Fine Woodworks Pvt Ltd FINAL

docx

School

Jomo Kenyatta University of Agriculture and Technology, Nairobi *

*We aren’t endorsed by this school

Course

MISC

Subject

Business

Date

Nov 24, 2024

Type

docx

Pages

Uploaded by margaretmarjory

1 Fine Woodworks Pvt Ltd Student’s Name Student’s Number Institution Course Name Course Number Date

2 1. Introduction For this report, I will use Fine Woodworks Pvt Ltd. Wooden furniture manufacturing in India, specializing in custom made. It is a small and medium scale enterprise since according to the Indian requirements, it employs 120 individuals. It gives strategic advice to Fine Woodworks Pvt Ltd, a premium quality wooden furniture producer based in India which plans to enter foreign market. Established in 1990, Fine Woodworks ranks among the top manufacturers of customized furniture in India owing to its emphasis on quality craftsmanship and local preferences (www.indiamart.com, n.d.). Now that the domestic market gets to the point of saturation, the company intends using its expertise worldwide for future growth. For instance, being a small and medium enterprise that employs 120 people, Fine Woodworks operates by niche differentiation instead of economies of scale. The company deals with traditionally handmade, unique pieces of furniture, using sustainable harvested local hardwood such as teak, rosewood. Every piece is an art work created specifically for one client that incorporates his or her vision of interiors design. These include stringent quality controls with artisan finishes tracing back for many generations. The heritage-focused production model, which targets upper crust Indian consumers in search for individualistic signature pieces for opulent residences, has gained considerable loyalty among these patrons. However, modern, mass-produced furniture is taking over India and thus competition within the country is becoming very intense. Stability was threatened by economic fluctuations in demand for fine woodworks too. This leads them to consider the global markets as an opportunity to diversify their sales channels, so that they can be immune to domestic economic woes in future. Access to affluent buyers across the world, who appreciate the quality Fine Woodworks is known for, through exporting as a small player. Moreover, international demand

3 could also be instrumental in ensuring the increased production volumes of the firm’s primary offerings, thus still maintain its core niche differentiation. Fine Woodwork engaged consultative services in order to avoid the failures that other firms had experienced while venturing into international exports. First of all, this report will assist the company in developing a proactive marketing strategy that would take advantage of increasing global demand for quality and ecofriendly custom furniture but at the same time reducing some of the external risks. The second part highlights key macroeconomic, political and sustainability issues that are likely to shape the world operating environment over the next few years as per industry research. Section three examines examples of international best practices. Accordingly, section 4 provides a strategic framework for Fine Woodworks’ competitive advantage, relationship building initiatives, and internal performance measurement across targeted export locations. Initially, there is a need for a comprehensive situation assessment aimed at identifying appropriate external forces that affect the organization’s strengths and sources. A culturally sensitive and yet a commercially viable plan needs to understand target markets’ cultural preferences. This expertise would indeed constitute Fine Woodworks’ strength, but alone may not suffice. A certain flexibility in strategy will need to be devised whereby prospects for sustainable export growth are explored as well as financial stability in an unpredictable international environment. The following report shall trace a way of reaching a balance. 2. Priority Factors/Risks in the Global Environment For such an SME trying to spread its presence worldwide, Fine Woodworks should be cautious on the external operating environment chances/hazards in respective regions. The

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

4 second chapter in Doole, Lowe and Kenyon’s book describes major macroeconomic, political, environmental and social changes that have a huge effect on the world trade and hence they should be addressed. In this part, there are three critical business risks related to the current assessment of the state of affairs in the sector and SWOT analysis. Economic Instability and Volatility First priority risk includes turbulence of the world economy and volatility of main export destinations. Fine Woodworks, as a small exporter, would be particularly susceptible to macroeconomic slumps lowering global need for discretionary luxury goods – such as custom furniture. Recent data underscores this threat: the IMF predicts the global growth rate of GDP for 2023 at 2.7%, down from 3.2% last year as inflation is rampant, interest rates are raised, and repercussions remain within various economies post COVID-19 and Volumes and revenue growth overseas take a slow pace, threatening Fine Woodwork sustainability (IMF, 2023). Additionally, it can be observed that export destinations play a pivotal role in these outlooks downgrading. The IMF cut by 1 point in 2023 the projections for the U.S., by 1.3 points for Europe and by 1.2 points for China that together represent more than 50% of the external market for India’s goods in such circumstances where the rich consumers had under pressure wage and tight credit conditions, they would surely cut down on the luxury expenses of buying high end furniture that Fine Woodworks sells (IMF, n.d. 2023) . In case of SME, even temporary downturn in key target markets can be a threat because it’s operating under fixed costs. Political and Trade Risks

