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Strategy in the international environment

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Section 1
Business Model
Anesco Company Description
Anesco Company is the largest and leading organisation in UK that provides energy
efficiency services (Nicole, 2007). The organisation has a large volume of specialised
workers that facilitate working of the companies at all levels in the company. The main
objective of the organisation is to provide services to homeowners, businesspeople and local
authorities to that are designed to assist in reduction of carbon emission. The company
provides comprehensive services to its clients on energy related services. For instance, the
organisation provides audit services on energy, installation facilities, recommendations
related to services provided to energy provision and maintenance services. Furthermore, the
company has recently being providing Anescometer services to clients that protects their
investment in installation of the renewable energy.
Customers
Anesco Company purposes to satisfy its clients by matching their expectations with
the reputation they attain from the company. Therefore, the organisation has been providing
appropriate environment to the clients by creating enabling environment. This has been the
companys aim to deliver satisfactory services to its clients while maintaining their goal in
provision of quality services to clients. In order to enhance this, the company has being
encouraging clients to give their feedback after service delivery, in order to rate their services
and improve on areas their customers recommend. Thus, feedback from the clients is highly
valued in the company. Justifiable complaints from the clients are catered for to ensure that
clients dissatisfactions are reverted for future complaints.
Communication Channels

The company has well coordinated team work that provides guidance, practical
support and advisory guidance to clients (Stewart, 2012). The critical sections that the team
provides advisory services are the development projects, strategic operations, market entry
and communication to their clients and all stakeholders. In order to maintain reliable
communication to their clients, the company has innovated on new methods to communicate
with the public such as website and social media. Moreover, the company conducts
exhibitions to advertise their services. In addition, the company organises advertisement
campaigns and media advertisement as well as spread through the word of mouth.
Customer Value
In order to have profound services provision to customers, companies defines services
provided to their clients. In selection of these services, Anesco Company has developed a set
of priorities to ensure that customers needs are diversified and they do not enquire for the
same product at the same time. Core values the company are carbon emissions services,
provide protection services to clients while investing in energy, and enhancing utilisation of
natural resources to their clients (Niraj, Gupta, and Narasimhan, 2001). The expatriate team
in the organisation also provides advisory services on impact of green energy and providing
customer services to their clients. The company has diversified its services to organisations,
government institutions and homeowners.
Departments in Anesco Company
Operations in the Anesco Company are facilitated by various departments in the
company. There is analyst department that researches on development of solar energy and
strategies to reduce carbon emission. The department coordinates their services with the
planning department that plans for all projects in the company. In order to ensure that all
projects are successful, the company has the designers department that outlines on all projects
of the company before technicians department takes over the project for implementation. The

department entrusted with projects implementation is the technician department that executes
all projects of the company. Moreover, the department plays a critical role in receiving
feedback from the clients.
Suppliers
Suppliers tend to be a fundamental element of the company, and their achievement is
actually interdependent along with their own (Angelo and Williams, 2008). Commercial
suppliers are also essential in the company as they provide computer systems that are used in
advertising and marketing. The company is dedicated to expand its trading sector in a number
of areas in order to facilitate the actual product sales development that is likely to happen
within rising marketplaces. These types of modifications and the initiatives are designed
increase operational challenges within the companys supply chain.
Impact of External Environment to the Enterprise
Anescos services are highly recognised in the energy industry and its image in the
UK is good. The company has established in the market as a leading company in provision of
energy services (Stewart, 2012). This has led to the establishment of Anesco lifestyle that
makes it easier to enjoy more advantage over the other companies, and thus makes it potential
to lead in provision of energy related services. Due to its vastness in the industry, it has led to
high tendency of customers opting to use Anescos services over the other companies in UK.
However, Anesco Company is greatly affected by the external environment in its operations.
Factors that affect the enterprise environment are the political factors, social, economical, and
technological factors.
Anesco Company enjoys both positive and negative impacts paused by the UK
government on provision of green energy. For instance the UK government has formulated
policies to that entrusts Anesco Company with national provision of energy. This has led to
the company enjoying all great profits in transactions in the country that relates with energy

