Indirect exporting is less investment; less risk, and the seller normally makes fewer mistakes. With direct exporting the business handles its own exports, there is a greater return, foreign sales over long term, once development costs have been covered, increase overall profitability. However as with any global market the risks are greater than local markets. Investment is greater than staying local, management would need to learn another country’s language and laws. Possibility of unstable currencies, political and legal uncertainties. Another negative impact would be the redesigning of products to suit different customer expectations.A joint venture may be another option. Joining with another company may bring about prosperity. It allows expansion of the business, share on the operation costs, along with marketing and advertising costs. Joint
ventures share the risk of uncertain markets while establishing your presence in a new market. It would allow education of a new market without having to hire more staff. Unfortunately working with another business may create some challenges when trying to set objectives and because you have entered a business together does not mean that you are both working towards a common goal. Challenges in dealing with different cultures, management styles and working relationships because of two different companies. Communication may be an issue, if clear communication isn’t happening, there may not be a reliable understanding of the objectives.RecommendationMy recommendations for Evergreen Memories is to take the time to refine the current policies and strategies that are already in place and upgrade or change them to incorporate sustainable development needs as is related to their cultural needs. The company already recognizes the link between a healthy environment and sustainableeconomic growth while protecting and enhancing the environment. It is recommended that Evergreen Memories launch and then promote a new product line alongside its current product line. That the company should have a brand that accompanies the new line. To promote this line, media should be presented with free samples (if plausible of course) and a date set to launch. I think that an app would help the company grow and expand. It would allow people to learn about the benefits of purchasing from a green company and at the same time promote the products of Evergreen Memories. Companies social media posts influence consumers purchasing decision therefore making the app a great promotional tool. It will allow Evergreen Memories to reach so many more customers and it will showcase the products and services available. By hiring a reputable app developer, the complicated work is taken out of the company’s hands, leaving management with the decisions of information to place in the app.
- Fall '16