Report On Business Conditions Essay

Length: 10 pages Sources: 15 Subject: Transportation Type: Essay Paper: #18409744 Related Topics: Business Case, Export Business Plan, Business Operations, Brazil
Excerpt from Essay :

Business Report on Dental Prima

The Firm's Specific Advantages for its Internal Environmental Assessment

Accessing Foreign Markets and their Buyers

Key Global Environmental Issues

Political, Economic, Social and Technological Environments

Key Challenges and Opportunities in Foreign Markets

Market Entry Modes

Structure and Control Mechanisms

Logistics & International Business Operations

Future Implications

Prima Dental is based in Gloucester in the United Kingdom and has a legacy of more than 150 years. It is among the oldest of dental companies in the UK (Primadental.com, 2016). The company produces a wide range of high-tech tools that are used for dental treatments the company has business all over the world. The company has been achieving double-digit sales growth in the last few years and considers itself a global leader in precision dental products. The core competencies of the company include its extensive research work that helps it to come up with new and innovative products. The company has a skilled team of employees which gives them a competitive edge (Primadental.com, 2016).

The core vision of the company is to produce a better design, better engineers, better dental products and better distribution partners that drive the company to greater market share. Quality is of prime importance for the company and it strives to ensure that the customers are delivered the world's best precision dental products all the time. The company has been in the business of dental manufacturing for more than 150 years now. Its rich heritage and legacy have helped the company to make a mark in the market. The company also strives to look ahead of its time and maintains close ties with the customers to provide the right products (Primadental.com, 2016).

The Firm's Specific Advantages for its Internal Environmental Assessment

From the evidence and the information that is available in the public domain about Prime Dental, it can be said that the company has been able to maintain a steady income and market share over a very long period due to its outlook of being able to look ahead of its time (Primadental.com, 2016).

Brand Name

The first basic advantage in its internal environment that gives the company a healthy edge over its competitors is its brand name and reputation, especially in terms of the quality of the products it produces. Over the last 150 years, the company has been able to steadily provide a quality product to its customers that have enhanced its brand image (Johnson, 2003).

Innovative Culture

The work environment within the company is such that it fosters innovation and urges every employee to think out-of-the-box. The company has a policy of encouraging new ideas and encourages employees to speak out their minds. The company utilises new ideas and innovations to design and manufacture new products that are demanded by the customers.

Skilled Workforce

The company has a policy of encouraging and retaining skilled employees that have helped them to build up a strong team. The company boasts of the strong team of engineers and researchers and hence is able to develop new products. The company also conducts training programs for the employees to enhance skills (Cadle et al., 2014).

Continued Investments

The company has undertaken a policy of constant investments in technology, marketing, the employees as well as the business partners and the company claim that the success is partly due to this.

Accessing Foreign Markets and their Buyers

Prime Dental has its business sin about 90 countries outside of the UK. Very recently it started operations in India and Brazil where it has started sale and distribution centres. The main drivers for the company when it tries to find out and make an assessment of a foreign market is to study the demand for the products in the foreign market survey is a must for the company (Gfirstlep.com, 2016). However, since the company has a strategy of high-growth and high-volume business as a manufacturer, the international...

...

At present, the international sale of the company accounts for more than 80% of its total revenues.

The significant investments that the company makes in research and production facilities back in the UK are among the main drivers for assessment of international markets. In a foreign market the company assess the demand for the innovative products that it manufactures (Cadle et al., 2014). While the potential demand for the products in a foreign market is one of the drivers for assessment Prime Dental also has a robust global marketing policy and it verifies whether that marketing expertise can be applied successfully in a foreign market (Southwestbusiness.co.uk, 2015).

Since the company makes quality products that are premium priced the economic conditions fo a foreign market and the suitability of the price range of its products for the market are also driving factors. This explains the entry of the company into emerging markets like India and Brazil where the company made and assessment of the demand as well as the price sensitivity of the customers in these markets (Bateman, Lovett, and Brainard, 2003). Another important driver for the company in a foreign market is to assess the potential of developing local manufacturing bases in the foreign market so that supply can be made to the local markets. One example is the joint venture of the company with Angelus Prima Dental Ltd. to set up a manufacturing unit in Brazil very recently (Southwestbusiness.co.uk, 2015).

