Purpose
The main purpose of this report is to indicate the nature of the business of Delta company in Thailand, showing all relevant information associated with its operation.
Scope of the Report
- An indication of the size and name of the organization in discussion and its background information.
- The main key activities are undertaken by the business and how it operates.
- A comprehensive explanation of the commodities/ services which are sold online.
- A detailed description of the products/ services that have international expansion potential.
- A clear understanding of the products/ services and potential countries to expand into.
- A clear understanding of various options available to expand internationally.
- Suitable entry modes which are correct and strategic as per the business requirements.
- An implication related to the selected strategies of the business.
Background Information
Delta Electronics (Thailand) is a company that exports and manufactures electronic equipment, parts, and power suppliers. It was founded and established by Bruce Cheng on June 16, 1988, to function as a cost-effective reproduction station for Delta Group (Delta, 2021). However, it has expanded over the years with R&D centers in countries like India, Germany, and Thailand. The initial capital of THB 40m was used in the establishment process. The firm was additionally transformed into a restrained government organization on September 23, 1994, and listed on Thailand Stock Exchange on July 24, 1995, following the representation of “DELTA.” A capital of TBH 1,259,000 was registered as of December 31, 2016 (Delta, 2021).
In 2003, the business brought the Swiss-based telecommunications, society Ascom Holdings energy system businesses, to expand its merchandise securities and stabilize a purchase in Europe. This company’s chairman, Kong Meng NG, was the president of the country since 2006. Starting from early 2000 to 2004, he maintained the management of Delta electronics in Taiwan.
Key Activities and Operations
Delta company mainly engages in the assembling of power equipment and other electronic gadgets. It also exports its products to various countries in the world. It works through segments such as infrastructure, automation, and power electronics, among others. Infrastructure is a term used to refer to the general terms of a business. There are various types of infrastructure across the globe, including streets, roads, and highways. Bridges, airports, airways, power generators, telecommunication, and hazardous waste removal and storage facilities (Morita & Jensen, 2017). This segment designs manufactures and installs information and communication technology frameworks.
The mechanization section lays out the manufacture and connects technical and developing computerization. This sector relates to the making and utilization of technology to observe and control the reproduction and transportation of products and services (Quinn, 2017). The electronic power portion plans to manufacture and then trade power supplies utilized to computers, servers, building robotization tools, automotive electoral products, and household application appliances. Power electronics refers to the application of solid-state electronics to regulate the conversation of electric power (Quinn, 2017). For instance, the automotive system of a vehicle furnishes the electrical energy to start the engine. Electrical systems, including cars, trucks, automobiles, electric vehicles, and smart cars, use automotive applications.
Supply activities involve a chain of events to ensure consumers can access the goods. The supply plan is followed whenever goods are exported to other countries. A purchase order is issued to the company, then monitoring the inbound schedule, preparing import documents, observing vendor performance, and resolving customs issues (Reimann & Ketchen, 2017). Any imported form is necessary for handling overseas buyers in handling transactions, time management, payment protection, and claim in case of any loss.
Products maintenance and setting of prices is also essential activity before supplying the goods. These include all written instructions that a buyer must follow to ensure the goods function properly. Some products such as electronics, when used carelessly, can lead to electrocution, which is risky. Damage may also occur, hence, reducing the efficiency of the item. In some cases, software maintenance is done whereby the program is modified and updated to improve its performance and reduce faults. The company fixes prices by considering the required standard price (Reimann & Ketchen, 2017). This is vital to maintain both customers and demand. Setting the price too high can lead to low consumption.
The marketing process involves a series of activities starting from vital selling outline, purchasing mix outlining, purchasing implementation, and market restriction. The marketing analysis consists of the study of the dynamics of the market. The volume of goods supplied and employers in the company record the value they accumulate. The potential customers and their countries of residence are also identified. Competition from other companies is also studied, and necessary product adjustments are made.
