Verified Document

Mfg/Sales Strategy There Are A Research Paper

India is becoming a popular destination for foreign FDI as a result of that country's large and growing economy and economic reforms (Chakraborty & Nunnenkamp, 2006), meaning that capital inflows to India are not likely to meet with major challenges. The country can also be used as a springboard to the rest of Asia, with Indian production going to other Asian nations. Entering the market with a joint venture for both production and sales is important as well because it creates an operating hedge, thereby reducing the amount of foreign exchange risk faced by the company, important given that the rupee is not a hard currency and the derivatives markets for the rupee are relatively illiquid as a result.

Entering the U.S. market is the most straightforward. Hamilton is no more than 90 minutes from the border and the I-90. Shipping westward is also easy, due to the plant's proximity to the 403/401. Other transportation links with the U.S. are also strong, and this trade corridor is among the busiest in the world. NAFTA has allowed Canada's consumer electronics business to flourish (Datamonitor, 2010) and although the C$ is expected to remain high vs. The U.S.$ (Johnson, 2011), the hedging market is highly liquid. There are few cultural barriers in the U.S. market. Shipping to the U.S. will also give the Hamilton plant the opportunity to build economies of scale that will help to lower the average cost of production. This can help with making the plant competitive with respect to shipping to Europe.

It is recommended therefore that the U.S. market is entered only with a sale arm, and manufacturing be conducted in Hamilton. It is also likely that this option will be used for the European market as well. Shipping can...

Lawrence, or via train or truck to Saint John or Halifax. It is worth looking for a local production partner in Europe, however, but setting up wholly-owned sales subsidiaries as European channels are similar to North American ones. The Indian market will require a manufacturing subsidiary and this should be a joint venture with a local firm. This JV will be responsible for sales as well.
Works Cited:

Datamonitor. (2010). Consumer electronics -- North America (NAFTA) industry guide 2010. Datamonitor Retrieved May 9, 2011 from http://www.datamonitor.com/store/Product/consumer_electronics_north_america_nafta_industry_guide_2010?productid=9C7B124D-02FA-4122-95D0-6C9107383852

Harper, D. (2011). How companies use derivatives to hedge risk. Investopedia. Retrieved May 9, 2011 from http://www.investopedia.com/articles/stocks/04/122204.asp

Johnson, J. & Tellis, G. (2008). Drivers of success for market entry into China and India. Journal of Marketing. Vol. 72 (3) 1-13.

Johnson, K. (2011). Canadian dollar surges as CPI sharply exceeds expectations. Wall Street Journal. Retrieved May 9, 2011 from http://online.wsj.com/article/BT-CO-20110419-713715.html

Transparency International 2010 Corruption Perceptions Index. Retrieved May 9, 2011 from http://www.transparency.org/policy_research/surveys_indices/cpi/2010/results

Charkraborty, C. & Nunnenkamp, P. (2006). Economic reforms, foreign direct investment and its economic effects in India. Kiel Institute for the World Economy. Retrieved May 9, 2011 from http://www.ifw-members.ifw-kiel.de/publications/economic-reforms-foreign-direct-investment-and-its-economic-effects-in-india-1/kap1272.pdf

Sources used in this document:
Works Cited:

Datamonitor. (2010). Consumer electronics -- North America (NAFTA) industry guide 2010. Datamonitor Retrieved May 9, 2011 from http://www.datamonitor.com/store/Product/consumer_electronics_north_america_nafta_industry_guide_2010?productid=9C7B124D-02FA-4122-95D0-6C9107383852

Harper, D. (2011). How companies use derivatives to hedge risk. Investopedia. Retrieved May 9, 2011 from http://www.investopedia.com/articles/stocks/04/122204.asp

Johnson, J. & Tellis, G. (2008). Drivers of success for market entry into China and India. Journal of Marketing. Vol. 72 (3) 1-13.

Johnson, K. (2011). Canadian dollar surges as CPI sharply exceeds expectations. Wall Street Journal. Retrieved May 9, 2011 from http://online.wsj.com/article/BT-CO-20110419-713715.html
Transparency International 2010 Corruption Perceptions Index. Retrieved May 9, 2011 from http://www.transparency.org/policy_research/surveys_indices/cpi/2010/results
Charkraborty, C. & Nunnenkamp, P. (2006). Economic reforms, foreign direct investment and its economic effects in India. Kiel Institute for the World Economy. Retrieved May 9, 2011 from http://www.ifw-members.ifw-kiel.de/publications/economic-reforms-foreign-direct-investment-and-its-economic-effects-in-india-1/kap1272.pdf
Cite this Document:
Copy Bibliography Citation

Related Documents

Simpson Mfg the Capital Structure Refers to
Words: 623 Length: 2 Document Type: Essay

Simpson Mfg The capital structure refers to the way that the company is financed. There are two basic forms of financing -- debt and equity -- and a number of other choices that can be made within the scope of those options. The capital structure for Simpson Manufacturing as of December 31, 2011 is 11.3% liabilities and 88.7% equity. The company has $5.239 million in long-term debt, $95.515 million in total

De Beers Case Study Conduct
Words: 5277 Length: 12 Document Type: Research Proposal

All of these factors then contribute to the complexity of hiring senior international positions, and underscore the HR issues that are going to cause difficulties in the hiring process. De Beers' recruiting process is going to have to focus on those professionals in critical skill gap positions that are accustomed to being in an industry that has complex ethical trade-offs that need to be made, yet has the necessary initiative

Data Warehouse a Strategic Weapon of an Organization
Words: 10375 Length: 38 Document Type: Term Paper

Data Warehousing: A Strategic Weapon of an Organization. Within Chapter One, an introduction to the study will be provided. Initially, the overall aims of the research proposal will be discussed. This will be followed by a presentation of the overall objectives of the study will be delineated. After this, the significance of the research will be discussed, including a justification and rationale for the investigation. The aims of the study are to

Zara Case Analysis Zara: It for Fast
Words: 3986 Length: 10 Document Type: Term Paper

Zara Case Analysis Zara: IT for Fast Fashion is a unique case study in that it powerfully illustrates how a lack of IT integration and process efficiency can over time force an organization into complacency, lowering the standards of performance due to a lack of real-time market and operations data and analytics. The POS terminals that are running on a discontinued version of the Microsoft DOS operating system is a metaphor

Incentive Plan Incentive Program Proposal Real Estate
Words: 740 Length: 2 Document Type: Essay

Incentive Plan Incentive Program Proposal Real Estate Company Employee motivation is the key to increasing productivity at any organization, but it is particularly important in sales related industries such as Real Estate. The real estate sales force must be able to remain motivated even in the face of continual ejection from buyers. To remain motivated and productive requires a combination of both intrinsic and extrinsic motivation. Pay incentives and other benefits are

American Automotive Industry and Porter's
Words: 3581 Length: 10 Document Type: Research Paper

4). 2.4 Effects of Environment: Concerns related to carbon emission were heightened in mid-2000s and in 2007 Al-Gore in his book 'An inconvenient Truth' condemned the big three saying "They keep trying to sell large, inefficient gas-guzzlers even though fewer and fewer people are buying them." In comparison to other developed countries in Europe and Asia, American standard for distance covered in one U.S. gallon was only 25 mpg (miles per gallon).

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now