MGT 680 Week 4 Discussion

MGT 680 Week 4 Discussion | American Intercontinental University

GP Three Primary Questions

I posted this information in the unit 2 DB and discussed it in those chats. I discussed these three questions in the unit 3 Chats and DB and suggested you needed them for any GP Outline which would help your group organize its project for the unit 3 DB.

I am telling you, you need the answers to these three questions before you can possibly develop your Executive Summary of your group's GP for your unit 4 DB.

I just wanted to remind you of the Three Primary Questions your group will need to decide before any real progress can be made on your GP.  The three questions are WHERE, WHAT and HOW? Where will you expand? What will your expansion do? How will your expansion do it?  

We have included a requirement for some specific detail from your GP for your unit 3 DB outline of the GP. The three primary questions are key to this specific detail. You cannot sufficiently respond to any of the seven GP questions unless you know the answers to the three primary questions.

Why? Your group needs to know the answers to these questions by the unit 3 timeframe or your project is behind the curve. As previously stated; you cannot sufficiently answer any of the DB questions without knowing the answers to the three primary questions.

In the unit 4 DB, you will have to know the answers to these three primary questions because you are asked to do an executive summary of your GP. No executive summary of a global expansion plan could exist without the answers to the three primary questions. Consequently, solving the riddle of WHERE, WHAT, and HOW—the three primary questions—in unit 3, will put you ahead of the curve for unit 4. The unit 4 DB Executive Summary will require you to summarize your ENTIRE GP—at least a description of the three strategies, some SWOT factors, and some Market Research findings as well as the answers to the Three Primary Questions. Without that knowledge, you cannot possibly write an executive summary of your GP.  

THREE PRIMARY QUESTIONS

1—WHERE will you take ToolsCorp to Expand: To know this, you will have to determine what attributes your group feels are necessary for the expansion country. You will have to decide the answer to question 2, if this is your manufacturing or sales location, or both.   You must realize that manufacturers must operate efficiently, so there will be no surplus inventory lying about in warehouses to sell and there will be no excess capacity in current manufacturing facilities to simply turn-on; so you must develop a manufacturing capability if you are going to sell. Certainly, you would want to ensure some basics—a stable government, foreign investor-friendly laws, a sufficient civil, social and technological infrastructure to support your firm, a skilled workforce capable of supporting your business, a consumer market where your products are in demand, a suitable supplier and distributer network, a suitable life-support systems for key personnel and families, etc., ad infinitum.

2—WHAT will you have ToolsCorp do there: a) will you go for manufacturing or b) will you go for selling, or c) will you go for both? Again, the method in which you decide to manufacture and the way you intend to sell your products must be suitable to the attributes your expansion country(ies) possess(es). Additionally, ToolsCorp would likely choose a joint venture partner with whom to share risks since ToolsCorp is unfamiliar with global business practices. Joint Venture partners not only share the risks, they can share the costs or assets and; since they are local firms, they know the local laws, regulations and business culture. Furthermore, the local JV partner would have the needed contacts for suppliers and distributors and may have the facilities you need. 

3—HOW will you do what you intend to do: a) HOW will you manufacture: i) greenfield, ii) Joint Venture, or iii) outsource; and b) HOW will you sell: i) large retailers, ii) your own retail outlets, iii) franchising, iv) online only; or v) some other method of sales? Currently, ToolsCorp uses the large retailers (big boxers) for retail sales; would you change this current successful strategy or devise a different and better one? Research other manufacturers—some sell through franchisees, some through product-specific retailers, some through mail-order or online, some operate their own retail stores—you will see many ways to distribute and sell. Remember, the big boxers may use all the aforementioned methods. Do a cost-benefit analysis to help you decide which way of selling is best for ToolsCorp.  

None of these decisions should be taken lightly.  You need to research and analyze your firm’s best bet and come to an agreement among your group members. Research how a majority of manufacturers distribute and sell their products and find out why they do it that way. Remember, the large retailers offer state-of-the-art retail and marketing expertise; including e-commerce and the latest technologies.  As such, the larger retailers can provide some of the best consumer and production information available. They gather all forms of consumer data trends through their constant contact with consumers and they provide demand information—a manufacturer’s contract with the large retailer tells how many products of each type will be ordered. Think about it; retail and marketing expertise with thousands of outlets worldwide, combined with quality information from consumers around the globe, and production demand numbers from the retailer’s contracts.

All these benefits notwithstanding; not every manufacturer uses the large retailers, so you do not have to either. If you can find a better way; suggest it. But first; think it through carefully, compare the alternatives, and do a cost-benefit analysis.

All members need to know the best decisions on these three considerations-- WHERE will you take ToolsCorp. . . WHAT will you have ToolsCorp do there. . . and HOW will they do it—before much can be done on your GP.

I suggest the answers to these three questions should be your specific detail for your project when you complete the unit 3 DB Outline of your GP.

You should know and discuss the Three Primary Questions in your unit 4 DB Executive Summary* 

If your group has decided those three primary answers; use them, just write it in your own words do not simply copy the words of others—the DB assignments are individual assignments. If your group has not decided; you decide for your outline. Select a country and a method of expansion that makes sense to you; your group mates can use your ideas to help them brainstorm the best way to go. If your group decides a different expansion route and method, no problem; the unit 3 DB outline does not have to reflect your final GP; it is just an analytical exercise to get you to go deeper into your GP.

Similarly, in the Unit 4 DB Executive Summary; you will have to provide not only these three primary answers, but you will need at least a description of all Three Strategies, some SWOT factors, some Market Research and/or other specific data about your GP. However, all this can change for your final unit 5 GP.