Timm Coconut Transnational Motor Corporation, Coursework Example

Executive Summary

The expansion of Timm Coconut Transnational Motor Corporation’s sales function to Johannesburg, South Africa requires a strategic approach that addresses all possible complications and other deficiencies that could impact operations as the project rolls out in its new location. In order to achieve a seamless transition, there must be a feasible strategy in place that will address all possible challenges and/or complications that could emerge during this phase. The project management team must demonstrate its ability to exercise sound and reasonable judgment and decision-making regarding the transition to ensure that it is successful and appropriate for the new location. It is important to identify the key factors that are necessary to rollout the project in multiple phases. Based upon existing evidence, it is recommended that the project timeline should be flexible in order to accommodate both phases, and in particular, the manufacturing phase, which will require several years to assess and implement in the new location, given existing regulations and other challenges that are likely to occur. Nonetheless, the project has a significant chance of success if the environmental and economic conditions are appropriate at the time of the rollout across both phases.

Organizational Vision and Mission

Timm Coconut Transnational Motor Corporation has been highly successful in the automobile industry to date and has been effective in expanding its sales model on a continuous basis. The organization operates its American sales team and strategy by providing superior customer service and high quality products. The organization has a strong and experienced leadership structure and an expanding sales force to accommodate increased consumer demand for its automobiles. The organization has a successful manufacturing infrastructure in place that operates under with multiple layers of efficiency in order to produce high quality products on a continuous basis. The organization strives to sell its products at competitive prices to its loyal customer base and has expanded its target market to accommodate new customers. The organization also supports a high degree of ethical responsibility and corporate compliance in all of its activities across divisions. The organization is in a position to achieve greater growth through its activities; therefore, expansion at this stage is an appropriate and timely alternative.

Overall Strategy

The organization has employed a successful domestic strategy for a lengthy period of time. However, international markets have become increasingly attractive for sales and manufacturing due to the expanded interest in automobiles throughout the globe. Therefore, Timm Coconut has shifted its focus towards an international approach in order to accomplish the desired objectives in a timely manner that will accommodate the organization’s wave of growth and opportunity with this expansion effort. There are critical aspects to consider that require thorough analysis and evaluation because the organization strives to achieve success in its expansion effort; therefore, these issues must be addressed prior to commencing the expansion effort into South Africa. The chosen strategy will be comprised of two phases, the sales expansion phase to the new market and the export of vehicles to South Africa, and further along into the process, the creation of a manufacturing facility in the Johannesburg area to produce automobiles within the country. These two phases will be distinct, and the development of the manufacturing facility will begin after the organization has proven its ability to sell successfully in the new market. In addition, as many issues as possible will be addressed early on in the process in order to prevent any major complications in production, export, and the development of the manufacturing facility, which will require significant capital to get off the ground and to begin operations in the new country.

Generic strategies and modes of entry

The organization supports the use of an entry strategy that will promote a gradual expansion effort because there are critical factors to consider that require market research, social considerations, and the potential regulatory requirements that must be met with the export of vehicles to South Africa. The organization is likely to achieve a greater competitive advantage when it utilizes a gradual approach that recognizes cultural differences and other key criteria that are important within the new country (Prashantham & Young, 2009). The organization must be well-versed in its new strategy and in supporting the expansion effort with the appropriate level of knowledge and consideration in place that will support new opportunities for growth that will also be profitable for the business (Prashantham & Young, 2009). The expansion into an international strategy must be gradual yet steadfast in its efforts to produce viable results in order to accomplish the desired tasks in a timely manner that will facilitate success over the long term (Prashantham & Young, 2009).

Source of sustainable competitive advantage

Based upon the proposed expansion strategy, the organization requires a high level of understanding of human capital as a means of achieving a sustainable competitive advantage (Bartlett and Ghoshal, 2013). From this perspective, it is known that “Unlike capital, scarce knowledge and expertise cannot be accumulated at the top of the company and distributed to those projects or programs in which it will yield the greatest strategic advantage. It resides in the heads of individuals at all levels and is embedded in the relationships of work groups — those closest to the customers, the competitors and the technology” (Bartlett & Ghoshal, 2013). Therefore, the organization must be effectively prepared to manage its needs effectively by using an approach that identifies the best possible talent to implement the expansion strategy in order to accommodate the needs of customers and of the organization as a whole. These activities will contribute to a sustainable competitive advantage over time that requires a high level of finesse and flexibility in order to achieve success.

