Foxy Originals expansion into the U.S. market Essay

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Pages: 8

Case Study | center3962291Foxy Originals
Expansion into The U.S. Market

Contents TOC \o "1-3" \h \z \u Executive Summary: PAGEREF _Toc382852169 \h 3Problem statement PAGEREF _Toc382852170 \h 4Analysis PAGEREF _Toc382852171 \h 4Impact Analysis PAGEREF _Toc382852172 \h 5Criteria for an Effective Solution PAGEREF _Toc382852173 \h 5Evaluation of Alternatives PAGEREF _Toc382852174 \h 5Recommendation PAGEREF _Toc382852175 \h 6Action Plan PAGEREF _Toc382852176 \h 7Appendix A PAGEREF _Toc382852177 \h iAppendix B PAGEREF _Toc382852178 \h iii

Executive Summary:Foxy Originals has been becoming a popular jewelry brand in Canada with their low-priced high-class products. With fast pace growing in local market, Foxy’s jewelry
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Degree of Risk: assess each alternatives’ degree of risk
Evaluation of AlternativesCost/Benefit Timeline Complexity Degree of Risk Total Points
Trade Shows 3 3 3 3 12
Sales Forces 4 4 4 4 16
Combination 2 2 2 2 8
As shown in the Appendix A, each trade show costs $9,433.33 on average. In the best-case scenario, each trade show would generate $4,145.42 profit (Appendix B); however, trade show may lose money as well in the worst-case scenario, $-3,398.33. By adding total 10 potential trade shows together, Foxy would make profit from $-33,983.30 to $41,454.20, which depends on how many orders they receive at each show. Additionally, there are 10 shows during the year, which is effectively low. Preparation is complex as well. Kluger and Orol have to book tickets, arrange time, and set up booth. Also, high uncertainty cannot be overlooked. A delayed flight may waste all the previous efforts they put.
Hiring them could be a smart move, although sales forces would be compensated with a 15% commission on all sales. In comparison with trade shows, low investment and high yield is feature of hiring sales forces. Appendix A shows that hiring one sales representative for a year just cost company $6,380.00. In the low projection, each salesman may only sell 10 orders each month so that s/he just makes $19,588.00 profit ever year. Let’s assume that they luck out selling 15 orders per month, and then each salesman can make $32,572.00