Business Case for Project 2
With increase in globalization and development of global trends, international companies play a vital role in shaping business dynamics within local environments. Though competition with local businesses is one of the reasons for the high levels of competition faced by international companies, both have an influence on the strategies that are adopted at national levels. Furthermore, international businesses are responsible for nearly 60% of global trade volume which implies that their performance may affect national economies and influence global economic trends (Raggio, & Leone, 2009). It is therefore imperative on individual businesses and researchers to come up with strategies through which local and international businesses can strategize their operations such that they aid improvement of global economic conditions and their profitability and so the business plan.
Strategic management is a critical aspect in the development and implementation of corporate goals and objectives. More importantly, corporate strategic management is a framework for defining organizational missions, visions and objectives as well as laying the ground for effective development of plans and policies. In this regard, corporate objectives and strategies have a critical role to play not only in the allocation of resources for sales activities but also for effective implementation of the sales plans (Ind et al.2007).
Based on our vision of providing people quality Soap (Sunlight), we opt to cover about a third of the world market by the end of anticipated year. The Company’s marketing objective is to draw visibility fast and our intention is to accomplish the objective by leveraging a multi-pronged approach which entails email marketing, social media, and search engine optimization policies to get bigger share in the global markets (Kabala, 2005). As we gain footing in the local and global markets, people will dawn to understand the merits of Sunlight as compared to other types of soaps. We have the following objectives.
Generate about $3,000,000 at the end of year one
Increase sale by more 180% at the end of year three.
Capture more than a third of the international market and about two-thirds of the local markets.
In achieving the set objectives, we shall launch a web front. It is expected that immediately after the launch of web front; most of the customer will realize existence of Sunlight and go for online shopping. Majority of our buyers at this stage will be retailers. This will boost our offline marketing (year two). Sooner, after our esteemed customers would have realized its importance in fighting germs, the quantity bought will increase. The following is the expected graph.
3.0 Current Situation and Problem/Opportunity Statement
The number of multinational and transnational companies is on the rise due to changes in business dynamics and an increase in pressure on businesses to diversify their operations and make the most out of opportunities in far away nations (Carlson, 2006). Competition has also had great impacts on the marketing of Sunlight.
Unilever has marketed about 1/8 of the Sunlight in the international markets. However, despite these challenges, Unilever still feel immense pressure to ensure that it redesigns its operations so as to make the most out of the available opportunities. The level of competition faced by Unilever Company is high which had led to increased emphasis on the strategies that it can use to improve its positioning in various market segments (Sunlight emphasized). Though the expected profit per year is $2.5 million, but Unilever has been making 0.69 million per year. This is still low and does not match the company’s objectives.
4.0 Critical Assumption and Constraints
With ever emerging Company, and various products, we shall be upgrading our product with time. This will be expensive making new products and updating the web front periodically. Some soaps are sold at lower prices and this will affect our sales. The cost of shipping will also be high but this will be shared with retailers. We shall make numerous retail centers in various countries to enhance this (Reynolds, & Phillips, 2005). For the first two or three years, most people will be reluctant to change to Sunlight and sells will lower. Product distribution will thus be very difficult.
5.0 Analysis of Option and Recommendation
In this regard, for sales people to be effective in their activities they must understand the various attitudes and perceptions of target customers. This is achievable through training and face to face socializations between the sales people and their prospective customers. Our sales agents will have face-to-face discussions with the clients to identify their requirements. The increase in cultural diversity in the market place requires that sales and marketing executives need to interact often with customers and employees from different cultural orientations. In a reflection of this reality, Unilever has developed training programs focused on enhancing awareness and skills for the sales people. One of the articles addressing globalization and international business strategy is by Ind et al.2007, which explores the awareness of cultural diversity in the target customer segment and enabling sales people to interact and form good relationships with the customers. Sales people are also able to understand the local regulations in terms of what products or services are allowed into countries as well as any other requirements.
The current competitive and fast-paced business environment necessitates creativity, innovativeness and accurate policies. Competition in the market commands for better quality products and services, otherwise downfall of a firm. This is the reason why we have forced on the quality of our products and services. As such an organization coordinates its sales well if its plans are designed to achieve competitive gain through extensive research and development as a critical aspect of sustainability (Maheswaran, & Yi, 2006). This calls for a Unilever company to pursue more market research activities in all the branches to ensure product quality and super standard services. Product diversification and expansion of markets will also enable the company capture more customers, and widen the distribution channel. It should introduce a number of product rangers to different outlets. Foreign Direct Investments can also be applied to see the company through the competition. The company should also venture more into more growth oriented market and exploit all the existing potentials (Taylor, 2005).
6.0 Preliminary Project Requirements
In achieving our desired objectives, the following strategies will be followed.
With the help of marketing team, Unilever shall develop a firm branding campaign to enhance awareness, good perception and better sales of sunlight in the market targeted.
We shall have various brands of Sunlight (various sizes and different packets) to help captured a bigger market.
The following will be our requirements to commence the online marketing method.
Stationary, Brochures and Consultants and website.
7.0 Budget Estimate and Financial Analysis
Stationery etc. $1000
Brochures and Consultants $6, 000
Website Development $500
Research and Development $100,000
Total $127, 000 approximately
Exhibit A: Financial Analysis
Criteria Weight Project 1 Project 2 Project 3 Project 4
A 25% 90 90 50 20
B 15% 70 90 50 20
C 15% 50 90 50 20
D 10% 25 90 50 70
E 5% 20 20 50 90
F 20% 50 70 50 50
G 10% 20 50 50 90
Weighted Project Scores 100% 56 78.5 50 41.5
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