Question.2688 - COMPETENCIES 3081.1.1 : The Impact of Innovation The graduate identifies the impact of innovation in personal and professional settings. 3081.1.2 : Techniques of Strategic Management The graduate utilizes evidence-based techniques to make strategic decisions. 3081.1.3 : Business Strategy and Analysis The graduate applies appropriate business practices to formulate recommendations that impact organizational effectiveness. INTRODUCTION Today’s business environment is characterized by a competitive intensity that requires innovative thinking and strategic decision-making competencies. As a business professional, it is essential that you apply the principles of design thinking and strategic decision-making to positively influence the effectiveness of a business in its markets. In this task, you will provide a market entry overview, using the following scenario. SCENARIO A U.S. fishing boat manufacturer is known throughout the United States for its innovative approach to product design, lean manufacturing, and responsive customer service since its start three years ago. The mission statement of the company is “We will provide the most innovative customer-driven design and growth in the industry.” The founders’ ideals for the company are described in the vision statement: “We will be the most sustainable company in the industry.” The company’s ethical statement that guides all conduct and decision-making is “We will make decisions that are sustainable for customers and the environment.” The company’s founders have created an organizational culture of innovation. They have provided incentives for employees’ creative ideas and created testing laboratories where customers use the products and provide design feedback. The founders have also invited innovators in other industries, such as gaming and information technology, to improve on the designs. The founders have cultivated a company culture in which employees and founders are considered equal partners. The company structure is decentralized, and all employees can access the founders at any time for collaboration, shared decision-making, or relationship building. All company decisions are evaluated by all employees to ensure that everyone is committed to the decisions. The company has identified an emerging global market opportunity in India for its products. Successful sales in India could represent a critical moment for the company if the company establishes strategic partnerships that will increase the likelihood of product success. The founders hope to capture profits and market share and expand into other parts of Asia within the first year of selling products in India. Research indicates market potential for the company’s sales in India because of the importance of the fishing industry in the country. Fishing and aquaculture are primary industries in the coastal regions of India. Economic zones have been established to support the over 14 million people who are an important part of the fishing industry. This industry makes up 1% of the nation’s gross domestic product and 6.56% of global fish exports (Department of Fisheries, 2019). The company’s goal of the market expansion into India is to be the first foldable fishing boat manufacturer reaching the country. An origami-inspired foldable fishing boat is the company’s most popular product. This boat comes designed as a plastic carrying case that unfolds into the water like an origami paper boat. This boat is suitable for uses in calm water, and the boat can be recycled. The product retails for U.S.$200. Traditional fishers use nonmechanized boats, which would be ideal for the foldable boat’s entry into the market. Laws and regulations surrounding the use of nonmechanized boats favor importing foldable boats, which would be easy for fishers to carry from home to the water. The business climate in India is open to new partnerships to improve the fishing experience for those who preserve the natural ecosystem with nonmotorized boats. The National Fisheries Development Board (NFDB) promotes the use of natural fishing equipment to reduce disruption to the fishing ecosystem in India (National Fisheries Development Board, n.d.). The U.S. boat manufacturer’s founders met with the NFDB to request an endorsement for their foldable boats because of the product’s sustainable design and net-zero environmental impact. The founders discovered that the NFDB would only endorse the boat if it was made of plastics used in India in order to reduce the waste products in the nation’s landfills. This endeavor would require the U.S. company to make a significant investment in India. The company would need to purchase or build a manufacturing facility, or it would need to contract with a facility owner to secure a manufacturing location. It would need to employ Indian workers. Lastly, the company would have to manufacture a new foldable boat made from used plastics in India with an environmentally friendly, waterproof coating. The new foldable boat could be designed in several ways, and the company would need to test a series of paper products and waterproof coatings to determine which would be suitable for fishers in India. The fishers range in age from 13 to 70, so the design would need to be comfortable and portable enough for all fishers in this target group. The company decides to hire Indian fishers to help design the product to reach this market. These fishers will provide qualitative, open-ended conversations and data that will be valuable in communicating the product’s features and benefits to other