5 Rising protectionism based on geopolitics constitutes as yet another noteworthy risk to global supply chains for Fine Woodworks. Recent escalations demonstrate how quickly the international system can change: such things as, increased US tariffs on European imports, or uncertainties around Brexit further increase the risk that European exports will face. In 2023, trade barriers had peaked the greatest since 2008 (www.proquest.com, n.d. 2008). Diplomatic strains owing to conflict among major powers is another element responsible for worsening trade relations. The country itself has nationalist tensions on its borders and “buy local” tendencies are also emerging in some of its key partners like the United States and Europe (PwC, 2023). Protectionist pressures endanger the market access of Indian exporters. There might be new non-tariff barriers such as stringent rules of origin, technical standards or capital controls – as it happened after the Ukrainian invasion with sanctions against the Russian Federation (IMF, 2023). However, this uncertainty weakens long-term investments necessary for successful exports. When policies get inverted, keeping established foreign markets is difficult as well. Environmental and Sustainability Concerns Finally, the aspect of environmental sustainability, which is an incredibly critical issue considering for Fine Woodworks’ focus, premium hardwoods that are local. Both positive and negative factors include stricter regulations, new attitudes in society. However, some consumers want “green” products manufactured in accordance with moral precepts. Nevertheless, if it fails to adjust quickly; its raw material might be limited or become more expensive in the long term after being classified as sustainable forestry products.

6 Forest destruction remains a pressing global concern: according to the UN, over 3.8 million square kilometers of land is equivalent in size to Japan (Baumann, 2021). The activities of illegal logging and encroachment enhance unauthorized cutting down of trees, leaving Fine Woodworks with insecure supply for their products. The population surge will cause the demand for more wood products, leading to further depletion of forest land. Meanwhile, the climate change will bring intense drought, widespread fires and accelerated spreading of infests like the mountain pine beetles, devastating the trees. Companies that contribute to these resource tensions or fail to address them may face penalties imposed by consumers, regulators, or other relevant stakeholders (Kraay, 2018). As a result, more than 100 countries have adopted the Forest Stewardship Council (FSC) certification aimed at ensuring the sustainability of production processes in forests and tracing of wood sources. Eco-labels by FSC/PEFC guarantee consumers that resources are coming from sustainable sources as well as protected biodiversity (Becker et al., 2020). For the sake of logistically and financially complicated foreign exporting business, as well as an increasing number of environmentally-sensitive buyers around the world, Fine Woodworks should demonstrate its due diligence and make sure that it’s the Indian suppliers are environmentally conscious and will stay so Goodwill, continuous supply of wood and credibility before the prospective foreign customer ensure compliance. The most critical major priorities risk is from these macro issues, protectionist trendiness and environmental sustainability as an outcome of industry indicators with maximum disruptive threat considering the firm value propositions. Failure by the company to address them can destroy strategic opportunities, revenues, higher costs or even social backlash. Section four suggests what should be done to respond in a bid to enhance or build resilience. Consequently,

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

7 concentrating on the above factors leads into designing an achievable international strategy based on the size of the company and existing realities in foreign markets. However, the primary risk is economic uncertainty and variation of international demand. Decline of sales may occur from slowdowns in biggest export market like the US and Europe. Furthermore, geopolitical tensions and mounting protectionism are an additional threat. Uncertainty is caused by frequent policy and tariff changes. At the moment, Finer Woodworks export to the United States; however, there may arise further obstacles. International customers now prioritize environmental sustainability. Over the long run, failure to practice greenness and responsibly source wood could affect competitors. 3. Best practice example Examining an exemplar competitor will be useful for Fine Woodworks so as to chart out its way in the international expansion process. An example of a best practice is in the case of American brand Restoration Hardware Holdings Inc. (RH) that successfully targets high net worth customers from across the world with a super-premium product mix composed of bespoke furniture showcasing different styles. RH, which started in 1978, selling through specialized catalogues and small shops of Californian based antique replicas. Nevertheless, Gary Friedman, the company’s founder, saw the future of the business beyond sentimentality and made a decision to transform RH into “a world famous, multi-channel luxury brand” (www.annualreports.com, n.d. 2023). From this, innovations were put in place, and RH has now become a byword for custom furniture retailing anywhere in the world.