Customer services and support ensure that the buyers are comfortable while making the transactions. The customer care team appreciates the frequent clienteles. Appreciation maintains the loyalty of customers and the urge to purchase goods again from the company. Online stores are responsible for the facilitation of shipping issues, especially goods ordered from far countries. Positive attitudes are to be maintained whenever making communications to the buyers. In case of any arising problem, proper solving skills must be applied to arrive at a lasting solution.
Recording the outflow of goods is also important for the purpose of stock checking. The internal efficiency and competition of the business are determined. The types of records done include correspondence accounts that may be created within the company premises or for any raw materials received by the industry (Podmeshalska & Prokopenko, 2021). The accounting records relate to all financial transactions made whenever payments are made or deficits. Personal records involve all the information of the employees and sometimes the number of salaries earned. This may also include their performance, promotion, history of absenteeism, and compensation plans for easy monitoring.
Legal records indicate that the company maintains a lawful requirement and they maintain the legitimate procedures allowed. The company has authorized documents that can be presented to the court in case of any violation of official policies and rules. The progress records show the budget spent, cost, and all sales made in a certain period (Delta, 2021). Finally, the miscellaneous documents cover unplanned spending and activities, which emerge unknowingly and need an emergent response. All this gives direction to the company by facilitating a smooth flow of activities in and out of the organization.
Key Competitive Advantages
For any organization to succeed in its operation, the healthy competition must exist. Tough rivalry from other organizations may lead to the shutdown of the company. Therefore, a business must have competitive standards and advantages to maintain its operation (Bhattarai, 2018). The delta electronics firm has various benefits making it a leading producer of electronics. The major areas of competitive advantage are finance, quality, location, marketing, human resource, legality, and better customer care services. The corporation has adequate finance used for paying employees, conducting manufacturing activities, and acquiring the necessary materials.
The human resource employed by the company is qualified and must possess advanced skills in excel, word, and PowerPoint. Additionally, the management must be aware of the trending technology changes and be computer literate. This is because most of the work involves the incorporation of technology. Therefore, one must have some experience in teamwork operations to promote efficiency. The responsible individuals must also be able to interpret and efficiently offer advice on the management process to avoid any risks which may occur.
The company’s board of directors is composed of eight members, two executive directors, and six non-executive directors. These include the chairman of the board, vice chairman, director, the president, and multiple independent directors (Delta, 2021). The management team has the President, human resources & administration / public relations director, operation vice president, chief financial officer, and chief information officer (Delta, 2021). The company’s secretary is also responsible for making all the records when meetings are held (Delta, 2021). This strong team ensures the company’s unique and strong leadership.
A company that operates illegally in the country is likely to be barred from using, and legal action was taken against it. The legal documents needed for the Delta company guarantee its continuous and free operation. Friendly customer care services and treatments enable the firm to attain its goals and missions. The benefits are available at any time, and consumers’ doubts can be avoided; and in cases where the clients cannot understand the working of the products, clarification is always made.
Products Sold Online
Power Electronics
The power electronics categories are, Installed Power Supplies, Mobile Power Supplies, Fans, and Electronics Components. Tailor-made apparatuses, devices, and related services are provided to help customers improve their competitiveness in the domain of power electricity. Delta’s products have power-saving features which are cost-efficient. For instance, the embedded power supply is made of 4 sub-groups. The DES power, the DC-DC converter, power supply for automotive, and power supply for storage and networking (Delta, 2021). The automotive business distributes efficient EV/HEV powertrain explications and power electronics parts with large power incline technology advancement.
Delta Energy Systems provides new innovative and customized merchandise for computing services which include office automation, and medical, telecommunications, industrial purposes, as well as the automotive enterprise. To cope with technology advancements, the products are packed with innovative technologies (Delta, 2021). DC-DC Converter works by supplying constant voltage to a microprocessor that generates unpredictable load. Delta manufactures high DC-DC converters up to 2650W that provide high power density and are highly efficient (Delta, 2021). Power Supply for Storage & Networking group comprises mainly power supplies for servers, workstations, PCs, networking, storage, and other high voltage power supplies that provide power ranging up to 7,200 W.
