Equal and Red=Defensive]

Economic Resources

Skilled Human Resources

Technical Resources

Raw materials such as milk, vegetables, coffee beans, sugar, fruits, etc

Table 4: Competitiveness of the resources

(Source: Self-Made)

The above presented tables help to observe that Mauritius and New Zealand are eligible for the expansion of Kind Kones. It has been identified that New Zealand in the recent time have made a significant development in technology. For example, the advancement in wave technology such as omnipresent mobile access, which is giving business both new opportunities as well as disruptive challenges. The government of NZ welcomes the advancement of AI and internet technology. Such developed platforms create vast potential for the businesses to understand as well as observe their performance along with the environments in which they operate. On the other side, Mauritius, when it comes to resources, is always leading ahead, as the nation has paid a significant attention to its freshwater, resources, natural resources, land resources and technology. For example, Bah and Fang (2015) mentioned about a significant plan for “Development of the Water Resources in Mauritius” which was developed in the nation in 2012 with the eventual objectives to satisfy water demand in several ways. Therefore, on the basis of the resource availability, it is worth mentioning that both New Zealand and Mauritius are well researched options for the business expansion of Kind Kones.

Global Clusters

New Zealand’s political as well as economic stability delivers a safe environment for investors and businesses. As put forward by Hong, Oxley, McCann and Le (2016), the nation consistently remains in the top for its governmental transparency, democratic insinuation as well as limited range of corruption. NZ is a parliamentary democracy as well as constitutional monarchy with Queen Elizabeth. However, Paton et al., (2014) argued that New Zealand tend to share legal, political as well as cultural heritages with Britain.  So the judicial system is particularly established on English law principles and particularly independent of the legislature. Nonetheless, when it comes to benefits from the political perspectives, it is worth stating that Mauritius benefit from the political vision as well as economic development strategy which is skilfully implemented by its founder and first Prime Minister.  Musara and Gwaindepi (2014) particularly mentioned that Mauritius is recognizing its development approach with the new challenge of trading without the safety of bilateral commercial preferential agreements.

 It is identified that Mauritius has variously been described to the world as the pearl of Indian Ocean and African Tiger because of its uniqueness as an island economy (Svirydzenka, & Petri, 2017). Mauritius remains as the oldest democracies in Africa and it is a multi-cultural society widely observed for its socio-political stability as well as for peaceful co-existence of its several religious as well as ethnic groups.  Nonetheless, even though the political dominance is quite similar in both the nations but due to the consistent political stability of New Zealand, Labour Party in New Zealand is led by Andrew little which is dominant over the corporate and business sector in the nation. Conversely, when it comes to dominance of political power, it has been identified that governmental system in New Zealand is based on a Westminster model with a clear separation of powers between the executives, parliament as well as judiciary. Nonetheless, it is worth stating that New Zealand would be a convenient option for business from the political perspective as opposition parties are always in favour of new business development in the nation.

Diplomacy planning assessment

In the view of foreign policy stance, the country New Zealand has developed a set of strategic objectives along with nation’s strategic intentions which are reflected on Ministry’s new strategic framework. The objectives are adjusted to articulate more clearly the value of Ministry delivers to citizenship of New Zealand. The country has developed a ten year planning horizon for its goals and results as the most appropriate timeframe for the influence the nation is planning to achieve. The Ministry of Foreign Affairs of New Zealand create a goal particularly focused on its international Relationship.  On the other side, Madichie (2015) mentioned that Mauritius foreign policy is particularly driven by trade and a commitment to democracy. On the basis of British and French political heritage, the nation has always maintained a close ties with the European Union Members and western nations in general. It is further identified that much of nation’s foreign policy is particularly shaped from its close bonds with SADC and besides this, the nation Mauritius tends to develop relationship Asian nations like India for the commercial advantages.

Factors of Global Cluster

There are several ways of in which an organization could enter a foreign market. Laufs, and Schwens (2014) mentioned that breaking into a foreign market- particularly one with stiff rules and regulations would be a very daunting task. The article also reveals the fact that if product or service is a success at home, expanding into New Zealand market could offer a great amount of potential. The following are some of the strategies for expansion into an international market have been critically reviewed.

An Isomorphic Perspectives

When it comes to foreign entry strategy, Ang, Benischke and Doh (2015) mentioned that business should pay attention to the institutional factors at the time of examining commonalities across many organizations in the entry mode decisions. According to the authors, there are two conflicting set of institutional factors remain in the entry mode decisions. The first factor includes the adaption to the local or regional market as well as their unique characteristic and the other one revolves around isomorphic prevalent between the multiple subsidiaries. Isomorphism remains as the primary driver of structural change and is a process that forces one single units that deal with the same sets of environmental conditions.

 It is probable that entry mode into a foreign nation remains as the primary determination of MNC legitimacy as the entry mode selected reflected the degree of local embeddedness, extent of adaption  of products as well as overall commitment to the host location. In addition, to enhance the legitimacy, the organization should follow one of three aspects of isomorphism which indicates that business can adopt particular structure as well as procedures as they are bound to do so.  On the other side, the business needs to implement certain structure as well as procedures that as they are expected to be effective than the alternatives (Hernández & Nieto, 2015).

