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Homework answers / question archive / Consider this scenario: Able Corporation is a US manufacturing company located in Tennessee that builds power tools, lawn mowers, lawn furniture, microwaves, and ranges
Consider this scenario:
Able Corporation is a US manufacturing company located in Tennessee that builds power tools, lawn mowers, lawn furniture, microwaves, and ranges. All products are manufactured locally and sold through large retailers like Sears, Best Buy, and Wal-Mart. They have sale papers inserted in every Wednesday and Sunday paper. Although they have a thriving business in the US and Canada, Able is trying to break into the global marketplace.
I'm writing a business plan for this company, and I need help with part of the SWOT external analysis - threats.
Thanks. Please, cite your sources in APA Style
Threats for Able Corporation in their endeavour to explore Global Marketplace:
1) The major threat is from numerous competitors around in the world in different international markets. Since each market is unique and presents a different kind of competitive scenario, it is very difficult for a new entrant like Able to cope with the competitive threats posed by these numerous competitors, both global as well as local players, in these different international markets.
2) Lack of experience in operating in international markets can also prove to be a major weakness as well as a threat for Able Corporation in its endeavour to explore global markets. Since it is a new entrant, it needs to cope with the dynamic international business environment which offers different kind of challenges as compared to domestic market.
3) As Able has been quite successful in its domestic market, it might be lured to replicate that strategy in international markets as well, which may or may not be successful in each of the market.
4) General external threats prevalent in international business scenario, such as those related to exchange rate fluctuations, sudden changes in socio-political and economic environment of a particular country or region, changes in export-import policies,etc. apply to Able corporation. Since Able does not possess any significant experience in these areas, such threats might take a big shape if not tackled carefully. Given the uncertainties prevalent in international markets today, Able needs to prepare itself in advance to mitigate such risks arising due to sudden changes in the socio-political and economic environment.
5) Another major threat that might arise is due to inappropriate selection and training of international employees who will be hired for the different offices around the world. Able needs to chalk out an appropriate international human resource management strategy to impart proper training to its current employees for operating successfully in multicultural environment as well as hire seasoned international business professionals for its global offices.
