Exceptional Value Answers | Assignmenthippo Assessment Answer


Adekola and Sergi (2009) have stated that in the past, the typical global business and the talent strategies used to run from one direction to another and that is simply from developed markets towards the emerging market. However, in this context, BRIC economies, i.e. Brazil, Russia, India and China have been gradually matured as the global growth engines and this economy has included Indonesia, Malaysia, the Philippines, South Africa, Turkey, Thailand and Vietnam. These all are gradually establishing themselves as growing economies along with the growing source of the talents. Therefore, because of this situation, the north to south, i.e. the old model has gradually become outdated with the course of time. In this particular task, the focus would be shed on China Railway Construction Corporation Limited and it is no doubt to say that the company has been looking for fresh new approaches to their most pressing global challengers and has been focusing on south to north strategy or South to south to south strategy. The company has been concentrating in the BRIC countries along with some other emerging markets that could drive talent strategies around the entire globe (Adler and Tovar 2012).

Company overview

China Railway Construction Corporation Limited is listed as the second largest construction and engineering company in the whole world by the amount of revenue in the year 2014. This company is a state owned construction enterprise and this company has achieved second highest position in accounts payable by the market cap as of 2015. This famous company has built much of the transportation infrastructure in China that takes into account high-speed rail, subways as well as the expressways. Therefore, it can be said that the main business activity of this selected company is in construction and engineering and apart from that; the company is engaged in real estate development as well as the copper mining (China Railway Construction Corporation Limited, 2016).

Apart from China, the company has expanded their business in Asia, Middle East and different parts of Africa. Reports have established the fact that the company has been on the track to hold on their position as the largest construction companies in China along with one of the top 500 enterprises in the whole world. In this highly competitive business scenario, the company has extended their services from railway system to highways, airports, marine ports, hydropower, industrial plants, municipal projects and water conservatory system both in home as well as in abroad. It has been observed that the top three competitors of this company are China State Construction Engineering Corporation, Beijing Urban Construction Corporation Limited and China Communications Construction Company Limited. Therefore, in order to remain at their number one position, the company has been concentrating on different global strategies to expand their business and these strategies have been helping the company to focus on domestic, regional and international success (China Railway Construction Corporation Limited, 2016).

Critical Evaluation of the Environmental trends in the international market

In order to carry on a detailed critical evaluation of the environmental trends, some of the important aspects have been taken into consideration in this part and each of these aspects have been discussed here in details. The entire research can be researched under three main coverage areas and they have been mentioned here:

Corporate Coverage: This particular area covers the main subsidiaries, Divisions along with the geographic market areas of the selected company, i.e. China Railway Construction Company Limited (Avadhani 2010).

Product Coverage: This part tends to cover the market areas of the company, the product and the market sector for China Railway Construction Company.

Market Coverage: It has already been mentioned that the company has been operating in different parts of the world and in this part; the focus would be shed on home market along with other important national markets within which the company trades (Belz and Peattie 2012).

The company is highly dedicated to become a global construction company and this effort to gain this status was apparent in the 2000 at that time when the company had 209 projects in their hands in 35 countries and most of these countries were in Africa. From the company profile, it has been found that the major overseas projects of this company were in Algeria, Nigeria, Libya, Angola and Saudi Arabia. It has been observed that the company has branched to several overseas markets as well as moved up the value chain towards to construction of high speed railways. It has been mentioned that the company has adopted the new strategies that justify the present situation appropriately. Chattopadhyay et al. (2012) have said that until recently, several global companies have tended to have limited business strategies in the promising markets, centering on the labor arbitrage, driving several full-fledged products along with locating the matured business processes in the BRIC countries as well as BRIC economies. Therefore, as a result of this, many people had the limited anticipations from the workers in all the emerging markets. At the same time, the employees in these BRIC regions were very satisfied as they had some global opportunities available to them at that time (Cho 2012).

Comelli (2012) has said that many companies in this region had the large ranging access towards the low cost talent for manufacturing as well as supporting functions and the employers were able to reduce their focus on the several adopted talent strategies rather than concentrating on improvisation of some other functions that are highly supportive for their business strategy. At this scenario, many companies along with the selected company realized that the long term development along with the retention of the employees in these emerging markets was far more important and this helped the companies to design their marketing strategies efficiently. Desbordes and Richelieu (2012) have found that the present day scenario has changed in the BRIC countries along with the newer emerging markets have become one of the major centers of attraction for the entire global economy. Keeping pace with that, the competition for the talent has been becoming fiercer with the time.