Selection of the entry strategies

For Kind Kones, it is effective to select normative isomorphic entry strategy to expand into New Zealand market. By relying on normative isomorphism, the organization can adopt certain and effective process and procedures and this could enable the firm to comply with the norms and these norms lead to effective outcome in the selected market. Thereby, by adopting isomorphism, the organization can comply with the rules and procedures and implement a structure that enhances their legitimacy and helps to establish business as per the country’s business drivers.

As put forward by Santos, Pache and Birkholz (2015) organization design remains as the overall pattern of structural components and configuration applied to manage the overall business. A business’s international division is typically abandoned with respect to global organization design as the organization shifts from being domestically oriented with international sales to become a multi-national corporation. Yarbrough and Yarbrough (2014) mentioned that an international design should enable the business to integrate three types of knowledge such as area, product and functional. In addition, it is also identified that a business generally choose one of five common global organization designs such as product area, functions, consumers or the matrix and it completely depends on the circumstances in the selected market. Besides these variables, international organizational designs are divided into multiple categories such as international matrix design, international functional design, international customer design and hybrid international design.

Comparison Tools countries

Advantages and disadvantages of international design

As there are some particular variables in international organizational design, the benefits and drawbacks can be categorised on the basis of variables. When it comes to benefits, under global functional, the organization can create departments that hold global responsibility for common organizational functions. In addition to this, the organization could develop and transfer expertise within each functional area and the business can maintain a highly centralized control over the functional operations (Obel, 2014). Nonetheless, the major drawback of this model global functional design is effective when it has limited products and customers. The design does not promote coordination between the divisions. Moreover, it could lead to imitation of resources among the authority holders. On the other side, global matrix design enables organizations to pay attention to functional a well as product expertise of its members as it brings together the functional, area and product expertise of the organization (Foss, Lyngsie and Zahra, 2015). Moreover, this design helps the organization to promote and establish organizational flexibility as well as develop a clear communication throughout the division of the business.  Conversely, the major disadvantage of the design is that global matrix model is inappropriate for the organisations that have limited proudest and runs operation in relatively a stable market.

Selection of the design:

Kind and Kones should select international customer design model which would help firms to serve different categories or diverse categories of customers with particular needs. This organizational design is effective for the organization because it might enable the firm to use different market techniques when it targets a diverse customer groups and moreover it enables the business to keep a record of how effectively it is performing within its individual area or segment.

Influence or significance of corporate citizenship lies in the fact that how the organization or the business is socially responsible both externally and internally. This means when a business performs its CSR initiatives, it has to ensure that the brand is aware of social development and sustainability and employees development. Crane and Matten (2016) mentioned that failing to meet social duties can lead to poor brand image. When a business performs its social duties such as development of a healthcare setting, water preservation campaign, or greenery initiatives can build a positive image in the mind of customers which is certainly necessary for the development of business.  In addition, proper involvement in social duties can help the organization to derive competitive advantages from its operation. On the other side, when Kind Kones takes care of the needs of its employees, employees become more responsible towards their duties. Consequently, organizational performance or productivity increases. The organization can reduce its employee turnover rate while employee retention rate may increase.

Resources Availability

Wheelen et al., (2017) mentioned that business that tends to dominate the marketplace is generally the ones that are determined to position themselves as the leader in particular market segment. However, to position the brand as the leader, it should have or gain a concise strategic capability or competency. Here, competency is referred to the resource capabilities which might include financial resource, technical, human resource and operational resources (raw material for the products and services that business provide). In addition to this, competency can also include deep proficiency that enables business to deliver unique value to customers. For example, if Kind Kones can sells its ice cream products online to its customers it can generate unique values for its customers as other ice cream producer in the market did not adopt this choice.

In addition to this, when it comes to values, brands consider both internal and external values. So, to develop internal values, the organization needs to make its values consistent between the organization and its employees. It might require a brand supporting culture which delivers a fit between the organization as well as its employees through the shared values. On the other side, when it comes to external values, the business is mainly concerned with brand image as well as its relation to brand equity. Ritala and Huizingh (2014) mentioned that source of brand equity could differ depending on different framework. Therefore brand equity and brand image are two different major components which Kind Kones need to consider when generating external business values.

As Kind Kones is determined to enter the New Zealand market, the brand might find it easy to establish the business due to the availability of plenty of resources in the nation. The organization needs to make use of technical resources to focus on the wide market of New Zealand. There are three key areas that brand needs to pay attention namely customer data analysis, development of products and promotion of the products.

Action: In order to perform a customer data analysis, the brand could perform a market analysis, where customer test and interests, and market demands can be learned. The products should be developed on the basis of the findings of market analysis. In order to promote the brand and products, business should adopt digital media marketing strategy along with the use of social media channels.

Clarify: In order to perform market analysis, the brand needs to perform a PESTLE and market forces analysis, which clarifies the existing market demands and challenges. Likewise, the product development strategy should include a product life cycle framework. In order to promote the brand on digital media channels, proper advertising content in terms of products, services and deals should be promoted on social media channels YouTube,, Facebook and Twitter.

