P6:
Explain the business strategy used by a business in operating internationally.
In this assignment I will be explaining the business strategy used by Perfetti Van
Melle in operating internationally.
So Perfetti Van Melle both started off as two different companies. Van Melle was
a Dutch confectionary while Perfetti was an Italian confectionary who later
bought different companies like Brooklyn chewing gum, Mentos and Fruittella.
Van Melle was owner of Frisk and Klene which are two big confectionary
manufacturers in Belgium and The Netherlands. In the year 1991 Perfetti bought
31% stake in Van Melle and in 2001 the remaining shares creating the company
Perfetti Van Melle. Perfetti made a smart move by joining Van Melle as a joined
venture this made PVM the second biggest confectionary company in the world
besides that both companies owned some of the biggest confectionary brands in
the world and working together would be better than making costs with setting
up a brand or facility in the other country.
Human resource: The human resource strategies of both companies didn’t
change when they merged together; all employees continued working the only
thing that changed was that there was a new owner. However since the company
kept growing and growing and expanding into new markets PVM needed some of
its employees in its new markets but they also needed to hire local employees
within that market. They recruited employees with skills, expertise and ability in
foreign markets to help them succeed in that new market. Existing employees got
training for the new culture they were about to be put in.
Technology: Technology has played a major part for PVM to be able to produce
their products. As time got on technology improved. The introduction of new
ways to manufacturer and evolving of technologies which led to more efficiency
increased machinery has made it possible for PVM to make better quality
products for less price and also costing less time. Transferring machinery and
knowledge from one country to a another has not only helped PVM in a way that
they are saving on labor costs for example but the country they transferred their
technology and expertise to is also helped because their population gets jobs and
their country becomes available to better resources and gets access to better
technology.
Explain the business strategy used by a business in operating internationally.
In this assignment I will be explaining the business strategy used by Perfetti Van
Melle in operating internationally.
So Perfetti Van Melle both started off as two different companies. Van Melle was
a Dutch confectionary while Perfetti was an Italian confectionary who later
bought different companies like Brooklyn chewing gum, Mentos and Fruittella.
Van Melle was owner of Frisk and Klene which are two big confectionary
manufacturers in Belgium and The Netherlands. In the year 1991 Perfetti bought
31% stake in Van Melle and in 2001 the remaining shares creating the company
Perfetti Van Melle. Perfetti made a smart move by joining Van Melle as a joined
venture this made PVM the second biggest confectionary company in the world
besides that both companies owned some of the biggest confectionary brands in
the world and working together would be better than making costs with setting
up a brand or facility in the other country.
Human resource: The human resource strategies of both companies didn’t
change when they merged together; all employees continued working the only
thing that changed was that there was a new owner. However since the company
kept growing and growing and expanding into new markets PVM needed some of
its employees in its new markets but they also needed to hire local employees
within that market. They recruited employees with skills, expertise and ability in
foreign markets to help them succeed in that new market. Existing employees got
training for the new culture they were about to be put in.
Technology: Technology has played a major part for PVM to be able to produce
their products. As time got on technology improved. The introduction of new
ways to manufacturer and evolving of technologies which led to more efficiency
increased machinery has made it possible for PVM to make better quality
products for less price and also costing less time. Transferring machinery and
knowledge from one country to a another has not only helped PVM in a way that
they are saving on labor costs for example but the country they transferred their
technology and expertise to is also helped because their population gets jobs and
their country becomes available to better resources and gets access to better
technology.