Analysis

The organization must be closely evaluated in its current state prior to making any final decisions regarding an expansion effort. This process will enable key leaders to determine any areas of weakness and any other factors that may contribute to performance measures over the long term. Therefore, the organization must focus on the expansion effort, one phase at a time. The firm must exercise caution with this expansion because it requires a significant amount of capital and resources to accomplish both phases; therefore, these steps must be taken gradually so that the demand for automobiles in South Africa is first realized through increased sales. After this potential has been established, then the organization should feel comfortable in expanding to the next phase, manufacturing within the country.

External Environment (Risks: Opportunities and Threats)

The organization faces a difficult road ahead with its expansion effort into South Africa, as this effort requires a high level of understanding of the demand for automobiles in this country. As South Africa continues to grow and thrive, there is greater potential to introduce automobiles on a larger scale as a means of developing new perspectives to ensure that the country is successful in its efforts to expand this industry and to attract market share (Fine, 2010). From this perspective, it is believed that expansion of the automobile industry in South Africa will lead to favorable outcomes for the organization, particularly as they focus on developing the economy at new levels that will support and enhance growth for the country (Fine, 2010). South Africa possesses laws regarding competition that play a role in how business integration and expansion are achieved within the country; therefore, these factors must be considered as part of a larger framework to achieve growth and change within the national economy (Fine, 2010). With the increased integration of technology into the South African economy, there is a greater opportunity to explore the different dimensions of growth, while also recognizing threats to entry and to sales, such as primary competitors (Fine, 2010). These factors must be considered in the context of their ability to improve outcomes and to recognize the importance of strategies to overcome these threats and to make a name for the business throughout the country (Fine, 2010).

Global business environment (risks)

The automobile industry on a global scale is highly diverse, yet consolidation has been instrumental in expanding sales growth for a few key players (Hashmi & Biesebroeck, 2007). This strategy is a product of a highly competitive industry that continues to grow with respect to its technology-based resources to expand innovation and efficiency within its product lines (Hashmi & Biesebroeck, 2007). Therefore, a new entrant into the market through an expansion strategy is a risky effort because it requires a high level of support and understanding of the global economy so that organizations are prepared to manage the risks involved in expansion into markets where the results are largely unknown (Hashmi & Biesebroeck, 2007).

Legal & contractual / Ethical / Trade barriers

There are considerable legal, ethical, and trade concerns that surround the expansion effort because there are significant challenges related to the regulatory and trade requirements associated with importing products, particularly automobiles, from another country. This process is challenging and requires a high level of understanding and a commitment to learning the required regulations prior to the expansion effort. In addition, this strategy must examine the ethical considerations of doing business in a new country without any prior experience, including an examination of the different factors that are associated with this process and how ethical decision-making is required to achieve a successful strategy over time.

Technological / Intellectual property

From a technological perspective, the organization must be able to utilize innovative technologies and resources in the production, manufacture, and sale of its automobiles. This process is instrumental in promoting cost efficiencies whenever possible and in supporting a long-term strategy that will support effective outcomes through the use of these technologies. It is important to identify the resources that are required to facilitate a successful transition, including the technologies that will support the expansion process through innovation and greater efficiency within the market. This process is instrumental in shaping outcomes and in determining how to move forward from an expanded sales effort into a manufacturing process that will support the growth of the organization in its international expansion process.

Social / cultural & religious / political

Social, cultural, religious, and political issues must also be considered in the expansion effort, as these factors will ultimately contribute to the sales climate and the integration of a new manufacturing facility into South Africa. This process requires organizational leaders to examine these perspectives as a means of improving value within the country. In recognition of these core values and principles, the organization demonstrates its commitment to excellence and in supporting the values of the country in which it will expand, rather than forcing the beliefs and values of another country onto the people of South Africa. These individuals must be willing to actively contribute to the expansion effort by learning and acclimating to the surrounding culture as best as possible. The core values of South Africa must be explored in greater detail and must emphasize the importance of balance in achieving the desired outcomes within the organization and in its new location.