Competitiveness of the resources

Justify: The above presented strategies are effective for Kind Kones as the brand is supposed to run its operation in new market and thus, to gain full control over the market, it should first learn about the market characteristics which can be done through a detailed market analysis. On the other side, use of digital media channels will help the brand to acquire the market in the shortest time.

Conclusions –

In conclusion, it can be mentioned that when entering the New Zealand market, there are certain aspects that brand needs to consider such as ethical grounds. Product development and promotional efforts should not go against New Zealand’s cultural and ethical norms. For example, when promoting the ice cream products, it should not disclose any content that are biased. Failure to meet the norms would negatively affect the brand. In addition, the brand also needs to be aware of the use and wastage of environmental resources such as water, milk and other natural resources. Failing to meet environmental standards could again affect the brand negatively.

Operations Location

Kind Kones Country Selection

Global Clusters

South America

Near East

South Asian

East Europe

Latin Europe

Nordic

African

Oceania

Far East

Confucian

High Quality of Life (GDP)

Colombia

Qatar

Indonesia

Mauritius

New Zealand

Taiwan

Low level of difficulty to enter the market

Qatar

Mauritius

New Zealand

Criminal Rate

Qatar

Indonesia

Low Aging Population

Indonesia

Mauritius

Taiwan

Environmental Condition

Mauritius

New Zealand

Availability of Resources

Qatar

Indonesia

New Zealand

Ice Cream Consumption

New Zealand

Table 1: Factors of Global Cluster

Comparison Tools countries

 

https://www.heritage.org/index/ranking/

 

Economic Freedom

 

https://rcii.gsu.edu/

Robinson Country Risk Index

 

https://www.doingbusiness.org/en/rankings

 

Ease of Doing Business

Colombia

68.9% (#42)

486 (#73)

#59

Indonesia

64.2% (#69)

505 (#65)

#72

Mauritius

75.1% (#21)

651 (#40)

#64

New Zealand

84.2% (#3)

935 (#11)

#1

Qatar

72.6% (#29)

763 (#30)

#83

Taiwan

76.6% (#13)

563 (#51)

#15

Table 2: Factors for business sustainability

Distance

Mauritius

New Zealand

Qatar

Taiwan

Cultural

Administrative

Geographic

Economic

Total

Table 3: Cultural, administrative, geographic and Economical norms

(Source: Self-Made)

 

According to Zhu and Chung (2014), people in Taiwan have traditional values based on Confucian ethics; nonetheless, pressure particularly from industrialization are now challenging these values but some traditional values still remain the same with the inclusion of piety towards the parents. On the other side, New Zealand have unique as well as dynamic culture and the culture is of its indigenous Maori people affect language, arts and accents of all New Zealanders (Paton et al., 2014).  Conversely, when it comes to geography, it has been identified that Mauritius remains as the second largest island that belongs to a groups of islands Mascarenes as called in French and this island is natural enough to attract the attention of tourists and visitors (Sawmy & Damar-Ladkoo 2015).

On the contrary, Qatar is occupying a small desert peninsula which extends northward from larger Arabian Peninsula. Notwithstanding, when it comes to geographic facts, it is identified the climate of Qatar is a significant barrier as the climate is hot and human from June to September with daytime temperature around 50 degree Celsius (Benmamoun et al. 2016). In addition, Qatar’s economic freedom scores 72.5, which makes the economy 29th freest in 2018 but the overall score has decreased by 0.5%. Similarly, when it comes to economic condition, Mauritius economic freedom scores 75.1, which makes economy 21st freest in 2018. Svirydzenka and Petri (2017) mentioned that solid economic policies as well as prudent banking practices in Mauritius helped business to deal with global business crisis.

Institutional Assessment

Hence, table 3 indicates that when it comes to culture, both Mauritius and Taiwan are quite similar in nature as both the nations are favourable towards of small size and scarcity of natural resources. People in both Mauritius and Taiwan are quite social, friendly and this could eventually prevails with visitors as well as locals. Nonetheless, table 3 also indicates that Mauritius and Qatar are totally different than other four nations in terms of culture, administrative, geographic and economic. This means Mauritius’s, for example, economic state is different from New Zealand, Qatar and Taiwan.

