Taking a Business Global

Global View

     Expanding a company into a global organization can be complex and is not an over-night process. When deciding to expand a business globally a company must understand the value creation it will or will not create before making a final decision. The company must understand their industry and how it will be viewed as well as be accepted globally. The business model also need to be evaluated to ensure it fits a global structure or can be restructured to fit a global structure (Forbes, 2013).  There are also aspects such as economics, government, and law that impact the global expansion of any business.

     Takeda Pharmaceuticals is a large pharmaceutical organization that has a global footprint already but, as an organization, has been taking steps towards becoming an actual ‘global company’ rather than a company with a global footprint due to having multiple subsidiaries around the globe. The foundation steps for determining whether or not to grow the business globally, evaluating the business model to ensure it is fit for a global expansion, and understanding how the company will fit in a global market have already been completed. Moving forward the company is making internal steps to ensure making the transition from a company will a global footprint to a global organization is successful.

Economic Impact

     “The globalization from economic aspect has two main components: the globalization of markets and globalization of production” (RISTOVSKA & RISOVSKA, 2014, p 208). When globalizing markets the company is merging different national markets into one big global market and globalizing production is realizing the differences in price and quality factors internationally (RISTOVSKA & RISTOVSKA, 2014).  From a pharmaceutical perspective these two impacts are major factors.

Governmental Impact

    “Globalization is a worldwide trend, through which economies in the world lose their borders and connect to each other. The companies are no longer imprisoned in their borders and can implement a wide range of business activities around the world” (RISTOVSKA & RISTOVSKA, 2014). This requires governments to unify socially which will require the formation of unions and trade agreements to push nations into a single business market. This will lead to the “reduction of barriers for trade and foreign investment by most governments, which leads to intense opening of new markets by international companies” (RISTOVSKA & RISTOVSKA, 2014).

     When it comes to the pharmaceutical industry compliance is a major part of the business and heavily governed by all governments around the globe. Each market has a different set of regulations, requirements, and tax for producing and selling pharmaceuticals, not to mention the regulations around conducting clinical trials to get the drug to market. Global pharmaceutical companies must be diligent with their communication and compliance to ensure they are meeting the regulations of the country/market they are entering or attempting to enter.

Law

     Each county, and many times, individual regions have their own set of regulations and laws around pharmaceuticals. The purpose for such laws in many countries and regions is to protect the lives and welfare of the citizens. Ultimately the goal of the pharmaceutical company should be to better the health of their patients. However, as many are aware, the pharmaceutical industry, as a whole, has not always acted ethically when it came to the well being of the patients.

Value Creation

     Value creation “allows [pharma companies] to identify and satisfy unmet customer needs, often at the intersection of science and marketing” (Behnke, Retterath, Sangster, & Singh, 2014). Ultimately, for the pharmaceutical industry, value creation is about seeing a need in a patient and researching way to create a solution to the medical issue. When it comes to Takeda Pharmaceuticals their value creation stems from their diverse portfolio: gastrointestinal, oncology, central nervous system, and cardiovascular and metabolic pharmaceuticals (Takeda, 2016).

Expansion Strategy

     While there are many pharmaceutical companies around the globe, Takeda Pharmaceuticals, chooses to strive on innovation and compliance. In order to transition from an international business into a truly global organization Takeda needs to look internally. They need to review their current operations and look for redundancies among the various businesses across the globe. They also need to look at their systems and technology to be on a global system to make information sharing easier and less timely.

Conclusion

     Takeda Pharmaceuticals strives on their core values: commitment to improving health, strength from diversity, and people are empowered by passion (Takeda, 2016). This is a sound foundation to move them forward. Currently they are an international organization helping people around the globe with medical issues. In order to move the company forward they need to transition from being an international organization with a footprint around the globe to a truly global organization. In order to make this transition Takeda needs to make steps towards production efficiencies without redundancy and investing in global systems.

     

References

Anderson, A., (March 2006). Developing Countries- Amending TRIPS to Promote Access for All. University of Tulsa College of Law. Digital Commons. Retrieved from http://law.bepress.com/expresso/eps/1109/

Behnke, N, Retterath, M. Sangster, T. & Singh, A. (2014). New Paths to Value Creation in Pharma. Bain & Company Inc. Retrieved from http://www.bain.com/Images/BAIN_BRIEF_New_paths_to_value_creation_in_pharma.pdf

Forbes (8 Oct 2013). Five Steps To Expand Your Business Globally. Forbes LLC. Retrieved from http://www.forbes.com/sites/theyec/2013/10/08/five-steps-to-expand-your-business-globally/2/#7d9aff84f06d

Hacklin, F. (2008) Management of Convergence in Innovation. Strategies and Capabilities for Value Creation Beyond Blurring Industry Boundaries. ISBN 978-3-7908-1989-2. Physica-Verla Heidelberg. Springer.com

RISTOVSKA. K., & RISOVSKA. A. (2014). THE IMPACT OF GLOBALIZATION ON THE BUSINESS. Economic Developments/Ekonomiski Razvoi. 16(3),205-213

Takeda (2015); Retrieved from http://www.takeda.com/company/

Sandals Resorts Marketing Report

The purpose of this report is to analyze the four components of the marketing mix of Sandals Resorts brand. Sandals has proven to be highly successful, based on their innovative marketing concepts.
Sandals Resort offers an innovative concept in their all-inclusive environments, contrived to give vacationers completely worry-free accommodations. This allows guests to relax and more effectively utilize their vacation time. Sandals prides themselves with introducing the couple’s only concept.

