Business Report: Evaluating ToolsCorp's Global Market Entry Strategy

This business report evaluates the potential for ToolsCorp Corporation's entry into the global market, focusing on market analysis and strategic decision-making. It begins with an executive summary highlighting the need for market evaluation and identifying opportunities and threats. A SWOT analysis is conducted to assess the company's strengths, weaknesses, opportunities, and threats. The report provides an outline of the business plan, including a mission statement based on nine components and key operating principles. It analyzes the target market, comparing Australia and France, and identifies Australia as a more suitable option. Strategic initiatives are proposed for three timeframes: one year, five years, and ten years. The report also assesses the economic conditions of the US and Australia to support the market entry decision. The report concludes that detailed financial and marketing evaluations are needed, along with an assessment of human resource requirements. The report provides an overview of the business plan, market analysis, and strategic initiatives for global market entry. It also includes an evaluation of the economic conditions of the US and Australia to support the market entry decision.

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

Business Report 7
products and marketing activities. Both the countries considered for market expansion, France
and Australia might pose distinctive legal obligations restricting the operation of ToolsCorp in
the target market. As per the rankings of the World Bank Australia stands 6th in simplicity of
acquiring construction permit, 26th in tax payment, 51st in registering property for business and
95th in trading across the border while France ranked 18th, 54th, 100th and 1st in the respective
categories (Doing Business, 2018). Presence of multiple strong suppliers of similar product in
the target market would cause highly competitive pricing, ultimately limiting the profit margin
and revenue of the organisation. The cross-country business operations increase the expenses on
logistic especially when the target market is located on another continent, which ultimately might
hamper the result of the venture.

Business Report 8
Outline of business plan for ToolsCorp’s entry into global market
Objective-
Basic objectives of the expansion would be identified. The preliminary objectives of the
expansion are as followed:
 To become one of top suppliers of lawn accessories in target market
 Development of positive brand image
 Acquisition of 30% market share by the end of ten-year
 Development of sound distribution channel in target market
Mission statement-
Mission statement would be reviewed, modified and stated
Past performance-
Past performance of the company in USA and Canada would be evaluated to identify its
performance and strength in its existing market in terms of:
 Sales
 Gross margin
 Inventory turnover
 Operation expense
Assets and liabilities-

Business Report 9
Current assets and liabilities of ToolsCorp Corporation in USA and Canada market would
be evaluated to evaluate its ability to enter a new international market.
Requirement estimation-
The requirements for the market entry would be assessed and presented. This estimate
would include the breakup and summary of the following factors:
 Total expense
 Asset requirement
 Total liabilities
 Planned investment
Product-
The products that would be initially marketed in target market would be determined and
listed. The Substitute products in the target market would be evaluated to realise potential of the
product in the target market.
Market analysis-
An extensive market analysis would be conducted on the target market to identify its
different segments, nature of market competition, competitors and consumption potential based
on the buying pattern.
Industry analysis-
The nature, potential, regulations and level of competition in the industry would be
identified through industry analysis.

Business Report 10
Strategy-
Based on the result of market analysis the following would be determined:
 Promotion strategy
 Marketing strategy
 Product modification strategy
 Distribution strategy
 Pricing strategy
 Sales strategy
 Positioning statement
 Potential strategic alliances
Milestones and sales forecast-
The market and industry analysis would also provide an opportunity to forecast sales
performance and determine performance milestones. It might also incorporate the milestones of
this expansion plan.
Management-
The management plan during the global expansion of ToolsCorp Corporation would also
be planned, which would include operational personnel plan, determination of management team
and supplier identification.
Financial plan-

Business Report 11
Finally, after consideration of all the requirements discussed above a detailed financial
plan would be developed and the key financial indicators along with the break-even point would
be assumed. This section would include:
 Profit and loss statement
 Break-even point
 Key financial indicator
 Business ratio
 Projected cash flow
 Balance sheet

Business Report 12
Mission statement
The following is the mission statement, for ToolsCorp Corporation for its strategic
initiative of breaking into the global market, developed based on the nine components of a
mission statement (David, David & David, 2014).
To provide armatures as well as professional cooks, technicians and gardeners of
Australia/France; convenient tools and equipment for household fixes, lawn maintenance and
cooking at varied range of prices, backed by exceptional customer services, available at one
phone call, operating globally. The products are developed using latest technology and
environmentally viable material to profitably manufacture and market products to handypersons
and workers across the globe. ToolsCorp Corporation aims to be the bestseller of handy tools and
equipment of the world starting from Australia/France, leveraging compliance, care and
convenience for its customers.