Economic / business / financial

From an economic perspective, the organization must be apprised of current economic trends on a global scale that could impact its expansion operations in different ways. In recent years, many lessons have been learned from the serious difficulties that the automotive industry experienced; therefore, the organization in question must exercise caution in its expansion effort to ensure that all possible needs are met in order to achieve the desired level of growth. In 2009, the automobile industry experienced an economic crisis of epic proportions: “the industry, especially the value chains led by the American Big 3 automakers, was in a dire state to begin with. For companies already on life-support, the freezing of credit markets meant cancelled orders, unpaid supplier invoices, and ‘temporarily’ shuttered plants. Huge debt loads, high fixed-capital costs, high labor costs, and immense pension and health care commitments to retirees added to the immediacy of the damage” (Sturgeon & Biesebroeck, 2010, p. 6). Based upon these observations, the expansion effort must be carefully executed and global operations must be effectively and routinely monitored in order to prevent similar outcomes in the future that could impact operations and stall any type of growth that is observed (Sturgeon & Biesebroeck, 2010).

Industry environment (immediate competition)

The current climate within the automobile industry must be examined in great detail, and this requires an examination of current factors that impact the expansion effort, including the primary competitors for the organization. This competition includes the primary automakers that are most prominent throughout the world, including Ford, General Motors, Honda, Nissan, and Toyota, among others. Each of these competitors has something to offer to the industry, and they emphasize the importance of developing new strategies to examine the competition more closely to determine how to best improve the competitive advantage through the expansion to South Africa. In a newer climate for automobile expansion, it is important to identify the resources that are required to ensure that the firm is sufficiently prepared to enter into South Africa with a means of sustaining a formidable competitive advantage.

Internal environment (competencies: strengths and weaknesses)

For this organization, there are a number of underlying factors that serve as key strengths in supporting the needs of the expansion strategy, including diverse knowledge and experience that impact operations in a positive manner. In addition, the organization possesses a successful framework for technological innovation that has supported its success and longevity in the domestic market. Its sales staff is knowledgeable and well-versed regarding the needs of its customers, in addition to providing a product that is attractive to consumers and safe for use. The organization also possesses a strong and dedicated platform for growth that recognizes the potential that exists in new markets in foreign countries. Global expansion requires a high degree of experience and support that will enable the firm to capitalize on its existing business model and to expand into new markets in a successful manner. On the other hand, the organization requires a comprehensive evaluation of its current strategy prior to making any expansion efforts. The expansion requires significant financial and human capital in order to accomplish the desired objectives, the organization may not be sufficiently prepared to manage these requirements on a timely basis. As a result, the business faces many challenges that will impact outcomes accordingly.

Project management best practices, methodology, maturity/distinctive competencies and capabilities

The organization’s new project management infrastructure requires a high level of support and recognition of its core competencies in order to accomplish the desired objectives and to recognize its strengths to ensure that project management is successful as it unfolds in the expansion effort.

Organizational factors

The organization must emphasize critical areas of development that will capture an understanding of current needs so that the firm is prepared to expand into new markets with a high degree of stability and focus in place.

Culture, formal structure

The culture within the organization must be effective in meeting the needs of its customers through a flexible approach that adapts well to change and other challenges that impact how the organization responds to cultural diversity in its operations and in the customers that are served.

Summary of internal strengths and weaknesses v. external opportunities and threats (SWOT)

Strengths: The organization has a solid reputation for excellence in customer service and in its product lines, thereby supporting its argument to expand on a global basis.

Weaknesses: The organization requires significant capital to expand into a global enterprise, and this is often very difficult to obtain from outside investors and others willing to provide loans to the firm to achieve its expansion objectives.

Opportunities: The organization is considering expansion into new markets, which may increase sales growth and achievement for the business during its expansion effort.

Threats: Competitors pose a threat to the organization and require continuous evaluation in order to determine how to effectively improve performance at the desired level.

Gap analysis

The organization must identify its gaps and a strategy that is required to ensure that these gaps do not interfere with or minimize the expansion effort in any way. A gap analysis is a means of performing these roles effectively to ensure that the organization is successful in bridging its gaps that could impact operations.

