BUS 616 Exporting and Growth for Small Business
Exporting and Growth for Small Businesses
James Ward
BUS 616 International Businesses
Dr. Iweka
April 13.2015
Abstract
The opening case explores how three small companies that is Morgan Motors, Malden Mills, and Wadia have fruitfully improved their trades and profit margins through exporting their products to foreign market. Morgan Motors, a company that manufactures sports car in Britain exports almost 70 percent of its products overseas. Wadia, a Michigan-based company that produces high-end compact disc players, relies on exports for eighty percent of its sales output. Malden Mills firm on the other hand is an American based company that manufactures high technology textiles. In the year 2006, the company earned its sales from exports. Malden Mills, the maker of Polartech, a great technology fabric used in loftier priced outwear, tackled a different type of task than Morgan Motors and Wadia. Though the latter two companies created specialty stuffs for small market functions, Malden Mills made a difference and produced a product for a superior market, but a market that was in weakening thanks to globalization and the occurrence of low cost manufacturers in countries that are still developing. Malden Mills, and the South Carolina Export Consortium, looked into new opportunities for its product and gotten a loan from the Export-Import Bank that permitted the firm to utilize its capacity in a better way and improve its markets especially the exports. Benefits of Exporting Products for Companies Export sales are of critical importance to some small companies like Morgan Motors and Wadia. As of their small local markets, every companies need export revenues for the company to survive. Morgan Motors, in an axial, ships almost or more than 70 percent of its production abroad because it’s local market that is based in the United Kingdom is too small to make
James Ward
BUS 616 International Businesses
Dr. Iweka
April 13.2015
Abstract
The opening case explores how three small companies that is Morgan Motors, Malden Mills, and Wadia have fruitfully improved their trades and profit margins through exporting their products to foreign market. Morgan Motors, a company that manufactures sports car in Britain exports almost 70 percent of its products overseas. Wadia, a Michigan-based company that produces high-end compact disc players, relies on exports for eighty percent of its sales output. Malden Mills firm on the other hand is an American based company that manufactures high technology textiles. In the year 2006, the company earned its sales from exports. Malden Mills, the maker of Polartech, a great technology fabric used in loftier priced outwear, tackled a different type of task than Morgan Motors and Wadia. Though the latter two companies created specialty stuffs for small market functions, Malden Mills made a difference and produced a product for a superior market, but a market that was in weakening thanks to globalization and the occurrence of low cost manufacturers in countries that are still developing. Malden Mills, and the South Carolina Export Consortium, looked into new opportunities for its product and gotten a loan from the Export-Import Bank that permitted the firm to utilize its capacity in a better way and improve its markets especially the exports. Benefits of Exporting Products for Companies Export sales are of critical importance to some small companies like Morgan Motors and Wadia. As of their small local markets, every companies need export revenues for the company to survive. Morgan Motors, in an axial, ships almost or more than 70 percent of its production abroad because it’s local market that is based in the United Kingdom is too small to make
References: Lefebvre, E., and Lefebvre, L. (2000). Small and Medium-Sized Enterprises, Exports and Job Creation: A Firm Level Analysis (Industry Canada. Paper No. 26). Ottawa: Research and Publications Program. Fugazza, M. (2004). Export Performance and Its Determinants: Supply and Demand Constraints. Study No. 26. Geneva: UNCTAD Harless, A. (2006). Exports, Imports and Wages: What Trade Means for US Job Quality. Washington, DC: Center for National Policy.