Approaches adopted by the company in the Emerging markets

As per the viewpoint of Dinh et al. (2013), all the emerging market consumers demand the goods and the services tailored to their values as well as priorities. Therefore keeping in mind this formula, the global companies have been starting to recognize the requirements and the demands to create the local work force, which can effectively respond more to the local buyers. Dou (2013) has opined that several global companies distinguish the developments and the changes taking place and try to sense the requirements to modify their already existing global talent frameworks that allow local customization. The company has been focusing on the new strategies to engage large number of the local employee to engage in the production process to get the highest attainable result. The company China Railway Construction Corporation is able to open the flow of several innovative ideas in between the markets and the delivered localized approaches (Du 2013).

The company has been concentrating on the strong leadership program and concentrates on reward strategies that highly consider the differing market values as well as the retention strategies. As the company deals in the international market, they possess a solid foundation for the continued growth of their core operations, which is the result of their numerous core technologies in their every business operations. The company has the ability to develop proprietary technologies and they focus on using the sophisticated equipment largely. The manufacturing industry has been called the cradle of innovation and keeping pace with that, the technical changes has all the time occupied an extraordinary position in the thinking of the economic policy makers. Among all the sectors, the majority of the innovations are generally introduced first and commercialized in this particular sector that make it the main engine of the overall technical changes along with the high economic growth (Gupta et al. 2012).

As per the viewpoint of Hill (2010), technological changes are in turn the decisive drivers of the overall competitiveness in the concerned manufacturing industry and therefore, this is one of the particular centre for the interest of the both the business leaders as well as the policy makers.  The renewed interest among the policy makers of the countries among the countries around several parts of the world are observed on the role of manufacturing as this plays a vital role in the national economy of the country. At the same time, a consequent focus is shed on the potential of the manufacturing strategies in regards to enhance the industrial competitiveness in all the short term, medium term and long-term projects (Hollensen 2012).

Competitive Advantage of the company

Recently, it has been found that newly merged China Railway Construction Corporation, which is the second railway manufacture, has opened the way of trading in Shanghai and Hong Kong on June 8. From the company profile, it has been found that the company has an impressive economy of scale at the point of disposal that gives the company a highly competitive advantage in all the overseas market. Recent market analysis has said that an aggressive global strategy is said to take place as this company has aimed to compete in Africa along with some parts of Latin America and South East Asia (Kawai and Prasad 2013). Within the existing international market settings, this sharp edge has successfully balanced the superior quality and along with that, the technology offered by the strong global rivals of the company has provided the company enough time to catch up on their basis. As per the opinion of Alexious Lee, who is the Head of the Industrials Research for CLSA, the products of China might not have the capacity to boast the high-end specifications, but these products have the potentiality to provide value for money. The company has been gradually upholding the strong position with the market capitalization of $130bn (Keegan and Green 2012).

The concerned company, i.e., China Railway Construction Corporation is bigger than some other giants namely Siemens, Alstom and Bombardier and this has achieved the second position just after General Electric. Reports have revealed the fact that the new titan of the concerned Railways industry has the total profits of $32bn along with the strong work force of 118000. From the current reports, it has been observed that the United States have been investing comparatively much smaller amount in rail and transit and on the contrary, China has secured the first position in national investment in Rail Infrastructure. The below picture demonstrates the present situation easily.

Previous studies state the fact that rail manufacturing once was oriented preliminary in the own domestic market. Nevertheless, since 1990s, the trend has changed as some of the local companies started to expand their business in different parts of the world. The China Railway Construction Corporation is one of the leading international companies that has built several transportation infrastructures in China along with different parts of the world. In Asia, the company has constructed the Dhaka Elevated Expressway in Bangladesh. Not only in Bangladesh, the company has constructed their projects in Algeria, Egypt, Libya, and Saudi Arabia and in some more extended areas. In this manufacturing market, differing levels of commitment as well as investment have led towards a highly diverging market volume in different parts of the world (Crcc.cn 2016).

