INTERNATIONAL BUSINESS MANAGEMENT

Metricum: International Business Management

Metricum: International Business Management

Background

Founded 28 years ago, Metricum is now a well established international SME. Their international activities are complex with manufacturing bases in Sweden and China and a wholly owned subsidiary in Romania from which they source many of their raw materials. Now in the process of re-structuring their Romanian operation, Will Hatton, the CEO, and his team are seeking to explore market opportunities in some of the less developed former Eastern Bloc countries such as Ukraine. Aware that they need to improve their ability to scan international markets, Metricum wish to work with an external consultant to become more strategic in the way they gather market intelligence and adapt their business strategy for the global environment (Abell, 2008, 45).

About the Company

Based in the east of England, Metricum manufacture materials handling equipment and intelligent handling solutions. Exporting to over 40 countries around the globe, their first overseas manufacturing facility was established in Sweden where they collaborated with a Swedish firm on design and manufacturing. This relationship worked very well and helped further establish their position in their international markets. Over the years, however the marketplace became increasingly competitive, particularly with the emergence of a very aggressive Chinese competitor. Running up against this company in many of their markets around the world, eventually Metricum decided to approach their Chinese competitor to see if they would consider collaboration rather than competition. To the surprise of the company, the suggestion was met by enthusiasm and today about 25% of all their production is based in China (Abell, 2008, 46).

A privatised Romanian firm was used to supply parts and when this firm hit financial troubles it was taken back by the State with a view to re-privatising. Will Hatton realised that this presented an opportunity buy this firm which would then safeguard their supplies. It also represented an opportunity to protect margins. The Board was unconvinced, but following a visit by the Chairman, the decision was taken to make the purchase. This process took about 1 year, but eventually, Metricum purchased 95% of the equity of the firm.

Business Problem

Metricum wish to use Romania as a route to other eastern European markets but have identifiable and recognised skills gaps in assessing the market opportunities. Their Romania colleagues for example, suggest that they have a huge market opportunity in Ukraine, but they are not sure how to assess the market potential, the competition and the best route to market. There is currently no dedicated Marketing staff within the firm.

SWOT analysis

SWO|T analysis is a vital tool in marketing. If a company wants to do some marketing action (either develop a new product, change its pricing policy, opening a new distribution channel to a communication campaign, etc...), at least the company will know what direction to go and what to prioritise (Ansoff, 2005, 52).

Before seeking the best advertising campaign, logo, or the latest cutting edge technology, will know who we are and what we want to achieve and whether it is necessary ...