They provide a range of activities for the various types of travelers, whether it be scuba diving for the dive enthusiast or a rigorous hike for the nature lover. They employ guest coordinators, trained to be experts in human relations, to make guests feel at home, coordinating the guest activities and making sure that everything works the way it should. They practice TQM (Total Quality Management) throughout all levels of staff.

In the couples only market, created by them, they cater to different markets by offering three different levels of suites: the basic all-inclusive suites, the crystal suites that have their own private pool and the millionaire suites that are separate villas with butler service. Sandals Resorts International (SRI) is the parent company of Sandals Resorts. Gordon “Butch” Stewart the founder of SRI, who currently serves as company chairman, bought his first two hotels in 1981and in 1986 bought the third hotel, which is Sandals Royal Caribbean today. Sandals Resorts International is based in Montego Bay, Jamaica and is incorporated there.

The two largest target markets for Sandals resorts are honeymooners and married anniversary vacationers. For the honeymooners the target age is 26 to 35 whose dual income ranges from $100,000 to $120,000. The education level is a four year college degree. The social class ranges from lower-upper to middle-upper with a strong brand loyalty whose product knowledge is moderate to extensive. The benefit sought by this target market is a relaxing honeymoon getaway. For married couples vacationing and/or celebrating an anniversary the age range is 36 to 45 whose dual income ranges from $100,000 to $120,000. The educational level ranges from some college to graduate degree with a social class from lower-up to middle upper with a moderate product knowledge. Brand loyalty runs at medium and the benefit for these married couples is a vacation away from the kids.

Marketing Mix Product

Sandals has many luxury beach resorts to choose from with many inclusive elements including restaurants and bars, scuba diving, and water sports tailored towards couples and honeymooners. All within the Sandals Resorts International Corporation, Sandals, Beaches, and Grand Pineapple proudly represent the company with a variety of different resorts. Sandals alone has 14 different locations in St. Lucia, Jamaica, Bahamas and Antigua. The other members of the Sandals family of resorts include Beaches, Fowl Cay Resort, and Grand Pineapple. Beaches is tailored towards the entire family with activities for everyone, with 4 different locations in Turks and Caicos, and the Bahamas. Fowl Cay Resort is located in Exumas, Bahamas and boasts the luxury of escaping to your own private island. This resort is open to couples or families. Grand Pineapple supplies a taste of authentic Caribbean for everyone in Antigua and Jamaica. The number of inclusive items outweighs the additives that vacationers need to concern themselves with, allowing for the luxury of a true worry-free vacation.

Pricing

The need to clearly advertise on the Sandals website and commercials what times of the year are the cheapest for a couple to vacation. The benefit of this expands the profits of the company during the slow times, and also has the opportunity to create a new customer loyalty. It gives the couple more time to save money and the option of taking a later honeymoon. This will also improve the pre-purchase evaluation of vacation packages. Couple may miss the substitute lower price for amenities and could ultimately hurt Sandals profits in the long run drawing away from the high season.

Placement

New outlets within the United States would provide less expensive flights and honeymooners may feel more comfortable about traveling within the country under United States jurisdiction. An additional benefit is the proximity to supply chains as well as the target markets themselves. The negatives to new outlets within the United States is that is creates a large risk that may result in the loss of money. The other consideration is that Sandals resorts all offer a very luxurious beach destination and the states have little to offer in that category that is comparable. This may cause an irreversible damage to the Sandals image.

Promotional Mix

Sandals has travel agents in a wide variety of countries to help customers with access and information about traveling to many of their resorts locations. The list on their representatives section of Sandals.com is extensive and there are more outside travel agents. The website lists locations in: Miami, Fl; Ontario, Canada; London; Treviso, Italy; Buenos Aires, Argentina; Sao Paulo Brasil; Duesseldorf, Germany; Copenhagen, Denmark; and Moscow, Russia. The availability of information is extensive and each of these travel agents supply information to couples looking to vacation. Distributing catalogs and pamphlets on Sandals to locations that wedding planners and couples often frequent when planning a wedding. Examples include; florists, bridal boutiques, salons and spas, wedding locations, etc. Pros to this method are that brides are already in positive and excited moods. Point-of-purchase displays are also utilized and an expansion in the media which results in a better reach of the target market. Down sides to these methods is that there is no way to ensure that other companies are going to comply with Sandals requests. Many businesses have pamphlets and brochures that are thrust at the bride-to-be’s and many get lost in the mix. Wedding expo’s are also a very common place for brides to research honeymoon information and a Sandals table captures the attention of the bride and groom although this can be costly.

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