ToolsCorp Global Market Analysis

3462 words (14 pages) Business Assignment

20th Apr 2020 Business Assignment Reference this

Tags: Business AssignmentsSWOTInternal AnalysisExternal AnalysisBusinessMarket Analysis

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Abstract

The growth of ToolsCorp is dependent on different factors, both internally and externally. The statement affirms that the management of the institution needs to have an overall assessment of the institution for them to make esteemed decisions regarding the expansion and the growth of the corporation. The paper evaluates the market status of the Czech Republic and ascertains whether the nation is in a position to sustain the activities of the corporation. The market analysis incorporates the elements which hinder or promote the growth of the institution in the area. On the other hand, the essay considers the mission statement of the institution. The mission statement is an essential component which serves as the foundation and can be perceived as the philosophy adopted by the institution. Significantly, the mission statement has all the parts which the corporation advocates for and the level of commitment they have in their duties. In this case, the article evaluates the mission statement for ToolsCorp Global and the essential components which are advocated for in the economic sphere. Further, the report affirms some of the factors to consider while considering expansion in a foreign market.

Introduction

ToolsCorp is a corporation which aims to diversify its operations through its expansion in Czech Republic. According to Roussanaly et al. (2017) affirms, that Czech Republic is a European nation which has a wholesome economic potential. The author notes that the country has different sectors and thus, the inclusion of ToolsCorp can be perceived as a unique investment decision which can improve the productivity and the profitability of the institution. Being a developed nation, the state concentrates on the exportation of goods, and this is a significant prospect considering establishing a business in the country. The statement implies that there will be no tools that will be imported in the country, and this will provide the institution with an upper edge in market control. On the other hand, the marketing strategy set in place needs to be unique and comprehensive. Customization of the activities is a significant prospect associated with the profitability of the corporation. Therefore, this paper evaluates the mission statement for the corporation and the market stature for the corporation that will make it successful in the Czech Republic market.

Mission statement

ToolsCorp Global Company aims to be the world’s customer and employee-centric institution, a place where the clients can get any electronic gadget which they aspire, and the goal is to provide the customers with goods at the lowest price possible.

The mission statement includes the nine components which are significant in acting as the marketing point for the corporation. Levy et al. (2007) affirm that when a firm chooses to operate by the global mindset, they have to come up with comprehensive pointers which separate its activities from the operations of other institutions in the worldwide sphere. The following are some of the nine significant prospects which are highlighted in the mission statement by ToolsCorp Global.

a) Customers

The customers are the primary drivers of the success of the productivity of any given global firm. Babin and Zikmund (2015) affirm that the global sphere requires the manager to understand the specific requirements which make it useful in the long run. As a result, the current global perception is that the customer plays a central role in ensuring that a corporation remains operational. For instance, the mission statement is client-oriented as it puts the welfare of the client before profitability or productivity. The mission statement is not discriminatory as it is open for all customers. Affirming the aspect is critical because it provides the masses with the ability to assess the services, the hospitality, and whether customization is a consideration by the institution. In this case, the mission statement considers the customer’s needs.

b) Markets

The target market is a crucial prospect which needs to be included in the mission statement. Birkinshaw and Pedersen (2001) share some viable insights when it comes to strategizing, and as a result, the authors note that the target population is a significant prospect which the strategizing department needs to consider. The goal of the institution should be communicated to the client base without any difficulties. In this case, the market should constitute individuals who make use of power tools. Therefore, the mission statement captures the target market and the intention of the corporation to the target population.

c) Technology

The current economic environment requires the input of technology to make the activities effective. The notion anticipated in this case is providing the clients with services which are useful and the clients get value for their money. McLean (2019) notes that understanding the economy is a vital business practice which enables individuals to position themselves based on the requirements in the economic sphere. Essentially, the management of Toolscorp needs to come up with adequate management techniques such as opening a website that can be translated into different languages. The move will aid in including the millennials in understanding the services of the corporation.

d) Products

The production of high-quality tools is one of the significant ways through which the establishment of the corporation in Czech Republic will be possible. Toolscorp is an institution which has a global reputation and to maintain this; it is upon the management to come up with adequate structures which ensure that the quality of the products is maintained irrespective of the economic situation. Kosmützky and Krücken (2015) reiterate that sameness in the market is the factor that makes some of the big firms to lose credibility. Therefore, ToolsCorp needs to ensure that all the commodities in the market showcase some degree of uniqueness and have the highest quality. The machinery should be active at all times to ensure that the customers are maintained irrespective of the prevailing market conditions.

e) Survival concerns

The mission statement also shares some profound information regarding its survival. The statement is evidenced by the fact that the firm aims to be the principal distributor of tools, power equipment, and lawnmowers in the world. Therefore, to remove doubts and fears in the public domain, the mission statement affirms that it will be productive and become the world’s most significant manufacturer. London and Hart (2004) assert that even though the strategy is perceived as the most vital tool which drives productivity in the global scale, optimism is also a considerable driver which dictates the long-term growth of an institution. Considering this prospect, ToolsCorp can capitalize on the trust which it has excavated in different nations in Europe, and this can be used as the primary foundation for increasing the loyalty of the client base.

