Management Feasibility Report Essay example

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Feasibility Report on Internationalisation of an Australian Company

Executive Summary

The following feasibility report on JT Toy’s interest to manufacture overseas has thoroughly explored the positive and negative aspects of local production in comparison to moving its operations to China. Manufacturing methods, such as a wholly owned subsidiary; owning and controlling a factory in China, a strategic alliance and licensing agreements have been analysed in detail.

The evidence shows that moving part of the business to China as a wholly owned subsidiary, whilst keeping its headquarters in Melbourne would be the most beneficial long term option. Paying royalties and dividing profit with an overseas company
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A wholly owned subsidiary in China would consequently be ideal, so long as it is a strategic/tactical long term plan.

A strategic alliance is defined as “where two or more independent organisations set up a co-operative partnership to gain mutual strategic advantage.” (Bartol, K, Tein, M, Matthews). This option would involve JT Toys aligning itself with a pre-existing Chinese manufacturing company, and using each other’s strengths for a mutual advantage. The Chinese company could produce toys with their cheaper labour and production costs, while using the established brand of JT Toys, as well as their vision and successful standing in the Australian market.

This option
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