Report On Strategic Options, FDI, Change Management and Leadership In China and India 1 THOMAS COOK COMPANY, MANAGEMENT

REPORT REPORT ON STRATEGIC OPTIONS, FDI, CHANGE MANAGEMENT AND LEADERSHIP FOR THOMAS COOK COMPANY IN CHINA AND INDIA SUMMARY This management report entails on the perspective of foreign direct investment in china and India countries. The report begins with the definition of the term, strategic developments and its significance to both china and India countries. It continues to stipulate the rationale why china and India are the best-suited countries for management and investment sector. In the main body of the report, strategic development directions through FDI in china and India have been articulated clearly; this is through application of Ansoff Matrix, which features the consolidation, integration, diversification, market penetration and product development options (a table has been selected to analyze the general Ansoff matrix). The management report continues to discuss the organizational structure for both counties and stipulates the advantages and disadvantages for investment opportunities. NB, in this area, the report analyzes on infrastructure, risk and economic simulations, economic relations, FDI incentives and technological aspects. In the last part of this management report, we deal with the leadership and management aspects for application of Thomas cook strategic development directions. The main theme of leadership and management for sufficient application of FDI directions for prosperous china and India FDI relations has been well articulated. We then conclude the management report with remarks on FDI, and advice to the MD on proceeding with the new strategic direction.

Reassessments of company elements and modification of the economic investments in the countries should be in continuous strategic move. one has to have a unique outlook to assist him deal with the diverse exchange royalties.Report On Strategic Options. Essential planning is required as one deal with these aspects of development strategies. My strategic development consists of future orientation. one is able to apply strategically both management and development tools. the environmental conditions and on dimensions of the social background. economical. where the environment is deemed to change. Choice of development strategies also relies on the structure and resources of each country. Choice of development strategies is also due to the strong economic and environmental ties between the two countries. political. I have decided to have a dynamic approach to the management prospects of the company Thomas Cook. My choice of development strategies concerns: technological. China sets . This analytical approach has been part of my option for better and quality assessment of directions that India should set up to increase its Direct Foreign Investment. Change Management and Leadership In China and India 2 INTRODUCTION Strategic development strategies are mindset that evaluates changes in environment both externally and internally. one is encouraged to foster foreign direct investments in china due to openness in development and it instills continuous changing goals for investments. I am able to determine the level or china and India resources through development strategies and to the optimum level of resources of each country. FDI. Both China and India have policies that assist one in the overall implementation of strategies and management of the FDI in the end. One outlooks one the perceptions of the organization and how I want my company to be in future.

Funds could also be used in mergers and acquisitions in exchange of royalties in product production. meet its customer needs better. There was establishment by Whiting (1976) that Firms acquisitions were made for increase in efficiency of the companies acquired though capital transfer . FDI. Besides.Report On Strategic Options. Mergers and acquisitions involve the amalgamation of two or more firms or the purchase that is directed to current firm within the foreign country. the development of better information systems in the global trade can enable a company increase level of performance of firms acquired to enable it. use of marketing skills. The efficient capital transfers. . and the wide range presence reformed management skill assist one to establish the Foreign Direct Investment move. which assist in transfers and in the development of better information systems that enable them to raise their performance level in the economic market as they strive to meet their customer needs. The choice for selecting china and India is due to the essence of acquisition of products and services are easily carried on within these two countries. which involves building a new business concern like factory in a foreign country. Change Management and Leadership In China and India 3 good investments mechanisms all over the world to ensure strategically developments patterns are in position for strategically management and to monitor the overall economic growth. STRATEGIC DEVELOPMENT DIRECTIONS Direct foreign investment involves the transfer of large sums of money from between countries usually from developed countries to less developed countries. China and India have also a diverse economical outlook. Funds could be invested in Greenfield investment. presence of skill for management and the diverse technology.