f) Philosophy

The brand philosophy is also a primary component of any corporation, and the case is not different in ToolsCorp. The philosophy tends to showcase the beliefs and the aspects which the corporation believes as accurate. Furthermore, the philosophy provides an overview of the specific elements which have been granted priority in the commercial space. From the mission statement, it is clear that the company is contented with its current performance, and being the best is the main point of emphasis. Moreover, the institution considers the welfare and the satisfaction of the customers because they are the primary players in the market and the determinants of the occurrences in the market. Lubienski and Lee (2016) share some of the prospects which the market considers, and the current generation concentrates on the satisfaction of the customers. ToolsCorp has a unique philosophy which separates it from the existing corporations, and this will be significant in its establishment in Czech Republic.

g) Self-concept

Understanding of the values and the principles of an institution also plays a role in securing its place in the global market. The statement affirms that the management and the stakeholders need to understand the specific prospects of the institution so that they can have productive growth in the future. The mission statement has a comprehensive understanding of the economic situation, and this is how ToolsCorp can remain relevant in the new market.

The concept of self-image also focuses on the premise of concentrating on the factors which define the institution. Essentially, the strengths, the weaknesses, and the factors which can elevate the status of the corporation. By having a clear understanding of all these aspects, the mission statement adequately communicates to the clients and other stakeholders associated with the activities of the firm.

h) Public image

The public image needs to be included in the mission statement because it helps to portray the institution as a vital part of society. The aspect concentrates on the factors which the institution aids in changing society. For example, the firm should come up with strategies which assist in improving the status of the community. Moreover, the firm needs to ensure that the negative externalities are reduced, whereas the positive externalities are amplified. Such moves will aid in ensuring that the entire institution remains productive in the long run. ToolsCorp is an institution which is aware of the changes in the climatic condition and the importance of conserving power. As a result, the institution has been involved in the production of components which take care of the environment and also benefits the individuals found in a particular location. Therefore, the residents of Czech will benefit from employment and other corporate social responsibilities, which will be undertaken by the corporation.

i) Concern for employees

The welfare of the employees is also significant in the current global environment. The employees are responsible for undertaking the activities in the external as well as the internal operations. Further, the employees are also given the mandate of coming up with creative content, which can ease the welfare of the clients. According to Chinnobaiah (2019), his evaluation of the Asian corporation proved that employee satisfaction is a primary component which needs to be considered by any corporation aiming to establish itself globally. In this case, for ToolsCorp to penetrate the European market and continue been profitable, it is essential to consider the welfare of the employees. Diversity in the employment process aids in ensuring that there are people from different parts of the globe and the mix ensures that the relation between the clients and the employees becomes easy. ToolsCorp is a corporation which has significant development in Canada and the US, and thus, its establishment in Czech Republic will not be faced with a lot of objections.

SWOT analysis

To have an all-round assessment of the establishment in Czech Republic, there are various elements which need to be assessed which provide the institution with an upper edge on the global scale. As a result, it is crucial to understand the strengths connected to the institution, the weaknesses, the opportunities, and the possible threats which are viable in the new market.

Strength

The strength of an institution refers to the strongholds which provide the institution with the ability to sustain the condition present in the global market. Lubienski and Lee (2016) note that an active market place ensures that the corporations use their wits to gain an advantage over the rest of the players. ToolsCorp is an institution which has an internal environment which is well endowed, and this can be an essential stepping stone in its elevation. The statement is evidenced by the fact that the institution has a diverse range of products which provide it an upper edge in the market competition. For example, the institution has lawnmowers, microwaves, lawn furniture among many other components which make it stable on the global scale.

Another strength which can be linked to the corporation is the diverse and in-depth research and development unit. The unit plays a significant part in ensuring that the firm maintains its competitive edge in the economic market. For example, the research unit has the mandate of coming up with prototypes, which ensure that the designs produced are by the wishes of the customers. Further, the unit is also involved in the industry survey, which ensures the changes in the industry are incorporated in the operations of the firm to make it at par with the other competing firm (Kosmützky & Krücken, 2015). With its headquarters in Tennessee, the firm has the potential to grow and remain productive in the Czech market.

Weaknesses

There are various weaknesses which affect the growth of the institution. The internal factors tend to affect the growth of the corporation, and for the case of ToolCorp, the institution has been operating internally, and expansion in the global scale is a steep curve to undertake. Berry (2015) affirms that the development of any business requires a lot of input, and a lot of changes in the internal environment. From the assessment of the condition of ToolsCopr, there are a lot of changes which need to be set in place so that the transformation and the expansion into Czech Republic can be feasible.

