Global logistics and operations 7/31/2019 7/31/2019 Lenovo-1234 Introduction

Global logistics
and operations
7 / 3 1 / 2 0 1 9
Lenovo-1234

Marketing 1
Contents
Introduction......................................................................................................................................2
Situational analysis..........................................................................................................................3
Cost factors......................................................................................................................................5
Transportation cost......................................................................................................................6
Inventory......................................................................................................................................7
Wholesale and retail....................................................................................................................8
Service factors.................................................................................................................................9
Conclusion.....................................................................................................................................11
Recommendations..........................................................................................................................11
Recommendation for resellers...................................................................................................12
Plan of action.............................................................................................................................12
References......................................................................................................................................15

Marketing 2
Introduction
Incheon electric is a South Korean based manufacturer of power tools that was established three
years ago when spun-off from one of conglomerate operating companies. The products of the
company are of high quality as well as priced competitively. The products that are majorly
offered by the company are used by tradesmen majorly that includes the plumbers, carpenters
and many others with the motive to get the high quality, durability, availability and after-sales
services. The company has enjoyed the success in the market of East Asian markets and now
they are planning to enter into the market of Europe that include diverse countries that include
UK, Eire, Netherlands, Sweden, Germany and many others. Considering this case, the report is
prepared considering the role of logistics consultant it is essential to form the distribution
strategy that includes the entire process of moving products. The situational analysis has been
conducted to evaluate the opportunities in the market of Europe towards the company. Along
with this, it also considers the cost factors as well as the service factors that lead to an impact on
the working of the company. In the end, the recommendations for the effective distribution
strategy are presented along with the plan of action.

Marketing 3
Situational analysis
The situational analysis is considered as the collection of methods that are used by the managers
to analyse the internal as well as the external environment with the motive to organisation
capabilities and business environment (Baker, 2014). This analysis is possible with the help of
the PESTLE analysis, a tool used by managers to analyse and monitor the environmental factors
that can influence the performance. The implication of PESTLE analysis on Incheon electric has
been done below –
PESTLE
factors
Description
Political
factors
The political factors that are required to consider include changes in the rules
and regulation. Incheon electric company will find the stability in the
government due to which there are very fewer fluctuations in rules and
regulations which leads to rise in opportunity for the company while
distributing products (Chernev, 2018). However, the taxation policy in the
market for the power tools conglomerate company might change which leads
to the threat for Incheon electric while entering into the market of Europe.
Economic
factor
The economic factors that are majorly considered by the Incheon electric in
Europe include GDP and purchasing power of customers. This has been
witnessed that there is improvement or decline in most of the countries of
Europe that include the UK, Eire, Netherlands, Sweden, Germany and others
which influence the purchasing capacity of customers. UK economic growth is
witnessed with the improvement in GDP to 0.5% April 2019 from 0.2% in