Importance of Global marketing strategy to challenge the existing competitors

As per the viewpoint of Lin (2012), global marketing is a process that adjusts the marketing strategy of the company to adapt itself towards the conditions in other countries. It has already been found that the company has been operating in different parts of the world and thus they are required to focus on the global marketing very carefully. Therefore, it is no doubt to say that the company China Railway Construction Corporation is required to focus on the global marketing strategy that has the capacity to challenge the existing competitors in the market. It has already been mentioned that China State Construction Engineering Corporation, Beijing Urban Construction Corporation Limited and China Communications Construction Company Limited are the three strong competitors of the company (Michael Gastrow 2012).

Therefore, the company is required to distinguish their marketing strategy from these above-mentioned companies in order to challenge in the existing market. It can be easily said that the company, China Railway Construction Corporation really deserves a place in the China Go Global hall of fame due to the history in constructing the iconic Tam-Zam railway in East Africa. This was the first major overseas Chinese project in the entire continent and this has identified the company from some other existing competitors in the railway manufacturing industry (Miller 2000).

Considering the present situation, the company is required to remain highly active in Africa. It has already been found that the company has engaged in several railway construction projects in several parts of Africa and the company at present is engaged in the biggest railway project in the continent. Apart from that, the company is engaged in modernization of the Nigerian Railway system (Mun 2010). The company is required to focus on the African market to stay different from the competitors and this help the company to hold on their present position in the market. The adopted strategies of the company has helped them to use the economies of scale as well as take on the international competitors and the same time the company has been becoming cumbersome and very hard to manage because of the huge size of the company. In this regards, the company is recommended to divide the company into several small segments, as this help to carry on the management process easily. It can be opined that China Railway Construction Corporation must be distinguished from the China Railway that operates that rail system within the country (Peng 2010).

Recommendations against the background analysis 

The company is advised to look at some of the parts that help the company to stay different on the global market and operate successfully to hold on the position. The company is required to focus on the global emerging market as the reports have found out the fact that the lion’s share of global growth has been taking place in the emerging market of the globe. Poon (2012) has said that in order to gain more success, the company is required to stay engaged in the emerging market economy, as the economies in the global emerging market has been growing by leaps and bounds and on the contrary to the emerging market, the matured markets are often declining or flat. It has been found that the income level in the emerging markets has successfully increased by 96% from 2000 to 2010 and it is expected to increase more 45% from 2010 to 2016 (Tadajewski and Hewer 2012).

Therefore, the company is required to concentrate on the emerging markets rather than the matured markets as the reports have been suggesting that the local customers would prefer to purchase the local goods and products by more than 50%. It has been noticed that the consumers in the emerging markets has been increasingly feeling interest do carry on the business with the companies that tends to contribute more towards enhancement of the local economy, provide wide range of the local jobs and target to take care of the local workers largely. Therefore, the company, China Railway Construction Corporation is required to incorporate effective strategies in these afore-mentioned areas to enhance the business (Umeda 2012).

Apart from this, it has been found that the competition for talent in the emerging markets have been heating up, as the employers in this markets face both established and new competition for talent purpose. It has already been noticed that the forward thinking global companies in the already developing country-specific talent strategies that tends to help the company to become more attractive to the local workforce. Therefore, many companies who operate in the global scenario have been shifting their attention towards the talent showground, as this help the companies to achieve the organizational objectives easily (Wessner and Wolff 2012).

In this regards it can be recommended that the global companies must carefully consider both the corporate and the geographic expectations at the time of developing their marketing as well as talent strategies. Wessner and Wolff (2012) have suggested that attempting to forcefully fir the global business standards into the emerging markets without acknowledging the local values as well as the local culture often make it highly difficult not only to attract but also to retain the top local talents. It has already been found that China Railway Construction Corporation is one of the leading international companies and thus they are highly required to focus on these places. Umeda (2012) has opined that the companies that tend to develop some geography specific strategies for the company must keep in mind the requirements of the local people along with the cultural values. The company is recommended to respect the global talent brand, proper access to the global colleagues, increasing focus on the improved resources along with the global mobility opportunities (Worldfinance.com 2016).

Concentrating on these mentioned parts effectively help the company to gain a strong a reliable position in the global market. Wessner and Wolff (2012) have opined that these points of a company help them to get large number of the talented workers in the work place. Most importantly, the company is required to keep in mind that global organizations must recognize that the requirements as well as the priorities of the employees especially in the manufacturing industry are highly dynamic in the emerging economies of the world. Therefore, the management and the marketing team of the company is advised to focus as well as closely monitor the timely evolution of the BRIC economies and talent market to stay highly competitive in the global emerging markets (Mun 2010).