Resources Availability

Resources

Taiwan

Mauritius

New Zealand

Qatar

Economic Resources

Skilled Human Resources

Technical Resources

Raw materials such as milk, vegetables, coffee beans, sugar, fruits, etc

Ranking

Table 4A: Resources Availability [Green= Attractive, Yellow= Neutral, Red= Unattractive]

(Source: Self-Made)

Resources

Taiwan

Mauritius

New Zealand

Qatar

Competitiveness [Green=Offensive, Yellow=Equal and Red=Defensive]

Economic Resources

Skilled Human Resources

Technical Resources

Raw materials such as milk, vegetables, coffee beans, sugar, fruits, etc

Table 4: Competitiveness of the resources

(Source: Self-Made)

The above presented tables help to observe that Mauritius and New Zealand are eligible for the expansion of Kind Kones. It has been identified that New Zealand in the recent time have made a significant development in technology. For example, the advancement in wave technology such as omnipresent mobile access, which is giving business both new opportunities as well as disruptive challenges. The government of NZ welcomes the advancement of AI and internet technology. Such developed platforms create vast potential for the businesses to understand as well as observe their performance along with the environments in which they operate. On the other side, Mauritius, when it comes to resources, is always leading ahead, as the nation has paid a significant attention to its freshwater, resources, natural resources, land resources and technology. For example, Bah and Fang (2015) mentioned about a significant plan for “Development of the Water Resources in Mauritius” which was developed in the nation in 2012 with the eventual objectives to satisfy water demand in several ways. Therefore, on the basis of the resource availability, it is worth mentioning that both New Zealand and Mauritius are well researched options for the business expansion of Kind Kones.

New Zealand’s political as well as economic stability delivers a safe environment for investors and businesses. As put forward by Hong, Oxley, McCann and Le (2016), the nation consistently remains in the top for its governmental transparency, democratic insinuation as well as limited range of corruption. NZ is a parliamentary democracy as well as constitutional monarchy with Queen Elizabeth. However, Paton et al., (2014) argued that New Zealand tend to share legal, political as well as cultural heritages with Britain.  So the judicial system is particularly established on English law principles and particularly independent of the legislature. Nonetheless, when it comes to benefits from the political perspectives, it is worth stating that Mauritius benefit from the political vision as well as economic development strategy which is skilfully implemented by its founder and first Prime Minister.  Musara and Gwaindepi (2014) particularly mentioned that Mauritius is recognizing its development approach with the new challenge of trading without the safety of bilateral commercial preferential agreements.

 It is identified that Mauritius has variously been described to the world as the pearl of Indian Ocean and African Tiger because of its uniqueness as an island economy (Svirydzenka, & Petri, 2017). Mauritius remains as the oldest democracies in Africa and it is a multi-cultural society widely observed for its socio-political stability as well as for peaceful co-existence of its several religious as well as ethnic groups.  Nonetheless, even though the political dominance is quite similar in both the nations but due to the consistent political stability of New Zealand, Labour Party in New Zealand is led by Andrew little which is dominant over the corporate and business sector in the nation. Conversely, when it comes to dominance of political power, it has been identified that governmental system in New Zealand is based on a Westminster model with a clear separation of powers between the executives, parliament as well as judiciary. Nonetheless, it is worth stating that New Zealand would be a convenient option for business from the political perspective as opposition parties are always in favour of new business development in the nation.

In the view of foreign policy stance, the country New Zealand has developed a set of strategic objectives along with nation’s strategic intentions which are reflected on Ministry’s new strategic framework. The objectives are adjusted to articulate more clearly the value of Ministry delivers to citizenship of New Zealand. The country has developed a ten year planning horizon for its goals and results as the most appropriate timeframe for the influence the nation is planning to achieve. The Ministry of Foreign Affairs of New Zealand create a goal particularly focused on its international Relationship.  On the other side, Madichie (2015) mentioned that Mauritius foreign policy is particularly driven by trade and a commitment to democracy. On the basis of British and French political heritage, the nation has always maintained a close ties with the European Union Members and western nations in general. It is further identified that much of nation’s foreign policy is particularly shaped from its close bonds with SADC and besides this, the nation Mauritius tends to develop relationship Asian nations like India for the commercial advantages.

There are several ways of in which an organization could enter a foreign market. Laufs, and Schwens (2014) mentioned that breaking into a foreign market- particularly one with stiff rules and regulations would be a very daunting task. The article also reveals the fact that if product or service is a success at home, expanding into New Zealand market could offer a great amount of potential. The following are some of the strategies for expansion into an international market have been critically reviewed.

When it comes to foreign entry strategy, Ang, Benischke and Doh (2015) mentioned that business should pay attention to the institutional factors at the time of examining commonalities across many organizations in the entry mode decisions. According to the authors, there are two conflicting set of institutional factors remain in the entry mode decisions. The first factor includes the adaption to the local or regional market as well as their unique characteristic and the other one revolves around isomorphic prevalent between the multiple subsidiaries. Isomorphism remains as the primary driver of structural change and is a process that forces one single units that deal with the same sets of environmental conditions.

 It is probable that entry mode into a foreign nation remains as the primary determination of MNC legitimacy as the entry mode selected reflected the degree of local embeddedness, extent of adaption  of products as well as overall commitment to the host location. In addition, to enhance the legitimacy, the organization should follow one of three aspects of isomorphism which indicates that business can adopt particular structure as well as procedures as they are bound to do so.  On the other side, the business needs to implement certain structure as well as procedures that as they are expected to be effective than the alternatives (Hernández & Nieto, 2015).

