Impact of corporate strategy for the development of Sultan rice corporation (Pakistan)

Table of Contents

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Explore the effects of rewarding system Objectives Background Preliminary literature review Search objectives Research plan Ethics Planning

References

Explore the effects of rewarding system

The study of human resource management literature reveal that job rewards whether these are intrinsic or extrinsic effects a lot on the satisfaction of an employee resulting increased satisfaction followed by high level of motivation. The employees who are more satisfied from their jobs are found more productive, loyal and efficient for their organizations. There are many other factors as well like organizational culture, relationships with peers and managers, working conditions, appraisal system and many more which may influence the motivation, productivity and efficiency of an employee but job rewards play a pivotal role in this regard. Sultan Rice Corporation is producing quality rice which can be sold throughout the world and organization want to expand its business like other growing organizations so considering this organization need to make adjustments in its rewards system with reference to expatriates. 2 Objectives To assess the organization with reference to its strengths, weaknesses, opportunities and threats before entering international markets To evaluate the current human and capital resources with reference to the demands of international expansion of businesses To analyze the current strategies of the organizations with reference to expansion To examine that whether a single strategy regarding expansion will be useful in all situations while working internationally? To evaluate the impact of exports on expansion To evaluate the other alternative strategies with reference to international expansion of business 3 Background

Many small and giant business organizations now are expanding their businesses by selling their goods and services in different parts of the world. This is the result of increase in the globalization due to advancement in technology and the world is now

become a global village where every one can connect with each other conveniently at any time. This globalization bring many positive changes in the organizations like increase in profitability, global exposure, improvements in quality and services etc. but along with these many advantages there are many disadvantages as well which can be taken as challenges for the organizations which want to expand globally. These challenges involve increase in competition, cultural diversity, internal and domestic rules, regulations and laws and many others. So organizations before entering these global markets need to be careful about that all. Sultan Rice Corporation is an organization which is native of Pakistan and producing Sultan Basmati Rice which is a becoming a famous brand within and outside Pakistan. Organization wants to expand its activities beyond the country wall so this research study will provide a guideline to the organization after assessing the current strategies of the business. The decision of expansion is strategic by nature so managers need to be really careful about it and should consider all the international factors and challenges which organization will face working internationally. Organization is currently selling its products with the country and also in other countries like it become a registered firm in UK since 2010 and engaged in distribution and marketing of different food items especially import and export activities with reference to rice. However, organization wants to expand its activities in other parts of the world as well. There are many strategies which organizations can use to enter in the global markets these include exporting, licensing, franchising, foreign direct investments and management contracts etc. but here the core of this research will be expansion of business activities of Sultan Rice Corporation with the help of exporting activities. Export is a best way to expand business activities internationally and avoid many risks attached with exchange of goods and services with the people living around the globe. Organizations which want to export their products outside country need to focus the local markets over there with the help of middleman or they may take help of distributors. Export is often regarded as the first step to enter in international market. Organizations export their products as these face constraints with reference to their

human and capital resources and many want to avoid risk of failure. There are many methods of exporting a few of them are discussed below: Indirect exports involve the trading organizations and export management businesses which help in export of organizations goods and services. Direct exports involve the distributors and agents from different parts of the world where organization want to sell its products or organizations may own sales subsidiaries. Direct sales are another medium which could help the organizations in exporting their products with the help of internet and computer technology through E-Mails and E-Commerce.

Preliminary literature review

There are many researchers who had worked on the issue of expansion of business and there is enough literature available which could be helpful in checking the impact of export activities on the expansion of business around the globe. Organizations may use numerous strategies to enter in a global market; however, there are five strategies which are presented by Cunningham (1986) these involve strategies for innovation in the technology, strategies for alteration the products according to situation, strategies to avoid risks of transportation, security and availability, price penetration strategies and strategies for changes in the overall structure of the organization. Many companies which want to export their products outside consider the importance of transportation, quality of their products, demand and desire issues and other issues related to currency and exchange rates. In case of much organization which are engaged in the production of agriculture goods, production and distribution activities are connected with each other, however, infrastructure and communication along with other resources are necessary to enter in a new market. In most of the cases organizations which are publically owned cannot afford it, however, it is comparatively easy for public organizations. Furthermore, lumpy investments are involved in most of

strategies to enter into a new foreign market. These huge investments are necessary for expansion but require funds at a risk of high prices. Time is another important factor that organizations need to consider while making their decisions and strategies with reference to entering a new global market. Organization needs to work hard to position their products in the mind of their customers and for that these need effective promotional strategies. Another significant element in this regard is the cost of transactions and this may restrict many organizations to enter in a global environment. These transaction cost involve cost of search and cost to bargain. Other obstacles of international trade involve cultural differences, communication problems, geographical distances, cost of logistics and less amount of opportunity with reference to control and monitoring. There is a need to create partnership agreements between companies want to export their products, importing companies, governments and carrier to expand the business with the help of exporting (Collett, 1991). If all these partners will not co-ordinate with each other in a proper manner, this will lead to a risky exporting activity. At a preliminary stage there is a need to create agreements between organizations which will involve in purchase and sale of products internationally. However, distribution agents and carriers can also play a vital role in the exports of products. Organizations want to expand their business activities and export is conventional way to enhance the volume of business activities. Distribution of organizations goods and services to other parts of the world is regarded as exporting. As a result these countries need not to manufacture the goods which they are importing. There are many advantages and disadvantage attached with this method of exporting to expand the size of business activities by entering into a global market. However, there is need to distinguish between aggressive and passive exporting activities. In case of aggressive exporting, the exporting company take all the initiatives and make strategies to get orders from outside countries so their approach can be regarded as proactive approach, however, in case of passive exporting the exporters have reactive approach