8 International Competitive Focus This enabled RH to become a market leader as consistently executed strategic moves that exploited global opportunities and created value. The fact was, its focus was aimed at offering an aspirational lifestyle experience whereby customers were attracted from every background. Stores have immersive galleries weaving architecture, art and furniture into inspiring physical-digital brand experiences. It therefore provided RH superior over commodity-competitors by satisfying the world’s desire for one-of-a-kind expression, true craftsmanship, and rich culture. Such creative visual merchandising includes immersion of visitors into the possible living environment using different eras, regions and textures mixed up smoothly. It creates a sense of curiosity and belonging, which are the main human needs used in global showroom standardization. Relationship Strategy Relationships underpin RH's model. It emphasizes individual client knowledge, as well as personalized assistance by sales employees highly educated in fabrication methods, fashion history and good looks combination. Through this personalized service, there is strong loyalty all over the world – a vitally important asset to retain those well-heeled clients whose aspirations shift and move between different markets. RH also fosters creativity through partnerships and co-branded projects. Collaborations with globally celebrated talents such as David Hicks and Ronan and Erwan Bouroullec help extend the brand’s cultural authority (Hinchman and Yoneda, 2018). Attention to authentic materials and processes is maintained by sourcing globally from artisan workshops. The

9 establishment of relationship with some regional decorators also enlarges the area of referrals in every district. Such moves bolster international brand equity. Quality Commitment and Innovation Merchandise investment levels notwithstanding quality should still be high. Value perception is reinforced by rigorous manufacturing standards, customization options and made- to-order services. Trust building is critical in this regard, especially among remote global clients who are not able to assess quality up front. Innovation likewise supports competitiveness. The multilingual support is assisted by investments in the digital platforms that optimize cross-border purchase journeys. With “design crew” consultations, companies can hire personalized and data driven virtual assistants who break geographical barriers. Personalization enables companies to remain relevant in fast changing international consumer segments. RH illustrates global success in achieving market profits despite intensified competition. The way its handles cultural intelligence while achieving global complexity is a lesson that should be taken into consideration especially by Fine Woodworks in their attempts to expand. It also suggests possible uses to which RH’s successes can be adapted to develop an oversea strategy. The case of Ecowood Furniture, a Canadian company, is a good illustration of such success. This is directed at the top-enders across the globe who seek products designed in consideration to environmental friendliness, craftsmanship and close links with architects/designers (Dnb.com, 2023). Certified sustainable sourcing and unique modern designs

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

10 have enabled EcoWood to achieve competitive positioning. Customer relationship building by emphasizing on quality control and aftersales service in all markets. It is an innovator as it learns new trends and different cultures, and adapts styles depending on the regional preferences in every region through a learning culture . 4. Outline Strategy Based on what has been learnt in this section, an outline strategy is proposed for Fine Woodwork in order to make use of opportunities and minimize risks abroad over the following 5 years. The recommendations emphasize Fine Woodworks’ strengths with respect to clearly defined priorities, fostering a network, and an innovative approach of its small medium enterprise (SME) capabilities while also considering macro issues. Target Markets First of all, as an initial step, it will focus on growing up/upper, affluent segments of consumers, mainly the European Union and southeast Asian countries with high incomes and changing tastes that prefer sustainable luxuries. Fine Woodworks has a European market that consists of a considerable affluent group ready to appreciate their heritage craft but require modern interpretation. Specifically, UK, Germany and France have more cultural similarity and better access to their markets than that of protectionist economy of United States. The economies of Southeast Asia show sustained growth thanks to young population and growing wealth in big urban centers that demand unique furniture. Local partnerships between Indonesia, Malaysia, Thailand, and Singapore mitigate volatility in any one market. Increased volume in these other areas such as the Gulf Cooperation Council and Australia/New Zealand will be monitored depending on political and economic stability during the medium-term

