B&M Stores in Denmark: Firm Specific Advantages
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Instructions
The assignment is to be carried out individually and independently - neither seek nor accept any advice or guidance from anyone other than the module co-ordinator or his agents. You are required to produce a typed document (in your own words). Word count for this assessment is considered to be critical. The specified word limit for this assignment is 3,000 words. An additional 10% tolerance will be allowed on top of the specified word limit. In the event of a student exceeding the specified word limit by more than 10%, a penalty will be applied. For explanation of elements which are included and excluded from the word limit, and associated penalties for exceeding the specific word limit. The total word count of the valid elements included within your final submission must be declared on page 1 of your assessment submission. Your report should apply relevant theory, models, frameworks, issues and management vocabulary and draw upon your own secondary and tertiary research. Throughout this assignment, students should demonstrate their skills, knowledge and expertise in applying sound principles. Please refer in particular to Tables 1, 2 and 3 and Appendix 1 in this document. The assignment is to be written in the format of a single report and must address the requirements of the following assignment brief. Assignment Brief This is a portfolio assignment with each student producing a single final report which incorporates appropriate responses to a series of specified tasks. Scenario for the Assignment Brief You are a consultant who has been asked by the Board of the firm* to consider engaging with a target country* in order to extend its market (IMPORTANT: see Table 1 for the 4 BS4330 Global Business Practice Coursework constrained choice which you have regarding this). Your task is to apply relevant analytical frameworks from the module content to evaluate conditions prevalent in the target country and, using the firm’s statements on its international/global business practice (this may incorporate, for example: their mission statement; codes of conduct; ethical statements; environmental standards; corporate social responsibility practices; and other salient policies) to identify any major issues or challenges which could affect the firm’s engagement (and choices of activities) with the target country. Consequently, you will then have to propose (and justify) a preferred option for engaging with the target country and consider the consequences for management. * Using Table 1, each student must select ONE option to write about. Each option comprises a FIRM and a TARGET COUNTRY [some links are given to get you started on your information gathering]. If you do not select ONE of the options this will result in the award of Grade F for your submission.
B&M STORES IN DENMARK
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B&M stores in Denmark
Firm Specific Advantages
Global expansion is a critical phenomenon based on effective analysis and specific frameworks where business extends to lucrative overseas markets (Piekkari et al., 2014, p. 35). Global expansion is critical since it provides the companies an opportunity in accessing high-quality and talented countries. It is also essential in providing adequate insight into local cultures in the new country, a practice that would ensure reliable growth and diversity (Wang et al., 2017, p. 11). Expansion in the global market is critical and based on the business management of services and services, and it considers specific principles to embrace growth and development (Nambisan, 2019). It is also based on unique marketing strategies that suitably meet the targeted country’s practices. Before the actual expansion in a specific country, it is necessary to identify the specific activities that suit the customers. The report addresses the entry of B&M stores into Denmark by addressing specific elements such as firm-specific advantages, the political economy, location advantage, global business practice, market entry and modes of operation.
There are key advantages that B&M Stores have that gives a better position to expand in the country. According to Kilian (2019), a company can successfully penetrate a country whenever it meets the expectations of the customers based on its products and services (p. 100). The company's key advantage is that it produces high-quality products (B&M Stores, 2022). Quality is a key element that determines the success of any company in the global space. With adequate quality, it is easy to overcome any emerging challenges that may jeopardize the firm's growth. Quality in the global space is essential for the company since it would allow it to penetrate the new Denmark market regardless of the consistent competition observed from other domestic companies. Besides, quality is a key advantage of the company since it would allow it to gain more trust in the new market, which is necessary for its adequate expansion in the market.
The second advantage of the company is its product differentiation strategy. B&M stores heavily focus on product differentiation strategy (Chai et al., 2021, p. 5578). The strategy is essential since it allows it to effectively penetrate the market. Product differentiation strategy is an element of global practice whereby a company considers unique features in its products to gain a higher competitive advantage (B&M Stores, 2022). The company focuses on better strategies such as groceries uniqueness which gives an adequate opportunity to penetrate the market and uses ideologies that other companies do not embrace. There is a need to focus on better strategies while exploiting new markets in a country. However, whenever a company focuses on the product differentiation strategy, it becomes easy to meet the needs of new customers in the targeted market. Therefore, it is essential to justify that customer loyalty increases with adequate consideration of the unique qualities in products.
The last advantage that the company enjoys is a strong brand and appropriate technologies in producing its products. B&M is known for considering reliable and accurate pricing strategies relevant to accommodate more customers. It is necessary to justify that with accurate consideration of recent technologies; it is easy to meet the specific needs of the emerging customers regardless of more demands that they may require. Most of the activities conducted within a company extending in the global space should align with its goals (Ekman, 2019, p.580). The major goal of B&M is to ensure that all the customers are satisfied regardless of their demands. There is also a need to bring the customers onboard to ensure their expectations are adequately met. These are some of the key strategies that the company consider, thus giving it more advantage than other companies. Therefore, the key advantages of the firm can be summarized as the product differentiation strategy, advanced technology and high-quality consideration. The three identified advantages give the company a better chance to adequately penetrate the Denmark market, which needs high quality and advanced products.