international business should be encouraged. this forces competitors to react to price reduction by one firm. The main objective is ensuring rivals gaining power for a position in commanding is minimized in addition. these rivalries have been identified between firms in oligopolistic industries and in relationships between FDI flows. location specific implies that FDI could be based on the location specific concentration of technology advantage. Every action that any of the firm takes to reduce its price leads to very significant increase in its sale and a large reduction in sales of competing firms. Advantages rise from the prevalence concentration of resources and in increase from the informal network allowing different firms to be beneficial to every form of market segmentation. According to Charles (2008). They should target different location. Knowledge is widely shared among the different forms of competitors allowing the free flow of information without bias or impediments whatsoever.Report On Strategic Options. FDI. he explains that foreign direct investment flows can be based on the strategic rivalries that take place between firms in global market place. the generation of profits for subsidization of attacks that are competitive are fully utilized in various segment of markets within the same region of competition. target new markets that are in the prevalent open market. Thomas cook should opt to use online and direct sales through the trade in accordance to Ansoff matrix. According to Ansoff matrix by Ansoff (1988). by reducing their own prices by the same account or more for market share maintenance. Ansoff (1988) . Change Management and Leadership In China and India 4 In strategically developments options we can derive an Ansoff model to show how directions are carried out through the china –India development strategy. he generalizes and evaluates the strategic development directions through four-quarter analysis method for Thomas cook Corporation to have a rapid and smooth company management strategy it should do the following: Market development strategy.

(2006).Report On Strategic Options. as one does business in other cultures compared to that are original to the local culture. FDI is considered risky in this section. Improvement of products Extensions for the product are carried on The risk is high The source table: is by Johnson and scholes. The risk is medium New market There is market Medium development risk Thomas cook can either make expansion to available new segments or customers encouraged in new field High risk Diversification takes place in here This may include either vertical or horizontal diversification that is related We have unrelated diversification Medium risk New product The risk is medium We have product development where the prevailing products are replaced by new products and better services. FDI. Thomas Cook should use the strategy to ensure they secure their business in case of loss. Change Management and Leadership In China and India 5 ANSOFF MATRIX. Probability is greater for a multinational firm .THE ESSENCE OF FUTURE OPTIONS Existing product The risk is low Existing market Low risk This where core businesses are encouraged to act continuously Thomas cook company penetrates the market Thomas cook can withdraw or consolidate its activities. adapted from H. Ansoff (1988) On diversification.

develop related materials that are cheap. They secure their foundation by product development strategy. launching prices. In international business literature Charles (2008). The other category is on market penetration. Thomas cook can follow development direction though exploiting competence in the china and India market. maintaining activities for sale and by increasing their quota by buying a company for competitors. Thomas . Change Management and Leadership In China and India 6 that is in full effect to have losses that may collapse the firms due to the inadequate program set up by the prevailing government. CSFs (change in critical success factors) are greatly encouraged to ensure that emphasis is put in the success of the company. According to Ansoff Matrix Smith (1994) advantages of diversification is that one may be able to secure himself from losses derived due to adverse circumstances. to ensure that one is able to survive in the market Thomas Cook Company should fully advertise by. The exiting capabilities are well analyzed and proper documentation is applied. introduction of scheme loyalties. encouraging people to choose their product. also their marketing time should be shortened to ensure customers are able to know them and improve the quality of its products and services this is in accordance to Ansoff (1988). ensuring promotions for special purposes. this is where by they produce different construction amenities. Thomas cook should follow the customer needs and ensure satisfaction is ensured. Market consolidation assists to avoid the market imperfections between china and India.Report On Strategic Options. the explanation of FDI assists in removing the factors affecting construction market from working perfectly. The marketing imperfection approach the internalization theory ensures that FDI are encouraged as tit increases the profitability in the host country. FDI.

