case study

14Sep 2021 by
Sun City Board’s CEO, Tom Wilson, has decided that Sun City should take advantage of the global surfing     market. He has based his decision on the information he obtained from the industry study summarized         below. You are cautiously optimistic about this opportunity and need to advise Tom on the management          considerations Sun City must address before embarking on this endeavor.

In this assignment, you will outline and explain the key management considerations for going global, based   on the information you’ve been given and the concepts you studied in your readings on globalization and     business.

Thoroughly read

Learning Unit: Ethics and Corporate Social ResponsibilityLinks to an external site.

Review the following excerpts from the 2016 report titled “Surfing: A Global Strategic Business             Report” (Links to an external site.) from Global Industry Analysts, Inc.

The global market for surfing is projected to reach US$9.5 billion by 2022, driven by growing interest in          surfing both as a leisure and sporting activity, increased accessibility to surfing through surf parks and surf   pools, and technology innovations focused on developing sophisticated surf-wear and surf-gear…. As warm water surfing in tropical locations turn crowded as a result of mass tourism, there is increasing interest in      cold water surfing. The trend is expected to bring conventionally unpopular surfing locations into the             spotlight, thus expanding the addressable market for surfing equipment and gear. The United States             represents the largest market worldwide (49.0% market share) supported by the long-established surfing     culture in the region and the resulting large base of surfer population. Australia is poised to grow at the         fastest CAGR of 5.5% over the analysis period, driven by rising tourism, increased spending on family            vacations, presence of several attractive national surfing reserves in the country, and the popularity of beach and surf tourism and recreation.

Snapshot Summary of Trends and Drivers

Growing participation of women in surfing offers surf-wear market lucrative growth opportunities

Rising popularity of surfing as a sport and leisure activity drives demand for surfing apparel and            equipment

Performance surf wear continues to gain prominence

Establishment of surf parks with artificial wave technology to benefit market growth

Focus shifts to eco-friendly surfboard materials and production techniques

Demand for hybrid and uniquely shaped surfboards

Key players in the global surfing market include O’Neill, Quiksilver, Body Glove, Volcom LLC, Rip Curl                 International Pty Ltd., and Billabong International Limited.
Your Task
Carefully consider the political, economic, and cultural challenges and benefits of global business. How          should Sun City management address its planning, organizing, leading, and controlling functions to                participate in the global market?
Write a three-paragraph essay of at least 300 words describing your advice for Sun City. Your essay must      include three properly referenced and defined terms from Module 3 Learning Unit. For example, if you believe that Sun City should follow a standardization strategy, what implications would this have on management     control? How does your plan address the potential for a global supply chain?
You are encouraged to use appropriate illustrations or charts to describe your plan. In addition to the module, you may also reference reliable and properly cited Internet resources. You may also draw from your personal work experience with appropriate examples to support your references.

Why does a business need to define its mission and engage in planning?
Dan Smith is a management consultant with the firm Business Advisors. He’s sitting in his office one day       when the telephone rings. He picks it up and hears the voice of Tom Wilson, an old high school friend. “Hi    Dan. This is Tom Wilson from Southside High. Remember me?” They discuss old times for a few minutes, and then Tom gets down to business.
“Dan, I need your help. I started a business several years ago, and we’re in trouble.”
Dan quickly searches his memory and recalls that Tom started a business called Sun City Boards several       years ago selling high-end surfboards on the West Coast. Last Dan had heard, the business was doing well.       “Yeah Tom. I remember when you started your shop, but I thought the business was growing                      successfully.”
Tom replies, “We did well the first couple of years, but things haven’t been good for a while now. We’re losing money, and I’m not sure how much longer I can keep the doors open.”
Dan assures Tom that he is happy to help and asks him to send a few items over to prepare for a trip to visit his operations. “Just send me a copy of your current business plan, financial forecasts, and annual operating budget.”
There’s a pause on the other end of the line, and then Tom says, “Well, I can send you our bank statements   and invoices. We don’t have any of the other documents you’re asking about.”
Based on that response, Dan already has a good idea of the organization’s problem: an obvious lack of          planning that never bodes well for a business.
In this module, you learned the importance of an organization establishing a clear vision and mission and      how they guide the business planning cycle. The business plan is the roadmap that guides the organization   to success.
Dan traveled to Tom’s operations on the West Coast and confirmed his suspicions that the problems the        organization is facing are due to a lack of planning. Dan is meeting with Tom to report on his findings and to   submit his recommendations.
“OK Tom, I’ve spent the last several days going through your operations and records, and I’m confident that   there are actions you can take that will help turn around the business.”
Tom lets out a long sigh and says, “Dan, you have no idea how glad I am to hear that. So at a high level,        what’s the problem?”
“In a nutshell, the problem with Sun City Boards is that you have lost your focus and there is no clear plan for moving forward.” Tom looks confused, so Dan explains. “When you started the business, what was your          vision?”
Tom answers, “ To set people free from the earth … free to ride the waves .” [Vision statement]
“Perfect!” Dan responds. “And how were you going to do that?”
Tom thinks for a moment and then emphatically declares, “ We will strive to provide the absolute best in        high-end surfboard design and production! ” [Mission statement]
Dan tells Tom that he has just created the vision and mission statements for Sun City Boards. He further       explains:
“You have to start creating a focused plan that will help the organization deliver on its vision and mission.      The reason your company is struggling is that there is no clear roadmap to success.”
Tom asks, “What do you mean?”
Dan continues, “When you started the company you were very successful because you focused on one key   thing—making the best surfboards anyone had seen. As a result, everything your business did revolved        around that core idea.”
Tom interrupts, “OK Dan, I think I see where you’re headed. When we started making money in the early days, I began to start expanding into other areas without a lot of thought. I listened to salespeople who came in     and told me that I should branch out into low-end surf gear, then swimwear, then camping gear. Customers don’t know what we’re all about any more. And neither do my managers and employees.”
Dan can see Tom is getting his arms around the concept of vision and mission, so he moves on.
Next, he presents his recommendation that Tom and his key leaders should come together regularly to          create, review and update Sun City’s business plan. This is new to the team, so he gives them a quick            example:

