Strategies for internationalisation of Aditya Birla Group (ABG) Assignment

Strategies for internationalisation of Aditya Birla Group (ABG) - Assignment Example International business helps an organisation to develop its growth strategy.This in turn helps to acquire a better product life cycle.It is recognised that at times a company’s products do not receive desired attention in its home nation, however, there are significant demands of them in other nations. International business operations provide certain pertinent benefits to an organisation such as scope to incorporate advanced technologies, increase investment opportunities, and make product or service expansion among others which in turn can provide greater returns than operating in home markets (Wall & et. al., 2009). Aditya Birla Group is a multinational Indian company headquartered in Mumbai, India. Aditya Birla Group is a US$40 billion organisation and it is part of Fortune 500 companies recognised by Fortune magazine. In Aditya Birla Group, more than 136,000 employees are competently working as of the year 2012. The Group was ranked in 1st position, in a survey related to ‘Top Companies For Leaders’, in Asia Pacific in the year 2011. This survey is mainly conducted for studying the organisational leadership. The organisation earns more than 53 percent of revenue from operations in abroad. The Group has been operating in 36 countries which comprise Canada, Australia, Brazil, China, Germany, France, Japan and Russia among others. In its home business destination i.e. India the Group is recognised as a leading name in mobile telephone sector, life insurance as well as asset management, supermarket chains and branded apparel among others. In its global operations, the Group is renowned as one of the biggest aluminium and copper producers, carbon black and Viscose staple fibre producers among others (Aditya Birla Management Corporation Pvt. Ltd., 2012). In this paper, the internationalisation strategies of Aditya Birla Group will be recognised as well as a critical analysis of the adopted strategies would be conducted. Moreover, certain reco mmendations related to future strategic direction of the company will be made in order to sustain its competitive advantage. Strategies for Internationalisation of Aditya Birla Group (ABG) There are several strategies that are adopted by the ABG for internationalisation of the business. Acquisition Strategy Aditya Birla Group is well renowned for its business acquisition strategy in the global market. The product as well as service portfolio of ABG includes cement, fertilizers, chemical and financial services among others. Acquisition is the process of buying a company’s most of the stakes with the purpose of getting the ownership of the company (Kazmi, 2008). The corporate strategies prepared for internationalisation of ABG has been focused on expansion of the business with the help of acquisition as well as internationalisation of new business by acquisition. ABG prepares strategies for acquisition of major companies related to their most preferable sectors such as mining. ABG adopted this strategy as an aggressive action towards the internalisation of the business. As a part of this strategy, ABG had signed an accord to acquire the assets of Terrace Bay Pulp Mill in the region of North America. According to statement made by the Chairman of ABG, Mr. Kumar Mangalam Birla â€Å"The acquisition of the Terrace Bay Mill and its subsequent conversion into a dissolving grade pulp mill is a major strategic move† (Aditya Birla Management Corporation Pvt. Ltd., 2012).This move has been especially useful for attaining global leadership. In Canada, Novelis Inc., a leading corporation related to aluminium rolled products was acquired by an ABG’