D081 Task 1 Template - Market Entry Analysis PDF

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Task 1: Innovative and Strategic Thinking Course Code: C714.V2 and D081 Student Name: OraMae R Sikorski Student ID: 000955698 Date: February 20, 2021 Student Mentor Name: Chelsea Glasscock

A1. Discuss how ALL of the following aspects from the scenario affect the company’s decision-making process (Unit 3: Module 2) 1. Company culture This company’s culture is to bring the most interesting items to their industry that will be helpful in accomplishing the goals of the business, like their ‘foldable boat’. They want to use the best designs to help others in their industries accomplish their goals as well. This company cares not only about its customers but also the environment, so they will make decisions based on those two factors as well as others. Their boat is easy to carry and safe to the surrounding environment, and from the standpoint of taking it to a different country, they are helping both the people (customers) and helping to protect India’s waterways as well. From the scenario, this company wants to be sustainable, not only for the growth of their own company but also for their customers and to help the environment stay sustainable as well. By having an idea of a boat that does not have a motor and is ecosystem friendly, they would sustain growth, not only in their company but also for their customers because other countries would want their product because it follows all of India’s culture’s ideals. 2. Organizational structure The organizational structure of this company is that neither the management nor the employees are all in one place. All of the employees are included in the decision-making processes. This company’s organizational structure is a flat organization. Since the company is decentralized, the decision-making process will also be decentralized. The bottoms-up approach of this company means that they will have more opinions for their decision making. 3. Mission and vision statements (as they affect the strategic direction) This company’s mission and vision statements are to provide an innovative design and to be able to sustain that design within their business. In order to do that, they will have to take on a transformational innovative approach to be able to move their product into other markets. Adapting the product to the materials found in those other countries to produce and still maintain sustainability. They will have to consider the quantitative data of being sure the materials needed to sustain their design and market growth are available while still maintaining their ethical statement, especially in regard to their environmentally friendly goal.

A2. Describe how the company’s culture could affect the market entry strategy. (Furthermore, what type of culture is the company? Use the Competing Values Framework to explain your answer.) One explanation will suffice. (https://www.thercfgroup.com/files/resources/an_introduction_to_the_competing_values_frame work.pdf) 1. This company is a Clan Culture. Therefore, it is a flexible culture and includes their employees in the decision-making process. They have values that want their employees and those involved in the company to come together with participation and to communicate ideas. They are not trying to compete with anyone else but trying to bring a

more innovative designed boat to the people of India. Being that their culture cares about the environment and helping the people who are already working there in the fishing industry, they will be more acceptable to the terms required by India. The design they are trying to bring to this market is different and is environmentally friendly. They aren’t trying to come in and ‘take over’ the industry but are trying to add something new to it.

A3. Discuss in detail whether the organizational structure is an advantage or disadvantage to the company and explain why. (Unit 4: Module 4) 1. The organizational structure is a flat organization, giving an advantage to the company. Since they promote the involvement of their employees, they believe that the employees will be more productive as they are involved in the decisions made by the company. Employees tend to make better decisions and care more when they are not just being told what is going to happen and when. When an employee is not waiting on their boss to communicate something to them, information tends to spread a little faster and fluidly. Also, having employees involved in the organizational structure of a business helps to promote good ethics, and everyone will want the business to make decisions based on their mission and vision statements. However, should the company start to grow in size, this flat organizational structure may be harder to keep.

B1. Describe specific characteristics of the emerging market that affect the product from the provided scenario. (At least two.) (Unit 3: Module 2)

NOTE: What is going on in India that would affect the company’s ability to design or develop this product? Or, simply google “Characteristics of Emerging Markets” for examples. 1. India has rapid economic growth after establishing an emerging market about 30 years ago. It has reformed some of the economics by expanding its manufacturing (CFI Education, Inc.). This product would have to be redesigned to follow the needed guidelines of the country thus causing more industrialization. This would be done by either the company having to build another factory or by leasing out a factory already established that would be able to handle the needs of the company. 2. India welcomes partnerships that would help to grow their fishing industry. Welcoming this company would bring the foreign investments in that India needs to further grow that industry. This would also provide more jobs for the people of India, as they would be needed to help redesign, and work in the factory to produce this product. Being that India is already one of the largest emerging markets, this could possibly bring in other foreign investors as well.

B2. Based on the emerging market characteristics from B1, discuss in detail how either a new product or improvement to the existing product would meet both market needs from B1. Please be specific. (Unit 2: Module 1)

There would be no need to create a ‘new’ product. The product that this company has is already environmentally friendly, recyclable, and would help to preserve the local ecosystem. The company would be using incremental innovation to redesign the product and also be bringing new equipment into India. This would help the manufacturing in that country by being able to offer new products as well. The only thing that would need to be done is to redesign it with products from India, which may not necessarily be the same as those from the U.S. They would be meeting both of the market needs of both growth and investment potential and economic growth by using the people who are already in the fishing industry in India to give ideas and help brainstorm to improve the product. Thus by hiring these workers to help redesign the product and work in the factory, they are providing growth in both categories.

