Cater

RECOMMENDATION

Based in the sales forecast, building turnkey plants in both Mongolia and Kazakhstan would be a good move for the company, but while the profit margin is huge for building a turnkey plant in Congo, it is not economically feasible for a country with such an unstable economy, as evidenced by their high inflation rat, to commit to this project. However, it is not a recommendation to not build in Congo, it is something that needs to be understood and the appropriate caution taken.

It has long been accepted that every company needs to anticipate the challenges which could hinder their business when deciding to enter into new markets. In order to minimize the negative impacts of the surrounding factors on the company, it is highly recommended that the company has to collect all information needed as well as using its own knowledge to create a solution to solve all the problems that could occur and influence badly on the company. The way the companies often do to overcome difficulties has a link to the knowledge-based theory, which determines the basic knowledge-based purpose of the manager is to maintain the high profits by developing new knowledge through discovering a valuable new solution to solve the problem which is identified beforehand. ‘Valuable solutions’ is defined as the solutions which bring value to the company either by the development of a product or service or by reducing the production or delivery cost (Nickerson & Zenger 2004).

In the situation of this case, what Danieli is recommended to do might include two main phases below: (1) Identify the problems that Danieli might face when running a business in three targeted countries including Mongolia, Kazakhstan and Congo. (2) Propose some solutions which help enhance its products and services by building more turnkey plants and develop a new kind of service which is called consultant service in these countries. It is clearly seen that the knowledge-based theory is reflected by the actions...