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Risk Analysis

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Risk Analysis

Two potential risks encountered by the company

The most significant risk which the company faces in this circumstance is a financial

liability. Setting up a new branch in India necessitates a considerable investment. To produce

their boats, the firm will need to either construct or purchase a manufacturing plant or lease

an existing factory, requiring significant investment. In this circumstance, exporting ships

produced in the United States, which would reduce risk, is not an option because the NFDB

demands that the materials needed to construct the watercraft come from recycling products

in India. Labor risk is the other risk that the business would face in the market segment. The

new facility will necessitate the hiring of new workers from a different cultural background

than pioneers are accustomed to, and the pioneers will have to undertake training programs to

understand how to organize the new corporate that fits best with their goals of encouraging

creativity while being consistent to any cultural diversity experienced.

Internal strengths of the company

The business has a history of being inventive and ecologically conscious, both highly

prized in its growing market. Through its business culture, the corporate has also generated

devotion among their present employees by sharing decision-making and maintaining clear

channels of communication between both the leaders and the staff.

Internal weaknesses of the company

While the corporate culture and management structure are excellent at promoting

commitment and a happy workplace, they are not well suited to the corporation's intentions to

grow into India. The business is also entirely operated and managed by Americans, who are

inexperienced with the culture, rules, procedures, and marketing methods required to succeed

in India.
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External opportunity of the company

Because of the vast fishery sectors in India, there is an untapped market, and there are

already no analogous items in the industry. There is also a possibility in emerging societal

trends since the NFDB supports quality packaging and promotes minor disturbance to the

fishing environment through the use of non - motorized vessels, both of which define the

corporation's offering.

External threats of the company

There is presently no competition in the industry, but there the risk that another company

will release a similar product. Before their goods can be sold, the US industry will need to

conduct research and develop a new layout utilizing resources in India and establishing new

production facilities.

Recommendations based on SWOT analysis results in parts B1 through B4

Based on the SWOT analysis results, I suggest that the business's leaders commence

adopting changes to the corporate culture and management structure. The owners should shift

the firm toward a matrix structure, where the creators may keep control over personnel who

are dispersed both regionally and by tasks and a Hierarchy culture that values creativity. To

acquire a market edge if another firm releases a similar product, the corporation should also

aim to eliminate external threats by getting their goods to market as soon as possible.

Justification of recommendation in part C

Because an experienced Indian boat maker releasing a competing product is one of the

industry's main dangers, the firm should seek to get their goods on the market as soon as

feasible. While arranging for a production facility, analysis into sales tactics, material supply,

and relevant design adjustments should be conducted.