Asia has been able to acquire greater than one-third of the total number of large organizations in the world. This has made Asia an owner of greater number of Global 2000 members than the other continents. The organizations which belong to Asia have acquired more than 600 spots in the Global 2000 list. The number of multinational organizations belonging to Asia have been increasing in a huge manner from the year 2003. The multinational organizations belonging to Asia Pacific have been able to command global spots in the world with the help of its products (Lin and Wu 2014).
The companies have been able to develop a position in the Fortune Global 500. The organizations belonging to Asia Pacific have formed 40% of the total number of companies in the Fortune 500 list. On the other hand, the organizations which belong to Europe and America have acquired 30% and 28% of the list. The financial organizations have thereby been able to lead the increase in number of Asian organizations in the Fortune 500 list (Bedford 2018).
The report will thereby be based on the analysis of different aspects of five multinational organizations which belong to different countries of Asia. The different organizations which are a part of the analysis are, Mitsubishi Corporation, Toyota, Samsung Electronics, TECO and Huawei Technologies.
Strategy applied by Mitsubishi
Mitsubishi Corporation is a Japanese organization which was established in the year 1917. The organization has been able to become the sixteenth biggest manufacturer of cars in the entire world. The three types of products that are thereby manufactured by the company mainly include, automobiles, commercial vehicles, economy cars. The company uses segmentation, targeting and positioning based strategy in order to operate in the automobile based market in an effective manner. The company has segmented its customer groups in different countries based on the geographic, demographic and psychological process of segmentation. The target market based strategy is thereby implemented by company in order to provide effective products to the appropriate consumers (Mitsubishicorp.com 2018). The cost leadership based strategy has been applied by Mitsubishi in order to operate in the market in a profitable manner.
The hierarchical organizational structure has been followed by Mitsubishi Corporation in order to conduct different operations in an effective manner. The different entities of the organization are subordinates of thereby operate under the other entities in Mitsubishi. The decision making process of the company is mainly based on the top level management and they are thereby followed by the employees (Asseraf and Shoham 2015). The culture which is evident in the company is based on the ways by which employees in the organizations of Japan are able to report to the managers.
Mitsubishi Corporation has its base in Japan and the reach of its operations have been expanded in an effective manner with the help of local and the global shares in the market. The major part of the success which has been gained by the company in the industry are based on the six major capabilities or the competencies. The six competencies which have been able to provide the company with its position in the industry include, direct communication with the customers, sales channel which is extensive in nature, support networks and optimum service, development based process, huge product portfolio and the innovative approach (Deng et al. 2018).
The government of Japan had played a major role in the effective operations and growth of Mitsubishi in the industry. The company had been able to show huge amounts of growth with the help of effective mergers and acquisitions. The mergers that were thereby made by the company were totally based on the support that was provided by the government. The establishment of competitors had been able to affect the ways by which the levels of profitability of the company had been reduced in an effective manner (Chen et al. 2015). The diversification of different business operations of Mitsubishi Corporation was also affected by the government of Japan.
Strategy applied by Toyota
The marketing strategy that has been used by Toyota in its effective operations can be termed as the penetration pricing strategy. The major purpose behind the implementation of this strategy is based on the ways by which a bigger share in the market can be attained. The company has thereby been able to increase its share in the market by penetrating into the market in an effective way (Toyota-global.com 2018). Toyota has aimed at setting lower prices for the products and has also reduced the costs based on the production. The guerrilla marketing strategy has also been implemented by the company in order to attract the attention of the consumers (Agyapong, Ellis and Domeher 2016). This is a new type of marketing strategy which have a lack of effective financial resources in order to attract the consumers.
The hierarchy or organizational structure of Toyota is thereby based on the huge number of business units that are operated by the company all over the world. The hierarchical structure is implemented by the company in order to support the strategic aims and the goals of the business as well. The effectiveness and levels of success of the company in achieving the goals and maintaining the functions in an effective way (Agyapong, Ellis and Domeher 2016). The hierarchy which is thereby implemented in the organization can be effectively depicted in the Figure 1.
Figure 1 – Organizational structure
Source – (Toyota-global.com 2018)
The core capabilities of Toyota are based on the set of resources which have been developed by the company that can be helpful in improving the performance and strategy in an effective manner. The competitive environment which has been developed in the organization is based on the ways by which the capabilities and resources have been developed. The resources which have been gained by the company include, the technological resources, financial resources, physical resources, intellectual capital and the human resources (Landoni et al. 2016). The resources which have been gained by the company over the years of its operations have been based on the supply chain.
The government has been able to play a major role in the proper development of the infrastructure of the industry. The company has been able to please the local consumers within the period of 1970 to the year 1990. The growth of the company has been supported by the government of the country in an effective manner. The crisis period which was faced by Asia had affected the operations of Toyota (Shokouhi 2018). The global markets and production of the company had been provided with effective support by the government.
Strategy applied by Samsung Electronics
The major parts of the strategy that has been applied by Samsung is based on the development and growth in the technology industry. The changing needs of the consumers have been able to play an important role in the strategy which has been developed by Samsung Electronics. Samsung has thereby been able to spark the terms of the innovation rather than satisfaction of the needs of society. The strategy has thereby been able to build the levels of trust which was an important part of the relationship developed with the customers in an effective way (Samsung.com 2018).
