Submitted by: Submitted by suar2280
Views: 584
Words: 757
Pages: 4
Category: Business and Industry
Date Submitted: 07/03/2011 06:24 PM
Recommendation:
Because it already has two strong branding companies in the cigar industry and the demand of cigar has levelled off, so we won’t suggest John invests in any existing cigar companies or build a new cigar company since foreign ownership of land is not permitted right now. However, the Cubans are currently looking for a new agricultural way to improve their quality of tobacco plants which is a kind of new business opportunity. Therefore, our recommendation to John Hernandez is to build a new company that is using the expertise agriculture knowledge to serve the farmer and help them improve their yields and plants in cigar industry.
Implementation (Plan of Action)
John Hernandez should start his businesses by doing the following actions:
(1) Employing the professional agricultural people and Cuban local farmers to form the efficient way to improve the quality of the tobacco plants, to eliminate pests and to reduce the losses from disasters.
(2) Find the suitable tools to accomplish these efficient ideas.
(3) Promote and sell his products or services to the Cuban tobacco farmers.
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Exhibit 1: Environmental Analysis - Distribution
| Opportunity | Threat |
Political | * Cuban government nationalized $1 billion US-owned property * US imposed an economic blockade on Cuba – shocking the island’s economy – created worldwide competition | * Foreign countries can’t own land. * Political instability. |
Economic | | * Command economy – developing country – poor * Domestic economy is struggling * Trade deficit (exports are crucial for the survival of Cuba) * Energy problems * Industry works on economies of scale – 2 companies control industry |
Social | * 2002 – 3 million cigar smokers * Hand-made cigars are popular * New agricultural methods are introduced to people to improve the quality of tobacco plants | * Cigar manufacturing is a family...