International Business Market - Trane
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For this project, you will research the international business activities conducted in one specific emerging market by a well-known multinational company or a multinational organisation you know well. Multinational enterprises are often present in many international markets, so you should limit yourself to looking at the organisation's activities in one target country or regional market, such as: (a) one of the BRIC countries "Brazil, Russia, India, and China "which are large enough on their own to be discussed in some depth, or (b) an emerging market region, e.g., South America, Central America and the Caribbean, Eastern Europe excluding Russia, Southeast Asia, or sub-Saharan Africa (or a sub grouping such as West Africa).
Your task is:
- To assess the progress made by the organisation in establishing itself in the market from first planning its entry strategy until now.
- To analyse the environment of the emerging market concerned, with reference, for example, to any cultural, political, or legal features that the organisation needed to take into special account.
- To evaluate the organisation's strategies: first for international entry, then for organising and structuring its global operations, and finally for maintaining competitive advantage in the face of new challenges and changing conditions.
- To come to reasoned and evidence-based conclusions about the level of success achieved by the organisation in seizing the opportunities and overcoming the problems present in the chosen market for expanding its international business.
I wish to build this project on the Trane company (acquired by Ingersoll Rand in 2008) (if possible) in China, with my experience, I can add in my additional comments to the project.
The completed report should include:
1. An assessment of the progress made by the organisation in establishing itself in one target country or regional market from first planning its entry strategy until now.
2. An analysis of the cultural, political, and legal environments of the emerging market concerned.
3. An evaluation of the organisation's strategies: first for international entry, then for organising and structuring its global operations, and finally for maintaining competitive advantage in the face of new challenges and changing conditions.
4. Reasoned and evidence-based conclusions about the level of success achieved by the organisation in seizing the opportunities and overcoming the problems for expanding its international business in the chosen market.
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Solution Summary
Trane Air Conditioning Company was founded in 1885 by James Trane in Wisconsin. With what began as a plumbing and pipe fitting shop, Trane found himself studying the different properties of heating and cooling dynamics (www.Trane.com, 2012). It was in 1910 when James Trane's son Reuben got back from college with a degree in mechanical engineering that the father and son team decided to pursue their vision of heating and air conditioning systems and so they incorporated Trane as a legitimate business in 1913 (www.Trane.com, 2012).
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1. An assessment of the progress made by the organization in establishing itself in one target country or regional market from first planning its entry strategy until now.
Trane Air Conditioning Company was founded in 1885 by James Trane in Wisconsin. With what began as a plumbing and pipe fitting shop, Trane found himself studying the different properties of heating and cooling dynamics (www.Trane.com, 2012). It was in 1910 when James Trane's son Reuben got back from college with a degree in mechanical engineering that the father and son team decided to pursue their vision of heating and air conditioning systems and so they incorporated Trane as a legitimate business in 1913 (www.Trane.com, 2012).
After years of using technology to improve their original systems, Trane became one of the world leaders of HVAC equipment. It was this demand for more global expansion that drove the company to move into the Chinese markets in 1995 (www.Trane.com, 2012).
The initial plan for gaining entry into China was for Trane to take on three joint ventures with already established Chinese companies and use this experience to help them gain a factory presence in China and learn the fundamentals of efficiently operating manufacturing plants in Asia (HVAC News, 2004).
The plan also included building a strong relationship with the local Chinese government in Taicang, the area where one of their larger facilities was located. Through acquiring the partnership of the Taicang government, Trane had a lot of support in their quest at being successful in their ventures in China (HVAC News, 2004).
According to Marco Wei, Vice President of Trane Asia, he stated one of the major keys in the company's successful transition into China was through their assistance from the Chinese government in Taicang; site of their largest chiller manufacturing operation. When reflecting on the company's Chinese start up Wei states "the local government was very helpful in our initial start up. They helped ensure that the necessary customs and tax forms were ready to go and ...
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