INT BUS ENV WEEK 11

Analyzing Avis Company STUDENT'S NAME: BURAK OGUZ

COURSE TITLE: INTERNATIONAL BUSINESS ENVIRONMENT DATE:11/11/2017

EXECUTIVE SUMMARY

! Avis is a car rental company in USA with its headquarters in New Jersey . It has two units: Budget Truck Rental and Budget Rent a Car.

! It provides products such child safety seats and GPS navigation. Some of the services offered include: pay now rates, long term rentals and best rate guarantees.

! The proposal looked at commitments such as financial, human resources, operation and production and marketing commitment in order to ensure a successful joint operation with Avis Company by Alamo Company.

! Negotiation was the best approaches that will be used to ensure Alamo gets the best deal with Avis Company.

Financial Commitment

Ploughing back the profits made by Alamo is the most appropriate rather than taking loans that attract interest. Loans are risky since the investment may fail and paying back loans with interest will be a liability to the company. However, profits are safer in case of failed investment. Hiring of competent management team will ensure that every resource invested by the company is utilized maximally in order to save money for the company

Human Resource Committed

! The workforce in a company is a important as the money invested in the company. If the workforce is composed of talented, motivated and skilled workers the company will be able to realize its objectives and in turn enjoy great profits

! The company should only recruit the best and most qualified and the existing should be trained on ways to handle the tasks and operation added once Alamo joins with Avis Company.

Operations Commitment

! The main operations to be considered is the supply chain management. This means the company has to ensure that the goods and services reach the customers in time and this is made possible by making sure suppliers are in time.

! An effective channel of communication between supplier and the company and the company and its consumers should be created and well managed

Marketing commitment

! A market research should be conducted in order to understand changes in consumer behavior to ensure the goods and services offered meet the satisfaction of the consumer.

! New marketing channels such as social media and online platform should be explored. Most of the consumers are now educated and it is through the online platform that Alamo will understand its consumers.

! Product development is very essential in ensuring the product has a longevity in the market. Innovation in products and service will be very importance in ensuring the product are not redundant to the consumer.

Minimizing foreign risk

! Joint operation with Avis company comes with some foreign risk especially on domestic and foreign currency exchange

! Alamo can reduce this risk through hedging which has regular returns and hence protect the company from foreign risks

Leveraging on politics and laws

! Different states have different laws and politics, therefore for a foreign investment to be successful, a company need to comply with laws and lawmakers.

! A lobby with the government will ensure that policies and laws create a favorable business environment for the company in the country.

Negotiation

! This is the best approach to handle the deal since it will ensure a win- win situation for both Alamo and Avis Company

! However, compromising one’s operation will be experienced during the negotiation especially in terms of communication

! To counter this both company should prepare in advance in order to meet the requirement of the other without compromising on their own.

Reference

! Rubin, J. Z., & Brown, B. R. (2013). The social psychology of bargaining and negotiation. Elsevier.

! Hill, C. (2008). International business: Competing in the global market place. Strategic Direction, 24(9).

! Sethi, D., & Guisinger, S. (2002). Liability of foreignness to competitive advantage: How multinational enterprises cope with the international business environment. Journal of International Management, 8(3), 223-240.

! Dunning, J. H. (1999). Governments, globalization, and international business. Oxford University Press.