Group A: Project 1
Lath Nathalie Akadje
Christopher S. Allumbaugh
Joseph Carl Battistelli
Niesha Joyce Bedney
UMUC AMBA 610
Professor Paula O’Callaghan
November 6, 2012
Corporate Level Strategy
Organizations utilize corporate-level strategy to find a new domain to succeed in, while still maximizing the utilization of its core competencies. Moonglow Acre’s core competency has always been social responsibility and concern for the environment. They can use this capability to expand into new domains, whether they are related or unrelated. Not only can a change in domain or structure add value, but the culture an organization implements can also positively or ...view middle of the document...
The benefits of spreading their product across the world would have to outweigh the additional costs of necessary management additions. If the new environment does not support their strong environmentally friendly culture, this could be seen as a loss to the company.
Globalization Strategies for Moonglow Acres’: Functional-Level Strategy
When considering globalization opportunities for Moonglow Acres’ there has to be consideration given on the market and core competencies that the organization represents. This presents both pros and cons at every level no matter what strategy we try to incorporate. However, we must first consider the functional-level strategy because, this directly correlates to organizations providing value within its target customer base. We have to consider that Moonglow has taken a strategic environmental approach to add value and global responsibility to their campaign for responsible business in the current environmentally conscious economy.
There are many advantages to this approach, including substantial investment within the company to improve and lower cost to their organic products. This causes a lower cost to Moonglow and, this is something a competitor would have a hard time competing with. This causes a considerable competitive advantage for the organization, while capitalizing on the already core competencies Moonglow has. This allows the necessary differentiating cost analysis to be accomplished and, maintaining the research and development structure of the organization does this.
The cons of this strategic level approach are the lack of tools to incorporate globalization by the organization. An example of this would be the challenge of vertical integration for the organization. Since they want to expand into a European market it would be easier to find an organization they could capitalize off of. It would be easier if they could gain market access through the use of an existing market or organization but by limiting the organization to a functional-strategy role this becomes harder because, it is outside the normal relative structure.
The first factor that Moonglow Acres should consider is the global environment in which the international expansion will occur. If the company is only considering expanding into a single country, market research is needed to determine which country has a market for dairy products that would allow it to effectively compete. However, if the company is considering expanding in the entire region, then the market for dairy products in different regions of the world should be considered (Czinkota & Ronkainen, 2007). The time and effort must be taken to conduct market research in order to find a country or region of the world in which Moonglow Acres’ products will be desired by consumers, as well as a market that will allow for a new competitor.
The issue of the environment in a foreign country or region of the world leads into a second...