Political Economy of Denmark
Denmark is one of the countries with a stable political economy. It is a Scandinavian country in Northern Europe with specific islands and strategic locations (Denmark, 2022). Understanding the political economy of any country is essential since it allows the marketer to identify the key elements that suit the company's goals. Denmark is a country with an open economy and surplus ways of payments (Ingold, 2015, p. 6). The country significantly relies on foreign trade, thus making it suitable for a company to target and succeed. Heavy dependence on foreign trade has adversely positively and negatively impacted the country. For instance, whenever any issue emerges such as pandemic, it is adversely impacted. However, whenever a company opens a new branch on it, it is likely to positively grow. The higher dependence on foreign trade also exposes the country to higher growth and development.
Secondly, Denmark has a healthy public account with low debt-to-GDP ratios, indicating positive growth and global expansion measures. Besides, Denmark government engages in specific global enhancement measures (Koligkioni et al., 2018, p.65). For instance, the government consistently ensures that the county develops suitable tied that can be used in reaching different companies leading to adequate expansion and growth. Besides, it also advocates for specific measures taken to ensure the marketing capability of the country is not limited to any local but global space. The main aim of such practice is to connect Denmark to the global space. Therefore, the government play a significant role in ensuring the country is globally viable for other business enterprises. The government's involvement in the country's economic engagement has also allowed it to actively balance its budget towards business practices and growth. It means that it becomes easy to actively engage the country in global business practice with adequate consideration of government involvement.
Denmark’s political economy can also be classified as a centralized system. It is based on a reliable, strong executive with adequate power responsible for budget control and engagement in political developments (Lanau and Liu, 2020, p.4685). The country is based on positive political ideologies with strong bonds with other countries. The government plays a significant role in policymaking and economic transformation, making the country adaptable and appealing to globalization. Besides, the country enjoys sustainable economic growth from different sectors and adequately implements necessary social transformation and development approaches.
The location advantage of Denmark
Effective understanding of the location advantage of Denmark can be explained in terms of six elements of the porter diamond model as indicated in Appendix A. It is a suitable element necessary for understanding national competitiveness. It also shows the country's suitability to meet the expected thresholds in asserting quality development and growth. According to the model, home country characteristics play a significant role in defining international engagement (Peng, 2016). Therefore, a country needs to understand the quality measures and practices a given country considers during global expansion.
Factor Conditions
Factor conditions constitute significant resources that are found in the home country. Denmark is known for adequate grocery resources, and it is a healthy nation due to adequate food resources (Jespersen, 2018, p. 18). Therefore, the resources make B&M viable for expansion in the area, and it would make the company adequately expand in the country due to adequate supply. Therefore, the Porter Diamond model's identified element makes the company suitable for expanding in the country.
Demand Conditions
There is high demand for groceries in Denmark. The key aspects that make such demands high include increased market growth and size. Denmark is one of the countries with a rapidly growing market size (Andersen, 2018, p. 1330). The identified characteristics would allow the company to have positive growth and a higher competitive advantage. Besides, it would allow the company to invest more resources in different sectors and meet the market needs of the locals.
Related and Supporting Industries
Related and supporting industries in a specific country are necessary for producing more inputs and ensuring reliable internationalization and innovation growth. The industries are effective since they can be considered cost-effective inputs (Bakan and Doğan, 2012, p.442). The major supporting industries in Denmark that may be suitable for B&M expansion include food production units that the government have adequately invested considered. They would be responsible for adequate supplies in groceries. Therefore, it is justifiable that expansion would be observed adequately with related industries in Denmark.
Firm Strategy, Rivalry and Structure
The element focuses on the suitable ways upon which companies in the country are organized and managed. Denmark’s growth is adequately considered due to its engagement in specific marketing activities. Besides, rivalries are necessary since they promote intense competition, which would lead to higher growth and development in the country (Fainshmidt et al., 2016, p. 100). Therefore, with intense company engagement in Denmark, B&M would have a better chance to expand adequately.
Chance
There are random events in Denmark that would make the company adequately expand and reduce possible challenges that will likely impact growth and development. For instance, Denmark is known for constant engagement in economic forums, which allows the country to successfully expand its market development standards. Therefore, B&M would have a better chance of growing and meeting the customer needs in Denmark.
Government
Government is an essential element in the Porter Diamond Model. The government significantly influences international competitiveness due to exportation and importation (Claessens, 2016). The government’s engagement in specific global enhancement measures enhances Denmark's growth. The government consistently ensures that the county develops suita...