fishers. The product will be tested by a variety of fishers that represent different sectors of the fishing industry, different regions, and different cultural segments. Testing will provide generalizable, qualitative data about the product use and effectiveness. REQUIREMENTS Your submission must be your original work. No more than a combined total of 30% of the submission and no more than a 10% match to any one individual source can be directly quoted or closely paraphrased from sources, even if cited correctly. The similarity report that is provided when you submit your task can be used as a guide. You must use the rubric to direct the creation of your submission because it provides detailed criteria that will be used to evaluate your work. Each requirement below may be evaluated by more than one rubric aspect. The rubric aspect titles may contain hyperlinks to relevant portions of the course. Tasks may not be submitted as cloud links, such as links to Google Docs, Google Slides, OneDrive, etc., unless specified in the task requirements. All other submissions must be file types that are uploaded and submitted as attachments (e.g., .docx, .pdf, .ppt). A. Discuss aspects of the company from the provided scenario by doing the following: 1. Describe in detail how the company’s culture could affect the market entry strategy. 2. Discuss in detail whether the organizational structure is an advantage or disadvantage to the company and explain why. 3. Describe in detail how each of the following aspects from the scenario affects the company’s decision-making process: • company culture • organizational structure • strategic direction, including mission and vision statements B. Discuss the company’s product from the provided scenario by doing the following: 1. Describe specific characteristics of the emerging market that affect the company’s product. 2. Discuss how a product design change would meet the emerging market characteristics identified in part B1. Support this discussion with details from the scenario. a. Discuss in detail each of the stages of the design thinking process the company would undergo in the design of the product for the emerging market from part B2. Note: Remember that design thinking is not the same as the decision-making process from part A3. b. Choose three of the following aspects from the scenario, and provide a detailed discussion of their effect on the design thinking process for the product from part B2: • company culture • emerging market culture • company ethics • emerging market ethics • organizational structure • global legal systems C. Discuss in detail how the company’s ethical statement from the scenario influences the market entry strategy. D. Acknowledge sources, using in-text citations and references, for content that is quoted, paraphrased, or summarized. E. Demonstrate professional communication in the content and presentation of your submission.
Answer Below:
Company Aspects Influence of company culture on market entry strategy The company's culture plays a pivotal role in shaping the market entry strategy. In this case, the company has nurtured a culture of innovation, collaboration, and sustainability. Here's how this culture could affect the market entry strategy. The strong focus on innovation implies that the company is likely to approach the Indian market with novel ideas and unique product offerings. This culture of innovation could encourage the company to adapt its foldable boat design to cater specifically to the needs and preferences of the Indian market, potentially giving them a competitive edge. The culture of collaboration, where employees and founders are considered equal partners, can be a significant advantage during market entry. It fosters an environment where diverse perspectives are valued, enabling the company to gather valuable insights and ideas from both its U.S. team and potential Indian partners or employees. The emphasis on sustainability aligns with the company's mission and ethical statement. When entering the Indian market, where environmental concerns are increasingly important, this culture of sustainability can be leveraged as a strong selling point. The company can emphasize its eco-friendly foldable boats as a solution that resonates with India's growing environmental consciousness. The company's culture is customer-centric, and it actively seeks customer feedback and input for product design. This approach can be invaluable when entering a new market, as it ensures that the product offerings are tailored to the specific needs and preferences of Indian consumers. Assessment of organizational structure The decentralized organizational structure described in the scenario can be both an advantage and a potential disadvantage for the company, depending on how it is managed. MARKET ENTRY OVERVIEW 3 The decentralized structure allows for open access to founders and shared decision-making. This promotes agility and quick response to market dynamics (Czinkota et al., 2019). In the context of entering the Indian market, this structure enables the company to adapt swiftly to changing conditions, regulations, and customer feedback. The structure's emphasis on collaboration aligns well with the Indian business environment, which often values relationships and partnerships. It can facilitate smoother collaboration with local partners, government agencies, and the National Fisheries Development Board (NFDB) (Department of Fisheries, 2019). On the other hand, decentralization may lead to challenges in maintaining consistency and uniformity