Key Global Environmental Issues

The key global environmental issues that impact Prime Dental when it makes an assessment of a foreign market include:

Economical -- since more than 80% of the revenues of the company come from exports, the overall global economic environment is critical to its sustainability. The company has to consider the economic environment of the globe as well as of the particular region and the market before deciding entry. The economical factor is a key global phenomenon that impacts Prime Dental in more ways than one. While making an assessment about a foreign market, the ability of the market to sustain the business costs of the company and the potential for return and gaining of further investments are important considerations for the company (Westney, 2011). If the general economic condition of the globe or the region is not good, the company cannot hope to make any significant revenue gains from entering into a new market.

Technology -- the products that are manufactured and marketed by Prime Dental are sophisticated in nature and require the most state of the art technologies to produce. Even, the after sale service is sophisticated. The company continuously tries to innovation his through constant investment in innovation and research. However almost every other competitor of the company is engaged in similar research work and it is a fact that in the present globalised technologically advanced world, new technologies emerge every now and then. Some of them even are path breaking and have the potential to change the face of competition. Hence, the company has to carefully consider the technological advancements being made in the world and the region where it wants to enter and take into consideration the technological position of competitors in the new foreign market (Katavi?, n.d.).

Political, Economic, Social and Technological Environments

For this part, we choose the company entering Brazil and setting up a joint venture manufacturing unit there which it has done very recently.

Economic factors -- since the company produces quality products that are priced at a premium, it has to look for markets which are doing well economically so that there are enough customers in the market to buy their products. Brazil is a fast-growing economy and the economic condition of the country is good which can help the company earn more revenues (Katavi?, n.d.)

Political Stability -- In every foreign market that the company intends to enter, it has long-term plans. Therefore, its policies and strategies are so designed for the long-term. Political instability would jeopardise the plans and strategies and hence this is a critical factor. In Brazil, the political environment is more or less stable and there is no threat of any long-term or drastic change in its economic policies and hence, Prime Dental would be comfortably placed in Brazil.

Legal Framework -- it is important that the foreign market that Prime Dental assess to enter should have flexible legal frameworks to allow it to set up and run a business either independently or in a joint venture. For this, the rules and regulations should be such which promotes foreign direct investment in the foreign market and has good laws that facilitate business. For example, the company would not want to set up business in e country that has poor labour laws and risk the potential of labour unrest (Preston, 2000).

Technological expertise and Local skill - The products that are manufactured by Prime Dental are sophisticated and are of the best quality in the world. The company has a policy of setting up manufacturing units in foreign countries. Therefore before deciding to enter a new market,…

Sources Used in Documents:

References

Amante Garcia, B. and Martinez Martinez, M. (2014). Internationalization: Changes and challenges chasing internationalization targeting. J. Technol. Sci. Educ., 4(1).

Bateman, I., Lovett, A. and Brainard, J. (2003). Applied environmental economics. Cambridge, UK: Cambridge University Press.

Cadle, J., Eva, M., Hindle, K., Paul, D., Rollason, C., Turner, P., Yeates, D. and Cadle, J. (2014).Business Analysis. Swindon: BCS Learning & Development Limited.

Chanakira, M. (2012). Factors Affecting the Choice of Market Entry Modes in the African Telephony Industry. International Journal of Applied Behavioral Economics, 1(2), pp.1-15.
Gfirstlep.com. (2016). Export growth leads to Queen's Award for Prima Dental - GFirst LEP. [online] Available at: http://www.gfirstlep.com/News/Export-growth-leads-to-Queen~s-Award-for-Prima-Dental / [Accessed 14 May 2016].
Primadental.com. (2016). About Prima - Prima Dental. [online] Available at: http://www.primadental.com/corporate / [Accessed 14 May 2016].
Primadental.com. (2016). Approach - Prima Dental. [online] Available at: http://www.primadental.com/corporate/approach [Accessed 14 May 2016].
Primadental.com. (2016). Expertise - Prima Dental. [online] Available at: http://www.primadental.com/corporate/expertise [Accessed 14 May 2016].
Primadental.com. (2016). News - Prima Dental. [online] Available at: http://www.primadental.com/corporate/news/story/world-leading-uk-bur-manufacturer-enters-indian-dental-market [Accessed 14 May 2016].
Primadentalgroup.com. (2016). News - Prima Dental. [online] Available at: http://www.primadentalgroup.com/corporate/news/story/prima-dental-invests-2.8m-in-major-expansion-and-creates-17-new-jobs [Accessed 14 May 2016].
Southwestbusiness.co.uk. (2015). Prima Dental group MD Richard Muller explains the importance of exports to the Gloucester company -- Blog. [online] Available at: http://www.southwestbusiness.co.uk/regions/gloucestershire/11112015084805-prima-dental-group-md-richard-muller-explains-the-importance-of-exports-to-the-gloucester-company / [Accessed 14 May 2016].


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