1. China, which was inexpensive and there

February 13, 2019 Management

1. How would you evaluate the IJV between Jobek and Hatteras?
The International Joint Venture between Jobek and Hatteras explains correct strategic partners for alliances. Jobek had not evidently made its partner cognizant of its principles and the practices. Jobek had trained environmental sustainability. This was accomplished by the corporation through the use of certified wood and this has been the competitive strategy of the company. In contrast, Hatteras never cared for the environmental protection rather they concentrated on low prices. The Hatteras pressured Jokeb to buy uncertified wood products from China, which was inexpensive and there was clear culture change from this comment where the Europeans experienced environmental sustainability while American did not. Due to this, the results of the International Joint Venture were negative exclusively to the Jobek side. The reason for Jobek enter into this pact was procuring the Duracord yarn that was produced by Harreras and to supporter itself with a monetarily richer company with the global presence. Hatteras intentions are not that transparent. They create Jobek a risk to their domination and through the alliance tried to offset and abolish the threat posted them.
Moreover, The International Joint Venture between Jobek and Hatteras started with both the companies benefiting from the venture because there were increased the sales, cost effectiveness and the cheap materials. For Hatteras, IJV was an advantage because Jobek was their biggest competitors and their partner. The most important benefit that the Hatteras got was ease to access to the European Markets through the Jobek distribution channels. In the flipsides, Jobek gets a benefit for the alliance was able to access US market and big chains such as Walmart’s and Hatteras products. Additionally, The International Joint Venture between Jobek and Hatteras faced some challenges because they have varying method of conducting the businesses and method of production was differing in both the ventures. Apart from the difference, Jobek could not sell its products to other customers by the joint venture because the partnership with the Harreras does not allow it.
2. What was the International market strategy of Jobek and Hatteras?
The International market strategy implemented by Jobek was making a parallel itself with the green root. Globally companies have under remarkable pressure to accept the path to the environmental sustainability. So, Companies have been created certifications to support the social responsibility level. Jobek Company is well known because it is certified by the International standard Organization (ISO), the Forest Stewardship Council (FSC) and International reporting standard likes the Global Reporting Initiative (GRI). The FSC is responsible for forest management, prime goal to preserve the forests for main economic, environmental and social characteristics. They captured the high end market for hammocks, Jobek offer a range of products which are high-class and innovative with The FSC,ISO and International safety certification (GS) and innovative with the FSC. The success of the Jobek’s global hammock sales has depended greatly on community awareness of the company’s FSC certification. In Canada the customers are demanding FSC certified products and use of certified wood added value to the company and guarantee high-quality product. The important reason is the product’s Jobek are associated with the Latin American Lifestyle, beaches, Hammock and palm trees and peoples wanted this kind of products. Jobek has successfully misused the idea of the Brazilian tactic life through this product.
On the other hand, Hatteras does not believe in the certifying products. He does not agree in principle and the significance of the environment and sustainability. Their strategy was use of low price. They also use stronger material like Duracord to manufacture their products and targeting large chains and distributor. In the USA, the price is valued and is considered important than anything else.
3. What are the Difference between the concepts of corporate social responsibility used by Hatteras and Jobek?
Jobek uses certified wood to manufacture their wood products as a way of promoting the social responsibility. However, this is a challenge for the company because the cost of being Social and environmental responsibility can be high, this is still advantage to Jobek because it increased the value of their products which was demanded in developed countries such as Canada and Germany. Even if, corporate social responsibility is a method that the company would take actions through is an activity on the environment, customers, employees and other large communities. Jobek creates eco-friendly products that are inventive and exclusive and they have the FSC certification, Global reporting initiative (GRI), ISO certification. Each certification takes five years before it is renewed and Jobek then pays annual Audit and inspection fee. On the flip side, Hatteras has never been concerned to be socially and environmentally responsible. Their main goal is to make an uncertified products then sell them at a reasonable price. This was likely because they tied up with the big client such as Walmart.