For Kind Kones, it is effective to select normative isomorphic entry strategy to expand into New Zealand market. By relying on normative isomorphism, the organization can adopt certain and effective process and procedures and this could enable the firm to comply with the norms and these norms lead to effective outcome in the selected market. Thereby, by adopting isomorphism, the organization can comply with the rules and procedures and implement a structure that enhances their legitimacy and helps to establish business as per the country’s business drivers.

As put forward by Santos, Pache and Birkholz (2015) organization design remains as the overall pattern of structural components and configuration applied to manage the overall business. A business’s international division is typically abandoned with respect to global organization design as the organization shifts from being domestically oriented with international sales to become a multi-national corporation. Yarbrough and Yarbrough (2014) mentioned that an international design should enable the business to integrate three types of knowledge such as area, product and functional. In addition, it is also identified that a business generally choose one of five common global organization designs such as product area, functions, consumers or the matrix and it completely depends on the circumstances in the selected market. Besides these variables, international organizational designs are divided into multiple categories such as international matrix design, international functional design, international customer design and hybrid international design.

As there are some particular variables in international organizational design, the benefits and drawbacks can be categorised on the basis of variables. When it comes to benefits, under global functional, the organization can create departments that hold global responsibility for common organizational functions. In addition to this, the organization could develop and transfer expertise within each functional area and the business can maintain a highly centralized control over the functional operations (Obel, 2014). Nonetheless, the major drawback of this model global functional design is effective when it has limited products and customers. The design does not promote coordination between the divisions. Moreover, it could lead to imitation of resources among the authority holders. On the other side, global matrix design enables organizations to pay attention to functional a well as product expertise of its members as it brings together the functional, area and product expertise of the organization (Foss, Lyngsie and Zahra, 2015). Moreover, this design helps the organization to promote and establish organizational flexibility as well as develop a clear communication throughout the division of the business.  Conversely, the major disadvantage of the design is that global matrix model is inappropriate for the organisations that have limited proudest and runs operation in relatively a stable market.

Kind and Kones should select international customer design model which would help firms to serve different categories or diverse categories of customers with particular needs. This organizational design is effective for the organization because it might enable the firm to use different market techniques when it targets a diverse customer groups and moreover it enables the business to keep a record of how effectively it is performing within its individual area or segment.

Influence or significance of corporate citizenship lies in the fact that how the organization or the business is socially responsible both externally and internally. This means when a business performs its CSR initiatives, it has to ensure that the brand is aware of social development and sustainability and employees development. Crane and Matten (2016) mentioned that failing to meet social duties can lead to poor brand image. When a business performs its social duties such as development of a healthcare setting, water preservation campaign, or greenery initiatives can build a positive image in the mind of customers which is certainly necessary for the development of business.  In addition, proper involvement in social duties can help the organization to derive competitive advantages from its operation. On the other side, when Kind Kones takes care of the needs of its employees, employees become more responsible towards their duties. Consequently, organizational performance or productivity increases. The organization can reduce its employee turnover rate while employee retention rate may increase.

Wheelen et al., (2017) mentioned that business that tends to dominate the marketplace is generally the ones that are determined to position themselves as the leader in particular market segment. However, to position the brand as the leader, it should have or gain a concise strategic capability or competency. Here, competency is referred to the resource capabilities which might include financial resource, technical, human resource and operational resources (raw material for the products and services that business provide). In addition to this, competency can also include deep proficiency that enables business to deliver unique value to customers. For example, if Kind Kones can sells its ice cream products online to its customers it can generate unique values for its customers as other ice cream producer in the market did not adopt this choice.

In addition to this, when it comes to values, brands consider both internal and external values. So, to develop internal values, the organization needs to make its values consistent between the organization and its employees. It might require a brand supporting culture which delivers a fit between the organization as well as its employees through the shared values. On the other side, when it comes to external values, the business is mainly concerned with brand image as well as its relation to brand equity. Ritala and Huizingh (2014) mentioned that source of brand equity could differ depending on different framework. Therefore brand equity and brand image are two different major components which Kind Kones need to consider when generating external business values.

As Kind Kones is determined to enter the New Zealand market, the brand might find it easy to establish the business due to the availability of plenty of resources in the nation. The organization needs to make use of technical resources to focus on the wide market of New Zealand. There are three key areas that brand needs to pay attention namely customer data analysis, development of products and promotion of the products.

Action: In order to perform a customer data analysis, the brand could perform a market analysis, where customer test and interests, and market demands can be learned. The products should be developed on the basis of the findings of market analysis. In order to promote the brand and products, business should adopt digital media marketing strategy along with the use of social media channels.

Clarify: In order to perform market analysis, the brand needs to perform a PESTLE and market forces analysis, which clarifies the existing market demands and challenges. Likewise, the product development strategy should include a product life cycle framework. In order to promote the brand on digital media channels, proper advertising content in terms of products, services and deals should be promoted on social media channels YouTube,, Facebook and Twitter.

Justify: The above presented strategies are effective for Kind Kones as the brand is supposed to run its operation in new market and thus, to gain full control over the market, it should first learn about the market characteristics which can be done through a detailed market analysis. On the other side, use of digital media channels will help the brand to acquire the market in the shortest time.