FDI. Change Management and Leadership In China and India 7 cook can ensure short life cycles of the product they have so to establish the condition of the India and china market (Ansoff . I used three of the most conversant organization for the economic outlook for both the Chinese and Indian economies. India should have capability development strategy to enable it survive foreign direct investment. ADVANTAGES AND DISADVANTAGES OF INVESTMENTS In my management report research for the general assessments criteria. CHINA ORGANIZATIONAL CULTURE . The Organisation for Economic Co-Operation and Development (OECD) a: Annual Report Gives strategic analysis on organization decisions making UN Conference on Trade and Development (UNCTAD) 1999 Gives the general view of investment in china and India It has analysis on globalization and investment integrations for china and India In these aspects of organization culture.Report On Strategic Options. Expectations for this company should be credible enough to ensure that their expectations evaluation in future is foreseeable. they should also target geographical markets that are new or chose option from other countries.1988). Market should develop with similar CSFs in product development for Thomas Cook Company. we entail on the diversified organizational strategies for china and the India.

INDIA ORGANIZATIONAL CULTURE The organization culture for India rests on quest for dominance globally. In analyzing organizational culture according to Boisot and Child (1988) he analyzed Chinese organizations. Network capitalism has developed and evolved most of Chinese economic cultures. Chinese organization culture was also shaped by the prevailing reforms for political arena. India companies are now strong driven with strategically aspect of business as compared to the traditional aspects of Chinese firms. Change Management and Leadership In China and India 8 China is a rising power in the economic developments. These increases the level of trust and the commitment levels in the companies. Chinese deal on inter firm relations referred to as ‘Confucian capitalism’. The cultural dynamics of Chinese entail on the language perspective and on how well do china relate with its neighbors and trading partners. FDI. China organization culture is more of traditional and is categorized of giving individuals assigned to their firm a high job safety measure. The westernized values are . [by] characterizing it into ‘fieflike system’ . Thomas Cook Company operates as a close d network culture to ensure that employees remain in their firms. Thomas cook should opt for the closed culture systems as it assist Chinese organization culture in networking and dependability. it has long traditions that prevail in its organization. Localization of Chinese firms assists in risk management and in the contracting or relations and personal loyalties. he stipulated that the system relied on traditional methods in transactions to ensure that risk were minimized and personal loyalties localized (fieflike) with the relational contracting.Report On Strategic Options. Chinese relies on traditional methods of transactions in its operations. there is gain in political and military manifestation though-out china.

Investments have been encourages through western corporate strategies. Thomas cook will grow and develop well in this system as the FDI rule applied for developing countries. Organizational goals and strategic evaluations tend to focus on organizational performance. FDI. ADVANTAGEs National Economy Simulations According to Earth summit. India is quickly gaining over china due to its strong economical operations and better investments reforms. international and political cultures. There have been adequate changes in political arena and improved government controls compared to china. and experienced is being highly regarded in the human capital and performance activities. India is categorized with strong language.Report On Strategic Options. Change Management and Leadership In China and India 9 immensely gaining recognition in the India countries. In the organizational resolution of India companies’ emphasis has been put on personal and economical satisfactions. (2002) FDI can contribute to Gross Domestic Product (GDP). Sustainable competency in leadership has categorized most of Indian firms. Gross Fixed Capital Formation (total investment in a host economy) and balance of payments. . Exports and imports have generally increased in the overall long run of investments activities. Employments opportunities have increased in India and better policies have been deployed to allow FDI and other related investments activities. English being its communication for corporate. The organization reforms compared to china are more able to develop investment and FDI levels.

The researcher in Earth summit (2002) gives reasons that this is partly [due] because currency devaluation means a drop in the relative cost of production and assets (capital. There is a total growth in India GDP due to the investment development. Conditions of investment according to Earth summit (2002) UNCTAD (1999) are that impact of FDI will largely depend on the conditions of the host economy. as well as a country’s ability to regulate foreign investment .Report On Strategic Options. FDI are more stable Investments have an advantage that they are unlikely to be affected. the mode of entry (merger & acquisitions or Greenfield (new) investments) and the sector involved. FDI. UNCTAD (1999) FDI can stimulate product diversification through investments into new businesses. goods and services) for foreign companies and thereby increases the relative attraction of a “host” country [India]. Future strategies are implemented through investments to ensure that better and efficient growth is in place. The high GDP growth helps china in its overall economic management due to its high economic reruns. [example] the level of domestic investment. which bring the vast portion of FDI. as India is able to venture into new businesses that assist it in economic development. According to Earth Summit (2002). so reducing market reliance on a limited number of sectors/products. There are stipulations according to Earth summit (2002) UNCTAD (1999) that levels of FDI do not necessarily give any indication of the domestic gain corporate strategies [examples] protective tariffs and transfer pricing can reduce the level of corporate tax received by host governments. Development of the nation socially . Change Management and Leadership In China and India 10 According to Earth summit (2002) Subsidiaries of Trans-National Corporations (TNCs). are estimated to produce around a third of total global exports. Diversification is also promoted through investments.

