Sun City Board’s CEO, Tom Wilson, has decided that Sun City should take advantage of the global surfing market. (You can refresh your memory of Sun City Boards by reading the Why It Matters and Putting It Together sections of the Planning and Mission module.) 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 the Globalization and Business module.
- Review the following excerpts from the 2016 report titled “Surfing: A Global Strategic Business Report” 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.
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 describing your advice for Sun City. Your essay must include three properly referenced and defined terms from the module reading. 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 text, 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.
Your written assignment will be graded using the Written Assignment Rubric. Please review and keep it in mind as you prepare your assignment. Each component is weighted as follows:
10% Organization and Format
Adequate: Writing is coherent and logically organized, using a format suitable for the material presented. Transitions used between ideas and paragraphs create coherence. Overall unity of ideas is supported by the format and organization of the material presented.
Adequate: All required questions are addressed with thoughtful consideration reﬂecting both proper use of content terminology and additional original thought. Some additional concepts are presented from properly cited sources, or originated by the author following logic and reasoning they’ve clearly presented throughout the writing.
40% Development – Critical Thinking
Adequate: Content indicates original thinking, cohesive conclusions, and developed ideas with suﬃcient and ﬁrm evidence. Ideas presented are not merely the opinion of the writer, and clearly address all of the questions or requirements asked with evidence presented to support conclusions drawn.
10% Grammar, Mechanics, Style
Adequate: Writing is free of spelling, punctuation, and grammatical errors, allowing the reader to follow ideas clearly. There are no sentence fragments and run-ons. The style of writing, tone, and use of rhetorical devices is presented in a cohesive style that enhances the content of the message.