Conclusions –

In conclusion, it can be mentioned that when entering the New Zealand market, there are certain aspects that brand needs to consider such as ethical grounds. Product development and promotional efforts should not go against New Zealand’s cultural and ethical norms. For example, when promoting the ice cream products, it should not disclose any content that are biased. Failure to meet the norms would negatively affect the brand. In addition, the brand also needs to be aware of the use and wastage of environmental resources such as water, milk and other natural resources. Failing to meet environmental standards could again affect the brand negatively.

Operations Location

Kind Kones Country Selection

Global Clusters

South America

Near East

South Asian

East Europe

Latin Europe

Nordic

African

Oceania

Far East

Advantages and disadvantages of international design

High Quality of Life (GDP)

Colombia

Qatar

Indonesia

Mauritius

New Zealand

Taiwan

Low level of difficulty to enter the market

Qatar

Mauritius

New Zealand

Criminal Rate

Qatar

Indonesia

Low Aging Population

Indonesia

Mauritius

Taiwan

Environmental Condition

Mauritius

New Zealand

Availability of Resources

Qatar

Indonesia

New Zealand

Ice Cream Consumption

New Zealand

Table 1: Factors of Global Cluster

Comparison Tools countries

 

https://www.heritage.org/index/ranking/

 

Economic Freedom

https://rcii.gsu.edu/

Robinson Country Risk Index

https://www.doingbusiness.org/en/rankings

Ease of Doing Business

Colombia

68.9% (#42)

486 (#73)

#59

Indonesia

64.2% (#69)

505 (#65)

#72

Mauritius

75.1% (#21)

651 (#40)

#64

New Zealand

84.2% (#3)

935 (#11)

#1

Qatar

72.6% (#29)

763 (#30)

#83

Taiwan

76.6% (#13)

563 (#51)

#15

Table 2: Factors for business sustainability

Distance

Mauritius

New Zealand

Qatar

Taiwan

Cultural

Administrative

Geographic

Economic

Total

Table 3: Cultural, administrative, geographic and Economical norms

(Source: Self-Made) 

According to Zhu and Chung (2014), people in Taiwan have traditional values based on Confucian ethics; nonetheless, pressure particularly from industrialization are now challenging these values but some traditional values still remain the same with the inclusion of piety towards the parents. On the other side, New Zealand have unique as well as dynamic culture and the culture is of its indigenous Maori people affect language, arts and accents of all New Zealanders (Paton et al., 2014).  Conversely, when it comes to geography, it has been identified that Mauritius remains as the second largest island that belongs to a groups of islands Mascarenes as called in French and this island is natural enough to attract the attention of tourists and visitors (Sawmy & Damar-Ladkoo 2015).

On the contrary, Qatar is occupying a small desert peninsula which extends northward from larger Arabian Peninsula. Notwithstanding, when it comes to geographic facts, it is identified the climate of Qatar is a significant barrier as the climate is hot and human from June to September with daytime temperature around 50 degree Celsius (Benmamoun et al. 2016). In addition, Qatar’s economic freedom scores 72.5, which makes the economy 29th freest in 2018 but the overall score has decreased by 0.5%. Similarly, when it comes to economic condition, Mauritius economic freedom scores 75.1, which makes economy 21st freest in 2018. Svirydzenka and Petri (2017) mentioned that solid economic policies as well as prudent banking practices in Mauritius helped business to deal with global business crisis.

Hence, table 3 indicates that when it comes to culture, both Mauritius and Taiwan are quite similar in nature as both the nations are favourable towards of small size and scarcity of natural resources. People in both Mauritius and Taiwan are quite social, friendly and this could eventually prevails with visitors as well as locals. Nonetheless, table 3 also indicates that Mauritius and Qatar are totally different than other four nations in terms of culture, administrative, geographic and economic. This means Mauritius’s, for example, economic state is different from New Zealand, Qatar and Taiwan.

Resources

Taiwan

Mauritius

New Zealand

Qatar

Economic Resources

Skilled Human Resources

Technical Resources

Raw materials such as milk, vegetables, coffee beans, sugar, fruits, etc

Ranking

Table 4A: Resources Availability [Green= Attractive, Yellow= Neutral, Red= Unattractive]

(Source: Self-Made)

Competitiveness of the resources

Resources

Taiwan

Mauritius

New Zealand

Qatar

Competitiveness [Green=Offensive, Yellow=Equal and Red=Defensive]

Economic Resources

Skilled Human Resources

Technical Resources

Raw materials such as milk, vegetables, coffee beans, sugar, fruits, etc

Table 4: Competitiveness of the resources

(Source: Self-Made)

The above presented tables help to observe that Mauritius and New Zealand are eligible for the expansion of Kind Kones. It has been identified that New Zealand in the recent time have made a significant development in technology. For example, the advancement in wave technology such as omnipresent mobile access, which is giving business both new opportunities as well as disruptive challenges. The government of NZ welcomes the advancement of AI and internet technology. Such developed platforms create vast potential for the businesses to understand as well as observe their performance along with the environments in which they operate. On the other side, Mauritius, when it comes to resources, is always leading ahead, as the nation has paid a significant attention to its freshwater, resources, natural resources, land resources and technology. For example, Bah and Fang (2015) mentioned about a significant plan for “Development of the Water Resources in Mauritius” which was developed in the nation in 2012 with the eventual objectives to satisfy water demand in several ways. Therefore, on the basis of the resource availability, it is worth mentioning that both New Zealand and Mauritius are well researched options for the business expansion of Kind Kones.

