Effectuation and Causation Processes †Free Samples to Students

Question: Discuss about the Effectuation and Causation Processes. Answer: Introduction The report will discuss in detail about the AAA strategies which is also called as Adaptation, Aggregation and Arbitrage theory. There are number of organizations now that international based supply chain along with product development procedure. However, there are very few organizations that have the international supply chains as well as product development methods. There are very few that have actually been able to develop the effective base for international innovation capacities. But the access to technology and innovation is actually becoming an important international driver for strategy (Schlegelmilch, 2016). This further helps in moving the total cost towards development as well as innovation which is most likely to go on as the whole gravity changes of the present economic based activities that moves further towards East. The report will discuss in detail about two crucial industries which are expanding as well as developing day by day all across the world: Food and beverage industry: Coca Cola and McDonalds Pharmaceutical industry: Pfizer Inc. and Sun Pharmaceutical company It is important to understand here that the fast food industries as well as pharmaceutical industry are actually international businesses and are very crucial for the economies of the world or countries despite of the fact that whether they are developed r developing countries. These industries actually provide many employment based options which is significant for the population as well (Schlegelmilch, 2016). In order to make the presence more worth and in order to sustain in the market, these kinds of industries have adapted AAA strategies in a successful manner so that companies in the industry continue to grow as well as gain an edge in competition. These types of strategies enhance the share of the market and overall revenue via adapting some elements in a present model of business of an organization like it is perfect to understand the preferences of the customer at local level along with their needs. This strategy is most used strategy among all three. Normally in order to penetrate into new marketplace, companies tend to look for adapting the local actions and also practice the local preferences. This helps in getting more acceptances by the consumers (Morschett et al., 2015). The theory of adaptation in addition is divided into five types based on Variation which means making transformation in product as well as in services. It also included right kind of adjustments in positioning of the business, policies and expectation for right success. Another element is focus which covers the geographies, stages in vertical form of present value chain, specific product or methods to decrease the impact of different differenced across varied regions. Third element is externalization which is able to move through many strategic based alliances with right kind of franchising, adaptation of user or another level of networking. Fourth element is based on design which covers points like flexibility so one can easily overcome the supply based differences. In the end there is innovation which aims at improving the adaptation efforts and overall effectiveness (Morschett et al., 2015). Theory of Aggregation The theory of Aggregation is based on strategies which look to accomplish economies with right kind of scope by normally developing international base for efficiencies. These elements normally consist of the process of standardization of various parts of the present value proposition that has the capacity to further address to assemblage the process of production as well as development based procedure. In order to develop substantial amount of cost that gain some kind of benefit by basing the purchasing process in central of all kind of resources like raw material, manufacturing end products and many more. There are little place where the cost incurred in labor and other kind of resources become less (Moreira et al., 2017). But there are some companies have gained presence in global market utilizes follow aggregation based strategies instead of adapting it. The one and only place is not related to geographic aggregation for many generations to come for economies of scope as well as s cale. Another non geographic parameter cover a theory called CAGE which is based on culture, administrative, geography and economic. These elements are significant dimensions. The diplomacy in corporate can further is approached by ignoring the overall presence of homogenization and it is important to understand that sensitive approach can become a backlash for the company. An arbitrage strategy does not consist of bridging the different kind of market nor is it based on adapting the present local kind of demand. Rather these elements are based on inculcating the basic strategy based on creating some value on international platform by further exploiting the basis difference that exist between the market as well as gaining profit by the overall margin of basic differenced in the distinct supply chain in different places. People can also buy from any cheap based of market place as well as sell at places where the prices are higher (Sitoh et al., 2014). The overall power of bargaining utilized an added benefit in these cases. There are times when a specific place gets attention for the product or the concept or other kind of entities. The basic fact can be easily leveraged and the basic essence of the specific place can be utilized to earn more and more revenue which also based on setting the market where the overall demand for such kind of products actual ly exists. Therefore it is based on culture, administration, geography and in the end economy based effects. Food and beverage industry Food industry Adaptation Aggregation Arbitrage McDonalds The restaurant is currently working in more than one hundred and eighteen countries and serving millions of customers every day (Sitoh et al., 2014). The tagline of the company says modify the burgers around the world which means that it is important to change the company product as per the taste of the customer. The company first established in US and in present time has a worldwide presence. The domestic level deviation from