In: Economics
Infusions Greenfield subsidiary in poland Case is based on a current managerial and strategic problem being faced by the organization, which must be solved tactfully to allow progression, as well as maintain a competitive position. This paper is written to facilitate the case solution for the infusion greenfield subsidiary in poland.
The case evolves a tweak situation of adopting a subsidiary of Infusion’s Greenfield into Poland. Several opportunities and threats were driving towards the future consideration of the established hub of the company. However, two problems had been raised to theinclusion of the Poland’s subsidiary operations of Infusion. The first issue was building relationships and control of the country’s managers because if the company would hire alocalmanager, then it could adopt a culture suitable for the country’s perspective. In other words, managers were from anold generation of Poland and didn’t allow to adopt decentralized concept instead insisted on using the traditional concept of bureaucracy within certain rules and regulations imposed on the country. The second problem that Infusion might suffer was the future perspective of having a hub (Poland’s Infusion) of all operations in other nations that could have a significant impact on changing the country’s economic and political situation in the near term. Therefore, AlimSomani (President of Infusion) was aware of such changes and made a critical review of how to control shortly if the specified circumstances would happen and cause for immediate actions to replace all the problems with alternative solutions.
Main issue
it shows various political, economic and legal factors would hinder the future growth of the subsidiary within a country. Under the political situation, thegovernment imposed strict rules and regulations over the labor safety as well as country specific business structure (Based on bureaucratic structure) that could limit the business freedom to operate in a decentralized way. Also, thetax was eligible for every activity based on the transaction and other business activities that would reduce the profit margins. Economic factor includes raising the operating costs that could hinder the emerging business growth of the country regarding high labor costs and misbalance in FDI investment criteria. The legal issues illustrate the stringent rules and regulations by the governing bodies which would be unable to adopt a change in a country subjected to non-bureaucratic culture and other free involvement of the business entities to consolidate the various cultural aspects. Therefore with all these issues, Ryan should have to identify the relative alternatives that could resolve for the future benefit of the company’s principal subsidiary.
Recommendations
From the following situation, it isrecommended that Infusion should first adopt theculture and legal aspects of Poland to initialize a business hub for other branches. Furthermore, a local country manager should be hired because he/she would have the skills and abilities to quickly adopt the corporate culture and provide an outcome that would exceed or meet the company’s objectives in the future. AlimSomani should consider a relationship through the recommended actions to survive and build a better position in a country like Poland.
Recommendations actions that the firm manager should take are as follows
- prepare and develop marketing mix effectively
- swot analysis, market analysis
- product distribution, market segmentation