Bmgt 364 project 3 asain division

Asia Business Division Unit Strategy Management Plan Phase One

Chris Stengel

Institutional Affiliation

Asia Business Division Unit Strategy Management Plan Phase One

Introduction

The commitment of this piece is to avail an overall business unit strategy management plan for the biotech as well as the new cosmetic division which is set to be open in India. The future and current goals of the new division's business have been examined and endorsed via surveys into some of the issues faced by the business going forward into the new industry. Availed are also the advantages the company will have pertaining to the selected location which is India. There will be laid out five goals as well as objectives to be met by the firm and its new division based in India. Finally, there is the examination of the internal and external analysis of the biotech in relation to the cosmetics industry. The analyses will assist in establishing a competitive advantage for both the biotech and its newly established India division.

Goals and Objectives

The goals and objective of this business would include the following:

1. Expanding into the Indian market and establish a cosmetic division as well as a distribution industry within the following year.

a. To select a market cite within India which overall tend to work best for biotech. Generally, India is the best location thus far chosen.

b. To select the new executive director for the new division as well as a team which will ensure the division is running.

c. To hire the local employees for both local relations and distribution.

2. Developing to become a triple bottom line organization by the year 2022

a. To build homes for various communities in India.

b. To create a clean support group in India to assist in cleaning up the area around the newly established division.

c. To donate 6% of the cosmetic sales to the removal of plastic from the ocean.

3. Developing natural cosmetics, foundations, powders, main focus on the lipstick, eye cleaners and makeup, taking at least a single style of every product to the market place within the next a couple of years.

a. To research the color trends as well as the current styles.

b. To develop natural products which are safe by the utilization of economic friendly materials

c. To test the products with the working teams to help select the fragrances and palates before launching them.

4. Marketing the new cosmetics internationally to boost the demand for the products of biotech, boost the market share by 15% within the first twelve months of launching it.

a. To research trends in the global and local markets of cosmetics to discover what works best as the points of sale.

b. To launch a single product at a given time and collect the consumer's feedback before the launch of the second product.

c. To market the products to the United States and even to the domestic consumers within India before working into the other areas abroad.

5. Creating a culture which is customer-centric and focuses on offering the customers with the most outstanding experience with the business as well as its products.

a. To carry out surveys and collect the feedback on the products which are most liked and disliked by customers by dealing with the biotech so far and how it can be adjusted to make it better.

b. To create a guarantee of money back on the products.

c. To have dedicated branches to handle the services of the customers and make the team's main focus to be the deal of the customers.

Competitive Analysis

The SWOT analysis:

Strengths: · A family runs the business · Dedicated to creating economic friendly as well as natural products · Business track and a strong brand in natural goods. · Encouraging new ideas and innovation. · Beliefs in the utilization of the rapidly growing current technology to assist in growing and shaping the business · There is the production of natural pharmaceutical goods in India where the new industry division will be located

Weaknesses: · New to the industry of cosmetics · New to India, the new market location · Has a new director · Leaving the business which is run by family members · Lacking marketing personnel in the cosmetics industry · The present lack of competitive advantage

Opportunities: · The firm is new to the industry of cosmetics · The emerging Indian markets · Cheaper costs of distribution in India · Naturally made and safe products have become increasingly more attractive to the customers · There is a lack of quality, sustainable as well as safe products in the cosmetic sector

Threats: · The trends in the market in the cosmetic industry · The trends of the market in the commodities traded on by the company, natural and economic friendly goods. · Setbacks in the finishing of the newly created division in India which is the new location because of the external influences impacting on the distribution and production costs. · The changes in government policy which affects the sales and or distribution of business in India.

In the SWOT analysis of the biotech, it is evident that the firm's strengths tend to lie on the fact that the biotech is a strong business which is run by a family which has the aspect of the family in mind. The company is also seen to be dedicated to its vision and mission to achieve its desired goals and objectives of profit maximization (Aguire et al., 2014). The firm enjoys a strong customer base in the product brands which are present in the market. Similarly, the business has the same opportunity to bring with it the large and robust customer base to the newly established cosmetic division. As it will tend to be a new investment for both the new director and the company at large, the emerging market risks and lack of qualified marketing expertise in the new location as well as the Indian emerging market trends seems to back the organization's chances to launch its new products successfully. This, however, will take place as long as there exist no drawbacks or even the external threats of the control of the biotech.

The PESTLE Analysis

The PESTLE analysis which is presented in this case has been carried out about the location in India that has been chosen for the new division of the cosmetic industry. Concerning politics, India is seen to be a nation which has a stable political position since it possesses one of the largest modern democracies in the world (Greer, 2018). The India government operates in the general means, and it is impacted by the procedures and policies which are formulated by the national government. It, therefore, means that there are a lot of political parties which function and are capable of influencing the process of decision making. It thus implies that India as a nation is politically controlled, and the politics can impact the cosmetic industry especially if the government fails to support the populous beatification. There is also in India a system of taxation which will take almost 35% of the business sales. The government encourages a lot of privatization, but there is still evidence of corruption within the nation.

In terms of economy, India has recently evolved to become an emerging open market which possesses a rate of growth of almost 7.5% and a GDP of 9trilion. The rate of unemployment in India stands at 5% which is seen to be able to offer a great opportunity for the biotech to provide potential jobs for the citizens in India (Greer, 2018). The country's economy has always been very stable and seems to continue being stable for the foreseeable future.

