Course Project Phase III (BUS6750 International Business Management)

Course Project Phase II

BUS6750 International Business Management

Calvin Durham Jr.

Shorter University

Professor Deondre Earl

April 9, 2023

Expanding to Italy: Marketing and Operational Strategies for Clippers Tour Company

Clippers Tour Company is considering expanding its operations to Italy, a popular tourist destination with strong demand for travel services. To successfully enter the Italian market, the company needs to develop effective marketing and promotion strategies and make operational adjustments to adapt to the local market. This paper will discuss key components of Phase II, including selecting a global company structure, financing sources for global business operations, creating a global management information system, identifying human resources for global business activities, managing global financial and business risks, and providing a summary of content and projections for Phase III.

Selecting a Global Company Structure

In order to establish a successful presence in Italy, Clippers Tour Company needs to select an appropriate global company structure. A global structure involves determining the objectives and organizational framework for its global business operations. One possible approach is establishing a subsidiary in Italy, which would allow the company to have a separate legal entity and enjoy certain tax benefits (Hitt et al., 2020). Another option is to form a joint venture or partnership with a local travel agency or hotel, which can provide access to local knowledge, customer base, and distribution channels (Cullen & Parboteeah, 2019). By carefully considering the advantages and disadvantages of different global company structures, Clippers Tour Company can make an informed decision that aligns with its strategic objectives.

Financing Sources for Global Business Operations

Expanding to Italy will require Clippers Tour Company to incur project start-up costs, including market research, marketing and promotion expenses, operational adjustments, and hiring local staff. To finance these costs, the company can consider various sources of funding. One option is to use internal funds from its existing operations or seek external financing from banks or other financial institutions (Keegan & Green, 2017). Another option is to explore government-sponsored programs or incentives for international business expansion (Hill, 2020). Clippers Tour Company can also consider strategic partnerships or alliances with local businesses in Italy, which can provide access to additional resources and reduce financial risks (Adiguzel, 2020). By carefully evaluating different financing sources, Clippers Tour Company can ensure that it has the necessary capital to support its international expansion plans.

Creating a Global Management Information System:

A sure way of facilitating international business activities, Clippers Tour Company needs to establish a global management information system that can effectively collect, store, process, and analyze data from different markets, including Italy. The process may involve identifying needed databases, information systems, and software applications that integrate data from various sources, such as customer preferences, market trends, and regulatory requirements (Rainer and Prince, 2021). The system should also generate timely, accurate reports and insights supporting decision-making and strategic planning (Czinkota & Ronkainen, 2020). By creating a robust and efficient global management information system, Clippers Tour Company can gain valuable insights into the Italian market and make informed decisions to optimize its business operations.

Identifying Human Resources for Global Business Activities

Hiring and managing human resources is a critical aspect of expanding to Italy for Clippers Tour Company. To operate an international enterprise, the company must identify the necessary personnel with the right skills, knowledge, and cultural understanding. Achieving the goal may involve recruiting local staff familiar with the Italian language, culture, and business practices and providing appropriate training and development programs to ensure that they can effectively meet the needs of Italian tourists (Deresky, 2021). Clippers Tour Company may also need to consider the potential challenges and cultural differences in managing a diverse workforce in Italy, such as communication styles, work attitudes, and labor laws (Roberson, 2019). By carefully selecting and managing human resources, Clippers Tour Company can build a competent and motivated team that can drive the company's success in the Italian market.

Additionally, the company may need to address legal and regulatory requirements related to hiring and managing employees in Italy, such as labor contracts, work permits, and tax obligations (Dowling et al., 2019). Clippers Tour Company should also develop strategies to retain and motivate its employees, such as offering competitive compensation packages, providing opportunities for career growth, and fostering a positive work environment that values diversity and inclusion (Ghani et al., 2022). By effectively identifying and managing human resources, Clippers Tour Company can ensure that it has the right talent in place to support its international expansion plans in Italy.

Managing International Financial and Business Risks

Expanding to Italy also entails managing various financial and business risks associated with operating in a foreign market. Clippers Tour Company needs to carefully assess and mitigate these risks to protect its investments and maximize its chances of success. The measures may involve conducting a thorough risk analysis and identifying potential risks such as currency exchange rate fluctuations, political instability, legal and regulatory changes, and competition (Hitt et al., 2020). The company should develop contingency plans to address potential risks, such as setting up appropriate financial hedging strategies, establishing local partnerships to navigate political and regulatory challenges, and developing flexible business models that can adapt to changing market conditions (Tkachenko et al.., 2021). Clippers Tour Company should also comply with local laws and regulations, including tax requirements, accounting standards, and business licensing, to avoid legal and financial penalties (Hill, 2020). By proactively managing international financial and business risks, Clippers Tour Company can safeguard its operations and achieve sustainable growth in the Italian market.

Summary of Content and Projections for Phase III

In this Phase II paper, Clippers Tour Company has discussed key components related to expanding its operations to Italy, including selecting a global company structure, financing sources for global business operations, creating a global management information system, identifying human resources for global business activities, and managing international financial and business risks. These components are crucial for the company's successful entry into the Italian market and for achieving its strategic objectives. In Phase III, Clippers Tour Company will focus on developing global distribution, global promotion, and international pricing strategies, analyzing financial results, and assessing international business success. Achieving such includes identifying distribution channels, designing culturally relevant marketing campaigns, setting competitive prices, tracking financial metrics, and evaluating performance against predetermined objectives. By addressing these components, Clippers Tour Company aims to optimize its global operations, achieve financial success, and establish a strong international market presence. By carefully planning and executing these strategies, Clippers Tour Company aims to establish a strong presence in the Italian market and achieve sustainable growth in the long term.

References

Adiguzel, Z. (2020). Competitiveness of International Business: Management, Economics, Technology, Environment, and Social Study of Cultural Perspective. In Handbook of Research on Decision-Making Techniques in Financial Marketing (pp. 68-91). IGI Global.

Cullen, J. B., & Parboteeah, K. P. (2011). Multinational management. Cengage Learning.

Czinkota, M. R., Ronkainen, I. A., & Cui, A. (2022). International marketing. Cengage Learning.

Deresky, H. (2022). International management: Managing across borders and cultures. Pearson.

Dowling, P. J., Festing, M., & Engle, A. D. (2019). International human resource management. Cengage Learning.

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2019). Strategic management: Concepts and cases: Competitiveness and globalization. Cengage Learning.

Hill, C. W. (2020). International business: competing in the global marketplace. McGraw-Hill Education.

Adiguzel, Z. (2020). Competitiveness of International Business: Management, Economics, Technology, Environment, and Social Study of Cultural Perspective. In Handbook of Research on Decision-Making Techniques in Financial Marketing (pp. 68-91). IGI Global.

Roberson, Q. M. (2019). Diversity in the workplace: A review, synthesis, and future research agenda. Annual Review of Organizational Psychology and Organizational Behavior, 6, 69-88.

Rainer, R. K., & Prince, B. (2021). Introduction to information systems. John Wiley & Sons.

Ghani, B., Zada, M., Memon, K. R., Ullah, R., Khattak, A., Han, H., ... & Araya-Castillo, L. (2022). Challenges and strategies for employee retention in the hospitality industry: A review. Sustainability, 14(5), 2885.

Tkachenko, V., Kwilinski, A., Tkachenko, I., & Puzyrova, P. (2019). Theoretical and methodical approaches to the definition of marketing risks management concept at industrial enterprises. Marketing and Management of Innovations.