Risk Analysis: Case Study
Potential Risks of the Company
Cultural Difference
The most prevalent risk is cultural differences. The company is entering a new market in India with unique cultural practices. The company is not sure whether the Indians would successfully embrace the new design of the foldable boat. The Indians may not embrace the boat due to fishing cultures making the company incur several losses, thus jeopardizing its financial position.
Legal Risk
The second potential risk is legal risk. The case study shows that the Indian government is very strict in fishing practices due to the ecosystem. Therefore, such regulations may jeopardize the company's operations, and it may take time before full adaptation to the Indian regulatory environment. Regardless of the company's capacity to embrace cultural safety, it may still fail to uphold specific regulations. Therefore, the risk would adversely impact the company's manufacturing process.
SWOT Analysis
Internal Strengths
Decentralized Company Structure
The decentralized company structure is essential since it would lead to higher productivity of the employees. The structure allows the employees to actively participate in shared decision-making, thus building positive relationships to improve the company's position. Therefore, it promotes higher company performance.
Culture of Innovation
Based on the scenario, the company advocate for the culture of innovation, which promotes employee growth and productivity. The company provides a culture of innovation by providing incentives to the employees with creative ideas. Innovators are also invited to engage in new designs making the employees equal partners. Therefore, the strength makes the company productive.
Internal Weaknesses
Longer Decision-Making Process
The case study shows that the company focuses on the collective decision-making process by engaging the employees. The approach is detrimental to the company since it reduces rational decision-making and resource wastage. Decisions should be structured, and not all the employees involved in decision-making.
Inadequate Research Resources
The company encourages the employees to be creative by providing incentives. The approach means that the company is not very keen on research and development, and it does not have highly trained experts and business researchers, which is a key weakness.
External Opportunities
Global Market Access
The company has an opportunity to explore the Indian market and sell its products. The opportunity is essential since it would lead to the company's increased sales and profitability. Global access would als...