Hello. Please answer ALL questions 3-4 in full detail, Thanks in advance. 3. You
ID: 422111 • Letter: H
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Hello. Please answer ALL questions 3-4 in full detail, Thanks in advance. 3. You are the assistant to the CEO of a small textile firm that manufactures high-quality, premium-priced, stylish clothing. The CEO has decided to see what the opportunities are for exporting and has asked you for advice as to the steps the company should take. What advice would you give the CEO? 4. An electronics firm is considering how best to supply the world market for microprocessors used in consumer and industrial electronic products. A manufacturing plant costs approximately $500 million to construct and requires a highly skilled work force. The total value of the world market for this product over the next 10 years is estimated to be between $10 and $15 billion. The tariffs prevailing in this industry are currently low. Should the firm adopt a concentrated or decentralized manufacturing strategy? What kind of location(s) should the firm favor for its plant(s)?Explanation / Answer
As an advisor for the CEO I would suggest to follow important steps for the company that wishes to be involved on exporting and the opportunities around it. It is important to make a decision and understand where to sell. This vital research will help in understanding the market and find the consumption figures.
It is also important to understand the import figures and know the economic growth rate for a potential new market. It will be useful to analyze the demographics, cultural and religious practices and the competition around it.
It is important to have an export plan. This should ideally include people who comprise of team for driving the programmers and what needs to be recruited.
It is important to have an understanding of capacity and meeting the demands of the market and what is needed to upscale.
The packaging design appeal is important for understanding the market. This helps by labeling different things and translating it. The knowledge of the potential new market and present market needs to be taken into account. The choice of route to market will help by analyzing sale directly, use of distributor, sale agent and creation of joint venture. It is important to ensure clarity of responsibility in spite of the delivery and payment.
The analysis of opportunities will be possible through ways like trade fairs, subsidized grant, cost of exhibition and trade enquiries etc. Documentation is the important process here and it differs from country to country based on various requirements
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