****This is for BA 498 and need it by tonight***** (1) Consider a golf club manu
ID: 332368 • Letter: #
Question
****This is for BA 498 and need it by tonight*****
(1) Consider a golf club manufacturer that is running near capacity and considering an expansion of manufacturing facilities. Would it make sense to make that investment just before the peak of the current economic cycle? How do you know what stage the economy is actually in? What factors would you consider when making this decision?
(2) Sunnie Day is the CEO of a company, based in Enterprise, OR, that makes an innovative new kind of energy bar (The Energy Log). Based on your PESTEL analysis what are the top 2 or 3 environmental factors that Sunnie needs to be very aware of? How could they affect her business? What could she do to minimize the effect or maximize the opportunity?
(3) Consider Porter’s Five Forces model as it relates to Sunnie’s company (above). Which of the five forces are likely to be the most important and why? Based on your analysis, relatively speaking, is this opportunity going to be associated with higher or lower profit potential?
Explanation / Answer
In this specific condition expansion of manufacturing facilities before the pic of current economic cycle is definitely a better option. Expansion of the manufacturing facilities would definitely provide additional support for the next economic cycle. Overall growth ok market and paying capacity of the customers should be considered. Analysing the company's overall revenue generated from the same market and focusing on upcoming Trends as well as strength of the specific sports segment in which the company has to sell the equipment should be considered while making the decisions. Geographical condition and availability of raw materials which is essential for producing world club is also an essential part for the expansion.
Top environmental factors which Sunny must be aware of include creating increase carbon footprints by the manufacturing facilities. This type of approach we should be used to reduce the overall carbon footprint of the company and to improve the market position.
Other environmental factors for the company would be to assess the market competition in the similar marketing environment. This type of approach would help the company to understand competitive risk and to develop the product accordingly which would increase the overall sales of the product in the specific market segment and also help Sunny's company to specifically target the market.
According to the porter's five forces analysis, substitution and threat of new entrants are the most important factors which have to be considered by the company. As new businesses usually have better developed products as they enter in a different segment of Technology, having an eye on a new entrants as well as assessing overall impact of the substitution by the customers regarding other products is essential for the company to maintain their brand image and to improve their product quality to meet the customer demand. And the product already has better brand identity it would be beneficial for the company to develop new promotional strategy for capturing a specific market segment and to improve product diversity by implementing new product range into the system.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.