Business Report: Testing Viability of Business Initiative

Running Head: BUSINESS REPORT 1
REPORT TESTING VIABILITY OF BUSINESS INITIATIVE
Author name
University

Business Report 2
Contents
Introduction......................................................................................................................................4
SWOT analysis................................................................................................................................4
Outline of business plan for ToolsCorp’s entry into global market................................................8
Mission statement..........................................................................................................................12
Key operating principles................................................................................................................13
Target market analysis...................................................................................................................16
Strategic proposal for three time frames........................................................................................19
Factors leveraging ToolsCorp’s global strategic initiative............................................................23
Conclusion.....................................................................................................................................25
References......................................................................................................................................26

Business Report 3
Executive Summary
Evaluation of the potential market threats, potential and opportunity is essential for ensuring
success of a company in a new market. This report is developed for acquiring permission for a
business plan targeting the entry of ToolCorp Corporation into the global market. Along with
evaluating the strengths and weaknesses of the company, it also identifies its potential
opportunities and probable threats in the target market.
It has provided an outline of the business plan developed a mission statement based on the nine
components of a mission statement and marked the key operating principles of the business.
Through a market analysis, it has compared the two potential markets Australia and France and
identified Australia as a more suitable option for the recent venture. Then the report proposes
strategic initiative of market entry in three timeframes, namely, one year, five year and ten years.
Finally, as additional evidence of viability of such proposal, it has provided an evaluation of the
economic condition of US as well as Australia for explaining the decision of entering the market
of Australia.
Through the completion of this report, it has been identified that a detailed financial and
marketing evaluation is needed in the business plan along with assessment of the human resource
requirement.

Business Report 4
Report testing viability of business initiative
Introduction
Entry into global marketplace calls for extensive market analysis and strategic decision-
making for which evaluation of the potential markets and identification of their suitability as a
target market essential. This report is an evaluation of the prospect of market expansion for
ToolsCorp Corporation, which would be submitted to the Strategic Officers Steering Committee
(SOS-C) of the company to obtain permission for the business plan. Hence, the strength,
weakness, opportunities and threats concerning the organisation and its strategic venture are
evaluated and the requirements of the business plan are outlined along with objectives. For this,
the suitability of two markets, namely France and Australia are evaluated through market
research depending the more suitable one is identified for entry of ToolsCorp Corporation and an
outline of strategic objectives and implementation plan is provided.
SWOT analysis
Strengths Weaknesses
 Locally produced products
 Strong distribution system incorporating
large retailers
 Positive brand image
 Quality products
 Stronghold in the market of USA and Canada
 Manufacturing process concentrated in
Tennessee, USA
 Limited market space
 Limited accessibility for global consumers
 Lack of experience in global operation
management
 Few marketing activities
Opportunities Threats

Business Report 5
 Improvement of global market presence
 Sales escalation
 Competitive brand positioning in target
market
 Collaboration with multinational retail chains
 Establishment of regional headquarters
 Less vulnerability to local economy
 Difference between preferences of home
market and target market regarding product
 Lack of acceptance in target market
 Legal hazard
 High market competition
 High expenses on logistics
Table 1: SWOT analysis of ToolsCorp Corporation
(Created by student)
Explanation for the strengths, weaknesses, opportunities and threats listed in the table are
presented here:
Strengths
The locally produce products enables ToolsCorp to exhibit strong control over the
manufacturing process and quality of the product. The high quality of product and sales through
large retailers within USA and Canada helps the organisation to maintain a profitable sales
performance and positive brand image, which is the key to the consumer preference in the
market. This also results in stronghold of the company in its existing markets, which provides the
company the financial security to explore other markets.
Weaknesses

Business Report 6
The concentration of the entire manufacturing process in Tennessee, USA, increases the
cost of distribution. As the organisation expands in more markets such concentration might
exhaust the organisation’s ability to deliver market demands. The organisation’s marketing
solely depends on the sales paper inserted twice a week by its retailers, which indicates towards
unexhausted marketing potentials. The limited market space and unexhausted marketing
potentials restrict the organisation’s accessibility to the potential customers. The lack of
experience in global operation management and low access to global consumers has restricted its
ability to access other countries despite its exceptional performance in USA and Canada. It also
has the opportunity to access the market of different countries through selling its products via
multinational supply chains this way the organisation’s performance would be less sensitive to
the policy, economic crisis and market alterations in the home country.
Opportunities
The countries under consideration in this study, Australia and France are unexplored
territories for ToolsCorp Corporation. Entering these markets for global expansion would help
the organisation to enhance its presence in the global marketplace, and position uniquely its
products leveraging its existing performance and new operational setting. As ToolsCorp, by
entering Australia and France, would also acquire a chance to explore new continents, it might
use its units in these countries as regional headquarters and conduct its operations in the
continent through it.
Threats
Due to the difference in culture and preferences between the existing and target markets
of ToolsCorp, the organisation faces the threat of lack of acceptance in the target market for its