Essay about Fara Management

1218 Words Apr 23rd, 2016 5 Pages
EXECUTIVE SUMMARY:
FMO founded in 1998, started off as a Strategy/ Management Consulting Service Company. They worked closely with the client's executives to provide customized strategy consultation. During the years since the inception, the company gradually expanded into several other businesses including marketing and publishing business books.

Q Link was an American developer of ERP system designed for SMEs.

The Joint Venture (JV) between FMO and Q-Link, FARA Management System created to serve the Small & Medium Enterprises (SMEs) in Iranian market with customized ERP was going awry in many respects, including knowledge retention, service definitions and pricing.

SYNERGY TO STRATEGY:
For FMO: The JV helped FMO in that
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An international joint venture enabled the firm to establish a marketing or manufacturing presence abroad with the assistance of a local foreign partner. FMO could provide knowledge of government workings, regulations, internal markets and distribution know-how. This knowledge was particularly valuable in unfamiliar territory.
• Access to markets: the JV helped facilitate increased access to customers.
• Distribution networks: FARA had access to the distribution networks established by FMO.

COMPETITIVE ADVANTAGE FOR THE JV:
The ERP developed by Q link was for SMEs. It could be modified to add or remove different components to serve the clients need. It could also be modified to implement in larger businesses. Although SeaShell (ERP of Q Link) was technically inferior to international ERP solutions such as SAP, it commanded several advantages that put it in a strong competitive position in the Iranian market.
a) First Iranian market was mostly populated by SMEs even though large firms existed. Most SMEs preferred to take the economical route and incur fewer expenses.
b) In addition, large international companies used databases in their system that were in many cases, subject to the sanctions imposed by the United States.
c) Larger providers of ERP were unwilling to make modifications to their software to translate the components to Farsi.

In contrast, SesShell developers were willing to work with whatever database was approved by the

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