S-Vertical Integration

Determine what and when we need to improve:

S- Vertical integration

W- Low sales could impact available capital

O- Global expansion to Asian region

T- High end knock off brands that are made by competitors

1. Analyze how often organizations achieve high performance level. They are producing high end knock off replicas at a low cost.

2. How can that information be used to improve performances? They can expand to a global market with current products, but design them to fit the regions’ culture their deciding to market.

If they do not have enough capital to cross over into global market, they will need to look mainly at how much it will cost. How much would it be to finance operations and R & D productions? What would be the main products that could be used to enter into that market? What region would be looking at to enter into that particular market?

From our previous research the Asia region would be a better choice for expansion, due to the opening boarders to other cities. This could help with cutting back or cost because of the low labor and material cost. The only set back they will incur is Presidential changes and efforts of the U.S.

Going global will give the company potential to compete with other companies in the furniture market.

The Asian market has had a large increase in a diverse marketing, and it is the best market for growth entry (). The internet has taken over in sales and product marketing this can get their message out faster about the new products, and new expansion. It also can help to benchmark customers’ needs and wants, and how many people have visited the website; the more traffic the better. They can also offer loyal customers a discount to promote sales in the U.S., as well as, offering web exclusive sales only. This can also help to save cost; they can also use blogs or social media to reach potential customers (Delaney,

2006).
The benefit of bench marking is very importing when deciding how your company performance matches up to other businesses. The following are benefits that can be achieved by bench marking:
• Gain independent knowledge of how the company can measure up with other furniture companies
• Identify areas of opportunity
• Prioritize improvements
• Set company expectations
• Access the company performance and manage any changes (Ward Group, 2017)
Despite understanding how your company compares to others, it must also be integrated into decision
Making and personnel process of how the team uses that information (Ward Group, 2017).
• It help improve understanding real opportunities, and how they need to be prioritized
• Team input can help team members submissive to change and give more support in the decision making process
• It encourages them to do better or more than what is expected
• Promotes discussion rather than assumptions or emotion on the data collected (Ward Group, 2017)
Does this decision hinder or benefit domestic market shares? It can hinder it if the company closes their manufacturing plants in the United States, because it will eliminate jobs if they can save money or profit from this move. But, because they have a strong presence in the U.S., they can choose to incorporate their new product made internationally in the states.
There is always risk when moving into a new market; they may encounter currency rate changes, multilateral trade relations, and political changes within the region you decide to market (Cavugil, pg. 91).
Currency risk can be offset by using hedges to protect finances and any assets from losing its value (Kuepper, 2017). Political risk cannot be avoided, but it can be managed by effective management of political risk assessment (Culp, 2012). Risk can be managed by assessing new markets, business, and providing a competitive advantage. They can be use enterprise risk management new revenue that can be too risky without management support.
Therefore the following need to be done to help minimize risk:
• Identify- How can this political condition affect their objectives?
• Measure- Discounted Cash Flow can be used to estimate financial impact or tolerance levels.
• Manage- Map the potential risk, schedule a consultation, report and review your findings. (Culp, 2012)