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Risk Analysis

Risk Analysis

Potential Risks the Company in the Given Scenario Encounters in Entering the New Market

Entering a new market is a risky venture for any organization. The requirement to enter the Indian market poses significant risks. One of these risks is based on culture. Moving the firm from the American market into the Indian market introduces a significant cultural shift in the company’s managerial and operational practices. The cultural aspects that bring about this risk include language, beliefs, norms, and client preferences (Edwards, 2014). The American-based boat manufacturer would need first to understand the Indian market as a base for operation and the clients as well to avoid significant fallouts in relation to culture. The cultural risk could impact the company negatively if it fails to fit in the new market. The lack of cultural fit may lead to the development of products that do not serve the market, as well as detrimental advertising strategies.

The second type of risk that the country may encounter is the economic aspect. The economic conditions in India and the USA differ. Different monetary factors that affect the operation of businesses and their likelihood to succeed exist in both environments. The labor aspects that are pertinent to the country’s financial condition are different as well (Edwards, 2014). The company must ensure that it adjusts its operations to match the economic needs and uphold total compliance with labor and financial laws. Failure or inability to comply may affect the organization’s reputation and standing in public. This can lead to a lack of approvals to conduct business.

 SWOT Analysis of the Company

Internal Strengths of the Company

Culture of innovation

The US-based company relies on innovation in its business activities. This has led to the creation of a culture that supports innovation. The culture is characterized by incentives that encourage employees to produce creative ideas. The presence of testing laboratories provides an avenue to ascertain the viability of these ideas. In addition, the collaboration with other technology companies that could improve the company’s designs indicates the organization’s commitment to innovation.

Employee engagement

The company demonstrates a significant commitment to engaging its employees in product development processes as well as decision-making. Employees are encouraged to provide creative ideas that could lead to innovative products through incentives. Employees are empowered to take part in the evaluation of the company’s decisions which magnifies their worth to the entity.

Internal Weaknesses of the Company.

Founder employee boundary

The company’s level of employee engagement could result in blurring the boundaries that exist between founders and staff members. The consideration that management gives to employees as equal partners could eliminate any boundaries and structures that are still necessary for seamless operations.


The founders’ authority could be overpowered or assumed since employees are considered equal partners in the organization. This may make the decision-making process difficult due to a lack of oversight.

External Opportunities for the Company

Market diversification

The company has a chance to diversify its current market from the USA to India by establishing operations in the country. This presents a significant opportunity to expand its existing operations and increase its revenue.

Entry into a new market

Entry into the Indian market offers a stepping stone to the company’s expansion plans. It also promotes the company’s ability to gain a new market share in India and other Asian regions that find its products beneficial.

External Threats to the Company


Entry into the new market will present greater competition from the regional and global companies that offer comparable products. Therefore, the company should establish inimitable competitive advantages that ensure it stands out.


The company will encounter new regulations in the new markets, which may make business more challenging. These regulations could affect business or labor practices.

 Strategic Recommendations Based Upon the Weaknesses and Threats

The company needs to convert the current weaknesses and threats into opportunities or strengths. While upholding employee engagement is critical to an organization’s success, it is necessary to create a clear structure that communicates the company’s authority to all stakeholders. The founders’ and employees’ equal positioning should not introduce authority issues. It should be an element of promoting success. The company’s founders should ensure that shared decision-making is concluded with a comprehensive cost-benefit analysis of each proposal only to choose the most beneficial ideas. This strategy should ensure that the founders’ authority over employees is clear.

The threat of competition demands that the company create inimitable competitive advantages that ensure its preferred provider. The high customer responsiveness can be enhanced to ensure it prioritizes their needs. This attribute can be helpful in rising above the competition. Secondly, it is necessary to ensure compliance with the various regulations. Compliance will reduce business disruptions by respective agencies. Therefore, the company should ensure it complies with the various regulations in the Indian market.

Creation of a Unique Competitive Advantage

Customer responsiveness is highlighted in the previous part as a strategic move that could enable the company to rise above the competition. The creation of such a culture increases the likelihood of higher customer satisfaction. The satisfaction of clients is related to their consumption and expenditure. Consequently, when the clients are satisfied, they are likely to become repeat clients. This element in the new market is highly beneficial to the company because it will lead to stability. It will also enhance the establishment of a stable market share. This market share is expected to grow because of referrals from the existing market.

Most importantly, the organization will report increased revenue (Dawson & Andriopoulos, 2017). Such customer responsiveness may include expansion of the product development process. The company’s entry into a new market requires the company to understand the market’s cultural aspects. This aspect may demand that the organization includes the targeted clients in the process of developing the product. The origami-inspired boat is expected to facilitate fishing among Indian fishers. Therefore, the inclusion of a representative sample in the development process or conducting a study prior to actual development is important in ensuring the final product meets the target market’s needs (Spawn, 2020).