provision. However, the UK government has formulated policies that are designed to ensure
the company provides high quality services. Therefore, the company has intensively invested
in research and development that reduces the companys profit margin.
There are social factors such as stiff competition that faces the company. Their
capacity is unmatched and given that the company is wide, there are prospective companies
in the wake making the competition even stiffer (Davies, 2000). Moreover, there has been a
tendency by consumers to seek alternatives in concern of energy related issues. This creates a
major threat for change in consumer behaviour might lead to low sales which eventually lead
to losses.
Economically, factors facing Anesco Company is the fact that it suppresses the growth
of other companies in UK since it forms the centralised operating system of energy service in
the country (Jason and peter, 2004). High concentration of the company in UK market has
contributed to price elasticity hence customers becoming more prices oriented. However, its
recent concern in the international market has created a chance for local competitors to gain
market share. Moreover, Anesco seems to neglect the global market at the expense of the
growing market share in the local market.
Furthermore, other environmental factor that influences the company is the threat from
constantly lowering cost of calling by their competitors. In an attempt to acquire market
share, Anesco competitors are constantly lowering their prices (McGee et al., 2005). This is a
major threat facing the company, as it has to lower the prices too in order to maintain the
competition margin. This in return is reducing the profitability of the company since it has to
lower the price too in order to retain customers.
Section 2

Anesco Company can exploit advantages galore that lie in the business environment.
However, the company ought to implement sound operational strategies that will enhance its
operations. These strategies are adequately appropriate for international business environment
that will form the foundation of the company to operate in the international markets. Anesco
Company is a prospective company to be an International organisation due to its services that
has continually gained ground in international market in the near future. The possible
business strategies that can instigate Anesco Company to be an international organisation are
as discussed below.
Business Strategy
Business strategies are generally defined as the actions that are taken to enables
organizations to operate efficiently in the business market effectively (Davies, 2000).
Organisations usually operate with single strategy or with multiple strategies in order to effect
their operations. This paper focuses on business strategy that enables organisations to operate
in the market with outmost possible functional level of the organisation. The strategies enable
an organisation to define its business environment in the most competitive level.
Retrenchment strategies
This strategy focuses on reducing costs of operation and reducing investment in noncore assets. Managers while implementing the strategy in an organisation reduces investment
period and focus on short time investment rather than long term. According to Ghemawat,
(2009), retrenchment strategy enhances cost reduction which is a perfect strategy to reduce
cost rather than looking for ways to generate additional revenue, hence many organisations
retrenches their performance (Giddens, 2002). Any organisation reduces cost through
reducing workforce and increasing working hours, cutting down expenses in employees
training and marketing and research and development (Dedee and Vorhies, 2000).

Retrenchment strategy has been functional for a long time as organisations has been
focusing business through reducing costs by trimming down labour. Product line reduction
has been perceived as a perfect strategy to effect organisations performance. Organisations
reduce labour in proportional to profit generation in the organisation. Particularly,
organisations have been reducing expenses by declining expenses in intangibles such as
advertisement and training. Research has revealed that holding companies that have highly
structured ownership have benefited from the retrenchment strategy that enabled them to
register excellent progress.
Retrenchment strategy has lessening innovation in organisations. This happens mostly
when the organisations opt for cheaper ways to maintain profit margin instead of innovating
on appropriate and better ways (Giddens, 2002). However, advocates of the strategy have
been proposing other methods like recession in order to enabled poor performing
organisations to increase performance or assist organisations during downturns. The strategy
has been assisting organisations to reconstruct their performance through recession that
enables organisations to witness soaring levels of merging and activities that enables them to
acquire high profit. However, innovations vary from organisation to organisation while
registering high patent awards and innovations during downturns (Gilinsky et al, 2001).
According to Beaver and Ross (2000); Cooke (2002), there have been enough information
that assists companies to adapt to recession conditions but there has been less strategies to
motivate them for implementing the recommendable adjustments. Constraints in adaptation
have led to a considerable impact on organisations performance (Janoff, 2001). Although
there have been controversies on the best method to implement the retrenchment strategy,
Gilpin (2002), argued that it can be enhanced through increasing investment, immediate
divestment of non-core value activities and maintaining investment level at an appropriate