B2a. Based on your answer for B2. detail EACH step the company would take in the design process of the new product or improvement to the existing product. (Unit 2; Module 1, Page 9, Both a video and the module

information explain this process. Please note: the course of study discusses two approaches to design thinking; either approach is acceptable to detail.) The stages of design thinking are empathy, definition or defining the issue(s), Idea brainstorming, making a prototype of the design, testing the product and then implementing it. This company would take each of these steps to improve the design to be useful in India. 1. Empathy – The company would have to speak to the fishermen who work in India. Getting to know them, their ways of fishing, how this product would be useful to them and what they would feel about an idea of a boat that they can carry to and from home to work. Speaking to the NFDB as well, they could learn about where to get the waterproof coating that they would need. 2. Define – The company would take the information learned from the Indian fishers in the first step and show how they can give them a more innovative design to their already used fishing boats. Using the information learned from them, they can find the resources needed in India to build their design in that country. Price would also need to be compared to the materials used in the U.S. compared to that of those in India for the same or comparable materials. 3. Ideate – The company would need to work with the fishermen and the NFDB, they can come up with ideas to redesign this foldable boat using the materials and resources available to them in India. Coming up with ideas for a lighter design possibly, that would still float and carry the men to do their jobs. They would need to focus as well on either where to find the coating they would need, or how to manufacture it as well. They would need to brainstorm as well for price comparison and whether the design would cost more or less than the stated approximate $200 U.S. dollars. 4. Prototype – Using the ideas, and the information from the fishermen, and those within their company, they would need to go through the steps of building a ‘model’ of the foldable boat that could be tested. They would need to build on the ideas received and could even possibly ‘tweak’ it along the way. 5. Test – At this point, the company would need to test the prototype and gain feedback from the fishermen about its style, heaviness, and if any other changes needed to be made. This is the

point at which they would find out if the materials and coatings will work in the way they are supposed to and if they are acceptable to the NFDB. 6. Implement – If the prototype works as it is designed to, this would be the step at which point the company would begin to manufacture the full-scale design. The company would need to determine the best price that would still give a decent return on investment but still be affordable to the people in India who would be purchasing it.

B2b. Based on the design process from B2, choose THREE of the following aspects from the scenario. Then, provide a DETAILED discussion on how each of these aspects would affect the design process from B2. (Unit 2: Module 1) ·

Company culture

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Emerging Market Culture

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Company ethics

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Emerging market ethics

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Organizational structure

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Global legal systems

1. Company culture – Since this company’s culture is to be innovative and that it includes its employees in decisions, having hired the people of India to their company will be a big help. This will give them diversity in the opinions and thought processes between the fishermen of India and the company’s American employees. This also comes into play with the Empathy for the people they are re-designing this product for. The input of the Indian fishers will provide qualitative data to those who are doing the re-designing and will help to build an efficient product. 2. Emerging Market Culture – India has an emerging market culture and welcomes new industries. Being that fishing is a very important industry in that country, this new design would be beneficial to the industry. Not only will it help to grow that industry, but it would also be beneficial to the country in a way to continue their country’s dedication to being environmentally conscious. India welcomes new manufacturing and being that their nation has a 7% rate in global fish exporting, this new design and idea could help to grow their exports as well. 3. Organizational structure – This company is a flat organization and is decentralized. Until recently, India had been a total hierarchical structure. However, a study in 2008 showed that the mindset of top management(s) in India are starting to shift to more of a flat organization style of structure to bring in more innovative companies (VComply). In a flat organizational structure, innovation is more apt to thrive. The new thinking and organizational structure of India would be welcoming to the organizational structure of the U.S. fishing company and therefore they would not have to worry about any power struggles.

B3. How does the company’s ethical statement in the scenario influence the market entry strategy? Supply details. (Unit 4 Module 4)

1. India is concerned about its environment and wants to preserve its natural ecosystem. The U.S. fishing company’s ethical statement states that they will make decisions that will be sustainable for their customers as well as the environment. They have already agreed with the NFDB and will hire fishermen from India to help them to redesign the product in order to bring it to the market of India. Being that their product can already be recycled, and already has a net-zero impact on the environment. The company’s ethical statement aligns directly with the ethical beliefs of India and as long as they can find comparable materials to build the boat in India, entry into their market should be easy for them.

C. References (If applicable) CFI Education Inc.(2015). What are Emerging Markets? https://corporatefinanceinstitute.com/resources/knowledge/economics/emerging-markets/ VComply Editorial (20 April 2018) Business structure in India: Deterrent to Innovation https://blog.v-comply.com/business-structure-in-india/

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