C714 business strategy task 1

Risk Management and Business Strategy

Question A

Entry into a new market always comes with many challenges for the business. This US Company setting up the business in India is faced with several restrictions and potential risks. The firm faces risks associated with the regulatory provisions, as stated by the Indian government. The US Company is forced to use and make boats made of plastics as used in India. This is in line with India's aim of reducing the products of the nation landfill. The restriction will impose a tremendous financial risk as the Company will have to make a significant investment in India. The Company is forced to spend hugely acquiring the manufacturing facility or securing another manufacturing location. The US firm is forced to spend hugely in this business even with the uncertainty in the market as the Company is getting started

The US firm faces financial risk loss in the setting up of the business in India. The Indian government imposes many restrictions on the US company in setting up the business in the Country. The boats will have to be made of the plastics made in India as the Country puts the regulation to reduce the Country's waste products (National Fisheries Development Board). The push on the firm to set up significant investment further pose a risk on the firm. Added with limitation of and requirement to set up a manufacturing location calls for the use of an enormous sum of money in this investment. Further, Indian workers' employment may have an impact on the skill and the quality of the products as there is variation in expertise. The firm will even have to spend more as it is forced to manufacture the new foldable boats which are made from the plastics in Indian and coated up with an environmental friendly waterproof coating

Question B

Strength of the Company

The US Company has a strong market potential as the fishing industry is an essential sector in the Country. Research has indicated a strong market potential in the Indian market. Both aquaculture and fishing are common and primary industries in the coastal industries. The other strength is the firm’s organizational culture of innovation. The firm produces environmentally friendly and natural fishing equipment. The firm provides incentives in promoting the creative ideas of employees. The customer is even given opportunities to give design feedback. The firm comes up with the use of natural resources characterized by reduced disruption in the fishing ecosystem as in India

The internal weakness of the business

The setting up of the business in the Indian foreign market opens up the Company to some of its core problems. The firm is forced to spend hugely acquiring the required material and employment of the Indian workforce. The firm's requirement to make a significant investment in India forces the firm to use large funds. Also, the firm is forced to either set up a manufacturing facility or contract a facility which will drain the firm's funds. This is further added by the fact that the business will have to work with the new Indian workers.

The other weakness is the firm will have to be forced to manufacture new foldable boats. The firm is forced to make use of used plastics in India with the further restriction on being environmentally friendly with waterproof coating. The manufacture of new foldable boats is very demanding, and the firm is faced by huge problem especially in working with the Indian workers

Opportunities for the Company

The Indian market has proved to be an emerging global market that is viable for the company. The success of the firm in India shows its success, especially as the firm will establish strategic partnerships that will steer the chances and the possibilities of success of products in the market. The firm can capture the market share and the profits and expand to other parts of Asia. This is backed up by the Indian's business climate, which is open to new partnerships. Therefore, the firm stands a great opportunity in the manufacture of the nonnotarized boats, which is inclined to improve the fishing experience and, hence, open the firm to new opportunities. This works well for the firm as NFDB promotes the use of the essential equipment in fishing intending to reduce the disruption to the ecosystem. (Hanko Hackberry Group)

The business has a great opportunity as research gives a strong market potential for its sales in India. The primary reason is because of the contribution and the great importance of the fishing industry in India. The economic activities of fishing and aquaculture, especially in the Coastal areas of the Country. The Country has further established support, especially to the massive population of around 14 million people in the fishing business. This considerable population provides a huge market for the firm's products.

Threats to the Company

The Indian government regulation on the employment of Indian workers poses a threat as they do not have the required skills. The second threat is the boats' requirement to be made from the reused plastics in India as the Country aims to reduce the nation's landfills

Question C

The strategic decision to invest in India is a result of the company's strength of the CompanyCompany as it has a strong potential. The fishing sector is an essential sector of India's economy, which gives the Company a strong success possibility as there is significant market potential. Both aquaculture and fishing are common and primary industries in the coastal sectors. The firm’s innovation nature is also a driver in the investment decision

The Indian market has proved to be an emerging global market that is viable for the Company. This is an opportunity for the Company. The firm will be able to establish strategic partnerships that will steer the chances and the possibilities of success of products in the market. The firm further has a potential of capturing both the profit share and the market share in the market

The decision of the firm to invest in India is well informed. The firm has proved to have the potential to achieve success in this market. India has a huge demand for environmentally friendly and natural fishing equipment. The Company has determined to have the potential and hence align fishing and aquaculture, which are the primary activities in the coastal areas. Also, fishing is a vital sector for India's economy, thus giving the Company a strong success possibility. Besides, the Company has an opportunity with the investment in India. the India market is a strong emerging global market which therefore is an opportunity for the firm

Reference

Hanko Hackberry Group. (n.d.). Fisheries industry. Retrieved from http://investinindia.com/industry/fisheries/fisheries-industry

National Fisheries Development Board. (n.d.). About Indian fisheries. Retrieved from http://nfdb.gov.in/about-indian-fisheries.htm