Dawson, P., & Andriopoulos, C. (2017). Managing Change, Creativity & Innovation. Sage.

Edwards, J. (2014). Advantages and Disadvantages of Competing in International Markets.

Spawn, L. (2020). How to Use Customer Feedback to Your Advantage. CMS Wire.


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Today’s business environment requires competency in managing risk and selecting a business strategy based on a company’s internal and external analyses. In this task, after reviewing the scenario, you will discuss the market entry risk/reward ratio, analyze the company’s strengths, weaknesses, opportunities, and threats (SWOT), and recommend a business strategy. As you complete the task, think about past projects you may have worked on that required evaluating risks and conducting risk analyses.

A U.S. fishing boat manufacturer is known throughout the United States for its innovative approach to product design, lean manufacturing, and responsive customer service since its start three years ago. The company’s mission statement is “We will provide the most innovative customer-driven design and growth in the industry.” The founders’ ideals for the company are described in the vision statement: “We will be the most sustainable company in the industry.” The company’s ethical information that guides all conduct and decision-making is “We will make decisions that are sustainable for customers and the environment.”

The company’s founders have created an organizational culture of innovation. They have provided incentives for employees’ creative ideas and created testing laboratories where customers use the products and provide design feedback. The founders have also invited innovators in other industries, such as gaming and information technology, to improve on the designs. The founders have cultivated a company culture in which employees and founders are considered equal partners. The company structure is decentralized, and all employees can access the founders at any time for collaboration, shared decision-making, or relationship-building. All employees evaluate all company decisions to ensure that everyone is committed to the findings.

The company has identified an emerging global market opportunity in India for its products. Successful sales in India could represent a critical moment for the company if the company establishes strategic partnerships that will increase the likelihood of product success. The founders hope to capture profits and market share and expand into other parts of Asia within the first year of selling products in India. Research indicates market potential for the company’s sales in India because of the importance of the fishing industry in the country. Fishing and aquaculture are primary industries in the coastal regions of India.

Economic zones have been established to support the over 14 million people who are an important part of the fishing industry. This industry makes up 1% of the nation’s gross domestic product and 7% of global fish exports (Hanko Hackberry Group, n.d.).

The company’s goal for market expansion into India is to be the first foldable fishing boat manufacturer reaching the country. An origami-inspired foldable fishing boat is the company’s most popular product. This boat comes designed as a plastic carrying case that unfolds into the water like an origami paper boat. This boat is suitable for use in calm water, and the ship can be recycled. The product retails for U.S.$200.

Traditional fishers use nonmechanized boats, which would be ideal for the foldable boat’s entry into the market. Laws and regulations surrounding the use of nonmechanized boats favor importing foldable ships, which would be easy for fishers to carry from home to the water. The business climate in India is open to new partnerships to improve the fishing experience for those who preserve the natural ecosystem with nonmotorized boats. The National Fisheries Development Board (NFDB) promotes the use of genuine fishing equipment to reduce disruption to the fishing ecosystem in India (National Fisheries Development Board, n.d.).

The U.S. boat manufacturer’s founders met with the NFDB to request an endorsement for their foldable boats because of the product’s sustainable design and net-zero environmental impact. The founders discovered that the NFDB would only endorse the ship if it were made of plastics used in India in order to reduce the waste products in the nation’s landfills.

This endeavor would require the U.S. company to make a significant investment in India. The company would need to purchase or build a manufacturing facility, or it would need to contract with a facility owner to secure a manufacturing location. It would need to employ Indian workers. Lastly, the company would have to manufacture a new foldable boat made from used plastics in India with an environmentally friendly waterproof coating.

The new foldable boat could be designed in several ways, and the company would need to test a series of paper products and waterproof coatings to determine which would be suitable for fishers in India. The fishers range in age from 13 to 70, so the design would need to be comfortable and portable enough for all fishers in this target group.

The company decided to hire Indian fishers to help design the product to reach this market. These fishers will provide qualitative, open-ended conversations and data that will be valuable in communicating the product’s features and benefits to other fishers. The product will be tested by a variety of fishers that represent different sectors of the fishing industry, different regions, and different cultural segments. Testing will provide generalizable, qualitative data about the product’s use and effectiveness.

  1. Reflect at least two potential risks the company in the given scenario encounters in entering the new market, including a detailed description of the impact on the
  2. Conduct a SWOT analysis of the company in the given scenario by doing the following:
    1. Identify two internal strengths of the
    2. Identify two internal weaknesses of the
    3. Identify two external opportunities for the
    4. Identify two external threats to the
  1. Identify two strategic recommendations for the company in the given scenario that are based upon the SWOT analysis results in parts B1 through
    1. Justify a strategic recommendation from part C by explaining in detail the benefits of the request to the
  2. Acknowledge sources, using in-text citations and references, for content that is quoted, paraphrased, or summarized.
  3. Demonstrate professional communication in the content and presentation of your

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