Course/Assessment Code: D081 Version 5/QBM3 Task 2
A.
1. A significant risk that should be considered is financial. The U.S. fishing boat manufacturer
must ensure that when producing the foldable boats, they be made locally, using materials
sourced from India. This would pose a significant risk to the company; as they will need to
establish a production facility, obtain the necessary resources, recruit staff, and manage local
operations. As a result, these factors will lead to large rise in costs compared to exporting from
the United States.
2. A second risk that should also be considered is personnel risk. The U.S. fishing boat
manufacture will be producing the boats in India and making the simple decision of hiring local
workers. While hiring locally should be a straightforward decision there are significant
challenges that relate to cultural differences. The company could potentially face issues such as
language barriers, different working hours or varying religious practices. These factors could
potentially affect productivity and the overall efficiency of the company.
B.
B1:
1. One of the strengths of the U.S. fishing boat manufacturer is the flat organizational structure.
All employees of the company have direct, easy access to the founders as and upper
management, which fosters relationship-building, collaboration, and quick decision-making.
Utilizing this organizational structure is a strength because it allows for quick thinking and
adjustments. Having a quick response is important when entering a new market like India.
2. The U.S. fishing boat manufacturer’s second strength is its strong commitment and culture to
innovation. The U.S. fishing boat manufacturer enables its staff to develop innovative products
by providing incentives for their ideas and has also created laboratories where their customers
can test and provide feedback of the designs. This approach will be beneficial when entering the
fishing boat market in India, as it allows for the adjustment of designs to best suit local customer
needs.
B2.
1. One weakness for the company is the lack of an existing manufacturing presence or any type
of operations in the Indian market. This can be considered a weakness because the company will
need to heavily invest time and resources to create relationships with local production facilities
or build a new production facility. Not being established in the target country can cause delays to
the market entry timeline, increased costs, and potential negative impacts on the company’s
financial performance.
2. Another internal weakness that may emerge is culture clashes once the establishment of
operations in India is completed. There will be a large difference between the local Indian
workforce’s ideas, opinions, ethics, and processes compared to those of the company’s current
employees. The significant cultural differences between the U.S. and India can lead to substantial
challenges that would take time to address.
A.
1. A significant risk that should be considered is financial. The U.S. fishing boat manufacturer
must ensure that when producing the foldable boats, they be made locally, using materials
sourced from India. This would pose a significant risk to the company; as they will need to
establish a production facility, obtain the necessary resources, recruit staff, and manage local
operations. As a result, these factors will lead to large rise in costs compared to exporting from
the United States.
2. A second risk that should also be considered is personnel risk. The U.S. fishing boat
manufacture will be producing the boats in India and making the simple decision of hiring local
workers. While hiring locally should be a straightforward decision there are significant
challenges that relate to cultural differences. The company could potentially face issues such as
language barriers, different working hours or varying religious practices. These factors could
potentially affect productivity and the overall efficiency of the company.
B.
B1:
1. One of the strengths of the U.S. fishing boat manufacturer is the flat organizational structure.
All employees of the company have direct, easy access to the founders as and upper
management, which fosters relationship-building, collaboration, and quick decision-making.
Utilizing this organizational structure is a strength because it allows for quick thinking and
adjustments. Having a quick response is important when entering a new market like India.
2. The U.S. fishing boat manufacturer’s second strength is its strong commitment and culture to
innovation. The U.S. fishing boat manufacturer enables its staff to develop innovative products
by providing incentives for their ideas and has also created laboratories where their customers
can test and provide feedback of the designs. This approach will be beneficial when entering the
fishing boat market in India, as it allows for the adjustment of designs to best suit local customer
needs.
B2.
1. One weakness for the company is the lack of an existing manufacturing presence or any type
of operations in the Indian market. This can be considered a weakness because the company will
need to heavily invest time and resources to create relationships with local production facilities
or build a new production facility. Not being established in the target country can cause delays to
the market entry timeline, increased costs, and potential negative impacts on the company’s
financial performance.
2. Another internal weakness that may emerge is culture clashes once the establishment of
operations in India is completed. There will be a large difference between the local Indian
workforce’s ideas, opinions, ethics, and processes compared to those of the company’s current
employees. The significant cultural differences between the U.S. and India can lead to substantial
challenges that would take time to address.