level. The condition of the retrenchment strategy has made it to gain popularity among
business people to adopt it as a major strategy during recession condition.
Investment Strategies
This strategy advocates for organisations to adopt investment during recessions by
pursuing strategies in investment. Organisations adopting investment strategy opts to
innovate expend and invest in new markets as a strategy to increase competitiveness in the
market. Many organisations has progressed during their recession period and established in
the market using the strategy. Organisations using the strategy take advantages of weakness
of their competitors (Bryan and Farrell, 2008). For instance, during the depression of the
Edisons Electricity Company of 1893-97, the Kelloggs took the advantage and established
itself to be a stable organisation during the 1920s depression (Rumelt, 2008).
Moreover, organisations that implemented the investment strategy have greatly
improved during the depressions. For example, the Apple and Microsoft corporations were
founded during oils crisis that occurred in 1970s. Scholars like Srinivasan et al. (2005), argue
that the significant improvement in the organisations was registered as a result of immense
innovations, investment and market diversification (Roberts, 2003; Pearce II and Michael
2006). The strategy leads to increased business performance. Therefore, Anesco Company
should also adopt the strategy and internationalize at a time like this when there are financial
crisis and a lot issues that affect the world economy. However, the company ought to improve
their brands quality hence attract customers due to quality rather than low priced products.
Targeting market has also been a critical concept to consider while implementing the
investment strategy. This will enhance the organisation adopting the in the international
market while targeting the emerging markets as well as the developed markets. Furthermore,
the services the company provides have to be not introduced in the areas. Moreover, the
organisation ought to develop policies to control prices in new markets that will enhance

performance in the regions (Chou and Chen, 2002). Moreover, Chou and Chen (2002),
suggest that the investment strategy should be under the recession condition for excellent
performance of an organisation. This should be linked with the organisations resources for
remarkable results in organisations performance.
Although scholars has been perceiving recession as threat, Williamson and Zeng
(2009); Rumelt (2008), argued it should be an opportunity to businesses rather than a threat.
Recently, recession takes the global nature and manages the risks that emerge in the new
markets. This has been recommended due to new markets than in the developed markets
since the nature of the emerging markets differs from the developed ones. The strategy
recommends for investment in research and innovations at a lower cost to enhance business
performance. Moreover, investing in the emerging markets is more profitable than in the
developed markets (Williamson and Zeng, 2009). Therefore, the strategy proposes for
internationalisation of organisation in order to enjoy the emerging markets.
However, the investment strategy has been patchy while implementing in some
organisations. The strategy had been risky in implementation due to massive resources
required to investment in emerging markets. Furthermore, investing while under depression is
risky as the business may not take ground (Glyn, 2006). Organisations face challenges in
managerial skills, finance management, resource shortage and insufficient technical in the
international markets. Nevertheless, during recession period it is critical for organisations to
exploit new markets through innovations in their services and developing business models
that enhance penetrating in new markets. Although investment strategy is risky to implement,
when successfully implemented enhances performance in organisations.
Ambidextrous Strategies
Researchers such as Raisch and Birkinshaw, (2008); He and Wong, (2004) argues that
ambidextrous strategy combines disastrous change with incremental change and resources