Define Objectives: Sun City Boards should look to reduce noncore product lines and associated             inventory. Minimum margin target is 35 percent across all remaining product lines.

Develop Premises: Monitor competitor’s plans to implement a new polymer board and determine          potential impact to Sun City’s sales.

Evaluate Alternatives: Evaluate opportunity of opening new retail outlets along the West Coast. Also,    explore international sales options for high-end surf boards.

Identify Resources: Analyze the level of capital necessary to achieve expansion goals and incorporate plan to close financial gaps in the annual budget.

Plan and Implement Tasks: Create a Gantt chart or other project planning tool that outlines the actions necessary to reach the goals outlined earlier.

Determine Tracking and Evaluation Methods: Create SMART goals for both managers and employees   that align with direction the overall business plan provides.

Finally, Dan reminds Tom that the planning process is only a tool and that the plan should be regularly            reviewed and updated. Dan warns him that planning is no substitute for taking action, but it is a guide for him and his team as to what actions should be taken.
This consulting project has reminded Dan how important it is for an organization to have a clear vision and    mission to know where it’s headed. Likewise, the planning process is critical to know how it’s going to get       there. The alternative is like trying to take a cross-country trip without a map—you don’t know where you     might end up!
Carefully read the background story of Sun City Boards presented above and review Module 4 Learning Unit: Introduction to Planning Links  Organizational Structure and Processes Learning Unit
In this assignment, you’ll apply what you learned about planning to Sun City Boards and the management       challenges its owner, Tom Wilson, faces. You’ll advise Tom on strategic management steps he and Sun City Boards should take to develop and implement their new strategy.
Module 4 Learning Unit: Introduction to PlanningLinks to an external site. introduced several strategic            planning tools to use at different stages of the strategic management process. As an advisor for Sun City      Boards, your assignment is to select one of the following strategic management tools (SWOT analysis;           PESTEL analysis, or Porter’s Five Forces) described in the module, explain how it works, and explain why it   will be of value to Sun City Boards.

Your Task
Write a 300-word report describing the strategic management tool you chose and why you selected it.           Explain how the tool works and why it will be of value. Your essay must include three properly referenced     and defined terms from the module reading. Additionally, address the following questions:

What is the purpose of the tool? What conclusions will it help Sun City Boards draw?

How does the tool work? How does it measure the relevant factors, or how does it derive importance    from them?

In this assignment, we’ll return to Sun City Boards and the management challenges they face. With your        advice, Tom Wilson (the owner) has continued to make strategic planning progress, but you and Tom realize   that a new organizational structure is needed for the company to grow as you envision. Plans include            expanding  beyond a single store/manufacturing shop and reaching new markets via an Internet presence     and e-commerce. The following is a summary of the current staff and loose descriptions of job functions:

Owner/CEO—Tom Wilson (Designs the boards, sets their selling price, and establishes sales channels with local surf shops)

Bookkeeper—Sarah Balanced (Sarah also doubles as order-taking clerk, cash register attendant, and    customer complaint listener)

Board Maker—Jack Ovalltrades (If Tom invents it, Jack can make it!)

Board Making Assistants—Jill, Jane, & Judy (Assignments change almost daily as Jack decides what   needs to be done next)

Sales Associate—Kelly Dude (Named after famed surfer Kelly Slater and a business icon for Sun City   Boards; visits surf shops and occasionally closes a sale)

Part-time Associates—Hired as needed for inventory management (cleanup), promotional events, etc.

Thoroughly read Module 5 Organizational Structure and Processes Learning UnitLinks to an external    site..

Carefully consider the various organizational structures, their key structural components, and               organizational timing relevant for Sun City. Consider the internal and external environmental factors,   as well as current trends.

Thoroughly read Module 5 Organizational Structure and Processes Learning UnitLinks to an external site..

Carefully consider the various organizational structures, their key structural components, and organizational timing relevant for Sun City. Consider the internal and external environmental factors, as well as current trends.

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