STUDENT ID: c7080738
COURSE: B.A (HONS) International Business
MODULE: Management of International Business
MODULE TUTOR: Mr. Ashish Tripathi
Club Mahindra holiday is a consumers service industry which is part of Mahindra group having infrastructure of US $ 14.4 million. Under Club Mahindra flagship Mahindra Holiday and Resorts India Ltd (MHRIL) was started in 1996 as a realty sector of Mahindra group brought up for bring values, reliabilities and trust and customer satisfaction. Club Mahindra has got an affiliation with RCI which consist of 60% of the service industry market share, which make Mahindra holiday timeshares largest holiday ownership brand in India. Apart from being a customer centric company club Mahindra performs various Corporate Social Responsibilities for the well fare of people, employees, its customers and environment. According to CESD, 2007 Tourism is becoming one of the largest business sector in the world showing 2005 receipt of international tourism reaching $6.82 trillion. Club Mahindra performs in service industry where revenue produced in 2008 by service industry was $4,028.6 billion showing CAGE OF 6.3% from 2004-08. (Datamonitor, 2009) Furthermore, club Mahindra perform or exist in environment where customers has the power to control the market. Whereas, large number of suppliers weakens them from leading, new entrants in service industry is very easy but the threat of substitutes and rivalry can lead to tough completion in this sector. Consequently seeing the services of the Club Mahindra, the potential market for its service expansion can be Germany. As according to the German National Tourist Board, Germany is ranked as second populous destination country in the world. It has achieved 10.7 million trips in 2010. (GNBT AND World Travel Monitor) Club Mahindra can enter German service market by doing Greenfield investment as it has ownership advantage of being a part of Mahindra and Mahindra major auto group which has its trust and loyalty amongst customers. More than that Club Mahindra has an experience of 14 years in this service field. It has been honored for its quality and hospitality by PCCMM, BHC and ISO. Germany proves to be a great market for service industry or Club Mahindra as firstly, due to its increasing contributions and relations with international market, a platform for the tourist attraction is building serving advantage to Club Mahindra Holiday tourism. Secondly, revenue of €212bn is been seen in the year 2009 by Germany tourism, employing 2.8 million workforce, with a predicted growth in CAGR of 3.5% in coming years. (Datamonitor, 2009) Thirdly, as government of Germany, is investing in the development of urbanization and Human Development Index, leading to the healthy and active economy of Germany. Fourthly, incremental changes in health, safety, communication and climate could aid in attracting customers. Fifth, easy entry and exit of firm and providing easy FDI help Club Mahindra in investments. Lastly, due to the check on the environment Germany has been able to maintain is tourist satisfaction. EXPANDING IN FOREIGN MARKET
The world is globalizing and is leading to industrialization; many Multi-National Companies are in a watch for expanding their business in different countries, by bring their Corporate Social Responsibilities and Foreign Market Servicing Strategies to get hold on their industrial sector in particular country. AIM:
Holding a position as a MNE, the aim is to expand in foreign market for the company’s further growth in global market. OBJECTIVES:
The objective of this report is to provide with the CSR policies of the company with examining the forces affecting the industry sector chosen. Illustration of how company can expand itself in the chosen country is represented with the help of PESTLE analysis of country and OLI theory for analyzing modes of entry. COMPANY...