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exploitation in order to improve efficiency in performance. Moreover, the organisations

explore the possible sources of competition in order to innovate and exploit the new markets.
Therefore, ambidextrous strategy is a combination of the investment and retrenchment
strategies. The strategy suggests for adaptation during recession by cutting down products
costs. Moreover, it suggest for innovation in products and developing markets as a strategy to
mainstream in selective investment. However, the practices have to be focused on
organisations practices during recessions and good times as well (Glyn, 2006).
Moreover, the strategy suggests that companies ought to increase innovation
concurrently with efficiency in order to facilitate their operations during upturns. Advocates
of the strategy perceives price reduction as a threat to limit business from taking advantage of
the competitive market that restrains business in trading conditions. Therefore, the strategy
urges for an appropriate investment strategy and best methods for price reduction. The
appropriate time to implement the ambidextrous strategy is when the trading conditions are
severely affected (Groth and Westaway, 2009). Therefore, it is recommendable to have a wide
range of cost-cutting methods and investment strategies.
Ambidextrous strategy is effective to large organisations that can be able to channel
massive resources to investment in new markets while at the same time reducing cost of their
products and services. In addition, large organisations are able to diversify market and expand
market capacity. Effective reactions to recessions have enabled companies to adapt to the
circumstances in the marketing environment (Groth and Westaway, 2009). However, in order
to have outstanding responses of the recession is greatly determined by the methodology used
by the organisation to adapt to their particular circumstances. Therefore, not all ways
available that favours companies. Hence, there is need for companies to be selective on
options to choose instead of imitating all. Nevertheless, most appropriate options are to
maintain pricing policies while ensuring product and services quantity is adequate. Other

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suitable option include maintain high managerial morale, enhancing leadership and
maintaining sound relationship with the mother organisation and shareholders.
In subsequent, researches that had been conducted, it is revealed that the
ambidextrous strategy performs better when new products are introduced and suppliers are
pressurized. In order to determine effectiveness of ambidextrous strategy, organisations
classify operational options in to different clusters (Navarro, 2005). To start with, the
company ought to have protective diversification by improving their services and goods,
introducing new products, and increasing their exports. Secondly, the organisation rationalise
on services and products that are more profitable while at the same time reducing workforce.
In addition, the organisations diversify in the existing market and on products that are highly
profitable. Lastly the organisation ought to be conservative on their activities by being
reluctant to change scope of their activities and reducing initial capital investment (Powell,
2002).
Recent research by Kksal and zgl (2007), revelled that organisation have recently
being investing on research and development as a strategy to capture new markets and
innovations on better ways on production that reduces products costs. The strategy has been
effective to any organisations to remedy their situation to successful progress during
recession. Moreover, it is more likely for organisations to achieve high levels of performance
during recession with the implementation of differentiated positions of cost reduction. Better
results of organisations success have being exhibited with pre-emptive actions rather reacting
when difficult conditions are manifested in the organisation (Bigelow and Chan, 1992). Some
organisations have registered high level of success during recessions like workers boycott in
anticipation of changes in the organisation by implementing ambidextrous strategy (Carral
and Kajanto, 2008). Therefore, advocates of the strategy propose for research in the
environment to determine possible impact that can affect trading conditions of the company.

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The paper discussion above proposes for Anesco Company to internationalise the
organisation in order to enjoy the new markets. However, the company ought to employs a
unique but effective strategy in production and marketing of its products in the international
markets (Bounquet, et al, 2009). The most appropriate strategy would be to invest in the
international market while mainstreaming on price controls to suit particular condition in the
new market. Anesco Company has the capability to penetrate in international market and it is
recommendable for the company to penetrate in the developed markets and emerging markets
as well. Therefore, the company needs to first penetrate in the potential markets where similar
services have not being introduced. In order to enhance development, the company in the new
markets ought to have elaborate price control and have short-time investment.
Internationalisation in organisations requires elaborate strategies that incorporate all
stakeholders of the company. Stakeholder being all interested partisans in an organisation
(Bryson, 2004), their participation in organisations progress is very vital. Therefore,
employees in Anesco Company play a vital role in developing other stakeholders assurance.
The cross relationship between the managerial department and the customers enhances
feedback a strategy that leads to improvement of their services (Siebenhuner, 2002; Meppem,
2000). Moreover, suppliers have a vital role in delivering services to clients. Therefore the
organisation values them as vital in organisations progress.

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