Strategic Insights: Navigating Market Entry and Innovation in India - A Comprehensive Analysis Example

A1. How the following aspects from the scenario Affect the Company's Decision-Making Process

In the scenario, there are different aspects that affect the decision-making process of the company including its culture, organizational structure, and Strategic Direction, Including Mission and Vision Statements.

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Company Culture

The company has an innovative culture. It does this by offering its employees incentives for their creative ideas, and it has established testing laboratories in which clients utilize the products and, in return, give their feedback. Providing employees with incentives is a way of motivating the employees and making them feel that they value them. In other industries, innovators have been invented, including information technology and gaming, to improve the designs. According to “Strategic Decision Making” (2020), management should ensure that the firm’s activities support the strategy and that individuals are capable and willing to excel. It is achieved through the culture of considering the founders and employees as equal partners has played a significant role in its success.

Organizational Structure

The organization being decentralized ensures that there is shared decision-making, accessing founders easily, and enhancing relationship building. Also, all the decisions made in the business are well analyzed by the staff to ensure that every individual is committed to their decisions. The organizational structure is important since it can achieve its set goals and objectives through it.

Strategic Direction, Including Mission and Vision Statements

The strategic management process entails specifying the objectives, vision, and mission of the organization (Strategic Decision Making, 2020). “Strategic Decision Making” (2020) further argues that planning commences with mission and vision that result in setting objectives and goals. The organization's mission is to offer innovative client-driven growth and design in the industry while its vision is to be a sustainable firm. For its ethical statement, it makes sustainable decisions for the environment and clients.

A2. Describe in detail how the company’s culture could affect the market entry strategy

The Culture’s Present within the Company

According to Cameron (2009), the Competing Values Framework is an essential model for understanding several individual and organizational phenomena. Other things that should be understood using the model include brain functioning, organizational design, organizational effectiveness theories, leadership roles, financial strategy, information processing, organizational quality, leadership competencies, and life cycle development stages (Cameron, 2009). The type of organization's culture is adhocracy. It is under external positioning, and it is oriented towards creating. The leader type is visionary, entrepreneur, and innovator. Besides, this type of culture's value drivers are agility, transformation, and innovative outputs, and the theory of effectiveness under this culture includes vision, constant change, and innovativeness (Cameron, 2009).

How the Culture Could Impact the Market Entry Strategy

The culture of adhocracy can enable the company to expand its market to India. The company's adhocracy culture can affect its market entry strategy in different ways by working with its vision. For instance, since the company is innovative, it will work towards getting Indian fishers who are innovative to provide good designs of boats that will be used. Additionally, the provisions of incentives for creative ideas will make them get the best designs for the boats, as people will work to provide the best. The reason is that the incentives will work as a motivator for them to be innovative. The culture of inviting other innovators from different sectors will further play a role in ensuring that a good design for foldable boats is achieved and transformed using plastics from India.

A3. Discuss whether the organizational structure is an advantage or disadvantage to the company and explain why

Organizational Structure of the Company

The company uses a decentralized flat organizational structure.

If The Organizational Structure Presents an Advantage or Disadvantage

Using the decentralized flat organizational structure is advantageous to the company as compared to other structures.

Why the Organizational Structure is Advantageous

According to “Elements of Business Strategy” (2020), a flat organizational structure has few or even no middle management among the staff. The number of individuals existing in the chain of command is few (Elements of Business Strategy, 2020). In the case study, it is evident that the staff can access the executives anytime to collaborate and make decisions regarding the activities of the company. The structure is beneficial to the company since it makes the employees be more productive as they are directly involved in the company’s decision-making instead of being supervised by several managers (Elements of Business Strategy, 2020). Besides, it promotes the involvement of the staff by having a decision-making process that is decentralized. Lastly, the elimination of several layers of middle management ensures that feedback and comments reach the involved people quickly (Elements of Business Strategy, 2020). Therefore, I believe that the organization has the best type of organizational structure.

