Zen Plastics Company
This report aims to examine partnership arrangements and clearly identify advantages and disadvantages in terms of entering the export market. Besides, it is necessary to have a competent understanding of how Zen Plastics would successfully go into the export market and what they do to achieve this. Critically look at Zen Plastics’ s structure to see if the exporting is a suitable strategy for the firm concerned. The partnerships that Zen Plastics could enter into In some countries Zen Plastics cannot sell directly to the end user but must use a local agent or representative.
Thus, they should enter into some partnerships. It is possible for Zen Plastics to use manufacturer’s representative or sales agent in local area. In other circumstance, the foreign distributor may purchase the product from Zen Plastics and is always responsible for payment of the item being exported. Accordingly, joint ventures might be a common way for most of exporting companies when two businesses in different counties get together to start a new venture. This method normally follows one route such as licensing, franchising, industrial co-operation and contract manufacture.
As for Zen Plastics, licensing, franchising and contract manufacture would be the appropriate ways to be taken into account. The owner of the licence grants someone the rights to produce goods using that licence. The owner of the licence allows other manufacturers to use the character in return for payment of a fee. In a word, the licensor won the rights and the licensee buys the rights. A franchise operation comprises a franchiser and a franchisee. The franchiser owns the rights to the products and sells these to the franchisee. This is used by exporters to get into overseas markets that are protected by tariffs or other barriers.
It involves the manufacturer placing an order for the production of agreed items in another country. The export facilitating companies that could assist Zen Plastics to enter foreign markets With the assistance of Foreign and Overseas Chinese Affairs Office of the people’ s Government, Zen Plastics can implement and carry out the state foreign principles, policies and relevant laws and regulations as well as the decisions made by Communist Party of China (CPC) and study and formulate working schemes and plans for key foreign affairs.
To conduct investigation and study according to the needs in the process of economic and social development as well as the opening-up campaign and to provide proposals and suggestions for the decision-making. CHINA GROUP COMPANIES PROMOTION ASSOCIATION, it can help Zen Plastics correct evaluate the proposed market, research on size of target market, and then take further measures to plan. With the help of CGCPA, it can promote business cooperation and foreign matchmaking.
They can investigate on the multinational business strategy formulation and implementation and the management of overseas companies to understand the situation and to exchange experiences as well. A new proper organization structure to assist Zen Plastics in its new venture Before Zen Plastics start exporting they must decide what their objective for exporting is. They must decide what type of work that needs to be done to accomplish the company profits or other objectives.
There are many ways a company can create its structure. The most common are: Functional organization, Regional organization, and Product organization In the topical issue of environmental protection has become a global imperative to resolve the contradiction, Zen Plastics should seize the rare opportunities for the revolutionary era – the green plastics, it widely promotes the use of green plastics by making their own efforts depend on a new organization structure, which can assist Zen Plastics in its new venture.
Summary With the help of the report, some relevant information about the various routes to the market place both direct and indirect can be provided. Besides, the advantages and disadvantages of each and organizational structure have been discussed, and apply it to the case study.
