WAVERS Inc. is a California based firm that specializes in the manufacturing of high- end surfboards. Consumers in the coastal African region as well as Japan and the
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WAVERS Inc. is a California based firm that specializes in the manufacturing of high- end surfboards. Consumers in the coastal African region as well as Japan and the UK have recently discovered the joys of surfing. WAVES has hired you as a consultant to provide advice regarding global expansion. They are wondering how to exploit these new markets. Tariffs on imported surfboards are particularly high in Japan. One particularly aggressive member of the top management team has been arguing for some form of a joint venture with a local Japanese firm. This has turned into a highly divisive issue and they have asked you to provide them some insight on some of the basic issues and possible challenges of forming a joint venture in this environment. In your discussion, elaborate on the role that cultural differences between the US and Japan may play that could impact your joint venture.
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- Q1) You are the international business development head of a United Kingdom based company that just designed a revolutionary new laptop that can perform the same functions as existing laptops but costs only half as much to manufacture. The design of this laptop is protected by several patents and copyrights. Your CEO has asked you to formulate a proposal for how to expand into the United States. Your options are (a) to export from the United Kingdom, (b) to license a firm based in United States to manufacture and market the computer there, and (c) to set up a wholly owned subsidiary in United States. Evaluate the pros and cons of each alternative and suggest a course of action to your CEO.International trade may offer lower unit prices but at a higher risk. Consider the total cost and trade off lower production costs with higher priced transportation and more uncertain delivery schedules. Add in disruptive weather patterns, multi-language requirements, and fluctuating exchange rates; not to mention political turmoil, labor disputes, and unique tariffs and duties. throughout the world there is one source for Schachtel Schmuggel Bannware: CousinsAg, a domestic supplier located in Wahoo, Nebraska Throughout this turnaround, we will ship utilizing Twenty-foot Equivalent Units (TEUs) from each location. Assume the following: Projected Annual Demand is 21,500 units There are 365 days in a year All product will be shipped to a distribution center in Alliance Fort Worth (AFW) where we will service our customer's needs Inventory carrying cost is 32.2% A TEU container can hold up to 600 units of our product. The Harris EOQ formula is Q* = SQRT((2*Annual Demand*Ordering…You have the sole distributor for Lafuma products in Australia (you even got an agreement to prove it). Lately you noticed that someone is importing the same products in huge quantities from Hong Kong (where it is 40% cheaper) and selling them in Paddy’s, Parklea Market and other outlets (which are not your retailers) at a substantial discount. Assess the problems that this parallel import has on you. How would this parallel export problem affect Lafuma of France in terms of overall worldwide sales?
- Mr. Chen approached your consulting firm for advice regarding international expansion. His hotels and resorts company, Saujana Permai Holdings, has been operating in Malaysia for more than 10 years and now seeks opportunities outside the country. However, Mr. Chen related to you that his firm lacks the experience in international business operations and has a limited budget in terms of financing; therefore he is looking at small to medium scale entry modes. As a consultant, propose two types of entry methods which may be used by his company. Justify to Mr. Chen also why the entry methods are suitable for his business organization1) The needs and demands for dental care, oral health and aesthetics worldwide has resulted in the rise of value in dental market. The impact from this situation has led to a significant increase in individuals or companies who wish to exploit in dental market. Some of these providers take a solely commercial approach with less emphasis on professional ethics and patients’ well-being. In many cases, activities are provided by individuals with minimal or no training in dentistry. They may argue that they are not providing a health service but a purely cosmetic service and therefore are not required to adhere to healthcare regulations. Provision of such treatments puts patients at risk of inappropriate treatment and irreversible damage to their oral and general health and may deny them the chance of appropriate redress. Discuss TWO (2) steps in problem solving that can be used to help navigate the exploit issues in dental market. 2) Creativity can be defined as the tendency to generate…Instructions: Analyze and answer the following questions A US Company plans to sell farm equipment in a country in Asia. This country traditionally had not conducted business with companies outside of its geographic region. Answer these questions for the US company. How might economic conditions affect business decision What social and cultural influences could affect business decisions? How could politics and laws after the company's exporting activity? What geographic factors might influence the company's international business activities?Kindly elaborate your answer. Thank you so much!
- How to elaborate the points as below: Entry Mode Advantage Disadvantage Exporting The business can choose his representative in the foreign market. This also helps the business to test if its product will be a success For physical business, this is a costly strategy. A lot of research for the representatives has to be done. Licensing The company can get vertical integration without heavy capital investment. The company will not have control over the use of its intellectual property by the Licensor. Franchise This is a low cost strategy and the franchisee has the knowledge of the local market. This is a source of passive income. There is less control over the operations of the franchise partner. The franchisees can learn from your business and become competitors in future. Joint Ventures The business can leverage the expertise of the joint partner. Transfer of technology and assets is easier. Internal clashes can happen sue to changes in culture…Discuss why you would recommend to X Company of your choice that wants to enter Pietermaritzburg - Kwazulu-Natal South African market, to use the Michael Porter’s Model.You are operating in Jamaica and want to market your Hand Sanitizers to Brazil. Conduct an assessment of the mode of entry you will utilize based on the 5 modes discussed in the course (exporting, licensing arrangements, partnering and strategic alliances, acquisitions, establishing new, wholly owned subsidiaries). Discuss two (2) potential advantages and two (2) disadvantages of the mode of entry selected. Conduct research on two (2) companies that failed when using the mode of entry you have selected for your product. Company names must be stated and what led to the failure must be clearly identified.
- For an exchange to take place successfully, all the gaps in the marketing process should be successfully covered between production and consumption. There are certain gaps that are most relevant in the marketing process of CBD oils in South Africa. Discuss two intermediaries of your choice that would be responsible for closing the three gaps; the housing gap, the time gap and the info-gap.a) What are the advantages and disadvantages of a firm establishing its own distribution in international markets, and what forms might this take? What criteria should be applied when managing an agent or distributor in international markets successfully? b) Discuss the competitive advantages (if any) of forming and sustaining mutually beneficial business-to-business relationships in international business markets.Your friend, Nasir Ahmad, has his own firm manufacturing beverages such as cordials, juices and soda drinks. Yesterday, he met up with you to ask your opinion regarding increasing his firm’s profitability and profit growth. Expanding internationally is one of his options; however Nasir does not know how global expansion can actually increase the value of his products and his firm other than by the increasing sales and volume of his products from international markets. Explain to Nasir two ways how global expansion can create value and increase profit and profit growth for his company in the future.)