Save:
Favorite
Share:
Calculator Allowed: No

Question

Answer

Transcription of this question: 5.John felt that the decision about expanding JAC into the international markets of the PacificIslands did not depend on the decision about the 3D printing project. However, he decidedthat they should not enter the markets at the same time, so they had to choose betweenstarting with Fiji, Samoa or New Zealand. John stressed to Liza that, as with the constructionof the Utopia villas, the choice of a new international market should strongly consider culturalinfluences and norms. For this reason, John favoured Fiji and Samoa over New Zealand,arguing that they are more culturally similar to Ratu. However, the final decision not beingmade, John asked Liza to do some more research into the idea and into the two markets.The results of her ideas are summarized in Tables 1, 2 and 3.Table 1: Liza’s market research resultsDescriptionPopulation (2015)Tourist visitors (2015)GDP per person (2015estimate)Projected economic growthType of economyCoffee drinkin cultureSamoaConsists of over 330 islands, Two large islands.of which 110 are permanentlyinhabited. It covers a hugearea of the Pacific Ocean.881 000658000$49004.5%Developed economy withtourism, forestry, minerals,fish and sugar being themain industries.Predominantly tea drinkers190000116000$62001.9%Largely industrial (58% ofGDP) and tourism (25 %).Some agriculture includinggrowing and exporting coffeebeans.100 % coffee(Source: adapted from Index Mundi, Asian Development Bank and Chartsbin_com]Table 2: Why invest in Fiji(Question 5 continued)Liza drew up the following decision tree to help clarify the decision process and try to quantify the issuesinvolved in the decision.Cost to develop new marketin Fiji $2mFiji: Net predictedoutcome $2.9mSamoa: Net predictedoutcome SXCost to develop new marketin Samoa $1.5mChance of success OutcomePredictedoutcome$4.9mPredictedoutcomegood 0.6moderate 0.3poor 0.1good 0.3moderate 0.5poor 0.2using the case study and the additional information on pages 4 and 5, recommend whichof the Pacific Island markets JAC should enter. Completing the decision tree and using theresults could help you in your answer.[20]

Leave a Reply