Internalization Plan of Dexiotis Ltd.

Internalization Plan of Dexiotis Ltd.
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Introduction
This paper aims to display the internalization plan of Dexiotis Ltd. The paper is subdivided into six sections. The first section is the introduction, which offers a chronological arrangement of the paper. The second section provides a brief overview of the chosen company, in this case, Dexiotis ltd. The third section provides a comprehensive analysis of macro-environmental factors likely to affect the company in its new target location (Belgium). This section analyzes the political, environmental, ecological, technological and legal factors likely to affect the company in its new location. The fourth section is the mode of entry section, which provides the perfect mode of entry that the company can choose as its enters and what strategy it can adopt later on. The fifth section analyzes the managerial implications of entering the new market. It provides an analysis f how the organization is expected to change in terms of organizational structural, cultural, and ethical considerations to align itself with the new market. The last section is the conclusion and recommendations section, which offers a summative report of what has been discussed in the previous sections.
Dexiotis Ltd. Description
Dexiotis Ltd. is a renowned security company headquartered in Hungary. It has a subsidiary in Cyprus that offers effective and efficient services and solutions to both public and commercial organizations. The business has been offering physical security consultancy, training, security personnel, non-security, employee training, sales of security products, and security market recruitment for years, giving people from different nations a boost of career chances. The firm considers extending security services to Belgium a perfect growth strategy in light of the rising demand for security services in the EU. On the other hand, if properly planned and strategically approached, Belgium has a vast spectrum of prospective consumers who might serve as a reliable source of income for Dexiotis Security Solutions Ltd. If so, the business will be able to grow and will be able to outperform other security companies globally in terms of revenue.
Belgium's Environmental Analysis
Companies usually need to perform a holistic assessment of themselves as far as their all-round existence and performance is concerned, in order to ascertain their real position in their respective industries and the business world in general. An environmental audit is essential for assessing the company's market strengths and weaknesses (Arensberg, 2018). Most significantly, an audit aids in considering new markets, an essential objective for every organization. As a result, to develop new concepts for a target market, micro environmental factors and concepts should be taken into account via thorough investigation utilizing the PESTLE tool. Additionally, it is essential to look at the target market's level of competition throughout the entrance stage using the five Porter forces.
Using The PESTLE Model to Analyze Belgium's Environmental Conditions
Political Variables
Political factors usually play quite a crucial role in the internal environment of any given country. Politics are crucial in either attracting or chasing away investors and their respective investments. Belgium is a well-known constitutional monarchy (Berceanu, 2019). The monarch's ability to maintain power is constrained. Due to its low danger of corruption, the nation provides a favorable environment for business and other political activities. The monarchy has been there for quite a long time, enough proof of its long-term stability. Furthermore, the political system in the country has historically been less polarizing and hence peaceful. The company can expand to Belgium since the nation currently offers favorable political stability, which is an attractive feature for foreign direct investments.
Economic Considerations
Economic factors illustrate a country’s potential in terms of business growth and productivity. Belgium's many economic factors significantly impact the operations of diverse organizations. The country has been one of the most stable economies in Europe, thanks to a stable political system and visionary leaders. Perhaps the only blip to the economy was during the Covid 19 pandemic; which affected the entire global economy as well. Due to the lockdown and other actions that impacted the country's economy, the GDP dropped significantly. However, 2022 statistics show a rising trajectory in GDP (Devriendt & Heylen, 2020). Belgium is a developed nation with a free-market economy. Belgians are also hardworking and committed people, who are often focused on their economic growth. This adds up to the national economic growth too, since the workforce is already tuned to that direction. Equally, Belgium's economy is diverse and dependent on global commerce which is encouraging for firms that want to expand in Belgium.
Social Elements
Social factors basically define the feel-good elements that can define a company’s progress and growth within a given country and its society. For Belgium, this is also an important variable to analyze. The country has quite a strong social outlook or social health, especially when looking at its population. Belgium is a nation with a high standard of living. The nation has one of the highest life expectancy rates in the world. Moreover, 99% of adults in the nation are literate, meaning that the company can never go wrong with employing skilled personnel from within the population. As a result, the nation is well known for its traditional food. Significant social issues in Belgium include traffic jams, work overload, industrial strikes, and a significant economic divide between Wallonia and Flanders. Additionally, the cost of living is higher than in nations in Western Europe.
Technological Aspects
Just like the rest of Europe, Belgium is also quite well known when it comes to technological innovation. Being an industrialized country means that there is widespread embracement and application of technology too. Innovations in Belgium are widely spread where innovative industries such as fashion, robotics, electronics, and pharmaceuticals. Furthermore, the active gig economy, tech fairs, workshops, and fast-growing tech start-ups are creating a buzz in the country. Despite its competitive factors, Belgium's ICT sector is sophisticated and offers multiple opportunities for international trade and all types of businesses Devriendt & Heylen, 2020 The ICT sector in Belgium offers a crucial contribution to its GDP. The country demands IT solutions, including cyber security, integration of software packages, data analytics, and digital marketing. However, the nation has a skills gap in technical positions including engineers, ICT personnel, architects, and mechanics.
Environmental Factors
Environmentally, Belgium favors new business establishments. Its environment can provide all the amenities a new company needs to sustain itself. The country has embraced Millennium Development Goals, which are focused on environmental protection and sustainability. This is through curbing or reducing pollution by embracing sustainable practices such as reduction of toxic emissions and development of environmentally friendly produts. The company is an equal advocator for safer, clean environments through its various climate change initiatives. This shows that it is a country that caters to its environment and adds to its attractiveness.
Legal Forces
Legal aspects are usually critical in determining the success of a business in a given environment. Sometimes the legal system within a country might be so punishing for businesses, making them to either realize little profits or none at all. Companies are usually quite careful when getting into countries whose legal systems might easily throw them in legal disputes with either the state or the citizens of that state. Civil law is used in the federal state of Belgium. Being an EU member, the nation must entirely adhere to EU legislation. The 1831 Constitution, updated in 2017, is Belgium's ultimate legislation (Berceanu, 2019). The company should know that Belgium is a place where the rule of law is applicable and followed strictly. Investing in a country where the law is followed rather than in dictatorship-governed countries is better. This shows Belgium's high attractiveness as an investment place for foreign companies.
Belgium Market Analysis Using Porter's Five Forces
Belgium Competition in the Industry
According to Fung (2013), the number of rivals in an industry is an important factor that allows a business to execute effective market strategies. Dexiotis would face stiff competition from Belgium's several security solutions firms (Fung, 2013). For instance, the main security sector in Belgium is represented by the Vrebos, Morti Gent, and Cennox Zavenetum. Due to the larger number of rivals in Belgium, Dexiotis security solutions may initially be less enticing to customers. However, with consistent marketing, the business will do well since Belgium's demand for security products is quite high.
Possibility of New Entrants in a Market
The force of new entrants into a company's curre...