Sterling Marking Products Inc.
Recommendation:
Detailed internal and external environment of Sterling Marking Products Inc. has been analyzed. There are many alternatives for the company but it is recommended that Sterling Marking Products Inc. should enter into the UK market. It is recommended that Sterling Marking Products Inc. should build its own plant. UK is a big market for embosser. It will help Sterling Marking Products Inc. to increase its revenue. By constructing its own plant in the UK, Sterling Marking Products Inc. will become a global company. It is also recommended that the company should use direct selling technique in the UK.
Support:
Sterling Marking Products Inc. has been into embossers’ business for years so it will be easy for the company to build its own plant in the UK and it is the market leader in Canada. There are many opportunities available for Sterling Marking Products Inc. in UK because labor is available. There is a high demand of embossers in the UK. Around 200,000 lwayers and incorporations are increase every year. Seal is legally required for all corporations in the UK. On the other hand, Sterling Marking Products Inc. has a number of strengths, which include: innovative products, its management is dedicated to provide best customer service and it has strong financial position (See Exhibit 1). Through CAGE analysis, it is found that there is no cultural difference between Canada and United Kingdom but their currencies are different. UK market is larger than Canada market, which will help the company to generate greater revenue from UK but per capita income is lower in UK (See Exhibit 2).
Sterling Marking Products Inc. has strong financial position and related experience, which will help the company to deliver best services to its customers as they are delivering it in Canada. Sterling Marking Products Inc. is known for its innovative products and it will help the company to compete with the competitors of UK (See Exhibit 6). The competition is very high in the United Kingdom but Sterling Marking Products Inc. can reduce the impact of competition by providing innovative products, online ordering options and reducing profit margin. Economies of scale can easily be achieved by the company because Sterling Marking Products Inc. has enough experience of this business (See Exhibit 3).
If Sterling Marking Products Inc. exports finish goods to the UK, then it will increase the selling price because of VAT, duty and courier charges. Sterling Marking Products Inc. will be able to make high profit, if they construct their own plant in UK (See Exhibit 5)
Plan:
In order to implement the chosen option, Sterling Marking Products Inc. is suggested to hire Martin Wright (Director of Production at Jordan) ,who is experienced. A senior manager of Make Marker is supposed to spend 2 months at the new plant. New employees should be given training and sales teams should be given incentives or rewards. which will help the company to increase sales. In order to reduce the risk of exchange rate, Sterling Marking Products Inc. is supposed to keep the reserves of Pound or make future contracts.......................
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