in decision-making, especially when dealing with a complex and diverse market like India. Coordination and ensuring that everyone is aligned with the market entry strategy can be more challenging in a decentralized structure. Influences on decision making process Company Culture: The company's culture, with its emphasis on innovation, collaboration, and sustainability, influences the decision-making process positively. Decision-makers are likely to prioritize innovative product designs, seek input from various stakeholders, and ensure that decisions align with sustainability goals (Liedtka et al., 2013). Organizational Structure: The decentralized structure affects decision-making by promoting inclusivity and open communication. However, it can also lead to more time- consuming consensus-building processes (Czinkota et al., 2019). The company must balance the advantages of inclusivity with the need for agility in decision-making. Strategic Direction: The mission statement, focusing on customer-driven design and growth, guides decision-making by emphasizing the importance of meeting customer needs and MARKET ENTRY OVERVIEW 4 achieving growth. The vision statement, centered on sustainability, underscores the long-term commitment to environmentally responsible practices. Both statements serve as guiding principles that inform decisions related to product development and market entry. Product of the Company Market characteristics influencing product The emerging market in India has specific characteristics that impact the company's product, including usage patterns, environmental concerns, and diverse demographics. Traditional fishers in India predominantly use nonmechanized boats. These boats are preferred for their ease of use in calm waters. The regulations in India favor nonmotorized boats, making them an ideal choice for the local market. India is increasingly emphasizing environmental sustainability. The National Fisheries Development Board (NFDB) promotes natural fishing equipment to minimize disruption to the fishing ecosystem (Department of Fisheries, 2019). This aligns with the company's sustainability ethos and provides an opportunity for market entry. The Indian fishing industry comprises a wide age range of fishers, from 13 to 70 years old. Therefore, the product design should be comfortable and portable, catering to the needs of fishers across different age groups. Impact of product design change on emerging market characteristics To align the product with the emerging market in India, the company should consider several design changes: - Nonmechanized Boat Adaptation The foldable boat's design should specifically cater to the needs of traditional nonmechanized boat users in India. This might involve making the boat even more lightweight, ensuring it is easy to carry, and simplifying the setup process for users who are not accustomed to mechanized boats. MARKET ENTRY OVERVIEW 5 - Environmentally Friendly Materials In response to the NFDB's requirement for sustainable materials, the company should explore using locally sourced, eco-friendly materials for boat construction (Department of Fisheries, 2019). This might involve using recycled plastics and applying a waterproof coating that is environmentally friendly. - Comfort and Accessibility Given the diverse demographics of Indian fishers, the product design should focus on comfort and accessibility for users of all ages. Ergonomic features, ease of boarding and disembarking, and user-friendly controls should be considered in the design. - Local Engagement Engaging Indian fishers in the product design process is crucial. The company should collaborate with local fishers to understand their specific needs, preferences, and challenges. This involvement can provide valuable insights for product adaptation. Stages of design thinking process The company's approach to product design for the emerging Indian market can be structured using the design thinking process, which typically involves several stages (Brown, 2008): Empathize: In this stage, the company would immerse itself in the Indian fishing community, conducting field research, interviews, and observations to understand the unique challenges and needs of the local fishers. This stage aligns with the company's existing culture of seeking customer feedback. Define: Based on the insights gained, the company would define the specific problems and opportunities that the Indian market presents. This might involve identifying key pain points, environmental concerns, and user preferences. MARKET ENTRY OVERVIEW 6 Ideate: The ideation phase encourages the generation of creative solutions. The company could conduct brainstorming sessions involving employees, Indian fishers, and other stakeholders to generate a wide range of product design ideas that address the defined challenges and opportunities. Prototype: The company would then create prototypes of the redesigned foldable boat. Multiple prototypes may be developed to test different design approaches, materials, and features (Brown, 2008). These prototypes can be tested by a diverse group of Indian fishers to gather feedback. Test: Testing involves collecting feedback and evaluating the prototypes' effectiveness in the real-world context of Indian fishing. Fishers from different regions and age groups would be involved in the testing phase to ensure the product's suitability for a broad audience (Department of Fisheries, 2019). Iterate: Based on the feedback and insights gathered during testing, the company would refine the product design