Oak Corporation Case Study

GLOBAL MARKET INTRODUCTION Oak Corporation is a company that manufactures sunglasses among other products. To lower production costs, Oak Corporation wants to move the factory from a developed country to a low-wage country. This is a common move among the manufacturing business, however the process is very complex and requires a clear understanding of political, economic, social-cultural, technological, environmental and legal of the foreign country. Furthermore the task of outsourcing can be associated with some internal and external risks, but with a clear assessment and strong marketing plan, the risks become minimal. Managing Oak Corporation from another country can pose some difficulties, along with managing a new staff but with the

The local governments and industry’s level of interest and focus on technology is minimal, most newer companies have an information system incorporated into the infrastructure. Since the technology is fairly new to the developing country not every business has acquired the service available. There are potentially disruptive technologies in adjacent industries creeping in at the edges of the focal industry including more advanced information systems, better security systems and better communication systems (“Cambodian Development Innovations,” 2006).

ENVIROMENTAL

The environmental issues include child labor, half of the workforce is 24 and younger. There are illegal logging activities which intern effects the natural habitat and creates soil erosion. In the rural areas, most of the population does not have access to potable water, which lead to dehydration and possibly consumption of unsavory water. There also is a declining fish habitat because of illegal fishing and overfishing (“Cambodia,” 2010).

The risks when entering a foreign market such as the one in Cambodia include external risks, internal risks, social and ethical issues and joint venture responsibilities. The most effective plan of action, is to identify risks and be proactive about them. The external risks include geopolitical, privacy and security, these risks are outside of the organization but can greatly affect the proceedings of things. The Corporation need to make sure they can link up with a manufacturing company that is reputable to avoid these issues. The internal risks directly relate to the internal capabilities of the Corporation like making sure the finances and management can handle such a big move. The social and ethical issues including U.S job loss and reduction, the Corporation needs to be able to handle these issue and act accordingly. Lastly, the joint venture responsibilities can be daring, however the inability to establish a joint venture will include significant financial ruin (Krym, 2011).

MANAGING OAK CORPORATION IN