The business environment can be understood to be very dynamic in nature and with respect to this, it can be stated that, any business as present in the dynamic business environment would be required to ensure that it is successfully able to engage in a good strategy which would then go a long way in assisting the company to prosper and attain a competitive edge in the market (Wheelen et al., 2017). The formulation of different tactics as well as the strategies assist the firm in attaining long term success and to ensure that it is able to make the selection of the appropriate target market and the international market where the firm would be benefitting the most. The cinema industry is very popular and has been prospering considerably. With respect to this, the previous assessment was based on the external environmental as well as the internal environmental analysis of the company MBO Cinemas which is based in Malaysia. Hence, the primary objective of the given assessment is to present an analysis of the country with respect to which MBO Cinemas will be successfully able to expand its operations and in regard to the same, the organization will also be able to find adequate success in the long run. In addition to this, it also means that, the scope of expansion in Singapore along with the appropriate design of the firm and the kind of people to be hired will also be decided at large.
The MCAT box office which is popularly doing business as MBO Cinemas can be stated to be a chain of cinemas who are carrying out its operations in Malaysia. The cinemas can be stated to be the third largest cinema as present in the Malaysia after the presence of the Golden Screen cinemas and the TGV Cinemas which have attained considerable dominance (Florey ,2015). Malaysia has a total of around 27 cinema outlets in the different states of Perak, Kuala Lumpur, Selangor, Negeri, Sembilan, Johar and Pahang. Recently the company has opened a branch as present in the Starling Mall in amansara, Utama and offers the different customers with latest Cinematic experience and special offers like the Big screen, MC4D Hall in Malaysia, Premier Big screen and laser projection technology along with the Dolby Atmos sound system. The screens have been created specially to provide family convenience and comfort for the children as well. For this reason, the hall provides Sofa Seats, Beanie seats and in hall playground as well which will provide the parents with adequate convenience (Aguinis, Edwards & Bradley, 2017). In addition to this, the Cinemas have also been adequately successful in introducing different cafes in their cinema and in addition to this, they are also believed to be engaged in offering 2-Dimensional facilities to the different consumers which would then go a long way in ensuring success for them. The MBO Cinemas also offers the different snacks and other facilities to the customers which helps them to get a wholesome experience.
When any organization decides and plans to expand in any additional country, it becomes considerably important for them to ensure that they will be successfully making use of a sufficient entry mode which will not only help them to gain success in the long run but will also allow the firm to earn profits in the short term (Hanson et al., 2016). The mode of entry which the company can adopt while expanding into the selected country can be stated to be the Joint Venture entry mode. The entry mode can be stated to be a channel which can be usually adopted by a company and takes into consideration a variety of alternatives which assist in ensuring that, the operations of the organization can be carried out easily. Hence, as stated earlier, the Joint Venture can be stated to be the mode which the MBO Cinemas can make use of to enter the market place. The country which has been selected for the particular purpose can be stated to be Singapore (Frynas & Mellahi, 2015). There are a large number of reasons why the Joint Venture can be stated to be an appropriate choice of expansion for the MBO Cinemas and they have been stated down as follows:
The appropriate venture with which the MBO Cinemas can get into a joint association with can be stated to be the Carnival Cinemas. The Carnival Cinemas are an India based popular cinemas as present in Singapore which are immensely popular and tend to provide a large number of opportunities to the to the new businesses to collaborate with them and provide them with an opportunity to prosper in their business domains.
In order to understand whether the MBO Cinemas will be successful in expanding its operations or not in Singapore it can be considered to be very critical for the firm to analyze the strengths and weaknesses of the company which will then go a long way in ensuring that the firm is able to gain adequate success in the long run (Bergh, Sharp Aguinis & Li, 2017). In addition to this, it will also go a long way in understanding the different opportunities are taken up by the firm in a new country. The given section will be discussing the different strengths and weaknesses of the company with respect to its plans for expansion in the long run.
The strengths can be described as the capacities of the business which go a long way in assisting the business to perform well (Baumgartner & Rauter, 2017). These aspects help a firm to take advantages of the scenario and engage in an overall improvement of the same. The different strengths of the MBO Cinemas can be stated to be as follows:
The weaknesses can be rightfully stated to be the shortcomings which are possessed by a particular business and tend to stand as considerably limitations in front of the business. The MBO Cinemas although present in a large number of cities around Malaysia, it lacks an international presence. The cinemas is highly popular in Malaysia however, it has not been able to gain considerable success in the international markets whereby it can prosper in the future. Moreover, the cinemas have not been successful in developing an e-payment ticketing system which will then go a long way in assisting the firm to e-book the ticket (Doz, 2017). Very often in certain locations there is a system with respect to which the tickets need to be booked 45 minutes in advance which causes inconvenience to the different customers and many complaints in regard of this have been received.
