Analysis of Foxy Originals' Business Expansion into the US Market

This report provides a comprehensive analysis of Foxy Originals' business expansion strategy, focusing on its potential entry into the US market. The report begins by outlining the strategic context, highlighting the challenges Foxy Originals faces, including intense competition and limited distribution channels. It then delves into detailed recommendations, emphasizing the importance of innovation, quality assurance, and leveraging technology to overcome these challenges. An implementation plan is proposed, detailing specific objectives, roles, tools, and action plans for innovation, quality control, and technological advancements. The analysis includes Porter's Five Forces, SWOT analysis, and ratio analysis to evaluate the business environment. The report concludes with a break-even analysis, offering insights into the financial implications of different strategies. The case study provides a real-world example of the complexities involved in international business expansion and offers actionable insights for Foxy Originals to navigate the US market successfully.

Business Policy and Strategy

BUSINESS POLICY AND STRATEGY 1
Introduction
Business expansion is the strategy of the organisation to attain success at the international
level. There are many problems face by the organisation while expanding the business in the
other country as the different rules and regulation of every country. The organisation has to
reduce the issues to expand the business. It is required to analyse the business environment
before enter the new market with the help of business tools such as Porter’s Five Forces
Framework, SWOT Analysis, Key competencies and many others. In this report, the
discussion is made on the business expansion of the organisation by measuring or estimating
its performances.
In this report, the case study of Foxy Originals has been taken into consideration to analyse
the business environment of the organisation while expanding the business. Foxy Originals is
a designing company of jewellery that established by two designers. At the beginning of the
report, the strategic issues will be discussed which is faced by the company. After that, the
recommendation will be mentioned in order to overcome the issue. In the end, the
implementation plan will develop for the smooth operation of the organisation.
Strategic Context
Foxy Originals attains high success in the industry due to its innovative designs and diverse
presence. The company planned to expand the business in the US market but it faces the
issues. The strategic issues are faced by the company is discussed below:
Threat of competitors
As per the analysis of the case study, it has been seen that the company faces high
competition in the market. There are 10-15 brands in the market that carries a similar

BUSINESS POLICY AND STRATEGY 2
category of product in order to beat the other companies and gain a high competitive
advantage. The jewellery designing companies in the United States offer the services as per
the consumer demand and requirement due to which the company has a high risk of losing
the consumers. The innovative product provides by the companies helps to grab the high
market share (Herrera, 2016).
Limited Distribution Channel
According to the case study, it has been seen that the company focuses on the limited
distribution channel. The motive of the organisation is to enhance consumer loyalty by
providing the services to a limited number of consumers instead of providing a large number
of consumers. This strategy helps the organisation to build a high brand image in the market
but it is observed that it can face the financial crises while expanding the business. The less
number of orders has been placed by the limited number of consumers due to which the
organisation does not grow in the market.
Evaluation and Recommendation
Innovation and Quality assurance
As discussed in appendices, Foxy faces the issues of competitors as the risk of competitors
has been arising as the 10-15 brands carry the same category of product in the market. It is
essential for an organisation to provide innovative designs of jewellery with high quality.
People mostly prefer the new and creative designs in jewellery that is why; the company has
to design the innovative and unique necklaces, earning and rings. It helps to grab the high
market share over the competitors (Piperopoulos, 2016).
Use of technology

BUSINESS POLICY AND STRATEGY 3
As per the analysis, it has been evaluated that the organisation has to adopt the sales
representative method to enhances the sales instead of a trade show. In the case study, it has
been seen that the organisation does not spend in technology due to which it provides the
services to a limited number of consumers as per the limited distribution channel. It is
recommended that the organisation has to expand the business at the global level by using the
technology such as the internet or digital marketing so; it can provide the services to a large
number of consumers (Venkatesh, Thong, & Xu, 2016).
Implementation Plan
It is required to implement the recommendations at the workplace in order to reduce the
issues. These are implementing as follows:
Innovation and Quality assurance
Objective-
The main objective of this plan is to beat the competitors by providing the innovative and
quality of services to consumers
Roles-
The roles and responsibilities will be distributed among the employees and management in
order to attain the success and the responsibilities are discussed in detail as follows:
• A quality manager has to ensure the quality of each product and it also has to ensure the
design should be innovative and attractive (Elassy, 2015).
• The finance department has to evaluate the cost of production with the revenue to
determine the profits. They also have to ensure the budget of an organisation in order to
spend on the production by evaluating the profit.

BUSINESS POLICY AND STRATEGY 4
Tools
The company has to use the tools in which they can reduce the wastage material and provide
the quality of product to the consumer such as Lean manufacturing and TQM (Dale, &
Plunkett, 2017).
Action Plan
Milestone Time Department
Concerned
Follow up with
designers
6 Months Business
Development
Presentation
Material to
represent the
designs
Project basis Business
Development
Suppliers
follow up
Till the
organisation
Business
Development
Printing
materials
Till the
organisation
Marketing
department
Recruitment Required basis Human
Resource
Department
Staff Training Twice in a Year Human
Resource
Department