Apart from this, the company is advised to revise their existing country specific compensation and benefit systems in regards to get more talented local work force. As per the viewpoint of De Mooij (2013), several cultures, different environments along with the diversified regulatory regimes drive the different requirements as well as the employee priorities. Therefore, the company is recommended to prepare a detailed analysis of this situation to understand the requirements of the local workers based on their work. It has been found that global employers in the growth economies must keep in pace with the rapidly changing priorities of the employees. Some research works have found that pay continues to be one of the most important tools for employee retention in China and at the same time, other factors like some extra benefits that help to support the work life balance of the employees are equally as well as increasingly important (Lee and Carter 2011). As the company is a Chinese company, it is no doubt to say that the company is required to focus on the regular analysis of these factors to have talented employees in the organization. These motivational factors help the employees to perform strongly in the work place and thus the company has secured one of the leading global positions in railway manufacturing industry (Kolk 2014).

Besides this, it can be said that the company must focus on the improved leadership development, as some reports have found that the companies in the emerging markets might not have the proper leadership pipeline in order to drive the growth of the organization. Therefore, the company is recommended to adopt proper leadership model in which senior company executives are highly deployed towards the emerging markets and this might prove to be beneficial for the company to achieve both the long term and the short-term goals. Williams et al. (2015) have mentioned in his work that as more companies expand into the several emerging markets, that capacity to develop the local leaders will likely tend to become a major differentiator.

To offer some challenges towards the existing companies of the industry, the company is required to pay enough respect for the new ideas as well as the innovations. It can be said that the company has successfully expanded the business in the emerging markets and this has been possible only because of the fact that the company has respect for the new ideas and they have continuously shed focus on the innovations to stay updated with the industry trends. In this aspect, it can be said that the company must use regionally oriented talent segmentation models that might account for the potential growth of the different markets, as well as the conventional role and the dimensions of talent. In this case, the companies would likely to be able to concentrate on the portfolio of the company’s talent investment initiatives on the growth market, especially in the emerging markets like BRIC countries (Douglas and Craig 2011).

Significance in becoming the global challengers

The company is advised to become one of the leading global challengers in order to acquire suitable advantages from the already existing market. Apart from that, the company is recommended to create new products as well as innovative services in railway manufacturing industry to make the business attractive. One of the major aims of the company is to compete with the global competitors and offer something new to the customers so that the customers get attracted enough towards this particular company. As the company has been operating in the global emerging market, they are required to develop a great talent within the work force in order to strengthen the work structure of the company. Apart from that, the company is advised to focus on the enhanced work force to create a new point of reference among the existing organizations to identify the company separately (Griffith and Hoppner 2013).

In the specified area of the company, it is recommended to respond to the global challenges quickly than the other existing companies in the market. Ko et al. (2012) has said that one of the objectives of the companies who operate in the global market is to create large employment opportunity. Therefore, the company is required to concentrate on this part sincerely to make a clearly visible difference than the other existing corporations in the same industry. Moreover, the company is suggested to improve the cost structure, as this will help the company to retain with the positive employee support (Rao et al. 2015).

The huge size of the company has been affecting the overall operations of the company and this they are advised to maintain a strong hierarchical structure. Apart from these, it can be said that the company is required to maintain an effective and updated hiring process of the employees that would help the company to bring the best employees in the work place. Besides these all, the company is required to focus on the increasing brand awareness, as in today’s highly competitive business scenario, brand awareness is considered as one of the most important aspects of each company (Ko et al. 2012).

After the conduction of the entire study on China Railway Construction Corporation, it can be said that the company is already in one of the leading global positions in the railway manufacturing industry. However, the company has been facing a stiff challenge in the global market with the three strong competitors. Therefore, in order to become identical than the other companies, they are advised to follow some of the features, as they have been operating in the global emerging market of the world. The wide ranges of the marketing capabilities have been mentioned here for the easy understanding of the situation. The importance of the global marketing strategies has been discussed here to analyze the situation of the company. Moreover, the competitive advantage of the company has been mentioned here. The importance of brand awareness, innovation and customer relationship have been discussed here in details fir the overall understanding of the position of the selected company China Railway Construction Corporation.


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