Products that Have International Expansion Potential
The UPS, Telecom Power Systems, Industrial Automation, and renewable energy lie in the energy management group. The Smart Green Life contains the Display and Visualization and LED Lighting. These products have international expansion since they have unique operations which have not been developed in most countries. Delta’s other services include a wide variety of telecom power clarifications, global help to telecom operators, network improvements to 5G LTE by many countries, radio networks, and system integrators (He & Oppewal, 2018). All these are reliable and economically efficient in the development of the telecommunication industry internationally. Technically superior UPS products and providing energy efficient
Body
Products Functions and Countries of Expansion
Embedded power supplies are privately owned and managed networks that supply electricity within a specific area or building. The power conditioning circuits are used to regulate the high voltage DC from the battery or wall to low voltage. It works by taking power from the AC mains and converting it to DC, which is usable in electronic devices. The Delta company is mainly concerned with quality, authenticity, and perfection to demonstrate engagement to Automation for a Dynamic World (Delta, 2021).
The advanced technological research progressions also show the urge to expand. Additionally, the adoption of green life is another critical sign. The microdisplay technology is incredible in various applications in the control rooms, auditoriums, home environments exhibitions, and system halls, including transforming AC to DC and preventing AC from interfering with DC.
Transportable power supplies work in mobile devices, which contain the four logic blocks, source, distribution, consumption, and charging. Major components comprise of the solar panel, battery, wireless transceiver, current sensor, and temperature sensors. For instance, a mobile battery charger is a device that can automatically recharge a phone when its power gets depleted; the charging method can be slow or fast. The fast process can recharge a phone in less than two hours, while the slow one can take more than 10 hours.
Fans convert electrical into mechanical energy when the current reaches the motor through a coil of wire wrapped around the metal base. It works by pulling and making air move faster than the normal manner. The air flowing behind the fan is slow and wide, and the one floating in front is fast-moving and narrow. Fans have wide applications in distributing air in rooms and buildings, cooling motors, and sending, cooling, and drying materials and products. Further, they can be used to exhaust dust and fumes.
The Delta company in Thailand is located in a region with excellent sales platforms which increases its market potential. The firm’s unique and quality products also enable it to be known by many consumers. For instance, countries such as India and South East Asia could be favorable expansion areas. Asia has a stable economic environment and better industrial plans; hence needs to expand its advancement to them. Developing countries such as Angola, Algeria, Brazil, and Argentina can also be potential market expansion areas, especially in renewable energy (Delta, 2021). This can save the cost of non-renewable energy and focus on other developments.
Correspondingly, developed nations such as Norway, Switzerland, Ireland, and Germany can easily adopt the micro-display technologies in case they need to use them, and which could make it easy to conduct various activities like entertainment. To curb environmental pollution, especially from non-renewable sources, solar and wind energy can also be adopted. This could reduce climatic impacts and curb possible future calamities which might arise.
Organizations’ Readiness to Expand Internationally
To expand the business worldwide, the company can look for influences in the international markets. The Delta company has a global system of distribution, a favorable competitive climate, and high-quality characteristics. A competitive environment can be created by defining market niches and working on them. The strengths and weaknesses of a company could be clarified to know the position of the corporation. This will facilitate necessary adjustments to improve efficiency. A unique value opposition must be established for the products to stand out. Market researchers have been hired by the firm to analyze data and recommendations of merchandise in various countries (Delta, 2021). The researchers also work to protect the reputation of the products to avoid any misleading information.
Acceptable guiding values and rules must be set to maintain the dignity of the company. Discrimination practices, either within or outside, when dealing with consumers are not allowed. Any person who might be involved in such practices is considered an outcast because of breaching the accepted mode of conduct. All employees must adopt teamwork in all the departments and should undertake their responsibility in the company. Above all, time management is a key factor, and both the reporting and exit time are well known and must be adhered to (Delta, 2021).
