Jabwood International
Mesaab Ismail
International Management 3680
9/22/14
Problem Statement
Jabwood International is contemplating international expansion into new markets specifically, Saudi Arabia and China to compensate for a decline in revenues.
Problem Causes
The Middle Eastern situation, specifically the uprising in Syria.
The borders between Lebanon and Syria being closed causing the company’s main wood supplier TANITA to expand to other timber companies.
Jabwood’s market share and sales volume had a drop of 20 %.
Jabwood does not have any business in Saudi Arabia which has the Biggest Market in the Middle East for wood products.
Jabwood does not have any business in China which the potential for wood products have increased every year due to the population.
The company depends on one major Supplier, which constituted 60 to 70 percent of its revenue source.
Managers are under tremendous Pressure to meet sales quotas and avoid any conflict with TANITA because it generates most of Jabwoods revenue.
Jabwood has no succession plan incorporated and discussion for it is considered Taboo.
Finally managerial positions were only extended to family members only, which shows favoritism to those individuals and no advancement or promotion to other employees.
Possible Alternatives
Jabwood needs to incorporate a succession plan as well as extend managerial positions to non-family members, doing so will reinvigorate the employees and change their views on the company.
Jabwood has two difficult decisions whether to expand to a place they know Saudi- Arabia or to China which they have no Knowledge in.
Saudi-Arabia Expansion
Jabwood operated in Saudi Arabia before and had established operations with one of the Jabado brothers Adnan During the time they had business in the country.
Saudi- Arabia generated half of Jabwood international sales.
Jabwoods market share dropped once they withdrew from Saudi-Arabia.
Expansion with Saudi- Arabia does have its pros and cons.
Pros
First year
International Management 3680
9/22/14
Problem Statement
Jabwood International is contemplating international expansion into new markets specifically, Saudi Arabia and China to compensate for a decline in revenues.
Problem Causes
The Middle Eastern situation, specifically the uprising in Syria.
The borders between Lebanon and Syria being closed causing the company’s main wood supplier TANITA to expand to other timber companies.
Jabwood’s market share and sales volume had a drop of 20 %.
Jabwood does not have any business in Saudi Arabia which has the Biggest Market in the Middle East for wood products.
Jabwood does not have any business in China which the potential for wood products have increased every year due to the population.
The company depends on one major Supplier, which constituted 60 to 70 percent of its revenue source.
Managers are under tremendous Pressure to meet sales quotas and avoid any conflict with TANITA because it generates most of Jabwoods revenue.
Jabwood has no succession plan incorporated and discussion for it is considered Taboo.
Finally managerial positions were only extended to family members only, which shows favoritism to those individuals and no advancement or promotion to other employees.
Possible Alternatives
Jabwood needs to incorporate a succession plan as well as extend managerial positions to non-family members, doing so will reinvigorate the employees and change their views on the company.
Jabwood has two difficult decisions whether to expand to a place they know Saudi- Arabia or to China which they have no Knowledge in.
Saudi-Arabia Expansion
Jabwood operated in Saudi Arabia before and had established operations with one of the Jabado brothers Adnan During the time they had business in the country.
Saudi- Arabia generated half of Jabwood international sales.
Jabwoods market share dropped once they withdrew from Saudi-Arabia.
Expansion with Saudi- Arabia does have its pros and cons.
Pros
First year