New Zealand’s political as well as economic stability delivers a safe environment for investors and businesses. As put forward by Hong, Oxley, McCann and Le (2016), the nation consistently remains in the top for its governmental transparency, democratic insinuation as well as limited range of corruption. NZ is a parliamentary democracy as well as constitutional monarchy with Queen Elizabeth. However, Paton et al., (2014) argued that New Zealand tend to share legal, political as well as cultural heritages with Britain.  So the judicial system is particularly established on English law principles and particularly independent of the legislature. Nonetheless, when it comes to benefits from the political perspectives, it is worth stating that Mauritius benefit from the political vision as well as economic development strategy which is skilfully implemented by its founder and first Prime Minister.  Musara and Gwaindepi (2014) particularly mentioned that Mauritius is recognizing its development approach with the new challenge of trading without the safety of bilateral commercial preferential agreements.

 It is identified that Mauritius has variously been described to the world as the pearl of Indian Ocean and African Tiger because of its uniqueness as an island economy (Svirydzenka, & Petri, 2017). Mauritius remains as the oldest democracies in Africa and it is a multi-cultural society widely observed for its socio-political stability as well as for peaceful co-existence of its several religious as well as ethnic groups.  Nonetheless, even though the political dominance is quite similar in both the nations but due to the consistent political stability of New Zealand, Labour Party in New Zealand is led by Andrew little which is dominant over the corporate and business sector in the nation. Conversely, when it comes to dominance of political power, it has been identified that governmental system in New Zealand is based on a Westminster model with a clear separation of powers between the executives, parliament as well as judiciary. Nonetheless, it is worth stating that New Zealand would be a convenient option for business from the political perspective as opposition parties are always in favour of new business development in the nation.

In the view of foreign policy stance, the country New Zealand has developed a set of strategic objectives along with nation’s strategic intentions which are reflected on Ministry’s new strategic framework. The objectives are adjusted to articulate more clearly the value of Ministry delivers to citizenship of New Zealand. The country has developed a ten year planning horizon for its goals and results as the most appropriate timeframe for the influence the nation is planning to achieve. The Ministry of Foreign Affairs of New Zealand create a goal particularly focused on its international Relationship.  On the other side, Madichie (2015) mentioned that Mauritius foreign policy is particularly driven by trade and a commitment to democracy. On the basis of British and French political heritage, the nation has always maintained a close ties with the European Union Members and western nations in general. It is further identified that much of nation’s foreign policy is particularly shaped from its close bonds with SADC and besides this, the nation Mauritius tends to develop relationship Asian nations like India for the commercial advantages.

There are several ways of in which an organization could enter a foreign market. Laufs, and Schwens (2014) mentioned that breaking into a foreign market- particularly one with stiff rules and regulations would be a very daunting task. The article also reveals the fact that if product or service is a success at home, expanding into New Zealand market could offer a great amount of potential. The following are some of the strategies for expansion into an international market have been critically reviewed.

An Isomorphic Perspectives

When it comes to foreign entry strategy, Ang, Benischke and Doh (2015) mentioned that business should pay attention to the institutional factors at the time of examining commonalities across many organizations in the entry mode decisions. According to the authors, there are two conflicting set of institutional factors remain in the entry mode decisions. The first factor includes the adaption to the local or regional market as well as their unique characteristic and the other one revolves around isomorphic prevalent between the multiple subsidiaries. Isomorphism remains as the primary driver of structural change and is a process that forces one single units that deal with the same sets of environmental conditions.

 It is probable that entry mode into a foreign nation remains as the primary determination of MNC legitimacy as the entry mode selected reflected the degree of local embeddedness, extent of adaption  of products as well as overall commitment to the host location. In addition, to enhance the legitimacy, the organization should follow one of three aspects of isomorphism which indicates that business can adopt particular structure as well as procedures as they are bound to do so.  On the other side, the business needs to implement certain structure as well as procedures that as they are expected to be effective than the alternatives (Hernández & Nieto, 2015).

Selection of the entry strategies

For Kind Kones, it is effective to select normative isomorphic entry strategy to expand into New Zealand market. By relying on normative isomorphism, the organization can adopt certain and effective process and procedures and this could enable the firm to comply with the norms and these norms lead to effective outcome in the selected market. Thereby, by adopting isomorphism, the organization can comply with the rules and procedures and implement a structure that enhances their legitimacy and helps to establish business as per the country’s business drivers.

