Essay on Breezy case

1587 Words Mar 8th, 2014 7 Pages
Executive Summary
This case analysis explores the possibility of Breezy, a leading supplier of carburators and air filters in North America, the possibility of developing offshore busines in countries where car manufacturing is growing. The report is structured as follows: First, there are five important questions that Breezy must consider and ask itself before developing a relationship with a new customer. After Breezy decides to go offshore, it will have to go through the negotiating process, which involves five steps. Breezy then, must have capabilities of how an offshore business is organized, consider the many different costs and risks involved in the implementation and decide how it will finance the project. The report also
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Therefore, there must be clearly designed roles for each person involved. Any offshore operation will be defined by the financial commitment that each party will contribute and the risks and rewards that comes from it. An foreign subsiadiary could be set up in the country they plan to enter in order to have face to face contact with potential and new customers. Regarding the global supply chain, companies will have to create a distribution strategy and implement it. Also, companies should select an intermediary involved to facilitate the shipping of cargo, aid with documentation and customs brokerage.

Regarding location, companies going offshore must use the Porter's Five Forces model. A location where the threat of buyers, threat of new entrants, threat of rivalry, threat of substitutes and threat of suppliers are all low would be an ideal place to do business and exploit opportunities. The choice of country will be based on the efficiencies or competitive advantages it can gain from being located in that country. These include proximity to market, cheaper labour costs, production efficiencies, etc (FITT, 6th ed). In addition, if the country has trade or economic sanctions, is politically instable, has high tax rates, inadequate transportation systems and undeveloped banking systems, firms should consider going into other markets. 4. What costs are likely to be

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