iteratively. This iterative process continues until a final design is achieved that meets the needs and expectations of the Indian market. Effect on design thinking process The company's culture of innovation, collaboration, and sustainability profoundly influences the design thinking process for the product. This culture fosters a mindset of innovation, encouraging creative solutions during product design. It empowers employees to think beyond conventional boundaries, enabling the generation of unique and adaptive product ideas. Collaborative values within the company encourage cross-functional teams and stakeholder involvement, promoting the integration of diverse perspectives into the design process. In the design thinking process, this collaborative approach ensures that ideation and MARKET ENTRY OVERVIEW 7 prototyping sessions draw on the collective knowledge and insights of employees, local fishers, and partners (Liedtka et al., 2013). Understanding the culture of the emerging market, particularly the fishing community in India, is pivotal in the design thinking process (Liedtka et al., 2013). The culture's emphasis on user-centric design, predominantly reliant on nonmechanized boats, guides the product design process towards prioritizing ease of use, portability, and comfort. Design thinking incorporates local customs and practices into the product's features and functionalities, ensuring cultural alignment. Additionally, the emerging market's growing environmental awareness, emphasizing ethical considerations, influences the design process. Design thinking explores sustainable materials, recycling options, and eco-friendly coatings to meet these ethical expectations and align with the market's values. Furthermore, the cultural norms of collaboration and community engagement in Indian fishing communities shape the design thinking approach (Department of Fisheries, 2019). It encourages the company to actively engage with local fishers, seek their input, and involve them in the product development process. This collaborative approach not only respects cultural norms but also fosters a sense of ownership among potential users, enhancing the product's market readiness. The company's ethical principles, particularly its commitment to sustainability, have a profound impact on the design thinking process. These ethics guide material selection, favoring choices aligned with sustainability values, such as recycled plastics and environmentally friendly coatings. The design thinking process prioritizes these materials, even if they require additional research and development. Ethical considerations extend to the assessment of the product's environmental impact. The design thinking process includes a thorough analysis of the product's entire MARKET ENTRY OVERVIEW 8 lifecycle, from manufacturing to disposal. It seeks ways to reduce the product's carbon footprint and minimize waste generation, aligning with the company's sustainability ethos. Moreover, ethical practices in stakeholder engagement are emphasized. The design thinking process actively involves all stakeholders, including local communities and environmental organizations, in discussions about the product's design and its alignment with ethical values. This inclusive approach ensures that ethical considerations are integrated into every phase of product development, reinforcing the company's commitment to sustainable and socially responsible business practices. Influence of ethical statement on market entry strategy The company's ethical statement, as outlined in the scenario, plays a significant role in shaping and influencing the market entry strategy, contributing to a holistic and socially responsible approach. Let's discuss in detail how the company's ethical statement impacts the market entry strategy: - The company's ethical statement emphasizes making decisions that are sustainable for customers and the environment. This focus on sustainability profoundly influences the market entry strategy (Czinkota et al., 2019). - The company's commitment to sustainability directly impacts product design. In the context of entering the Indian market, the company would consider design modifications and materials that minimize environmental harm. - Ethical considerations also influence how the company engages with local communities and stakeholders. In India, where the fishing industry often involves local communities, this engagement becomes vital. The company would adopt a collaborative approach that respects local customs and values, seeking input from Indian fishers and environmental organizations (Czinkota et al., 2019). MARKET ENTRY OVERVIEW 9 The ethical statement's commitment to sustainability and environmental responsibility necessitates compliance with local regulations. In the Indian market, where regulations may promote eco-friendly practices, the company would actively seek endorsement from relevant authorities like the National Fisheries Development Board (NFDB). MARKET ENTRY OVERVIEW 10 References Brown, T. (2008). Design thinking. Harvard Business Review Press. Czinkota, M. R., Ronkainen, I. A., & Moffett, M. H. (2019). International Business. John Wiley & Sons. Department of Fisheries. (2019, September). Handbook on fisheries statistics. Government of India. https://dof.gov.in/sites/default/files/2020-08/HandbookonFS2018.pdf Liedtka, J., King, A., & Bennett, K. (2013). Solving problems with design thinking: Ten stories of what works. Columbia University Press.More Articles From Finance
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