The proposed international business venture will be a luxury retail sunglasses operation in the Bahamas, called Sun & Shade, Inc. It will be a foreign wholly owned subsidiary of a U.S. corporation. The Bahamas provides an ideal location for a luxury sunglasses business for a variety of reasons, including having a stable economic and political environment, a readily definable target market and customer base, and the inherent benefits to selling sunglasses in a Caribbean climate.As an international business, Sun & Shade, Inc. will need to consider numerous factors in its business planning and development. These factors include the impact of global macroeconomic forces like fluctuations in currency values, the national business environment of the Bahamas, and cultural differences between the host country (the United States) and the home country (the Bahamas).
[...] Fortunately, Sun & Shade, Inc.'s business is less likely to be influenced by currency fluctuations than many other international businesses, because a significant percentage of visitors to the Bahamas are from the United States. As long as the Bahamas maintains its currency peg with the U.S. dollar, and a majority of tourists are from the United States, Sun & Shade, Inc. will remain reasonably unaffected by changes in the global valuation of the U.S. dollar. Ultimately, this may change in the future, as the percentage of tourists from Europe appears to be on the rise due to the relatively stronger buying power of foreign currencies like the euro. [...]
[...] INTERNATIONAL HUMAN RESOURCES In an international business such as Sun & Shade, Inc., a successful human resources department is crucial to the overall success of the company. In his book Jack Welch, former CEO of General Electric, wrote, “Without a doubt, the head of HR should be the second most important person in any organization. From the point of view of the CEO, the director of HR should be at least equal to the CFO.” Since Sun & Shade, Inc. [...]
[...] Another important part of Sun & Shade, Inc.'s international organization and strategy will be to determine the best location[s] for retail stores. Since the majority of lower-cost competitors focus their which in reality are more like flea markets, on locations near where tourists come onto the island, Sun & Shade, Inc. will seek to establish its stores in prime retail locations which lend themselves to a more luxury-oriented shopping experience, such as the city centers. Offering the opportunity to develop franchised stores to local Bahamian entrepreneurs will eventually become part of Sun & Shade, Inc.'s international strategy. [...]
[...] Ultimately, she concludes with a striking statement of defeat, win, global marketplace.” If consumers feel products made in China are unsafe, for whatever reason, this could pose a problem for Sun & Shade, Inc. since a large portion of its sunglasses would be produced in China. To assuage customers' fears and ensure their safety, the company will need to institute appropriate total quality control systems. Although product safety is a serious issue, there are other benefits to implementing and focusing on total quality management. [...]
[...] Since the cruise industry is critical to the Bahamas' national business environment, issues which affect it could impact Sun & Shade, Inc as well. The Tampa Business Journal's “Royal Caribbean to charge fuel supplement” describes how Royal Caribbean recently added a per person per day fuel surcharge in addition to the existing fees and surcharges for cruise tickets. Furthermore, in “Pier pressure: Cruise lines boost ticket costs”, MSNBC.com reports that other cruise companies are following suit, including Carnival and Windstar Cruises. [...]
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