a specific or standard base of menu is based on abiding to the local food like McRice in Indonesia or prawn burger in Japan (Chen, 2015). McDonald is based on world famous be able to earn profit by investing in franchising or properties and function of restaurants. The company has used all kind of means for profit increasing and minimization of cost. It also utilizes franchising based model as there is development strategy which reduce the risk (Chen, 2015). The company can be called as an epic example of clear advantages from many present arbitrage options which are offered by globalization. The company further also leverages the reputation in US for additional excellence and top class for working business to many countries. It is also positioned as good quality chain for Fast Food which exists in the mind of customers in new type of economies. Moreover there is backward integration with farmers via proper contract based farming in many agriculture economies to make sure constant supply needed for needed quantity and overall quality of their raw material at fixed prices (Chen, 2015). Coca-cola As per the annual report of the company, the organization is able to sell many beverage based products in more than two hundred nations. The company Coca Cola has not transformed the overall taste of the base kind of products except where it transforms because of quality of water and sugar present and it can happen that the overall taste of the company in Europe is distinct from that in US (Anderson et al., 2015). At the same time, the company is adapting the method of packaging, as well as marketing and branding based strategies that are successful in so many nations. In addition, there are uses of acquisition methods of crucial local brands as an important strategy to settle some connect with the customers and also push the base brand along with popular domestic brands. The company has executed aggregation based strategy to expand way beyond US and to accomplish economies of scale all across the world. The proof says that the company provides more than three hundred and fifty brands aside from Coca-Cola that is present as per the preferences of consumers. The company also maintains a long history of acquiring company where companies like Minute Maid, Indian Cola brand Thumps Up and Barqs is acquired consecutively (Anderson et al., 2015). Other brands like Odwalla and Fuze Beverages was also acquired in later years. The company also makes an announcement of it being present in countries like Burma the moment they moved the suspension on Western area. This company is a classic example of geographic as well as economic arbitrage. The outsourcing and production is mainly done in China with over thirty nine facilities all across the nation (Cokins, 2016). Apart from this, it also has a manufacturing factory with domestic bottling rights in many countries to decrease the cost of production. Pharmaceuticals industry: Pharmaceutical Adaptation Aggregation Arbitrage Sun industries The company is established in India and considered as a fifth largest company worldwide. In order to make its presence felt, the company has made some important changes that suits the demand of the country (Forster et al., 2013). Similarly they also adapted different formulas, material and packaging style that is correct for the people of that specific country. The strong research of the companys strategy and the specific implementation of the strategy have provided an edge in competition. In last many years, the company continues to be successful in many crucial patents on many important product in US and this is why have helped in introducing cheaper, good quality generic versions of these products in the market in order to gain market share (Majoch et al., 2016). The company soon realized the significance of the international presence and its association with growth. This is why, it successfully taken or acquired businesses in many countries as well as geographies. Till date, the company was able to make almost nineteen international acquisitions in order to expand the reach in various diverse countries (Majoch et al., 2016). The company has also settled the research capacities in growth based countries to decrease the overall cost which impact fully enhanced its capacities to give products at lower rate (Forster et al., 2013). Pfizer It is clear by now that every company will have to modify the offerings as per the need in different countries. The fact is followed by Pfizer as well which expended in Latin America (Motohashi, 2015). The company adopted many optional methods that specifically take into account the culture, regulation as well as economic level differences. The company is perfect example of many aggregations on administrative level. In order to market the medicines in place like Europe, it has to meet many requirements of some countries and then they become qualified to sell all across the continent (Motohashi, 2015). The company is a good example of arbitrage based on Taxes (Motohashi, 2015). The company is able to take over AstraZeneca located in British. Conclusion The report has discussed in detail about the development of two important industries using AAA strategies. Any company should make good use of this framework but there is an existence of some kind of trade-off between people (Motohashi, 2015). The strategy is all about the management at cross border and differenced at every industry becomes a crucial part of globalization. The strategy is based on restructuring and important factors that are responsible for this are trade policed and technology. It is important to understand here that every company these days is trying to adapt to the international strategy in order to position themselves in the competitive world where the whole survival is based on many factors like quality, placements, needs and many more. The level of the capabilities of the company is based on changing the overall offerings based around the limits of glove or increases different option to successfully enter new cultures (Motohashi, 2015). Reference Anderson, R.J., Anderson, B., Adams, W.A. and Adams, B., 2015.Mastering Leadership: An Integrated Framework for Breakthrough Performance and Extraordinary Business Results. John Wiley Sons. Chen, C.X., 2015. 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