Project 4
Able Corporation
External Analysis
Opportunities
- Meeting the standards of European and other Asian consumers
- Use of the World Wide Web for advertising and product purchase
- Larger target market
- Trend
- Brand image of the company
These opportunities can be used by Able Corporation for gain in profit and establishment in the international market. The company has successfully met the standards and needs of its American and Canadian market, so it would not be hard for the company to meet the standards of consumers from other countries, based on their culture, their curiosity to advanced and new technologies, and their ability to try new products from the United States. Able Corporation can take advantage of the use of the Internet to advertise their products and have a wider market. This would be a way of coping with the trend and improving the brand image of the products.
Threats
- Competition from other exporting companies offering the same product line
- Local or domestic companies in the foreign country
- Entry barriers
- Delay of delivery or export
Identifying these threats would be essential so the company would be able to plan their strategies regarding their expansion to other foreign markets. These threats would somehow hinder the company to reach their target market, including the export policies of their target market or the delay of their export to their market. Determining threats or problems would lead the company to come up with solutions to continue with the company’s operation.
Preliminary Outline of Business Plan
A. Identity Development
1. Development of Mission Statement
2. Situational Analysis
a. Use of SWOT Analysis
b. Use of PEST Analysis
B. Resource Allocations
1. Contacts with large retailers
2. Distribution of products abroad
C. Strategic Implementation
1. Balanced Standardization
2. Adaptation Strategy
D. Progress Assessment
1. Financial indicators
2. Non-financial indicators
Mission Statement
The company aims to pursue consistent customer satisfaction in all of its major markets by developing and innovating products, through efficiency in the distribution of sales, production, development and operations, based on the expectations, abilities, and needs of its customers.
Key Operating Principles
The key operating principle of Able Corporation is its dedication to innovate and supply high quality and affordable products to all consumers. This leads to its underlying principle of providing customer satisfaction through keen identification of needs and continuous development and improvement of products.
Preliminary Market Analysis
Size and Growth of Market – Important markets are from the capitals of European and Asian countries, which will be using most of the company’s products on their households or on offices. Their purchase will be based on the change in the perspective of the cultures in many countries, such as the increase in the incidence of working women.
Profitability – The proposed market will be profitable in the upcoming years for most of the countries in Europe are developed, needing an increase in supply for the products in their household and offices. In Asia, most countries are developing, therefore needing the equipments to for an improved lifestyle.
Environmental Analysis – This involves the political, economic, socio-cultural and technological trends in the foreign countries. In general, the environment in the European market is more consistent than the Asian market, because more countries are developed in Europe than in Asia. In addition, the currency in Asia is more dependent on dollars, than the euro.
Resources – The needed resources of the company include tangible, intangible and human resources, which will be responsible for the continuance of the project. Aside from the financial and technological resources, the company needs human skills, abilities and expertise in the target market (“Internal and External Analysis”, 2005).
One-Year Strategic Objectives
- Lower company costs
- Better customer service
Five-Year Strategic Objectives
- Bigger market share
- To compete in international markets
- More attractive product line
Ten-Year Strategic Objectives
- Stronger reputation
- Recognition as the leader in technology and product innovation
- More secured industry rank
Appendix
Expected Revenue for Able Corporation
Year
Revenue
2000
$ 150,000
2002
$ 145,000
2004
$ 200,000
2006
$ 250,000
2008
$ 260,000
2010
$ 350,000
Average
$ 226,000
Credit:ivythesis.typepad.com
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