Understanding language barriers and cultural challenges are some of the aims of the Delta company. Language is essential in paying and acquiring information as all activities involve sharing of ideas through verbal communications. Spoken instructions are given in a simple language that everyone can comprehend and work with ease. Appreciating other people’s cultures, what they consume or practice, and what is prohibited in their setup should also be examined (Delta, 2021). Moreover, onboarding employees is done for new members of the company. This helps them smoothly and quickly adjust to the social and performance aspects of the new job. Thus, they learn the necessary knowledge, skills, attitude, and accepted behavior.
Market Entry Modes
The market entry modes must be correct and strategic for the success of the company. They include licensing, collective venture, international direct investment, piggybacking, franchising, and exporting. The licensing entry model has many advantages as it facilitates quick and easy entry into foreign markets. It lowers the capital requirements, and hence a large return on investment is realized (Park, 2020). Business investments may determine the future of business activities as they provide capital in various ways.
The licensing model works on the three collegiate, which include protection, promotion, and profit. The revenues generated are called royalties and can boost the company’s financial status. A better licensing agreement must have territory, use, attribution, confidentiality, and time frame. Termination is also allowed in case the agreed terms are broken by the affiliated company. This method offers a balance of risk and reward because it will enable the distribution of the success of an existing company.
Joint Venture
The joint venture model is where two companies agree to work together in a particular market despite their different preferences. In this situation, the risks and profits are shared equally without discrimination. It facilitates access to new markets and the establishment of new distribution networks (Delta, 2021). This is because some firms have good reputations already known for a long time. Furthermore, in this setting, more customers will be in favor of the two entities’ products, and therefore, using such a setup to advertise goods can be fruitful. The consumption capacity is hence realized since the partnership has been boosted.
Moreover, the preferences may change as the consumers develop positive attitudes towards the products and services. The sharing of risks is significant as the burden has been reduced compared to incurring a loss as a sole entity. Consequently, high losses which might occur once are likely to place a single business into extremely severe problems as compared to when they are two. Therefore, to ensure sustainability, such practices are highly recommended since their benefits are visible.
The profit-sharing ratio is reliable where the efforts of one company boost the other and vice versa. Access to new knowledge and skills is guaranteed as the sharing of ideas is involved. Some market researchers are more experienced than others and can therefore enlighten the less knowledgeable, thus, this leads to increased professionalism. Access to more resources in the form of technology and finance is realized. Technological advancement involves new methods of production which are cheap and environment friendly. Conserving the surrounding of a company influences its operation positively as it can be the source of raw materials and labor (Delta, 2021). Money is needed to sustain the many activities around the manufacturing process.
Foreign Direct Investment (FDI)
This is an investment that is made by a business in one country into the business profits located in a different country. There are three types of foreign direct investment which are horizontal FDI, vertical FDI, and conglomerate FDI. Horizontal FDI is where a company finances in an outside firm that offers similar goods (Delta, 2021). The advantages may take place when the competition is based on the same industry to track performance. Vertical FDI is where an expense is realized inside the supply chain and not directly in the very industry. Horizontal FDI is a straight investment within industrialized countries as a gateway to gain better passage to the regional economy and avoid trade barriers. The cost of raw materials is seen, and control of the supply chain is realized (Ferro & Bonollo, 2019). This mode creates benefits like jobs and new capital, which boosts the government tax revenues and foreign exchange.
Exportation
The major way of supplying goods is through exportation to other countries. Goods ordered online can be transported to overseas countries through shipping, where some charges are imposed on the customers. After exportation, the business can get returns in the form of money to run other compulsory activities. Goods are exported to almost all countries as they are in high demand and must be used in everyday life. The major advantage of this model is that firms avoid the expenses of establishing operations in new countries (Delta, 2021). It could be impossible for a company to develop similar companies in all nations so that each country independently gets its own goods.