The presence of seasonal products is also a significant weakness which can affect the growth or expansion of any institution. The statement implies that the managers need to have an understanding of the market condition before coming up with a comprehensive measure of the specific products to produce in a particular period. As a strategic marketing scheme, Nguyen (2015) reiterates the importance of providing the clients with a constant supply of a given product as it aids in improving familiarity and improving loyalty. ToolsCorp is involved with the sale and distribution of lawnmowers which are mostly in use during spring and summer. Therefore, to remain productive in the idle period, the institution will be required to come up with new products which will be used as avenues of revenue generation.

Opportunities

The management of the institution needs to evaluate the opportunities which are presented to the institution, whether internally or externally. Due to the versatility associated with the institution, the products, and the services rendered can be applicable in various nations. From the analysis of the Czech Republic, the country is developing, and thus, industrial demand is an opportunity which ToolsCorp can capitalize on to remain productive in the European market. London and Hart (2004) share some profound information regarding the primary factors which managers should consider before deciding to enter a particular market. In the case of ToolsCorp, the institution can establish itself in a foreign land in Europe because of the changing economic conditions and the sufficient disposable income which the inhabitants of Europe currently enjoy. Therefore, properly capitalizing on such opportunities will ensure that the establishment of the corporation is successful.

Threats

In any corporate environment, there are threats which can hinder the expansion of a given enterprise. The magnitude of the danger is dependent on the effects which it imposes on the profits which are gained by the corporation. Pece, Simona, and Salisteanu (2015) note that in the phase of innovation and creativity, many institutions are susceptible to threats which may affect the overall productivity of the institutions. Considering the stated prospect, ToolsCorp is no exception to the risks in the economic landscape. Competition is one of the major threats which are notable in the global sphere. Competition from the internal organizations as well as the external organizations which anticipate establishing shop in Czech Republic. As a result, the firm is forced to come up with different unique strategies which can ensure the productivity continues in the long run.

On the other hand, regulatory and political risks also affect the productivity and the expansion of such firms in the new markets. The regulatory frameworks tend to impose huge taxes on multinational corporations such as ToolsCorp, and thus, this affects their establishment into new fields. Besides, the political climate also plays an immense role in dictating whether the expansion in a new region will be successful. For instance, the political class may choose to come up with a policy which immensely disadvantages the establishment in the region. In this case, Czech Republic is a democratic state, and thus, the entrance of a multinational corporation will be an easy fete to achieve.

Conclusion

In summary, understanding the market framework is one of the significant steps which determines whether a firm is bound to succeed in a new location. ToolsCorp is a corporation which can effectively grow in the Czech economy given its appeal and the contribution which it has to the society and the economy. The management needs to have a sound framework which ensures that all the setbacks which may be faced are addressed comprehensively. Czech Republic is a nation which has a promising economic growth and  thus with proper economic ties, ToolsCorp will be able to surpass the ideologies and the decisions of the competitors.

References

  • Babin, B. J., & Zikmund, W. G. (2015). Essentials of marketing research in the global sphere. Nelson Education.
  • Berry, H. (2015). Knowledge inheritance in global industries: The impact of parent firm knowledge on the performance of foreign subsidiaries. Academy of Management Journal58(5), 1438-1458.
  • Birkinshaw, J., & Pedersen, T. (2001). Strategy and management in MNE subsidiaries. The Oxford handbook of international business, 380-401.
  • Chinnobaiah, S. (2019). Market Development Strategy for India’s Rail Company Ircon in Asia, Africa, and the Middle East. In Dynamic Perspectives on Globalization and Sustainable Business in Asia (pp. 22-40). IGI Global.
  • Kosmützky, A., & Krücken, G. (2015). Sameness and difference: Analyzing institutional and organizational specificities of universities through mission statements. International Studies of Management & Organization45(2), 137-149.
  • Levy, O., Beechler, S., Taylor, S., & Boyacigiller, N. A. (2007). What we talk about when we talk about ‘global mindset’: Managerial cognition in multinational corporations. Journal of International Business Studies38(2), 231-258.
  • London, T., & Hart, S. L. (2004). Reinventing strategies for emerging markets: beyond the transnational model. Journal of international business studies35(5), 350-370.
  • Lubienski, C., & Lee, J. (2016). Competitive incentives and the education market: How charter schools define themselves in metropolitan Detroit. Peabody Journal of Education91(1), 64-80.
  • McLean, M. (2019). Understanding your economy: Using analysis to guide local strategic planning. Routledge.
  • Nguyen, Q. (2015). Strategic Marketing Proposal Plan For A Cosmetics Company: BB Cream of Maybelline, New York Vietnam.
  • Pece, A. M., Simona, O. E. O., & Salisteanu, F. (2015). Innovation and economic growth: An empirical analysis for CEE countries. Procedia Economics and Finance26, 461-467.
  • Roussanaly, S., Skaugen, G., Aasen, A., Jakobsen, J., & Vesely, L. (2017). Techno-economic evaluation of CO2 transport from a lignite-fired IGCC plant in the Czech Republic. International Journal of Greenhouse Gas Control65, 235-250.

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