Scenario 1

Marshfield Farm Ice Cream has been selling milk and other dairy products such as yoghurt and ice cream in larger parts of the UK. Nevertheless, the company intends to expand its operations to as many outlets in mainland Europe and increase its presence in the main parts of Europe (Tsai and Yang 1279-1294). This is seen as a strategy to increase business sustainability through improved market. The timing of the business growth also looks good since the firm has been in operation for a long time. It is, however, prudent to point out that the success of this strategy will mainly depend on the market research and the marketing strategy that the firm will adopt. Such a scenario will also have major impacts on the finances, marketing, and human resource department of the firm.

Effect of the strategy on marketing, human resource and operations management

In a scenario where the firm intends to expand its presence in the whole of Europe, it is prudent to note that this will have major effects on the firm’s marketing strategy. For instance, the firm must carry out an intensive marketing research to identify the best penetration approach to adopt in the expansion strategy. Entry into new markets will call for new marketers who will ensure that the target market is aware of the existence and prices of the various products offered by the firm. Marshfield Farm Ice Cream will, therefore, have to have the best marketing approach that will enhance the firm’s chances of success in the new markets.  It is also prudent to pit out that the marketing department will also have to look at the best locations, prices and promotional activities that will make the firm’s presence in Europe a success. Marketing assessment to ensure feasibility and perpetuity of the new markets will be an essential role of the marketing department of the firm.

Also, the market expansion will come along with major effects on the human resource management of the enterprise. Effective human resource management is paramount for any market expansion strategy. For instance, the change in the marketing approach to cater for the expanded market calls for recruitment of new staff in the firm. There will be a need for market researchers who will have a role in identifying the market demand and what products will do best in the new markets. Also, the human resource department of the firm will also have a role in recruiting sales people for catering for the new markets (Phromket et al. 47-60). An effective market penetration will require qualified personnel, and it will be the responsibility of the human resource department to ensure that the firm has the right people to fulfill this obligation. It will also be prudent for the human resource of the Marshfield to make sure that they hire the right team leaders who will ensure the goals of the firm are achieved in all the markets in Europe mainland.

Penetration of the new markets in other parts of Europe will also have impacts on the operations management of the firm. The organization’s operations functions have the responsibility of ensuring that things get done in agreement with the goals and objectives of the firm. It will have to ensure that production, distribution and sale of products to consumers is effectively accomplished. Operations management will also be required to effectively manage all the resources of the firm to ensure sustainability and success. Marshfield’s expansion to other parts of Europe will have major impacts on the firm’s operations management. The daily activities happening in the firm will increase significantly and thus changes in the operations management will be inevitable. For instance, the company must ensure that the production and distribution of the products meet the market expectations (Åkerman 79-88). Besides, the operations management must ensure that the firm has the necessary resources to ensure that the market expansion process is a success. It is also the responsibility of the operations management to ensure that all the operations in all geographical locations are fulfilled adequately. The added geographic locations call for extensive operations management in the organization.

Impacts on the finances

The market expansion or growth of the firm to all of the Europe is intended to increase the wealth and finances of the firm through increased sales and profits. It is, however, essential to point out that the growth in sales and profits will only depend on with a sufficient market penetration. In this scenario, the firm expansion is likely to have a positive impact on the revenue as the number of customers is likely to increase significantly (Juma and Lee 2315-2332). Nevertheless, the expansion to the new markets will have a major impact on the financial structure of the firm. For instance, Marshfield is a small enterprise and will require expansion capital financing. Finding these finances may at times be a very challenging experience. Besides, the development of the market comes along with the hiring of new personnel to meet the demands such as new production, new marketing campaigns as well as administrative costs.  This implies that the market expansion process must be adequately addressed to ensure that the firm maintains a steady financial structure.

Work cited

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Ataullah, Ali, Hang Le, and Amandeep S. Sahota. “Employee Productivity, Employment Growth, And The Cross-Border Acquisitions By Emerging Market Firms”. Human Resource Management 53.6 (2014): 987-1004. Web.

Hendricks, K. “The Impact Of Capacity Expansion On The Market Value Of The Firm”.Journal of Operations Management 12.3-4 (2015): 259-272. Web.

Juma, Norma, and Jeong-Yeon Lee. “The Moderating Effects Of Traditionality–Modernity On The Effects Of Internal Labor Market Beliefs On Employee Affective Commitment And Their Turnover Intention”. The International Journal of Human Resource Management 23.11 (2012): 2315-2332. Web.

Kaynak, Hale. “The Relationship Between Total Quality Management Practices And Their Effects On Firm Performance”. Journal of Operations Management 21.4 (2003): 405-435. Web.

Naidoo, Vikash. “Firm Survival Through A Crisis: The Influence Of Market Orientation, Marketing Innovation And Business Strategy”. Industrial Marketing Management 39.8 (2010): 1311-1320. Web.

Phromket, Chanthima et al. “EFFECTS OF ENTREPRENEURIAL ORIENTATION AND MARKET INFORMATION CAPABILITIES ON COMPETITIVE ADVANTAGE AND FIRM GROWTH OF Smes IN THAILAND”.Journal of International Management Studies 13.2 (2013): 47-60. Web.

Tsai, Kuen-Hung, and Shu-Yi Yang. “Firm Innovativeness And Business Performance: The Joint Moderating Effects Of Market Turbulence And Competition”. Industrial Marketing Management 42.8 (2013): 1279-1294. Web.

 
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