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Export Strategies for Morgan and Wadia

The document discusses the benefits of exporting for companies like Morgan Motors and Wadia. It states that exporting allows companies to sell products at higher prices to more customers globally. Without exporting, Morgan Motors' outlook would be poor as it generates 70% of revenue from exports. The document also discusses impediments companies face when exporting like tariffs and exchange rate risks. It suggests utilizing export management to improve export success. Finally, it argues that governments using taxpayer money to help small companies export is legitimate as it benefits the country's economy and trade.

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Miguel Vienes
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829 views2 pages

Export Strategies for Morgan and Wadia

The document discusses the benefits of exporting for companies like Morgan Motors and Wadia. It states that exporting allows companies to sell products at higher prices to more customers globally. Without exporting, Morgan Motors' outlook would be poor as it generates 70% of revenue from exports. The document also discusses impediments companies face when exporting like tariffs and exchange rate risks. It suggests utilizing export management to improve export success. Finally, it argues that governments using taxpayer money to help small companies export is legitimate as it benefits the country's economy and trade.

Uploaded by

Miguel Vienes
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
  • Outlook for Companies not Importing or Exporting
  • Benefits of Exporting
  • Government Support for Small Companies Exporting

Jose Miguel Vienes Ms.

Maria Felisa Calicdan


BSBA-311
11 Task Performance 1

1. What are the main benefits of exporting for companies like Morgan and Wadia?

 -the main benefits of exporting for companies like Morgan and Wadia are they can sell
their products at profitable prices. In case of Morgan Motor their cars are expensive, and
the market is niche in which their cars are sold only in the UK. While it is necessity for
Morgan to export into other countries for doing better, the company sells 70% of its
output to the United States of America and the Europe. In the same way, in the case of
Wadia the company would not be able to sell their entire output of the CD players in the
United States of America so that it is necessary for Wadia to sell from 70% to 80% of
their output abroad. Therefore, the benefits of Morgan Motors and Wadia company are
many such as higher sales for their output, and high prices for their products and a huge
access of customers. Access to more consumers and businesses. If you are only doing
business in this country, you may be limiting the total potential profits you could earn on
opportunities to expand your business worldwide. Diversifying market opportunities so
that even if the domestic economy begins to falter, you may still have other growing
markets for your goods and services. Expanding the lifecycle of mature products. If the
domestic market seems saturated for your goods and services, you can introduce them
to new markets in other parts of the world. Potential financing assistance from U.S.
government agencies through loan guarantees that can help fund your exporting
initiatives

2. What would be the outlook for a company like Morgan Motors if it neither exported nor imported?

-the outlook for the company Morgan Motors is not good if neither exported nor imported. The
Morgan Motors will earn less revenue and less profit opportunity without the exporting and
importing of their cars. The fact of 70% of Morgan Motors total revenue would be generating from
exporting their cars abroad. It would be difficult for them to get a raw material needed from within
the same country because it was exported its most of raw materials from other countries. The
outlook of Morgan Motors is without doing an importing and exporting of their cars it does nots
how a better sign for the Morgan Motors due to their mentioned problems.

3. What impediments to exporting success do companies such as Morgan and Wadia face? What
steps can these companies take to improve their probability of succeeding in export markets?

-the impediments to exporting such companies like Morgan Motors and Wadia face is, in
achieving a successful in exporting will be a difficult task, because there are a lot of
challenges/risks they might face which they are more likely reducing the chance of achieving the
successful exporting. The major impediments to exporting is, the tariff barriers, complexity in
conducting a market research, and managing finance, and last is the absorbing of foreign
exchange risks, etc. there are some steps that the companies will follow in improving their profit
of achieving a successful in exporting their products to the market. They should utilize the
exporting management that will work as an export specialist which they act as the export
marketing department or the international department for the client’s firms.
4. Is it legitimate for local and national government agencies to use taxpayer money to help small
companies export?

-the legitimate for local and national government agencies to use taxpayers’ money to help the
small companies export, there are many reasons, it is to help them to improve their balance of
trade position of a country. Also, it provides an access to foreign exchange resources in the
requirements for importing products. The exporting of products will help the country to sell the
excess production capacity of products and to enhance the potential for global expansion by the
local companies. Exporting of products will help the country to stabilize the fluctuations in the
market. Every local and national government is interested that the businesses will gain a global
market share. It brings in a positive flow of foreign exchange. It also helps them to exploit the
indigenous technology to its fullest and helps increase the sale and profits of the exporting firms.
It is the reasons that local and national government agencies use the taxpayers’ money to the
small companies export and to make them competitive in the global market.

Common questions

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If Morgan Motors stopped all exporting and importing, the company would likely face significant financial challenges. Exporting currently accounts for 70% of the company's revenue, so halting exports would drastically reduce its income and limit its market to the saturated UK sector, impacting profitability. Additionally, importing raw materials is crucial for manufacturing their products; without imports, Morgan Motors may struggle to source necessary components, further complicating production. These factors combined would result in lower revenue, reduced profit opportunities, and potentially compromise the company's operational capabilities .

Using taxpayer money to support small companies in exporting can be seen as a legitimate government intervention due to several potential benefits. Such assistance can help improve the national balance of trade, stabilize market fluctuations, and enhance the competitive edge of local businesses on a global scale. It also facilitates access to foreign exchange resources necessary for importing goods, enhancing domestic companies' ability to sell excess production capacity, and promoting economic growth. By stabilizing these market aspects, the government can create more employment opportunities and increase domestic producers' global market share. Thus, providing financial support for exporting activities aligns with broader economic objectives, making it a justifiable use of taxpayer funds .

Exporting provides companies like Morgan and Wadia with the opportunity to sell their products at profitable prices in international markets, which is essential for high-end niche products such as those offered by Morgan Motors. By exporting, Morgan Motors can sell 70% of its output to markets in the USA and Europe, crucial for maintaining profitability given their limited domestic market. Wadia faces similar constraints as it cannot sell its entire output in the USA, thus it exports 70-80% of its CD players abroad. The benefits include access to larger markets, higher sales, and diversifying market opportunities, which helps companies stabilize revenue streams despite domestic market fluctuations. Exporting also offers the opportunity to extend the lifecycle of mature products by introducing them to new markets, thereby enhancing the company's overall business strategy. Additionally, assistance from government loans can support these exporting initiatives .

Companies like Morgan and Wadia face several impediments to successful exporting, including tariff barriers, which can increase costs and reduce competitiveness. Additionally, conducting market research in foreign countries can be complex and expensive, while managing finances effectively to support international operations poses another challenge. Foreign exchange risks can also impact profit margins adversely. To overcome these barriers, companies could employ export management specialists who act as an international department, offering expertise in navigating these challenges. They can also implement financial strategies to hedge against currency fluctuations and invest in market research capabilities to better understand and penetrate foreign markets .

Jose Miguel Vienes Ms. Maria Felisa Calicdan BSBA-311 11 Task Performance 1 1. What are the main benefits of exporting for co
4. Is it legitimate for local and national government agencies to use taxpayer money to help small companies export? -the le

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