MOD000978 - Decision Making & Problem Solving: Business Development

This report provides an analysis of decision-making and problem-solving within a sportswear-retailing company operating across Spain, the United Kingdom, and Australia. The company aims to enhance profitability through business development, considering three potential ideas: expanding into the Indian market, developing celebrity-endorsed product lines, and pursuing product diversification and expansion. The report delves into the issues associated with each development plan, including political, economic, cultural, and technological challenges for entering India; costs, competition, and celebrity credibility for endorsement deals; and market knowledge and management complexities for product diversification. Factors such as cost, wealth maximization, risk, long-term advantage, and management are considered to justify investment decisions. Ultimately, the report favors international expansion as the most viable option, emphasizing strategic implementation through communication, structural organization, policy development, resource allocation, and performance control, while also addressing potential implementation issues like resistance to change and legal concerns. Desklib offers more solved assignments and past papers for students.

DECISION MAKING AND
PROBLEM SOLVING
(STUDENT NAME)
DATE: 11/21/18

INTRODUCTION
• The sportswear-retailing company with multi cultural human capital
from three countries that are Spain, the United Kingdom, and Australia.
• The company is selling their 50 percent production through the store
and remaining fifty percent through online
• The company main objective is to grow and enhance its profitability. For
which two business development ideas were there
• Another third suitable business development idea is also included
• The best option among the three development plans will be selected

TWO AVAILABLE BUSINESS
DEVELOPMENT IDEAS
DEVELOPMENT 1
• Expanding company by entering into
new international market
• The chosen market to enter is India
• One of the major reason for steady
growth is Saturation of existing market
• Targeting new market will increase
growth opportunity for the company
DEVELOPMENT 2
• Development of celebrity endorsed
lines of clothing or footwear
• These will be traded through online
or retail outlets
• To influence new customer, and
brand awareness, this could be
result into growth of the company

DEVELOPMENT 1 ISSUES
• While entering into a new country, there are various
aspects and issue that need to considered and need to
face by a company
• To enter into India, the issue could be the issues related to
environmental factors of India like political issues,
economic issues, cultural difference, and technological
issues(howandwhat.net, 2018)
• These issues would be discussed further in detail

POLITICAL ISSUE
Political factors while investing in India include:
• Political environment of country is largely affected by policies
of government, ideologies of various political parties, interests
of politician
• Stable political environment
• High level of corruption
• Corruption is the major issue to be considered under this aspect
• As corruption increases, operating cost of the company
increases(export.gov, 2018)

ECONOMIC ISSUES
• Economic factors of country
are:
• GDP of India was $2.4 trillion
and its expected to grow to
7.4% by 2020 according to
world bank group
• Tax – corporate tax in the
country is thirty percent, it
could be one of the issue for
company to invest.
(Source: (tradingeconomics, 2018)

ECONOMIC ISSUES
• Unemployment rate –
this is another major
issue, as unemployment
rate of India is very high
• From the figure it can be
said that the
unemployment rate has
drastically increased
(Source: (tradingeconomics, 2018)

CULTURAL DIFFERENCE
• The culture of India is one of the
major factor that influence
investment decision for a country
• Residents of India are very
influence towards religion,
believes, and values and are very
particular about them.
• Harming or influencing their
culture is one of the major concern
for company to trade into India
• Multicultural country, different religion
are having different cultural values
• Language- the first main language is
Hindi, and second language is English.
• Nevertheless, there are around 1652
languages used in country based of
individual religion
• For example, cow meat is believed like
crime in the country. Due to which
McDonalds failed in the country
(commisceo-global, 2018)

CULTURAL DIFFERENCE
• A real life example in sportswear
company is convers, it fails because
pictures of god were printed on the shoes
• In 2010, the company launches a range
of products with god pictures in India
• As per the culture of the country, god or
goddess picture cannot be touched by
foot
• Religion are center of life for residents of
country (indiatvnews, 2018) (Source: indiatvnews, 2018)

TECHNOLOGICAL ISSUES
• Technological aspect is another issue
that affect the investment decision.
• This include factors like,
transportation industry,
infrastructure, technological disrupts,
rate of technological
diffusion(transformingindia.mygov.in,
2018)
• For product offering and reaching out
to the customer, technology plays an
important role
• In India, the transportation has been
improved since many years, like taxi
industry is also improved.
• One of the issue is, infrastructure
majorly in rural areas. The road
connectivity is still an issue in
Country’s rural area
• Technological acceptance, it is
another issue, people are not
quickly adaptable to new technology
in the country

DEVELOPMENT 2 ISSUES
The issues or factors considered while
introducing product line of celebrity
endorsing:
Cost to the company
Competition
Long term commitment
Creditability of celebrity
Constant monitoring
Brand over endorser

COST TO THE COMPANY
• Collaboration with celebrity will
increase the cost to the
company
• Cost includes payment to
celebrity, and marketing cost,
which will eventually increase
the price for customers
• The return to the investment
must be considered before
investing in such a
collaboration, otherwise it can
be issue to the investing brand
COMPETITION
• Now a days, this marketing strategy
has become common. Many
companies are using this strategy for
growth
• The completion has increased within
this strategy as well, the real life
example ion sportswear industry is
Nike.
• Nike and Michal Jordan collaboration
was one of the successful collaboration
in 2017(martinroll, 2018)
• For gaining this opportunity, this factor
must be kept in mind