BUSINESS POLICY AND STRATEGY 5
Use of technology
Objective –
The main objective of this recommendation is to spread the business with the unlimited
channel of distribution
Roles-
Financial department has to evaluate the budget in order to spend on technology
Production department ensure to produce the innovative and quality of product (Linder, &
Williander, 2017).
Tools
There are different tools used to deliver the services such as internet to develop websites to
attract the consumers, and digital marketing influence the consumers towards the product
(Alaskari, Ahmad, & Pinedo-Cuenca, 2016).
Action Plan
Milestone Time Department
Concerned
Hire employees
with high
qualification
Required basis Business
Development
Web Designers Project basis Business
Development
Printing
materials
Till the
organisation
Business
Development

BUSINESS POLICY AND STRATEGY 6
Building
relationship
with suppliers
and sponsors
Till the
organisation
Marketing
department
Staff Training Twice in a Year Human
Resource
Department
(Sources: Capilano University, 2007)

BUSINESS POLICY AND STRATEGY 7
References
Alaskari, O., Ahmad, M. M., & Pinedo-Cuenca, R. (2016). Development of a methodology to
assist manufacturing SMEs in the selection of appropriate lean tools. International
Journal of Lean Six Sigma, 7(1), 62-84.
Capilano University. (2007). Foxy Originals- Expansion Into The U.S. Market. Ivey
Publishing
Dale, B. G., & Plunkett, J. J. (2017). Quality costing. Routledge.
Elassy, N. (2015). The concepts of quality, quality assurance and quality enhancement.
Quality Assurance in Education, 23(3), 250-261.
Hamidi, H., & Jahanshahifard, M. (2018). The Role of the Internet of Things in the
Improvement and Expansion of Business. Journal of Organizational and End User
Computing (JOEUC), 30(3), 24-44.
Herrera, M. E. B. (2016). Innovation for impact: Business innovation for inclusive growth.
Journal of Business Research, 69(5), 1725-1730.
Linder, M., & Williander, M. (2017). Circular business model innovation: inherent
uncertainties. Business strategy and the environment, 26(2), 182-196.
Piperopoulos, P. G. (2016). Entrepreneurship, innovation and business clusters. Routledge.
Venkatesh, V., Thong, J. Y., & Xu, X. (2016). Unified theory of acceptance and use of
technology: A synthesis and the road ahead. Journal of the Association for
Information Systems, 17(5), 328-376.

BUSINESS POLICY AND STRATEGY 8
Appendix 1
Porter’s Five Forces
Threat of new entrants
Moderate degree of threat
Nowadays, people are more creative and
innovative to design the jewellery
But it is a difficult task to enter the market as
it requires the high cost to invest in the
business.
Bargaining power of consumers
High bargaining power
There are many brands in the different
country that they are popular for their
jewelleries such as 10-15 brands in US who
carry same brand.
Consumer have large option to purchase the
product
Bargaining power of suppliers
High degree of suppliers
The material used in jewellery is rarely
available due to which the suppliers sale at
the higher rate.
Jewellery is made up of pewter, silver, matte
gold or bronze.
Threat of competitors
High level of threat
Sales representative carry 10-15 brands with
the same category
New innovative design are developed by the
exiting companies as per the trend due to
which they face the threat of competitors.
Threat of substitutes
Low level of threat of substitute
It is difficult to exchange the jewellery with the other product
But there are many brands who compete the brand by carrying the similar type of jewellery

BUSINESS POLICY AND STRATEGY 9
Appendix 2
SWOT Analysis
Strength
Promotion technique
High dexmand of consumer
Large network around 250 boutiques across
Canada
Weakness
Difficult to choose the retailers
High cost of booth $4000
Travel cost
Difficult to find the right people with the
right characteristics to make alternative work.
Limited Distribution Channel
Opportunity
 Relationship in the industry helps to
expand the business in US Market
Threat
 10-15 brands in US that carry same
product.
 Difficult to develop the sales
representative in the different location
to survive
Key Competencies
Teamwork As per the case study, both the partners
“Kluger and Orol” work together and attain
the high success.
Responsibility The company perform its responsibility
towards the society by distributing the
services in different level.

BUSINESS POLICY AND STRATEGY 10
Promotion techniques Promotion technique of the organisation is
strong.
The consumers are attracted towards the
services of an organisation.
Large Network The company spread its business at the
international level
Diverse nature Partners of the organisation attend the diverse
shows due to which it learns to provide the
variety of product.
Appendix 3
Ratio Analysis
Ratio Analysis
Trade
Show Sales Representative
Profit Margin Ratio Profit /Revenue 0.163876 0.709673404
Pro Formas
Trade Shows
Revenue Calculations
Neck Ear
Price per unit 17 12
Total Orders 487.5
Total Necklaces units 12187.5

BUSINESS POLICY AND STRATEGY 11
Total Earrings Units 5850
Total Revenue from Necklaces 207187.5
Total Revenue from Earrings 70200
Total Revenue from Necklaces and Earrings from 10
Trade Shows 277387.5
Cost
Trade Show cost for 10 Trade Show 30000
Booth Cost 1333.333333
Booth Shifting Cost 15000
Travel Cost 20000
Promotional Cost 28000
Shipping cost 7312.5
Manufacturing cost for Necklaces 98109.375
Manufacturing cost for Earrings 32175
Total Labour cost 130284.375
Total Cost 231930.2083
Profit 45457.29167
Sales Representative
Revenue Calculations
Total Order 600
Total Unit of Necklaces 15000
Total Unit of Earrings 7200