The operations strategy can be rightfully defined as the plan which an organization has to reach its overall objectives. Hence, the overall operational strategy of the Cinemas can be stated to be extremely simple in nature. The Cinemas will ensure that it will portray the best content as available and ensure that cleanliness and good design is maintained in all its cinemas. Moreover, it has aimed to facilitate the e-ticketing system which will allow the customers the convenience of watching the movies without wasting their time. Once they are successfully able to engage in this, the firm will successfully be able to achieve long term success and ensure that it is being able to attain overall success in the long run (Engert, Rauter & Baumgartner, 2016). Moreover, as the operations will be now centered on an artificial intelligence system, it will be able to ensure that all the customers are treated well and that they are equally satisfied by the overall operations of the firm at large. Moreover, it is also crucial to understand that if a firm wants to gain long term success it would be required to set out its corporate objectives adequately.
The organizational design tends to form a critical part of the organization with respect to which it needs to be mentioned that, any company which plans to internationalize its operations would be required to engage in a different organizational design which will not only assist the business in deciding upon the overall success of the operations but will also go a long way in assisting them to optimize and maximize the operations (Hitt & Duane Ireland, 2017). The organizational design which will be best for MBO Cinemas in Singapore can be stated as follows: Global Area Division
In the Global Area Division, the structure which will be adequately used for the MBO Cinemas can be stated to be the structure of geographical importance rather than the structure based on the product basis. The firms which can make use of the particular structure can be stated to be the mature firms who are capable of maintaining their business operations adequately without any assistance (Ethiraj, Gambardella & Helfat, 2017). The primary advantage of this type of structure can be stated to be that the domestic operations as well as the international operations can be carried on the same level. In addition to this, another advantage of the given system is that, the global division managers can be assigned to look after the different operations in the specific areas. However, the only disadvantage of the particular organization design is that the given procedure will make it difficult to align the operations and the new Research and Development method will be ignored (Lasserre, 2017).
When adopting the Global area strategy, the firm will aim at successfully seeing to it that the firm has divided and made the locations as present in the different areas considerably independent and that, MBO Cinemas will also be able to ensure that once the organization will be successfully be able to engage in a considerable operations, the Global Area Division organizational design needs to be implemented well. Moreover, the firm will also be required to engage in considerable steps to see to it that they are successfully able to maintain the particular system.
Figure 1: The Global Area Division Design
(Source: Meyer, Neck & Meeks, 2017).
The given plan will be largely successful in Singapore due to a large number of reasons which can be stated to be because the country has a large tourist count and with respect to this, it can be mentioned that, it would be beneficial for MBO Cinemas to extend its operations in Singapore which will not only allow the firm to engage in growth opportunities but also allow the firm in ensuring that it is successfully able to perform well(Michael, Storey & Thomas, 2017). The Joint Venture mode of entry into the international market can be stated to be the equity based technique of expansion whereby a company in an international country sets up a new enterprise in association with an existing or a new business in the particular country.
The financial capital requirements which the firm would be required to make in the particular case can be stated to be the investment costs (Morden, 2016). As the firm has planned to get into a joint venture with the Carnival cinemas, the firm will be successfully able to invest in a proportionate manner with the venture so as to ensure that it is able to carry out its operations successfully. Moreover, it also needs to be understood that, the different capital requirements which the MBO Cinemas would require can be stated to be related to the cost of legal rights, the land costs, the service cost, the HR Cost, the royalty to be paid, the cost of acquiring the adequate content, the cost of ensuring that all other requirements are met with (Peng, 2017). With respect to this, it needs to be mentioned that, once the MBO Cinemas will be successfully able to estimate the different investments which it can make, only then will it be successful in ensuring that it achieves success.
When a company decides to expand internationally they have to ensure that they have an adequate staffing policy which would go a long way in assisting the business to engage in a successful relationship with the employees and have a considerable staffing policy in place (Morschett, Schramm-Klein & Zentes, 2015). As the MBO Cinema business is also a service business it will need to ensure that, the staffing are able to serve the business in the right way and be able to meet the needs of the different consumers (Robson, 2015). Hence, for MBO Cinemas, a mixture of the ethnocentric and the polycentric methods. In the ethnocentric methods, the organization can ensure that it hires the foreign subsidiaries with the expatriates from one`s home country. In this manner, the expatriates will be able to better represent the different interests of the home company and see to it that the foreign operations are aligned with the operations of the headquarters.
On the other hand, the polycentric aspect will allow the MBO Cinemas to hire the employees belonging to the host country as it will allow them to interact well with the general audience (Smecorp.gov.my ,2018). The host country nationals which can be employed in the middle level and the lower level of the organization will be highly educated and trained and will be easily be able to provide adequate guidance on the local market conditions and the culture of Singapore. Moreover, if MBO Cinemas makes use of the local employees, the country and consumers receive a positive message.
Conclusion
Therefore, from the given analysis, it can be understood that, the expansion from the home country to the international country is not an easy task and with respect to this, it needs to be understood that adequate planning is required for the international expansion. The company chosen for the particular assessment is the MBO Cinemas and the country which has been chosen for the purpose of expansion is the Singapore. The given report covers various aspects of the expansion for the organization like the Staffing Policy, Strengths and Weaknesses which can be utilized adequately, in the new country. The entry mode for the MBO Cinemas was chosen as a Joint Venture which was then followed by the analysis of Singapore as an appropriate market. The operational strategy, corporate advantage and the financial capital requirements of the venture in Singapore has also been discussed upon.
References
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