Business Memorandum Analyzing Market Feasibility in India Essay

1364 Words Apr 20th, 2013 6 Pages
BUSINESS MEMORANDUM

analysis, the following conclusions were derived:
1. Scale the Philippines facilities to increase the production of parts and products created to supply the orders from the Asian markets, while decreasing the U.S. production. The countries in Asia we are targeting as part of our strategy are in high demand for our products as part of their global expansion and tourism.
2. Seeking legal expert opinion to identify all legal aspects for conducting business in India, as this country is one of our major targets. The logistics and trade implementations present several weaknesses that make the current legal data unreliable. I recommend that we assess best practices in the international sector and mirror for our
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and the Philippines facilities allow us to utilize the fastest delivery route to meet the costumer’s requirements. The drawback however, is the costs may vary, depending which location delivers the parts, and if coming out of the U.S. we incur higher costs.
Our company produces a large variety of parts as components to building each product, but these parts are produced in low volume with high employee and machinery automation costs in the U.S. Direct labor only accounts for 30% of the total cost of manufacturing in the U.S. This is an area of consideration for us to allow scaling at lower infrastructure costs and less delivery times.
Best Practices and Legal Implications
Best practices show the international landscape to be favorable for the expansion of the industrial kitchen equipment in the areas of hotelier and convention centers industry. Tourism being on the rise in Asia as the means to attract foreign investors and increase capital puts our company in a favorable market.
The legal implications of conducting business in each one of the Asian countries are critical to our success. Knowing the constraints and opportunities in each country are of great importance to our organization. Most of our current efforts are now channeled in India due to the large project the Starwood Hotels opened up in New Delhi and Mumbai and our proposal being accepted

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