Toyota’s Expansion into New Markets Using the Socialutions Management Model
The expansion of business operations into new markets is an important consideration for most multi national companies (MNCs). An important reason behind this is to increase the profitability of the business by exploiting the opportunities in the new markets. However, organization expansion to other markets is an important strategic business decision which could create a huge impact on the overall business operation. The management needs to consider the various aspects of the business including the available human and financial capital while implementing the decision of business expansion. The decision of the management to expand the organizational operations is a crucial business decision; therefore, it needs to be implemented after conducting necessary research about the new markets. Andersen (1993) believes that when the organization is going to establish its business operations in different countries then it needs to make huge investments in the systems, processes and infrastructure, therefore, it is essential to study the trends and available opportunities in the new markets. There are number of researchers which suggest that the use of management models help to implement the business expansion decision successfully. However, it is important for the organization to adopt an appropriate management model considering the nature of the business activities. The link between the management model and business activities of the firm is very important. Andersen (1993) suggested that it is more appropriate to adopt the management model which supports the business activities because the successful organization expansion to new markets can be ensured only when the management model is facilitating the business expansion process. Galbraith (2005) has also presented an important point of view and mentions that business expansion to new markets requires significant changes in the existing processes, therefore, those management models needs to be adopted which can facilitate and support change. An important point of discussion in this research is that how management model can facilitate the business expansion process.
Research Questions
- Why are the reasons behind the organization expansion to new markets?
- What is the role of an effective management model in order to successfully expand the business operations to the new markets?
- To identify the impact of organization expansion decision on the business profitability.
- To evaluate that how management model can help to implement the business expansion plan successfully.
- To assess the factors which motivates the management of the firm to explore the new markets and expand the organizational operations.