towards having orders to sell their products outside countries thinking that this will help them earning good profits and they will be in a better position while negotiating the transactions. According to Pavord and Bogart (1975) the problems which are faced by aggressive and passive exporters are different from each other. The aggressive organizations have clear strategies and plans with reference to their product and marketing mixes. This aggressiveness depends on the motivation level of exporters. There are many facts that evoke this passion and motivation; however, some of these are endogenous created by some internal forces of the organizations while others may be exogenous caused by some external forces (Piercy, 1982). Organizations which remain successful to export at very early stage remain more profitable; however, the volume of risk at this stage is usually very high. Important thing is to understand factors which could help organizations in minimizing this risk linked with the early stages with reference to entering new markets and to increase the loyalty, such increase in the involvement and motivation is regarded as creeping commitment. 5 Search objective

The core of this research is to evaluate exporting in terms of expansion of the business of Sultan Rice Corporation researcher will try to find out the strategies that could help the organization in expanding the business globally. There is enough literature available in context of the topic How Sultan Rice Corporation can expand business of rice by export in different countries using business strategies? which will assist researcher throughout this research process. 6 Research plan
Time is the essence of all business activities same is the case with research. Following plan will be used by the researcher with performing the research at various levels.

TIME IN WEEKS 1 ACTIVITIES Background of topic Aims and Objectives Literature review Research design Methodology Data source Data collection Analysis of data 1st draft Editing Final draft Printing and Binding 1 2 3 4 5 6 7 8 9 0 1 1 1 2

Ethics

Ethics are important in all walks of life and same is the case with business as well, research will remain careful about ethical issues while performing different segments of its research. He will keep with great care all the confidential documents like internal reports which may not be released publically for saving the rights of stake holders. Furthermore, he will consider the rights of all the participants of this research. Following are the major ethical issues which will be dealt with great care by the researcher: o He will contact the right person in the organization o He will take care of the time and will consult every one within the prescribed official timings o He will not offer any special incentives or rewards for getting information which will assist him in his research work

o He will take care of the scope of permission allowed by the organization and participants o He will not ask such questions to respondents which can cause problems for them or may lead to stress them. 8 8.1 Planning Population

The population of this present study involves the major stakeholders of the organization like employees, customers and agents and distributors of Sultan Rice Corporation. 8.2 Data Collection Researcher will collect primary data for the purpose of this research with the help of a self administered survey based on questionnaire. He may ask the participants to either fill in that questionnaire or he may conduct the interviews of the respondents on the basis of that questionnaire. The secondary data for the purpose this research will be collected from internet, periodicals, research articles, financial statements of Sultan Rice Corporation and other sources. 8.3 primary data

As the primary research envolves the use of quick data to calculate the survival of the organization or market.The best ways to collect primary data based on visiting or survyes, having nice and full questioned interviews and focus to have quality data collection,this will shows that direct relationship among potential clients and the organizations 8.4 secondary data

On the otherhand secondary data, information relates to a past time in which company use to work Hence, it lacks and therefore, it have unbelieveable value. Primary data is more valuable then secondary and accommodating as it shows latest and basic information. Secondary data also is obtained from some other organization than the one quickly interested with present researching plan. Secondary data aslo collected and evaluated by an organization to attract the main requirements of different research objectives. Primary data is also valuated by the main researcher particularly to me up the research objective of the subsisting project.

8.5

Tool for data collection

The main data collection tool that will be used by researcher is Survey Questionnaire which will be assisted by interviews based on that questionnaire. 8.6 Rating Scale Researcher will use Likert Scale to evaluate the responses against the questions, the scale is given below: 1. Strongly disagree 2. Disagree 3. Neutral 4. Agree 5. Strongly agree Furthermore, researcher will remain careful about selecting the sample size and sampling techniques and will consider all the formalities related to his research study.

References Cunningham, (1986) M.T. "Strategies for International Industrial Marketing". In D.W. Turnbull and J.P. Valla (eds.) Croom Helm, p 9. Collett, W.E. (1991) "International Transport and Handling of Horticultural Produce" in S. Carter (ed.) "Horticultural Marketing". Network and Centre for Agricultural Marketing Training in Eastern and Southern Africa,. Pavord and Bogart. (1991) "Quoted in The Export Marketing Decision" S.A. Hara in S. Carter (Ed) "Export Procedures", Network and Centre for Agricultural Marketing Training in Eastern and Southern Africa. Piercy,(1982) N. "Company Internationalisation: Active and Reactive Exporting". European Journal of Marketing, Vol. 15, No. 3, , pp 26-40.