Franchising
This mode allows the sharing of the brand identification hence strengthening the marketing and distribution system. There is no set standard franchising contract, but it’s purely based on the agreements between the franchisor and franchisee. The main advantages are risk reduction, capital growth, and motivated management (Delta, 2021). The overall improvement in product volume consumption is the desired outcome. The above entry modes are strategic and correct as the Delta company practices them to improve its efficiency.
Piggybacking
This refers to a low market strategy where two or more businesses embody one another’s complementary products in their prospective markets. The major advantage is the improvement of the efficiency and better use of the available channels.
Implications of the Selected Strategies
The franchising strategy implies increased capital in the business, which is used to respond to various needs. The management of the company is effective in improving general performance. Employee motivation is realized as there is a change in the attitudes towards the different manufacturing processes (Delta, 2021). The number of employers reduces, making it manageable for the company since many employers may affect it negatively. The growth and development speed is seen in the various departments. The number of losses and risks likely to occur is limited, and the brand equity increases. There are no major differences in the quality hence more preferences. The advertising and promotion of the production process become simple and easy.
Joint ventures imply access to new markets and distribution channels. An increase in output production capacity is a good implication of the advancement of its performance (Budianto et al., 2019). Innovative ideas and products are realized especially when technology is supplemented in the process. Necessary planning of the operation of the company and communication among all stakeholders, including the consumers, contribute to growth.
Summary
In conclusion, Delta Electronics (Thailand) is a company that exports and manufactures electronic equipment and parts and power suppliers. It was founded by Bruce Cheng and was established on June 16, 1988, to act as a cost-effective production center for Delta Group. It mainly aims in producing high-quality goods; be innovative; Agility; promote teamwork; protect the global environment, maintain positive social contributions, and attain excellent customer service. The main purpose of this report is to indicate the nature of the business of Delta company in Thailand, showing all relevant information associated with its operation. Countries in the world.
It works through the following segments: infrastructure, automation, power electronics, infrastructure, and others. Mobile power supplies work in mobile devices which contain the four logic blocks, source, distribution, consumption, and charging. Major components comprise the solar panel, battery, wireless transceiver, current sensor, and temperature sensors. A mobile battery charger is a device that can automatically recharge a phone when. The major areas of competitive advantage of the organization are finance, quality, location, marketing, human resource, legality, and better customer care services. Key activities carried out are the manufacture of power supplies and other electronic equipment, and automation of machines. Variety of supply activities, marketing and sales, product maintenance and price selling, and recording of the flow of goods and services.
The Delta company is located in a region with excellent sales platforms, which increases the market potential. Their amazing and quality products also enable them to be known by many consumers. Countries like India and South East Asia can be favorable expansion areas. Additionally, developed countries such as Norway, Switzerland, Ireland, and Germany can easily adopt microdisplay technologies since they show the potential to embrace them.
The Delta company has a global system of distribution, a favorable competitive climate, and high-quality characteristics, which enables it to expand internationally. The advanced technological research advancements and the adoption of green life is other critical expansion sign. The microdisplay technology is incredible in a variety of applications in the control rooms, auditoriums, home environments exhibition, and system halls.
Recording the outflow of goods is also important for the purpose of stock checking. The internal efficiency and competition of the business are determined. The types of records done include correspondence records that may be created inside the company premises or for any raw materials received into the company. The accounting records relate to all financial transactions made. Personal records involve all the information of the employers and even the number of salaries they get, work history, promotion, and history of absenteeism of workers to the job. Compensation plans, if any, are also noted for easy monitoring. Legal records indicate that the company maintains a legal requirements and they maintain the legal procedures allowed. The company has legal documents which can be presented to the court in case of any violation of accepted policies and rules
Various entry modes are discussed in the report, which include licensing, joint venture, foreign direct investment, a wholly-owned subsidiary, piggybacking, franchising, and exporting. The franchising strategy implies increased capital in the business, which is used to respond to various needs. The management of the company is effective hence improving general performance. Joint ventures imply access to new markets and distribution channels.
References
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