Breezy case
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 talks about how Breezy will have to modify its corporate strategy. Finally, the report concludes with the best reccomendation for Breezy to maintain its competitive advantage.
1. In exploring the possibility of developing a relationship with offshore car manufacturers, what questions should Breezy be asking?
a) Who are the suppliers of carburators and air filters that Breezy will be competing against? This is an important question when conducting an external analysis of the players in the Industry because Breezy will be able to design a strategy that will make their products different from competitors.
b) What are the car manufacturers human, financial, physical and organizational resources and capabilities? Breezy should be asking and investigating the firms that it plans on partnering abroad because they would not want to d business with car manufacturers that are not financially stable or have a bad organizational culture.
c) How is the business done in the country (Brazil or India)? Breezy must consider the different business styles deriving from different countries in order to succeed in the global market.
d) Does the car manufacturer have a good credit? Breezy must make sure its customers can pay for the products in
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 talks about how Breezy will have to modify its corporate strategy. Finally, the report concludes with the best reccomendation for Breezy to maintain its competitive advantage.
1. In exploring the possibility of developing a relationship with offshore car manufacturers, what questions should Breezy be asking?
a) Who are the suppliers of carburators and air filters that Breezy will be competing against? This is an important question when conducting an external analysis of the players in the Industry because Breezy will be able to design a strategy that will make their products different from competitors.
b) What are the car manufacturers human, financial, physical and organizational resources and capabilities? Breezy should be asking and investigating the firms that it plans on partnering abroad because they would not want to d business with car manufacturers that are not financially stable or have a bad organizational culture.
c) How is the business done in the country (Brazil or India)? Breezy must consider the different business styles deriving from different countries in order to succeed in the global market.
d) Does the car manufacturer have a good credit? Breezy must make sure its customers can pay for the products in
References: Barney and Hesterly. (2011). Strategic Management and Competitive Advantage (4th Ed). Canada: Prentice Hall. FITT. International Markey Entry Strategies 6th Ed. FITT. International Trade Management 6th Ed. Herath and Kishore. (2010). Offshore Outsourcing: Risks, Challenges, and Potential Solutions. Retrieved February 9th, 2014 from http://www.acsu.buffalo.edu/~rkishore/papers/Herath-ISM- 26-4-2009.pdf Shiu, K. (2012). Outsourcing: Are you sure or offshore? Identifying legal risks in offshoring. Retrieved February 6, 2014 from https://www.nswscl.org.au/index.php? option=com_content&view=article&id=130:outsourcing-are-you-sure-or-offshore-identifying- legal-risks-in-offshoring&catid=28:june-2004-issue&Itemid=31