FDI. Greenfield investments have dully assisted the development of buildings and railways throughout the two countries. the benefits may only be felt by small portion of the population. International effects may regulate both the economical outlook of the companies and the investments opportunities. Investments has promoted the social impacts in both countries through the opportunities for social communication and sharing of ideas. India and china have been able to culturally advance and they can as well foster good economic relations. DISADVANTAGEs Unstable economies In situations where the fall of trade and investments takes place their might result an unstable FDI movement. This makes it more hard has its hard for investment country to . A culture consumerism is encouraged through these various impacts of social opportunities.Report On Strategic Options.[example] where employment and training is given to more educated. Better products are produced and sufficient quality services are offered as one socially engages with the other. according to Earth summit (2002) .OECD (a) However. Change Management and Leadership In China and India 11 China and India are able to increase their social movement’s treads through increased wages and better increases in the employment sectors. wage differentials (or dual economies) between income groups will be exacerbated. typically wealthy elites or there is an urban emphasis. Technological and infrastructure developments China and India have seen a total growth of infrastructure and the excess resources due to the sustainable investments opportunities.

Report On Strategic Options. FDI. Leadership and management are in different categories and one has to be able to differentiate between the two. Thomas Cook company in India is has less power for mitigation of damages that occur environmentally or in imposition of remediation costs. LEADERSHIP AND MANAGEMENT I my management report I have found out that. . Change Management and Leadership In China and India 12 de-invest when there is economic crisis. Investments opportunities for local economies This is seen where India will have less capacity when dealing with decisions’ making between the two countries. For the Thomas cook co to carry out its direction for development strategically it should have effective leaders and an effective management positions. Environmental and employment impacts As both countries produce efficient goods and services in FDI environment they may produce sophisticated products that may injure environment. Thomas Company therefore should make sure that it has accrued its benefits to avoid international economic turmoil. Employment has also seen to diminish in situations where FDI movement lock down the local economies and benefit the high economic strongholds.

Individual’s goods should not interfere with organization objectives. leadership in this report. Thomas Cook in its future resolutions it can empower the government to carry out sufficient task for environmental degradation and ensure that sufficient resources are put in place to foster out Foreign Direct Investments. the pay should be fair there should be no . Management refers to ability of Thomas Cook Company to establish clear outlined goals that may assist in the overall developing strategy completion. In summary of this management report according to Fayol (1949). conflicts and the emergence of chaos Unity of direction. he stipulates that. FDI. through remuneration of personnel. for effective organization members of should work towards the same objective. The company should have an executive direction for the FDI opportunistic development. The administration of these strategies requires good supervisory and management techniques. in our case the development direction in FDI. Let me first define both term (leadership and management) in the outlook of Thomas cook. in Unity of command. as each member of organization should receive orders from one superior and be responsible to one superior in order to reduce confusion. The leader should be task oriented and in high regard of the company’s objective. Management of Thomas Cook Company should influence the overall nature of economic growth and should foster a clear objective in the end. Leadership involves process of attainment of specific objective. According to Fayol (1949). means that the most of individuals in the company are able to influence the overall running of the company goals.Report On Strategic Options. Change Management and Leadership In China and India 13 The economic succession should be well articulated and formed to ensure that the strategies FDI goals and objectives are in hand to hand with its policies. Leadership means that individuals are able to articulate the FDI elements for Thomas cook co objectives and influence economical externalizes in its ways.