This difference impacted on the Jobek Company after they made a joint project with the Hatteras. Hatteras were coercing Jobek to buy the uncertified wood because it was cheaper, but this is very tough because Jobek had customers from the developing nations who experienced environmental sustainability. For that reason they experience losses due to they lacked suppliers of certified wood as a result of the world economic crisis.
4. Based on your evaluation, what should Jobek Do?
They should consider changing their business strategy to be a more price oriented. Jobek should ensure that the company is not only to be environmentally sustainable, but reflect the prices of their product and the impact it has to the continued existence of the company. In the flipsides, they will lose their good public image, but will be able to sustain its operations by increasing the prices of various products. The company should focus on producing products that furnish for all customers rather than only allowing for the premium customers who are usually few compared to the rest of the customers.
Moreover, one of the possibilities that Jobek can consider is a legal one. Hatteras purchasing low priced Hammocks from China is a clear desecration of the terms of its contract with Jobek. Attorneys should also take a quick look at the contract between the two firms, exclusively on the problem of revenues and losses, and exit items. Partner in a joint venture is likely to see fiduciary duties and loyalties. This entails them to corporate and performs in a way which helps the best interest of the partner. Administration professionals would recommend any business from by the legal option is an expensive and takes a long time to resolve. Therefore, Jobek could make a deal with Hatteras before initiation a legal felony. Another alternative would be to agree the status quo to continue. This could prove to be expensive since Jobek cannot afford to make any money, but In contrast, this might force Hatteras to reconsider partnership with Jobek and seek an exit from its agreement. Additionally, they will improve the situation of the Jobek is for the company to be more creative and innovative regarding the design and the quality of their products. Use of other materials to make their luxury products is one of the creative ways and new products can be made. For instance, use synthetic materials such as Duracord to make hammock and more durable compared to cotton products.
Finally, Jobek is to expand their market by entering into the foreign market other than the few. The main reason why companies move into foreign markets is to look for the new potential customers. But most of the businesses are not aware that foreign markets are riskier that the traditional market. Jobek assesses the foreign market; international expansion macro assessment model for the environment, this valuation will help to identify entirely the possible market with their risk or opportunities and will contribute the success of the company. When Jobek carries out the micro-assessment, it will help to estimate shareholder value and calculating the net present value.
5. Describe Jobek’s current competitive environment. What changes do you foresee in the future? How do you think they will influence Jobek?
Jobek use certified wood sources as competitive advantages. However, the certified wood merchants are now fewer and they are the ones to validate payment conditions which can be too high as compared to other. This issue was triggered by the global economic crisis, which wedged on the people’s anticipation to pay a premium for the environmentally and socially liable products. The scarcity of premium enforced some of wood providing companies to stay out of business because of punishments. The company shortage working capital at the moment more certified wood is no longer reachable for Jobek. They have had to lower a number of profitable bids.
A foreseeable change is an economic defeat, and this is mainly because there is an emphasis on environmental sustainability and it’s a requirement for businesses to behave swiftly. There are some emerging superfluity companies which will increase competition in the industry. As a result, Jobek will face a lot rivalry in the market and will continue growing in demand for quality product because the living values shall also upsurge.
They will sway the Jobek because the hammocks they make furnish to a super quality in the market. They are high-quality, innovative, and come with the FSC certification and they are very expensive. The International Joint Venture with Hatteras has spoiled them financially. The money they assimilated from Hatteras has been paid out on improving the organization or infrastructure. The IJV averts them from swap directly with the other countries. The only answer of this concern would be to free itself from the IJV. The other prospect for Jobek is to consider a possible merger or alliance with a compatible company.
If Jobek moves from the wood manufacturing furniture and Hammock, the Company will be able to retrieve losses and become more competitive in the multinational market just as it was at first or even much better. This will also allow them to afford to buy a 49.5 % interest from their partner Hatteras.


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