International strategic management is the ongoing process which involves developing strategies in order to expand the company. It is desirable for the companies to come up with such strategies which helps the companies to survive in the new economic environment. JB Hi- FI operates in two countries and have many subsidiaries. So before acquiring the companies, the company must analyse the external environment and then make such strategy which helps in growth and success of the company.
- What is International Strategic management?
- Name the subsidiaries of JB Hi Fi?
- How company JB Hi FI do international strategic management?
Concept of International Strategic management
It is the ongoing management process of planning which is aimed to develop strategies in order to allow the company to expand abroad and compete internationally. An international strategy is developed in a direction of achieving the strategic fit between company's competence and the resources and global environment where it tends to operate. It is the on going process of the company in order to compete in the international scenario.
Advantages of International Strategic Management
There are many benefits attached to the global strategic management which the organisation gets. Some of which are discussed below-
- Ability to leverage the ideas efficiently and quickly-When the international strategic management is done, the companies are able to come up with such ideas ans strategies which are beneficial for the company. The ideas are easily implemented as strategies are made after thorough research which includes scrutinising the market so that company can growth in the international market.
- Lowers cost- Global strategic management helps in not only increasing the sales but also helps in forecasting the cost so that unimportant cost can be eliminated and focus can be made only on leveraging important cost and maintaining quality in the offering. It helps in increasing the cost effectiveness of the business as it also helps in exploring the possible opportunities.
- The mix set of economies- The international strategic management needs the organisation which are operating in the mixed economies to come up with such strategy which encompasses all. This means that the business objectives and goals must be such which reflect the growth rate and the market potential of the economies but it must be aligned with the overall vision of the company.
Background of JB Hi Fi
JB Hi Fi Limited is the public listed Australian retailer which specialises in the consumer goods. The company has its presence in Australia and New Zealand. The headquarter of the company is in Southbank. The store format of the organisation is divided into three categories of which first is the JB Hi Fi stores which are small appliance and electronic stores. It is the largest store format by the store numbers, second is the JB Hi Fi Home stores which is similar to JB Hi Fi stores. These are larger than traditional stores and sell large appliances like washing machine, Fridge, dryers and many other. Third is JB Hi Fi Express which is a smaller version of the traditional JB Hi Fi store. It focus on the mobile products. It was launched in the year 2019.
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JB Hi Fi Limited Subsidiaries
There are many subsidiaries of the company JB Hi Fi Limited which is listed below-
- The Good Guy- It is a chain of the consumer electronics retail stores in the country Australia and formerly in New Zealand. It is a subsidiary of JB Hi Fi Limited. It was founded by Ian Muir and after his death in 2009, the ownership of chain remained with the Muir family. Then the company was purchased by JB Hi Fi Limited despite the competition concern. It deals in products like whitegoods, kitchen appliances, consumer electronics and kitchenware.
- JB Hi-Fi NZ Limited- It was founded in the year 2000. The company deals in retail sale of the electric and gas refrigerators, household appliances and stoves. The head office of the organisation is in Auckland, New Zealand.
- JB Hi-Fi Insurance Replacements- It is headquartered in Richmond, Victoria in Australia. It deals in service of insurance. It is a small company where only 2 employees work.
- Clive Anthonys Pty Ltd-It is the company deals in retail electronics stores. It sells the product like kitchen appliances, laundry goods, air conditioners, vacuum cleaners, dishwashers, air conditioners and the cooking appliances. It has stores throughout Australia and is headquartered in Victoria.
- Network Neighborhood Pty. Ltd – JB Hi Fi have acquired the company Network Neighborhood which is a IT based organisation. It is situated in Melbourne and JB Hi Fi bought the remaining shares of the company in 2012 February.
How JB Hi Fi do International strategic management ?
The company JB Hi Fi operates in Australia and New Zealand. It has its operations abroad where it is important for the company to have strategic management at global level. It is a continuous and interactive process which is to be implemented as a whole in the macro environment. The strategic initiatives of the company JB Hi Fi targets the growth by sales of its large range of products. For achieving the same, the company opts price sensitive customers by discount prices.
The company JB Hi Fi analysis the external environment by using the PEST model which helps in reaching the goals. For successful strategic management, the company in initially analysis the external environment which is discussed below-
- Political- JB Hi Fi operates in Retailing sector. The company which deals in various countries has to diversify the systematic risk of the political environment. The company has to closely monitor the political environment of different country so that it can work smoothly without any governmental intervention.
- Economic- It includes inflation rate, foreign exchange rate and many other. The growing economies give wide opportunities to the company so company choose its expansion country wisely. The well established infrastructure facilitates business environment which increases growth.
- Social- It includes the influence of social and culture on the working of the business. The company must conduct a market research in order to anaylse the social environment so that the target customer can be identified and appeal can be made for the offered product to the potential buyer.
- Technological- The company must conduct the detailed analysis of technological environment so that the company JB Hi Fi can capture the technological trend so that business advantage can be achieved like profitability.
So company JB Hi Fi must first analyse the external environment and then make such strategies which results in growth and success. So it is important to apply the PEST model to analyse the macro factors of environment.
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