FDI. they should have a clear knowledge on the perspectives of economic investments. bonuses. Foreign exchange inflows should also be analyzed and the company should have the proponents of foreign Direct Investments theory. There should also be technological advancement in the economic and finance sectors. human and technical skills. Proficiency should be encouraged where specialization with particular fields should be addressed. Stability of tenure personnel. This gives a clear role on what management and leadership should deal with. we can apply various techniques to ensure that the aspects of management and leadership by Thomas Cook Company can be diversified and stabilized. economic development and growth towards sustainable foreign direct investment may require the following skills. All the processes of conceptual skill should be utilized by both Thomas cook management firm and the countries involved in governance. time is required to get used to new work the new investment environment. The technical skill that Thomas cook should have is the information and clear understanding on concepts of Foreign Direct Investments (FDI). China has a high technological mode that it can instill to Indians. A variety of modes of payment such as time or wage rates price rates. These assist in the task-oriented culture of Thomas cook in the sustainability of investments. The foreign exchange bureaus should be in place and the relevant licensing done. As china and India participates in FDI strategic resolutions.Report On Strategic Options. I will categorize them into conceptual. Tenure personnel of both the countries (basis for probation period that new employee undergo before they are confirmed and employee on permanent basis) should take . In the management change. Thomas cook should have the ability to analyze concepts of FDI. profit sharing and non-financial rewards were suggested. In both china and India. The company should know both the horizontal and vertical direct investments and how markets imperfections can be eliminated in the overall long run. Change Management and Leadership In China and India 14 exploitation.

change aspect of globalization should be taken into effect to ensure that all the master of economic regression is in place. FDI. gives a general view on political. Thomas cook will operate generally in the India organizational culture due to its diverse westernized intrusion to their counterparts. economical and d social aspects of culture prevailing in both markets. What Thomas cook should do in its foreign direct investment is ensuring that both individuals are aware of advantages of investments and of its implications in the current international economies. Ideas of FDI organization should be well put in place to ensure a stable and educative system that would work efficiently. In management and leadership. there should be incentives and proper worker rumination to ensure cooperation and understandings. The MD should choose India as a . of this management report.Report On Strategic Options. In India. Change Management and Leadership In China and India 15 place as people delegate FDI activities. Ethical management should be carried on in the trading operations between china and the Indians. The company where FDI is able to meet the essential requirement is more acceptable. we have Cleary outline the different methodologies used in leadership and management change for the India economy through FDI. compared to the china that mainly rely on traditional ways of satisfaction and personal loyalties. they should all encourage bilateral trade. In conclusion. The organizational developments and strategically approach for both china and the Indiana community. Each country perspectives should be well analyzed and motivation process carried on by Thomas Cook Company. Thomas cook should regulate global investments ideas and ensure efficient sustainable relationships in the international market. At the long last human skill should be utilized in the management and leadership as the company strives to achieve development objectives. We are able to figure out incompetence’s hindering the growth of Thomas cook in its FDI managements.

FDI. One should be able to Cleary articulate the strategic analysis of the overall development and strategic options. I 1994. As we see between china and India relations. University of Manchester's Institute of Science and Technology. Smith. Ansoff. 7th edition. New York and Geneva: Oxford University Press . corporate strategy. one should be able to encourage good communication networks throughout the system. that one should promote FDI movements in the nation and better foreign country relationships should be maintained according to India cultural movements and the current political and economical growth. chapter 6. I conclude with remarks. McGraw Hill Higher Education.Report On Strategic Options. UNCTAD. Meeting Customer Needs. REFERENCES Charles W. I have also Cleary outlined the foreign direct investment advantages and disadvantages through china and India Foreign Direct Investments justification. pp 63. World Investment Report 2007. Change Management and Leadership In China and India 16 prevalent country and follow up its organizational strategic directions. penguin. H. 2008. one is able to feel the overall effects for direct foreign investments. International Business. 1988. There is increased foreign direct investment. 2007. Chap 6-7. IoM Butterworth –Heinemann. L. In this management report.

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FDI. Change Management and Leadership In China and India 18 .Report On Strategic Options.

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