WALTER MEIER: JET INTERNATIONAL EXPANSION

WALTER MEIER: JET INTERNATIONAL EXPANSION Description

Charged with growing annual revenues by US$10 million over the next five years (2012-2017), half of which was to come from Latin America, Doug Quackenbos, head of global business development at Walter Meier Manufacturing Inc. had undertaken extensive market research to identify the best new international market opportunities for Walter Meier's JET brand of industrial products and metalworking and woodworking machinery.Specifically he identified Brazil as an attractive new market for expansion. Success would hinge on developing the right market-entry strategy. To that end, four foreign market entry options were identified: 1) Greenfield company-owned distribution strategy; 2) Partner with a Brazilian master distributor; 3) Acquire or form a joint venture (JV) with a Brazilian tool distributor; 4) Acquire or form a joint venture with a Brazilian tool manufacturer. Quackenbos would have to sell a strategic vision for growth that was not resource-intensive - a challenge for a mid-size player in a market filled with a range of regional and national competitors. Based on what he was about to propose, and against the backdrop of a soft, recessionary global industrial economic environment, Walter Meier's executive team would question the merits of expanding into new emerging markets, the attractiveness of Latin America, and specifically the advantages of entering Brazil. The case provides background information on the company and the metal and woodworking machinery markets and competition in each of them. Walter Meier's international expansion aspirations are described, and the process for identifying Brazil as a new market for expansion is explained. The case concludes with the trigger issue of which foreign market entry mode will work best for Walter Meier in Brazil. A supplemental 10-minute video interview is also available. The video captures Doug Quackenbos's views on the international business development opportunities and challenges for a medium-size company, how he gathers market intelligence and manages uncertainty, and what he foresees for Walter Meier in Latin America and Brazil. Learning objectives: (1) Foreign market attractiveness, in particular the pursuit of opportunistic growth strategies; (2) Challenges medium size companies in business-to-business markets face when seeking growth internationally; (3) Opportunities and threats in entering emerging "BRIC" markets; (4) Evaluation of foreign market entry modes; (5) Securing distribution in new international markets.

Case Description WALTER MEIER: JET INTERNATIONAL EXPANSION

Strategic Managment Tools Used in Case Study Analysis of WALTER MEIER: JET INTERNATIONAL EXPANSION

STEP 1. Problem Identification in WALTER MEIER: JET INTERNATIONAL EXPANSION case study

STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of WALTER MEIER: JET INTERNATIONAL EXPANSION case study

STEP 3. Industry Specific / Porter Five Forces Analysis of WALTER MEIER: JET INTERNATIONAL EXPANSION case study

STEP 4. Evaluating Alternatives / SWOT Analysis of WALTER MEIER: JET INTERNATIONAL EXPANSION case study

STEP 5. Porter Value Chain Analysis / VRIO / VRIN Analysis WALTER MEIER: JET INTERNATIONAL EXPANSION case study

STEP 6. Recommendations WALTER MEIER: JET INTERNATIONAL EXPANSION case study

STEP 7. Basis of Recommendations for WALTER MEIER: JET INTERNATIONAL EXPANSION case study

Case Analysis of WALTER MEIER: JET INTERNATIONAL EXPANSION

WALTER MEIER: JET INTERNATIONAL EXPANSION is a Harvard Business (HBR) Case Study on Leadership & Managing People , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. WALTER MEIER: JET INTERNATIONAL EXPANSION is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. WALTER MEIER: JET INTERNATIONAL EXPANSION case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. WALTER MEIER: JET INTERNATIONAL EXPANSION will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

WALTER MEIER: JET INTERNATIONAL EXPANSION case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Leadership & Managing People, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of WALTER MEIER: JET INTERNATIONAL EXPANSION, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The WALTER MEIER: JET INTERNATIONAL EXPANSION case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Leadership & Managing People Solutions

In the Texas Business School, WALTER MEIER: JET INTERNATIONAL EXPANSION case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – WALTER MEIER: JET INTERNATIONAL EXPANSION

Step 1 – Problem Identification of WALTER MEIER: JET INTERNATIONAL EXPANSION - Harvard Business School Case Study

The first step to solve HBR WALTER MEIER: JET INTERNATIONAL EXPANSION case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Walter Meier is facing right now. Even though the problem statement is essentially – “Leadership & Managing People” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Walter Meier, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the WALTER MEIER: JET INTERNATIONAL EXPANSION.

The external environment analysis of WALTER MEIER: JET INTERNATIONAL EXPANSION will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in WALTER MEIER: JET INTERNATIONAL EXPANSION case study. PESTEL analysis of " WALTER MEIER: JET INTERNATIONAL EXPANSION" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with WALTER MEIER: JET INTERNATIONAL EXPANSION macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for WALTER MEIER: JET INTERNATIONAL EXPANSION

To do comprehensive PESTEL analysis of case study – WALTER MEIER: JET INTERNATIONAL EXPANSION , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact WALTER MEIER: JET INTERNATIONAL EXPANSION

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Policy Making Impact on WALTER MEIER: JET INTERNATIONAL EXPANSION

Government policies have significant impact on the business environment of any country. The firm in “ WALTER MEIER: JET INTERNATIONAL EXPANSION ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Walter Meier is operating, firms are required to store customer data within the premises of the country. Walter Meier needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. WALTER MEIER: JET INTERNATIONAL EXPANSION has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Walter Meier in case study WALTER MEIER: JET INTERNATIONAL EXPANSION" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Walter Meier in case study “ WALTER MEIER: JET INTERNATIONAL EXPANSION ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Walter Meier in case study “ WALTER MEIER: JET INTERNATIONAL EXPANSION ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Taxation & Regulation Impact on WALTER MEIER: JET INTERNATIONAL EXPANSION

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ WALTER MEIER: JET INTERNATIONAL EXPANSION ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Walter Meier can compete against other competitors.

Government Scheme & Subsidies Impact on WALTER MEIER: JET INTERNATIONAL EXPANSION

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at WALTER MEIER: JET INTERNATIONAL EXPANSION case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System & Stability, and its Impact on WALTER MEIER: JET INTERNATIONAL EXPANSION

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Walter Meier needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact WALTER MEIER: JET INTERNATIONAL EXPANSION

Social Factors that Impact WALTER MEIER: JET INTERNATIONAL EXPANSION

Technological Factors that Impact WALTER MEIER: JET INTERNATIONAL EXPANSION

Environmental Factors that Impact WALTER MEIER: JET INTERNATIONAL EXPANSION

Legal Factors that Impact WALTER MEIER: JET INTERNATIONAL EXPANSION

Step 3 – Industry Specific Analysis

What is Porter Five Forces Analysis

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in WALTER MEIER: JET INTERNATIONAL EXPANSION case study. PESTEL analysis of " WALTER MEIER: JET INTERNATIONAL EXPANSION" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

Step 4 – SWOT Analysis / Internal Environment Analysis

Step 5 – Porter Value Chain / VRIO / VRIN Analysis

Step 6 – Evaluating Alternatives & Recommendations

Step 7 – Basis for Recommendations

References :: WALTER MEIER: JET INTERNATIONAL EXPANSION case study solution