Enterprise-Wide Project Management Strategy

This type of strategy requires a concerted effort to ensure that the firm is able to achieve success through its project management strategy. Since this process is new, it must be accompanied by a comprehensive approach that will ensure that the organization is successful in its efforts to achieve greater growth and change to accommodate the desired expansion objectives.

Subcontracts, partnerships, networks, other interdependent structures

The project management team must identify vendors, partnerships, and networks that will be key contributors to the expansion effort, as well as other factors that may play a role in supporting the desired results, while also promoting efficiency and effective utilization of resources.

Project management organization

The project management team must include several key leaders, including the project director, who will lead the expansion effort and provide a framework for greater success and growth in this process. Furthermore, project managers will be assigned to different roles to address a variety of functions, including sales and other needs, so that the business is successful in promoting an effective strategy to achieve continuous growth.

Roles and functions (centralized and standardized)

The project management roles encompass many different functions that are designed to promote a cohesive strategic approach to executing the project under the desired scope and timeframe. Therefore, the organization requires a high level of detail and analysis in its key roles and functions to ensure that all requirements are met in a timely manner.

Sponsorship and executive champions

Sponsorship must be identified to support the organization’s expansion and marketing efforts in South Africa, and this is best achieved through increased visibility in order to accomplish the required objectives. Obtaining sponsorship also secures capital for the project management team and will actively contribute to the expansion effort.

Project Portfolio

The project portfolio will be based upon the two distinct phases of the project and will encompass different approaches to each phase in order to properly execute the steps of the project in a timely manner and in accordance with the established timeline.

Strategic linkages to mission and other projects

The project management mission must be aligned with the organizational focus and strategy, thereby increasing the need to expand efforts to achieve the intended results in accordance with all project objectives and timelines.

Cost: Funding, ROI, NPV, Payback

The costs associated with this project are high; therefore, capital must be secured up front in order to meet the required project objectives and to develop the project successfully from the ground up.

Scope

The scope of the project must align with existing organizational objectives in order to maintain integrity and a greater focus that will improve outcomes for the business through this expansion effort in a cohesive manner.

Schedule

The proposed schedule for the project must accommodate two separate phases; therefore, these efforts require clearly defined objectives for each phase with realistic timeframes for completion so that they are met at the required level.

Summary and Conclusion

The development of a successful expansion strategy for Timm Coconut Transnational Motor Corporation requires expert knowledge and a driven sales force in order to accomplish the objectives required to achieve the desired level of success with this endeavor. This process also supports a greater understanding of the needs of the people of South Africa and their use of automobiles. The expansion strategy must encompass two phases, the direct sales phase and the manufacturing phase, both of which must be accomplished across different periods. The sales phase requires expert integration into South Africa, including an understanding of the export process and the regulations required to export these vehicles into the new market. In addition, the second phase will carefully execute the manufacturing strategy so that the organization the capital and resources in place to accomplish this phase effectively. With the appropriate amount of time and patience, this strategy will be successful in meeting its objectives, in expanding its global presence, and in meeting its sales expectations over time. Therefore, this strategy is recommended, but at a more gradual timeframe than was originally projected in order for the organization to have sufficient time to gain comfort in each phase of the strategy as it moves from concept to fruition.

References

Bartlett, C., & Ghoshal, S. (2013). Building competitive advantage through people. Sloan Mgmt. Rev, 43(2).

Fine, B. (2010). Can South Africa be a developmental state. List of tables and figures v Preface vii Abbreviations and acronyms ix 1 Constructing a democratic developmental state in South Africa: potentials and challenges, 169.

Hashmi, A. R., & Van Biesebroeck, J. (2010). Market structure and innovation: a dynamic analysis of the global automobile industry (No. w15959). National Bureau of Economic Research.

Prashantham, S., & Young, S. (2011). Post?Entry Speed of International New Ventures. Entrepreneurship Theory and Practice, 35(2), 275-292.

Sturgeon, T. J., & Van Biesebroeck, J. (2010). Effects of the crisis on the automotive industry in developing countries: a global value chain perspective.