11 period. Fine Woodwork should consider conflicts and regulations as they will be potential disturbances in the continuity of some emerging countries’ supply and demand. Competitive Positioning At its best, Fine Woodworks specializes in customized artistry inspired by traditional values and environmental friendliness. Woodworking heritage, authentic designs and sustainability-linked attachment to place through SFS (sustainable forest stewardship). The brand will showcase this uniquely by: - Focusing on a blend of heritage and modern style that speaks in the universal language. - Clients who hold ethical ideologies will purchase the product, which is certified with Earned FSC/PEFC. - Customized collections with local influences in line with client design stories. - Personalization capacities of communicating patience and attentiveness, towards unique vision of individuals. For specialization in custom made goods, a competitive advantage must be created against mass-producer. Customers are very demanding, and there are many good products available in the market; therefore, in order to ensure the “premium” quality exceeds the customer standards, it is necessary to leverage the artisanal values for emotional connections and selling experiences/memories rather that commodities. Relationship Strategy

12 However, building long-term relationships hinges on acquaintance with distinct tastes of target segments. Fine Woodworks will: - Obtain regular interviews with client’s/industry contact that will yield culture based innovative opportunity. - Cultural immersion programs, which facilitate local understanding for the regional teams. - Create committees of renowned architects / interior designers for the sake of brand ambassadors - Offer on-site or remote advisory to ensure the furniture matches clients’ specific perceptions and views. - Keeping track of satisfaction rates to enable speedy problem solving and maintaining confidence abroad. Customers purchasing large Indian-manufactured pieces might doubt of sincerity and warranties behind fine woodwork but direct communications in relation to top products are essential for such customers. Innovation The organization’s identity for growth would be in innovation as well as adapting services or products based on globus gusto. Fine Woodworks will: - Generating new concepts through the use of crowdsource and partner design ideas of customer. - Go for some modern silhouettes or blends of traditional and the latest style of clothes materials that match very well with traditional techniques. - Local cultural exhibitions in specific cities, which refashion cultural expressions into matter spaces. - Guide to 3D-visualization as a guide to remote shoppers’ eyesight for virtual design consultations

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

13 - E-commerce and social selling create global online showrooms. - Conduct consistent branded influencer tours supporting a global community driven by brand principles. Fine wood works must also redefine its corporate image by incorporating the contemporary trends, technological innovations and environmental conservation requirements besides finding alternative markets over time. Performance Monitoring For continuous performance improvement fundamentals monitoring export operations include: - A dashboard related to critical indicators such as volume of orders, customer satisfaction, timely shipping and social marks - Regular market evaluations identify shifts that need strategy change. - Internally an audit is carried out on quality assurance, certification compliance, standard employee satisfaction and training. - Quarterly financial, production capacities and risk/chances reports. - Collection lifetime analysis in driving R&D and revision. - Refinements in journey along feedback surveys and advisory input. Every six months, the framework will re-evaluate its course, guided by its way forward to the goals. Fine woodworks help deal resilience wherein one’s response becomes more of an instinct when global priorities change. Conclusion Outlined here is a report on key strategic issues related to the expansion into international markets. Despite the fact that globalization provides opportunities for the expansion beyond an area of the satiated internal demand, these risks are great demanding thorough consideration at the stage of

14 allocation of resources to the foreign markets. To facilitate fine woodworks direct intelligent grab of opportunities while developing resistance to threats, this study analyses macro trends, benchmarks competitors’ best practices, and outlines an appropriate strategic roadmap for the company. A Clear Path Forward Firstly, they suggest a roadmap toward targeting Europe and Southeast Asia because such a market is possible for the Fine Wood Works, although its products cater for wealthy customers who like sustainable premium crafts. Any SME’s first step abroad can focus on markets close enough culturally and accessible, which marks large target groups with little entry barrier. It shall be followed up and determined whether other regions are viable in the long term once competitiveness has been realized. However, Fine Woodworks is a brand that is genuine considering that it focuses on sourcing certification and integrating traditional design for today’s culture. Investments into client’s relations, innovative products for local market and performance monitoring will ensure a worldwide competitive advantage. Such a worry allows for better strong brand, safeguarding market price against competitors in the turbulent situations. Managing Risks Proactively These major threats range from negative growth rates worldwide resulting in subdued disposable income and also new protectionist measures. As for mitigation, it comes down to diversification related with customer’s income categories, product groups and geographic areas in fine woodworks. The shift is easier because one only needs to keep a close eye on their focus and adjust accordingly, should the situation suddenly change unexpectedly.

