International Business Project Linking Germany and Australia - Assignment Example

International Business Project Linking Germany and Australia Name Institution Date Table of Contents International Business Project Linking Germany and Australia 1 Table of Contents 2 International Business Project Linking Germany and Australia 2 Introduction 3 Vision, Mission and Objectives of the Business 3 SWOT analysis 4 Strength 4 Weaknesses 5 Opportunities 5 Threats 6 VIRO analysis 7 Conclusion 9 References 10 International Business Project Linking Germany and Australia Introduction Furniture business is quite lucrative due to the high demands for the products across the world. The designs of the furniture always differ depending on the cost. Appropriate and suitable design is essential in the manufacturing process as it reduces the cost of manufacturing which is advantageous to the business owner. The cost of labor is also an important consideration in the furniture manufacturing industry. This is because the manufacturing requires a lot of labor. It is therefore important to put into consideration the labor cost so as to determine the amount of profit that can be generated. The location of the business enterprise is also an important consideration due to the cost implications and the risk factors. The design of furniture in Germany is always considered the best and it is cheap and suitable for all the types of customers (PKF Germany, 2010). The cost of labor on the other hand is cheaper in Vietnam due to the employment rats. This makes it easy to manufacture the furniture for sale in Western Australia. The paper thus discusses a business plan in the furniture industry that will base its design in Germany. Manufacturing will be carried out in Vietnam while the products will be sold in Western Australia. Vision, Mission and Objectives of the Business The vision of the company is to be the leading manufacture of furniture in Australia in the next two years. This is to be achieved through satisfying the customers by coming up with the required design of the furniture. The mission of the company is to conquer the Western Australian market in the design and manufacture of the furniture. The main objective of the company is to ensure that it satisfies all the demands of the customers. The company also intends to come up with unique designs of the furniture that will capture the attention of the customers. The use of unique design is also for the benefit of the customers as it will ensure that the company increases it sales. The company also intends to promote the protection of the environment through planting of trees and support the environmental activities. This is because the company will be dealing with the forest products when manufacturing its products. SWOT analysis Strength The company expects to conquer the Australian market due to the various strengths and advantages in the market. The design of unique furniture is one of the strengths in the market nature that the company will enjoy. This s because most f the customers in Australia require the unique design of their furniture which is quite rare (Chekitan, 2005). Very few companies are able to offer a unique design which is an advantage to the company. It is also important to note that the company will be contacting another company in Germany to come up with the designs. This is an advantage to the company as it is well known that the some of the clients imports their furniture from Germany. The trading atmosphere in Germany is also favorable for the Australian companies. This is due to the low costs of operations as compared to other countries. The economic situation in Germany is also favorable for doing business which is one of the advantages the company will benefit from. The investment that the company intends to use is also strength for the company. The company is financially stable and it will be able to pay for any cost of operations during the initial stages. The strengths of the company will enable it to dominate the western Australian market. Weaknesses Despite the strengths that the company has, various weaknesses also exist in the market. Since the company will be using the designs from Germany, it may impact negatively on some of he customers. The indigenous populations in Australia prefer the Australian models and may impact negatively on the company. The cost of importation is also high as compared to the internal market. If the design was to be carried out internally within Australia, the cost would be lower. The fluctuation in the economy in Europe may also impact negatively on the company. The market economy in Europe is worsening due to various factors (Menon, 1999). This instability in the market may have negative impacts on the company. It could also lead to losses for the company if the fluctuation worsens the market environment. On the other hand, the manufacturing station for the company may also increase the cost of operations. The taxes in Vietnam are high and may have negative impacts on the company. This will definitely reduce the revenue of the company. Some of the raw materials will also require importation for it to fit the designs. The cost of importation is also high and it may affect the company in terms of revenue. Opportunities The furniture industry in Australia does not have major competitors. The company will therefore be able to fill the vacuum easily. The labor market in Vietnam is quite conducive. This is an opportunity for the company as it will exploit the situation. The readily available labor means that the company will not face any problems with regard to the cost of labor. On the other hand, the trade ties between Australia and Germany is quite good. This will offer the company a conducive opportunity to trade with its counterpart in Germany. The Australian market is also very flexible in the furniture industry. The customers’ requirement in the furniture industry is quite high in terms of the design. The company has the opportunity to offer the customers their needs and demands due to the unique designs it intends to offer. The market situation in Australia is also very conducive for trading in furniture. This is due to the high demand in the products as it is required in every home. The demand offers the company with an opportunity to make more profits. The company therefore has a lot of opportunities that favors it. Threats The company faces several threats in the market environment. Although the company does not have major competitors in Australia, the market entry is usually difficult. New companies always find it difficult to operate in Australia during