India socially has a vast population with 70percent made up of youths from the age of 11 to 45 years. It, therefore, means that India consists of divergent attitudes, trends as well as educational backgrounds amongst her citizens (Greer, 2018). Surveys and recorded data have revealed that there exists a growing desire by the consumers in India, especially the younger generation in the dermatology care products and cosmetics use. The growth rate in the utilization of such product stands currently at 20% as reported by the CGI magazine.

Regarding technology, India constitutes one of the nations which are leading in the adoption of modern technology and its utilization. The country has one of the most significant presences in the industry information technology and the enhanced software and devices development. Presently, India has the capabilities and ambitions of the 4G concerning their satellites in the space.

India has gone through a lot of alterations legally for the benefit of the nation environmentally and even economically. The country has created ways of mitigating pollution as well as the waste patterns. The state has been full of pollution as well as poor quality of air for a long time as a result of industrial pollutants which fills the air and tends to contaminate it (Ehsah, Karlsson & Dada, 2016). The industrial practices such as manufacturing and greenhouse emissions tend to pollute the environment in India. Following these polluting practices and pollution in general, the nation has experienced a more significant increase in health issues amongst its populace.

Most of the ill-health problems brought about by the pollution in the country are cholera, and other waterborne infections as well as respiratory tract infections. A lot of groups have been seen to emerge to assist in lessening the issue of pollution in India with the sole objective of creating a greener footmark in the nation by the formulation of relevant policies as well as initiatives (Ehsah et al., 2016). It is in this sector that biotech can undoubtedly chip in to assist in making a difference. It can do this correctly by leading the effort to go green which has been beginning by most of the governmental and non-governmental organizations alike.

The Potter's Five Forces Analysis

As the biotech takes a step ahead by entering the cosmetic sector, it is essential to analyze its five forces of competition and operation in the marketplace. The five forces of competition in potter's perspective include the power of supply and buyer, the competitive rivalry, the threat of the substitute goods and products as well as the threat which is brought about by the new entrants into the market (Rothaermel, 2015). With the five forces analyzed and taken into account by any organization, there is an assurance of a competitive ability development as a result of proper operations taking place within the firm.

In the context of the biotech constructing a cosmetic industry in India, the rivals in the investment are firstly the large organic and natural organizations which include the 100perentpure, the juice beauty and the Alima pure. The other threats include the mainstream cosmetics in the country which include the Maybelline, L'Oreal and even the Clinique (Rothaermel, 2015). In this case, therefore, the biotech company should, therefore, look for ways which can help them gain ultimately the market share from the other organizations which tend to be leading currently in the natural products. They should also seek a market base for their most popular goods and manage to achieve a competitive advantage over the already established companies in the same sector.

The industry seems to be dominated with the firms operating on the same field and product range. As a result, the biotech should find a way of producing unique products from the other ones which are provided by the other firms to help create fresh demands for the newly introduced goods, thereby forming a vast market for their division in India (Gupta & Batra, 2016). In this manner, biotech will develop a product which will rival its competitors both in quality and in price. The products should also be economic friendly to help reduce the instances of pollution which has been witnessed to affect a lot of Indian citizens. The products will, therefore, lead and create recycling and reuse importance for the customers, thus attracting more their attention leading to more purchases.

Today, the power of suppliers and buyers tend to be similar. However, the power of supplier tends to be stronger since it is possible for the company to establish the future market prices of the product basing the analysis in the existing market situation as well as the cost of production (Greer, 2018). Nevertheless, the power of the buyer also seems stable as well because the biotech company lacks an established customer base yet unlike the competitors and it might take it time to achieve the increase of customers to like its motto and even its products and services.

As there exist other firms in the cosmetics industry in India, and that make the natural as well as economic-friendly products, biotech is placed in apposition where it needs to set new and advanced standards of what is expected of a sustainable and safe cosmetics firm. It can achieve this by making an evaluation and examination of the market trends as well as engaging in specific buyer surveys even through benchmarking with other established firms within the same industry (Greer, 2018). Again, a chance has also presented itself for the biotech's loyal consumers for other company's divisions should and can show their interests towards the firm's newly developed products, since they had made a taste of the organization's other safe and natural goods.

Regarding the threat of new entrants as well as that of the substitute goods, biotech, in this case, stands to be the new entrant in the cosmetics industry market and therefore possesses the advantage at his hands of altering the existing state of the market in India concerning the industry. The company's ideas in addition to the products including how the products are distributed to the customers by the firm can help in setting a new standard for the safe and high-end natural cosmetics (Gupta & Batra, 2016). The chances are that the other firms may also engage in the same strategy to realize the competitive advantage of the new entrant which in this case is the biotech company. However, biotech can try to mitigate the threats by acquiring and sustaining its market share as well as by providing additional importance to their customers to make them remain loyal to the organization and support its vision and mission. Biotech can achieve this in the Indian market for the new division through such initiatives as givebacks, offering discounts, the green benefits, sponsoring mentorship programs as well as applying other marketing methods which are customer friendly.

References

Aguire, A., Aylor, B., Blunt, K., Elias, T., Jules, T., & Kennedy, J. (2014). Marketing Strategy & Finances: Smart ForTwo into India.

Ehsan Ullah, E., Karlsson, B., & Dada Olanrewaju, D. (2016). Foreign Market Entry Srategies.: A Case study of IKEA entering Indian Market.

Greer, G. (2018). Win in India: An Analysis of Market Entry Strategy Into India’s Cosmetics Industry.

Gupta, V. K., & Batra, S. (2016). Entrepreneurial orientation and firm performance in Indian SMEs: Universal and contingency perspectives. International Small Business Journal, 34(5), 660-682.

Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education.