January 10th, 2018
Bombadier expansion to Belgium – management recommendations continued
Growth of a business is probably the primary strategic challenge that each business faces. This would be in view of the inherent competition in the market. Bombardier would for example face competition from automotive (NZTE 10) and ship industry (Bombardier Inc 1) which are well developed in Belgium and associated Benelux union. These challenges require the formulation of innovative approaches to transportation and aerospace manufacturing units to provide solutions that provide faster and more economical means of transportation for the Belgians. Newkirk (8) argues that “creativity is essential for sustained growth… [and that] the most successful strategies are often the most creative, delivering growth” through the development of better ways that create value for customers and sustain such customer base for the entity. Due to the high capital investment involved in Bombardiers investments the phased introduction of its services would be an optimal strategy that would pave way for analysis of the market performance and when such performance is deemed to fall within the accepted ranges then further expansion and market differentiation would be instituted. The full blown introduction of diversified transportation trains could for example lack the desired effect with the more expensive options probably lacking adequate clientele thus leading to a fall in the demand for such rail vehicles. Limited sources of inexpensive capital (NZTE 6) in the Belgium market would also influence massive capital outlay thus contributing to the desire for a more inhibited expansion program.
The organizational structure for each company should be structured for effective management of cultural diversity. Seyemen (301) notes that the “management of cultural diversity…[is a] human resource strategy enabling the effective management of the workforce diversity created by demographic changes.” Wright and Noe also note that the diversity in the human resource is advantageous to the organization in ensuring the organization understand the needs of their clients who come from varying backgrounds (as cited in; Seyemen 302). This indicates that the success of bombardier would be ensured by the development of a hiring policy that takes into consideration the different ethnic groups that are characteristic of the Belgium market and thus reap the benefits associated with multicultural corporations. Based on the local customs of the Belgians (kwintessential 1) the corporation would need to balance its work force among the three major ethnic affiliations to generate a national identity that would help develop its brand among the customer base. Further the remuneration strategy should take into consideration the economic situation of the country by a comparison of similar firms offer in the European market and structure such salaries based on such assessment.
Use of teamwork would be essential in the performance of the company. This is because the cultural affiliation of the Belgians – which is not homogenous (Kwintessential 1), would provide a learning experience for the teams involved thus generating integration and improved performance of the work force. A challenge though would exist in merging the different cultures such as the language barriers between the cultures could prove negative effects to the performance of the teams. Such would then inform the building of teams along different cultures but those that members can effectively communicate with one another to generate synergy among the work force. Such organization would require strong ethical programs that deter the unethical behavior among the employees while promoting the employees to perform the right thing even when faced with compromising situation and thus generate customer confidence required for the development of the Bombardier brands in the Belgium market.
The entry to Belgium market by Bombardier requires the analysis of country specific aspects that would curtail the development of the brands in the market. The cultural, administrative, Geographic, and economic distance aspects of Belgium influence on the recommended entry mode and business strategy for the company to follow. The preferred mode of entry that befits the industry would be the setting of subsidiaries with subsequent branch establishment that would help achieve the legal advantages conferred by such settings in the Belgium market. The Business strategy appropriate for sustainable growth would be the development of innovative approaches that combine the aspects of speed and cost so as to ensure customer stability is generated. Further due to the high capital requirements for the nature of business that Bombardier is involved in and the unavailability of cheap capital in the Belgian market, the phased introduction and further outlay of the expansion programs is proposed. By the appropriate structures being laid out the recruitment of personnel spanning the major cultural divides of the Belgium population would probe advantageous with team work providing the environment required to build customer satisfaction with Bombardier products.
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