C714-D081 Task 2 Template Final Draft

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Western Governors University *

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C714

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Management

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Jan 9, 2024

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Task 2 Template Course/Assessment Code: C714 v.4 ( NNM2 ) and D081 v.4 ( QBM2 ) Student Name: Miranda Young Student ID: 010240724 Date: 11/19/2023 Program Mentor Name: Sara Peters A. 1. Risk #1: The first identifiable potential risk based on the scenario is a financial risk. As stated within the scenario, entry into the emerging market will require a significant investment in India. This significant investment is based on the necessity to use plastics sourced from India, which would require the company to purchase, build, or contract with another company for manufacturing. The new costs incurred from the manufacturing facility will impact the potential revenue of the emerging market. They could potentially increase the costs of market entry above what the company would deem sustainable. 2. Risk #2: The second identifiable potential risk for entering the emerging market is those associated with manufacturing within India. The hiring of Indian employees can present a few different risks for the company as the labor laws and regulations will vary between the US and India. This will require a significant amount of effort from the company to ensure that all labor laws and regulations are being met. The hiring of Indian employees can also present the potential risks of cultural differences and a language barrier; not understanding the cultural differences between the US and the new market, as well as not addressing the potential for a language barrier early on, can impact the manufacturing outputs which can impact the potential revenue of the company. B1. 1. Strength #1: The first identifiable strength of the US Fishing Boat Manufacturer is the company’s culture of innovation. The company’s emphasis on innovation will aid its advancement into the new market as the US Fishing Boat manufacturer encourages and rewards its employees for their creative ideas. This company culture not only aids in the redesign process of the foldable boat but can also ensure that the company stays abreast of current and developing trends within the new market.

2. Strength #2: The second identifiable strength is its willingness to collaborate with innovators from other industries. The US Fishing Boat Manufacturer’s history of collaborating with innovators from other industries is an internal strength as it can aid in the transition into the new market in India. The company's willingness to collaborate displays its openness to new ideas and will positively impact the relationships with local experts they work with within the new market. B2. Weakness #1: The first identifiable weakness of the US Fishing Boat Manufacturer is its decentralized structure. With the decentralized structure and the company seeking to enter a new market in India, this type of structure will present a challenge. Language barriers, cultural differences, and distance will make it hard to retain this culture. With the level of access that the US employees have to the founders of the company and the requirement for new manufacturing plants in India, should the founders have to be stationed in India for extended periods, this decentralized culture can foster feelings of dissatisfaction from the US employees, which can result in higher turnover rates within the US portion of the company. 1. Weakness #2: The second identifiable weakness of the US Fishing Boat Manufacturer is that they have few resources within India to aid in the entry of the new market. This lack of resources would require a significant investment in India, which would require the company to purchase, build, or contract with another company for the location of manufacturing. Another significant investment necessary for the new market would be research and development focused on the new market within India, as it is not directly stated within the scenario. Having research and development focused exclusively on the new market is a necessity as the market between the US and India will vary greatly based on the cultural differences and values of the markets. B3. 1. Opportunity #1: The first identifiable opportunity is that the company has the opportunity for a significant market share within the new market. The importance of the fishing industry within India and its being responsible for generating a substantial part of India’s domestic product. The US Fishing Boat Manufacturer will have many opportunities within the new market for

improving existing products and creating new products that meet the expanding needs of the fishing industry within the Indian market. 2. Opportunity #2: The second identifiable opportunity is the absence of competition for the foldable boats within the new market. The absence of competition and the foldable boats' unique origami- inspired design give the US Fishing Boat Manufacturer a significant advantage within the Indian market. It provides the US company with the opportunity to set barriers to market entry and pricing, allowing them to sell the foldable boats at a higher price than initially thought possible. B4. Threat #1: The first identifiable threat within the scenario is the lack of support from the NFDB. Earning the support of the NFDB poses a financial threat to the US company, as it will require significant investment and changes to the manufacturing processes and design of the foldable boat. However, the support and endorsement of the NFDB are essential to successfully entering this new market because the help of this organization can aid the US company in generating enough revenue to be successful. 1. Threat #2: The second identifiable threat within the scenario is the required use of new materials. The use of plastics that are sourced from India to reduce waste in the country’s landfills poses a threat to the US company because it will require the company to reevaluate and change both the manufacturing processes and the design of the foldable boat. These changes will not only affect the amount of time in which the company can enter the new market but can also contribute to the production of a mediocre product, which will affect the perception of the US Fishing Boat Manufacturers' reputation. C. 1. Strategic Recommendation #1: With the potential for a large market share and the absence of competition for foldable boats within the new market in India, the US company should their strategy on differentiation. Within the new market, many of the consumer's livelihoods depend on the fishing industry in India. Designing foldable boats that have added features that enrich the day-to-day experience of the fishermen in India will attract more consumers than a foldable boat that has a lower purchase price. 2. Strategic Recommendation #2:

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The US Fishing Boat Manufacturer’s mission statement describes the organization’s aim as to provide innovative customer-driven designs. Based on the organization’s mission statement and the reputation of the US Fishing Boat Manufacturers for their innovative approach to product design, lean manufacturing, and responsive customer service, it would be recommended that they implement an integrated strategy. This would allow the US Fishing Boat Manufacturer to continue to provide innovative product designs that enrich the lives of their target market while keeping costs low compared to their competitors. C1. 1. Strategic Recommendation Justification: In the absence of competition within the Indian market for foldable boats, it is recommended that the US Fishing Boat Manufacturer enact a differentiation strategy. With little to no competition in this market, a differentiation strategy will give the US Fishing Boat Manufacturer the opportunity to take advantage of the current market sales to reduce the original impact of costs necessary to enter the market, as well as give them the opportunity to establish their brand identity with the consumers of the new market. The US Fishing Boat Manufacturer is already known within the US for its innovative product designs and its lean manufacturing. Using these strengths during market entry to design a foldable boat that is sustainable and adds value to the day-to-day life of the consumers within the target market will not only establish the brand and align with the company mission statement but can also create brand loyalty and create a barrier to competitors entering the market. D. References

C714-D081 Task 2 Template Final Draft

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