The organizational structure that has been developed by Samsung in the technology industry is based on the ways by which the operations are developed into different parts which include, span of the control, division based on labour, departmentalization, chain of the command, formalization, decentralization or centralization. These elements are thereby combined in an effective manner in order to develop the organizational structure. The organizational structure that has been developed in Samsung is related to the ways by which the CEO acts as the commanding officer for the entire organization (Cruceru and Moise 2017). The different heads who are a part of the organization mainly include, leaders, managers, technology department, research and development based department, marketing department and finance department.
The major core competencies which have been developed by Samsung in the industry are based on the expertise and skills that have been gained by the employees. This is helpful for the company to deliver exceptional levels of values to customers. The core competencies of the company thereby include, creative solutions, innovative products and the new technologies. This helps the company to develop the leadership in technology, creativity levels of people, creation of the value of customers and innovative culture (Poisson-de Haro and Bitektine 2015). The multicultural and diverse employees of the company are thereby able to deliver effective value to the customers.
Samsung had been able to gain huge levels of support from the government by increasing the levels of energy efficiency in an effective manner. The goals based on usage of renewable resources are based on the commitment which the company has on environmental responsibility. The effective infrastructure of the company is able to affect the development of proper operational facilities of Samsung. The government support will thereby be able to affect the usage of renewable resources in different operations of Samsung (Wilden and Gudergan 2015).
Strategy applied by TECO
TECO Electric & Machinery Co. Ltd. was established in the year 1956 which has further been able to evolve into a huge business group. The company mainly manufactures products like, electric equipments, information technology, electronic components, communications based on information technology. The scope of business operations is thereby based in more than 100 cities all over the world (Teco.com 2018). The company has been able to develop its core business operations in an effective manner. The strategy which has thereby been developed by the company is based on the added value that the company can provide to the customers with the help of different smart products and expansion process of the high technology business (Teco.com 2018).
The departmental organizational structure has been implemented by TECO in order to provide the products to consumers in an effective manner. The different departments of the company thereby include, motor department, system automation based activities, M&E construction, home appliances department and wind power production based department. The operations of the company are thereby divided with the help of these departments (Tabak 2017).
The major capabilities of TECO are based on the transformation which has been experienced by the company related to its global operations and high levels of competitiveness as well. The different departments of the organization are thereby based on the capabilities which have been gained by the employees who are a part of these areas. The development of a proper business operation and global presence is an effective part of the operations and core capabilities of the company (Park and Hong 2016). The organization is thereby able to provide excellent services and the innovative technologies that are provided to the employees.
The commitment which has been developed by TECO in the industry is based on the ways by which the sustainability has been supported by the government in an effective manner. The growth and innovation based activities which have been performed by TECO are also provided with effective levels of support by the government (Black and Morrison 2014). The company has thereby aimed at maintaining the CSR activities in an effective manner with the help of the government of Taiwan.
Strategy applied by Huawei Technologies
The operations of Huawei Technologies in more than 150 countries of the world is capable of serving around one-third of the total population in an effective manner. The organization has thereby been able to acquire an effective position in the telecommunications based industry in the world (Huawei.com 2018). The segmentation, targeting and positioning based strategy has thereby been implemented by the company in order to operate in the telecommunications industry. The groups of consumers are divided by the company with the help of different factors like, demographic, psychographic, geographic strategies (Vogel and Vogel 2006). The targeting based strategy which has been used by the company is based on the differentiated process. The user benefit and value based strategy is thereby implemented by the company.
The hierarchical structure has been implemented by Huawei Technologies in order to operate in a profitable manner. The top management is mainly responsible for the operations of Huawei. The decisions are mainly taken by the top managers and these need to be followed by the middle levels and lower level managers. This structure is thereby based on the ways by which the company is able to implement the decisions in an effective manner (Poisson-de Haro and Bitektine 2015).
The core competencies and capabilities of Huawei are based on the different types of resources which have been gained by the company. The organization has huge amounts of financial capital which is based on investments which are made on different technologies. The company has owned more 20,000 employees which has proved an effective resource for the operations of Huawei Technologies. The production based facilities are considered to be effective physical resources of Huawei Technologies (Asseraf and Shoham 2015).
The ICT based solutions that have been provided by the company are considered to be highly effective for the functioning of the government. The secure operations of the government can be supported by the technologies in an effective manner. The network solutions and secure clouds are based on the support that is provided by the government to the company and the relationship which has been developed in an effective manner (Lin and Wu 2014).
Conclusion
The report can be concluded by stating that the multinational organizations in the Asia Pacific have been able to gain an effective position in the industry with the help of four different aspects of the operations. The strategies which have been implemented by the five organizations have been effective for their industry and the operations as well. The core competencies of the organizations and their capabilities have been able to play a major role in the revenues and profitability. The structure of the organizations has been developed based on the ways by which they are able to affect the culture as well. The organizations have also been affected in a huge manner by the support that is provided by the government based on their products and services and the operations in different areas. The government support is thereby able to play a major role in the ways companies are able to operate on a long term basis.
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