As put forward by Santos, Pache and Birkholz (2015) organization design remains as the overall pattern of structural components and configuration applied to manage the overall business. A business’s international division is typically abandoned with respect to global organization design as the organization shifts from being domestically oriented with international sales to become a multi-national corporation. Yarbrough and Yarbrough (2014) mentioned that an international design should enable the business to integrate three types of knowledge such as area, product and functional. In addition, it is also identified that a business generally choose one of five common global organization designs such as product area, functions, consumers or the matrix and it completely depends on the circumstances in the selected market. Besides these variables, international organizational designs are divided into multiple categories such as international matrix design, international functional design, international customer design and hybrid international design.

As there are some particular variables in international organizational design, the benefits and drawbacks can be categorised on the basis of variables. When it comes to benefits, under global functional, the organization can create departments that hold global responsibility for common organizational functions. In addition to this, the organization could develop and transfer expertise within each functional area and the business can maintain a highly centralized control over the functional operations (Obel, 2014). Nonetheless, the major drawback of this model global functional design is effective when it has limited products and customers. The design does not promote coordination between the divisions. Moreover, it could lead to imitation of resources among the authority holders. On the other side, global matrix design enables organizations to pay attention to functional a well as product expertise of its members as it brings together the functional, area and product expertise of the organization (Foss, Lyngsie and Zahra, 2015). Moreover, this design helps the organization to promote and establish organizational flexibility as well as develop a clear communication throughout the division of the business.  Conversely, the major disadvantage of the design is that global matrix model is inappropriate for the organisations that have limited proudest and runs operation in relatively a stable market.

Kind and Kones should select international customer design model which would help firms to serve different categories or diverse categories of customers with particular needs. This organizational design is effective for the organization because it might enable the firm to use different market techniques when it targets a diverse customer groups and moreover it enables the business to keep a record of how effectively it is performing within its individual area or segment.

Influence or significance of corporate citizenship lies in the fact that how the organization or the business is socially responsible both externally and internally. This means when a business performs its CSR initiatives, it has to ensure that the brand is aware of social development and sustainability and employees development. Crane and Matten (2016) mentioned that failing to meet social duties can lead to poor brand image. When a business performs its social duties such as development of a healthcare setting, water preservation campaign, or greenery initiatives can build a positive image in the mind of customers which is certainly necessary for the development of business.  In addition, proper involvement in social duties can help the organization to derive competitive advantages from its operation. On the other side, when Kind Kones takes care of the needs of its employees, employees become more responsible towards their duties. Consequently, organizational performance or productivity increases. The organization can reduce its employee turnover rate while employee retention rate may increase.

Wheelen et al., (2017) mentioned that business that tends to dominate the marketplace is generally the ones that are determined to position themselves as the leader in particular market segment. However, to position the brand as the leader, it should have or gain a concise strategic capability or competency. Here, competency is referred to the resource capabilities which might include financial resource, technical, human resource and operational resources (raw material for the products and services that business provide). In addition to this, competency can also include deep proficiency that enables business to deliver unique value to customers. For example, if Kind Kones can sells its ice cream products online to its customers it can generate unique values for its customers as other ice cream producer in the market did not adopt this choice.

In addition to this, when it comes to values, brands consider both internal and external values. So, to develop internal values, the organization needs to make its values consistent between the organization and its employees. It might require a brand supporting culture which delivers a fit between the organization as well as its employees through the shared values. On the other side, when it comes to external values, the business is mainly concerned with brand image as well as its relation to brand equity. Ritala and Huizingh (2014) mentioned that source of brand equity could differ depending on different framework. Therefore brand equity and brand image are two different major components which Kind Kones need to consider when generating external business values.

As Kind Kones is determined to enter the New Zealand market, the brand might find it easy to establish the business due to the availability of plenty of resources in the nation. The organization needs to make use of technical resources to focus on the wide market of New Zealand. There are three key areas that brand needs to pay attention namely customer data analysis, development of products and promotion of the products.

Action: In order to perform a customer data analysis, the brand could perform a market analysis, where customer test and interests, and market demands can be learned. The products should be developed on the basis of the findings of market analysis. In order to promote the brand and products, business should adopt digital media marketing strategy along with the use of social media channels.

Clarify: In order to perform market analysis, the brand needs to perform a PESTLE and market forces analysis, which clarifies the existing market demands and challenges. Likewise, the product development strategy should include a product life cycle framework. In order to promote the brand on digital media channels, proper advertising content in terms of products, services and deals should be promoted on social media channels YouTube,, Facebook and Twitter.

Justify: The above presented strategies are effective for Kind Kones as the brand is supposed to run its operation in new market and thus, to gain full control over the market, it should first learn about the market characteristics which can be done through a detailed market analysis. On the other side, use of digital media channels will help the brand to acquire the market in the shortest time.

Conclusions –

In conclusion, it can be mentioned that when entering the New Zealand market, there are certain aspects that brand needs to consider such as ethical grounds. Product development and promotional efforts should not go against New Zealand’s cultural and ethical norms. For example, when promoting the ice cream products, it should not disclose any content that are biased. Failure to meet the norms would negatively affect the brand. In addition, the brand also needs to be aware of the use and wastage of environmental resources such as water, milk and other natural resources. Failing to meet environmental standards could again affect the brand negatively.