B1. Specific Characteristics of the Emerging Market That Affect the Company’s Product

The first characteristic of an emerging market like India that will influence the product of the company is that it has huge growth potential. It means that the market offers the capacity to generate more profits and expand its workforce. India has a high chance of promoting market growth through the provision of cheap labor as compared to a developed nation like the United States. Additionally, there is huge potential growth in the country that will impact the product because fishing is essential in the nation. Economic zones have been developed in India to support the over 14 million individuals who are involved in fishing.

The other essential characteristic is high market volatility. The nation has high market volatility, which may affect the capacity to design or develop the product through its unstable domestic policy, external price shocks, and natural disasters. However, if the domestic policies of the nation are stable, then it will be easier to develop or even improve the new product of foldable boats in the Indian market.

Political stability in the nation will ensure that the product is well-designed, and reaches the targeted market. Being a U.S. company, if the exchange rate is constant due to political stability, then it means that the product will not be affected by the exchange rate. Unfortunately, political instability might make it difficult for the company to manufacture the product due to issues such as switching policies.

The market also has low to mid-per capita income. Currently, India is classified as a lower-middle-income nation. This trait can affect the company negatively because it limits the size of the purchase of the product that it will manufacture. In a lower-middle-income state, cash is usually in liquid form instead of being tied in the household inventory.

The culture and market of India are demanding, which means that the consumers of the boats will expect that it has a high value, although they may not be able to purchase them. Besides, the population is growing and youthful, which can influence the product being developed or designed positively. The young population creates a market for different products and services in the country.

Two Characteristics of the Emerging Market That Affect the Company’s Foldable Boat Product

First, the characteristic that will affect the firm’s foldable boat product is high economic growth rates. The Indian government implemented policies favoring rapid economic growth and industrialization. It means that the introduction of the product in the Indian market will lower the unemployment rates, and the people will be more creative in designing the boats, as they will need employment opportunities. For instance, the NFDB only makes endorsements for companies if the boats are manufactured using Indian plastics since it will help reduce the landfills in the country.

Furthermore, because there are low wages in India as compared to the United States, the company has high investment and growth potential regarding the foldable boats. If the company is able to succeed in India, then there are high chance that it will get a foldable boat market in Asia.

B2. Discuss in Detail How Either a New Product or an Improvement to the Company’s Existing Product Would Meet the Market Characteristics Identified In Part B1

The first characteristic of an emerging market is huge potential growth. A new product or even an improvement of a product can meet this trait by being well-developed such that it is better than other products in the market. Also, it can be met since the product is unique or offers more features as there are no developed foldable boats using plastics in the nation, meaning it will improve its growth capacity.

The issue of demanding culture can be met by creating breakthrough designs of the product. Through this, the product will be able to reach a large market. Besides, the growing and youthful population will play a role in developing a product that most of the youths will like. The reason is that in developing nations, the market for youths is beginning.

The products can also be improved by connecting with the burgeoning markets of the youth. For the high economic growth rate, it can improve the product through the implementation of policies favoring industrialization. For instance, the issue of not importing plastics will ensure that the company does not incur importation costs. Improving the design of the product to meet the needs of the Indians will enhance economic growth through improved infrastructure.

B2a. Include Details Of Each Of The Steps The Company Would Take In The Design Thinking Process For The New Or Improved Product From Part B2

According to “Innovative Thinking” (2020), design thinking refers to a process of helping teams to innovate solutions regarding complex issues. The first step that should be taken by the company in the design thinking process for a new or improved product is empathized (Innovative Thainking, 2020). It is considered as the capacity of being attuned or understanding thoughts, experiences, or feelings of another. The stage will assist the firm in getting an empathic understanding regarding the issue plus the required solution. Empathy mapping is one of the tools that can be utilized by the organization to know the way other individuals feel and think based on research interviews (Innovative Thinking, 2020). Besides, the stage plays a role in generating ideas. It is in this stage that the Indian fishers can come up with ideas on the best way of improving or developing folded boats in the country.

The second stage of the process is a prototype, which entails testing the product before the firm spends a lot of money, resources, and time on the end product (Innovative Thinking, 2020). Prototype tools help in a team failing before learning (Innovative Thinking, 2020). The reason is that it is easier to fail in the initial stages than later, after using the allocated resources and time. In this stage, the Indian Fishers can try out the new or improved product by the company to know if it fits their needs before the company produces on a large scale.