15 Another approach used for future proofing in the global environment with the growing focus on ecological conservation is innovation. On the other hand, more strict standards might have been put up asking for short recertifications so that they can remain accessible to supply channels and ethically trustworthy clients. By being compliant, it allows the organization absorb such uncertainties as resilience, not reaction when planning an expansion in the long run. Long Term Opportunity Despite uncertainties that cover the short-term prospects, surveys indicate the sustainability of long-term global demand for Fine Woodworks’ formula offering artisan’s uniqueness and cosmopolitan fashion. In particular, among the Asia Pacific countries, there is a well-educated society called “interconnected middle class” with an average increase in living cost above five percent per year. These changes have resulted in the expansion of demand for bespoke furniture by these groups, and it is anticipated that Permanency of global values is displayed by environmentalism, too. It will become even more important for brands seeking to establish connections with consumers as economic mobility leads to cultural convergence of different consumer groups. Driven by this approach, Fine Woodworks are in a good position to realize personal visions of future dynamics and experiences. Enhanced technological changes which promote connection and relationship abroad widening audience possibilities that are without location bounds. Summary

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

16 To conclude, it is suggested that Fine Woodworks can benefit from strengthening its stand in foreign markets, making targeted use of its own strengths as a basis for careful strategic planning. Using these fine-turned over generations with some new innovative innovations to fit the emerging reality will be the basis for sustaining this artisanal SME. Consequently, when Fine Woodwork adopts cultural sensitiveness in dealing with their customers, they can successfully maintain their heritage craft vision in the global platform by also being agile to macro disruptive effects. However, carefully considered expansion involves long-term possibilities of sustaining competitive advantage in times of change.

17 Reference list Baumann, F. (2021). The Next Frontier—Human Development and the Anthropocene: UNDP Human Development Report 2020. Environment: Science and Policy for Sustainable Development , [online] 63(3), pp.34–40. doi:https://doi.org/10.1080/00139157.2021.1898908. Becker, W., Norlén, H., Dijkstra, L. and Athanasoglou, S. (2020). Wrapping up the Europe 2020 strategy: A multidimensional indicator analysis. Environmental and Sustainability Indicators , 8, p.100075. doi:https://doi.org/10.1016/j.indic.2020.100075. Dnb.com. (2023). Challenge Validation . [online] Available at: https://www.dnb.com/business- directory/company-profiles.eco_wood_products_ltd.60b8c9f25345c503abdc318529947815.html [Accessed 13 Dec. 2023]. Hinchman, M. and Yoneda, E. (2018). Interior Design Masters . Routledge. IMF (2023). World Economic Outlook, October 2023: Navigating Global Divergences . [online] IMF. Available at: https://www.imf.org/en/Publications/WEO/Issues/2023/10/10/world- economic-outlook-october-2023. Kraay, A. (2018). Methodology for a World Bank Human Capital Index . [online] papers.ssrn.com. Available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3255311. Cwww.annualreports.com. (n.d.). Restoration Hardware Holdings - AnnualReports.com . [online] Available at: https://www.annualreports.com/Company/restoration-hardware-holdings [Accessed 13 Dec. 2023]. www.indiamart.com. (n.d.). Care Fine Woodworks Private Limited - Manufacturer from Shikrapur, Pune, India | About Us . [online] Available at: https://www.indiamart.com/carefine- woodworks/aboutus.html [Accessed 13 Dec. 2023]. www.proquest.com. (n.d.). Evolution of WTO Dispute Settlement System and its Current Crisis – ProQuest 2008 . [online] Available at:

18 https://search.proquest.com/openview/bb87b36b2531923fd14e0c0779698e49/1?pq- origsite=gscholar&cbl=2029994.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Fine Woodworks Pvt Ltd FINAL

Related Documents