its initial stages. This is a big threat to the company as its operations may be affected. The taxes on the forest products are also high due to the environmental concerns (Armstrong, 2006). These products are essential for the operations of the company and hence a very big threat to the company. The company also faces external threats from other companies. Some of the customers are very loyal to companies from other countries. This may take long for the company to convince the customers to change their mind. Some of the external companies are also setting up their branches in Australia which could create a competition to the company. On the other had, the forest products are increasingly becoming scarce. This may affect the operations of the company and hence low revenues. This is a big threat to the company as it heavily relies on the forest products for its operations. The success of the company will thus depend on the measures it puts in place to handle the threats. VIRO analysis The question of value is very important in the operations of the company. The company has the potential of utilizing the available resources and it can deal with any external threat. The company has enough resources that it can utilize for the purpose of neutralizing the external threat. A strong marketing team will enable the company to gain ground in Australia and thus neutralizing the external threats. The designs from Germany are also very attractive and popular to the customers. This will enable the company to gain popularity and hence neutralizing the threats posed by the competitors. Very few companies in Australia have similar concepts with the company. This makes it quite unique as compared to the other companies. This will enable the company to easily deal with any threats in the market both internal and external (Edvinsson, 2000). The management team of the company can also enable it to come up with a strong mechanism of dealing with the threats. The question of Rarity is very important for the company as it will be dealing with a resource that is increasingly becoming scarce. The control of the forest products is beyond the ability of the company. This is due to the strict measures to control the production of timber. As a result of this, very few companies control the resources. This means that the company will have to rely heavily on the importation of the products. This rarity of the resources that the company requires is a big challenge to the company. The operations of the company may be affected if the orders are delayed and thus affecting the production process as well. It will therefore require the company to put in place measures to deal with the challenges regarding the rarity of the products This ay require the company to invest more on the raw materials for the purpose of making bulk orders. Imitating other company is also an important concept when dealing with scarce resources. Although the company has to rely heavily on the forest products during the production of the furniture, it can still make imitations. The company can still use other materials like plastic during the manufacturing process. This will ensure that the company does not lack the raw materials which may affect its operations. This is because plastic is readily available at a lower cost as compared to the wood products. However, this will mainly depend on the requirements of the customers. The customers have to be consulted before the imitation. This will avoid the chances of inconveniencing the customers as they may not like the plastic furniture. The company must also be innovative enough for the purpose of ensuring that the imitation works. Innovative products will ensure that the customers are attracted to the products of the company despite the materials used (Hesterly, 2010). The question of organization is also important for the company. The organization of the company is important in terms of determining the ability of the company to exploit the resources (William, 2005). The organization of the company also determines how well the customers are treated. The company must be well organized in order to win the hearts of the customers. The company is well organized for the purpose of exploiting the resources. The leadership of the company is good which will enable it to operate smoothly. On the other hand, the company requires better management due to the nature of its operations. The company will require representatives in Germany as well as Vietnam. This is mainly for the purpose of ensuring that the processes are run smoothly. The representatives will also play an important role in the coordination of the function of the organization. Proper organization is therefore an important factor for the success of the company. Conclusion In conclusion, the company has a lot of chances and opportunities to exploit. The operations of the company mainly depend on the strengths and opportunities that it has. It is also evident that the economic situation in Germany favors the development of the company. However, the weaknesses that exist may pose a challenge to the company. It is thus important for the company to put in place adequate measures so as to combat the challenges. The VRIO analysis also shows that the company has the potential to exploit the market. This will greatly benefit the company in terms of revenue generation and its manufacturing process It is also evident that the company will require strong leadership and management team This is for the purpose of enhancing the capacity of the organization in terms of dealing with the challenges. However, despite the challenges, it is evident that the company will make a huge impact in the Australian market. References PKF Germany (2010) Doing business in Germany. Wirtschaftsprüfungsgesellschaft Armstrong. M. (2006). A handbook of Human Resource Management Practice (10th edition), Kogan Page, London Menon, A. et al. (1999). Antecedents and Consequences of Marketing Strategy Making. Journal of Marketing (American Marketing Association) 63 (2): 18–40. Edvinsson, L. (2000). Crystallizing knowledge of historical company performance into interactive, query-able 3D Landscapes. Retrieved on 16 September 2012 from Hesterly, W. et al. (2010). VRIO Framework. In Strategic Management and Competitive Advantage (pp. 68-86). New Jersey: Pearson. William, S. et al. (2005) Strategic Management and Competitive Advantage: Concepts. Pearson Education, Inc., Upper Saddle River, New Jersey, 07458 Chekitan, S. (2005). "In the Mix: A Customer-Focused Approach Can Bring the Current Marketing Mix into the 21st Century". Marketing Management 14 (1). Read More