Product strategy refers to the qualities of the product that make it more competitive in market considering factors such the quality and quantity of the product relative to the price of the product. It will also seek to attract consumer loyalty to the product for export. One way of creating loyalty to the product is through advertising and also manufacturing quality products which beat other competitors in the market in terms of quality, quantity and the general outlook. As a strategy for increasing the volume of exports, it is also important to consider product strategy in total in that the strategy should consider the product from the initial stages of manufacturing the product up to the last stages in sales and the consumption. Such may include after sale services and customer help lines whereby the consumers of the products can make enquiries before buying and also after buying the product (Bierman 1999).
Due to the repeated contact between the consumers and the manufactures of the product, the consumers develop a relationship with the manufactures which is important in developing loyalty to the product. If the loyalty to the product is maintained, it will help in increasing the exports because the established consumers will act as indirect advertisers for the product. Bachu Holdings is therefore likely to increase the export as the buyers will spread the information to those around them thereby acting as indirect advertisers. The consumers will also play an important role in helping to improve the quality of the product because they will provide any needed information on the deficiency in the products. Then Bachu Holdings can respond to that and make the necessary changes to suit the consumer demands. This is important as a strategy for increasing the exports and also much important because it will help in retaining the already existing consumers (Bierman 1999).
Business process strategy
All businesses whether at local, national, regional or international levels are operated in a systemic manner which makes them heavily interrelated in terms of their management. The systems in the business process are greater contributors towards the achievement of the desired end product and in this case an error in part of the system may result to a negative impact on the quality of the desired end product and also on the marketability of the product. It is therefore important to keep the business process as efficient as possible and also as much flawless as the management can afford. In this case, the Bachu Holdings will be keen to ensure that workers in the business line are well trained so that they know how to produce best quality vehicles in assembly. Such measures include ensuring that all the parts are genuine to prevent unnecessary breakdowns which may lead to lower demand for the vehicles (Harrington 1991).
There is need to ensure that there is efficient cooperation among the technical experts, grounds men and the decision makers so as to ensure there is an all round quality of the product. As part of the business process strategy, it will also be important to get the responses from the consumers so that the decision makers can decide on the best way to maintain the export market and if possible increase the volume of exports. This will include activities such as modernizing the production process and also using the technology in marketing the products. Advertising of the vehicles assembled by Bachu Holdings over the local media and also over the internet is likely to increase the volume of sales. Other means of increasing the volume of exports is by consultative involvement of consumers in research so as to identify their emphasis about the expected end product. This will widen the market base as other competitors who do not have the knowledge will be knocked out of the available suppliers for the vehicles and therefore the there will be increased demand and a ready market (Harrington 1991).
Every production process has its procedural method of decision making and implementation of the reached at decisions. Operations strategy refers to the complete pattern which is used to set the long term activities of a firm or a company and which affect the overall outcome. It is a foresighted activity which attempts to make predictions about the market based on the current trends and any foreseeable changes and all these as related to the product to be sold. This can greatly affect the amount to be exported and so operations strategy is an important activity that will help to ensure that the product can withstand the foreseeable variations in future and especially as related to varying market demands. The operations strategy will also consider the likely change in the quality of the product as influenced by the changing technology and varying consumer demands (Beckman and Rosenfield 2008).
Operations strategy will also be able to balance between the number of employees and the total output with a consideration of the total market demand thereby ensuring maximum efficiency to avoid wastage. This will also consider the estimated number of workers to avoid under-staffing the production process which might lead to lower productivity or low quality products. It is therefore important to balance the factors in production process and the operation strategy will ensure this is achieved as it can affect the amount of exports if the quality deteriorates. The operations strategy should therefore be wholesome, systemic and expertly advised to ensure its sustainability as well as maximum productivity. It should be able to accommodate changes in future relating to market demands as well as the availability of resources and incase of competitors the strategy should be able to withstand the external forces (Beckman and Rosenfield 2008).
Financial strategy is a key factor to be considered if the company expects to survive and withstanding the stiff competition from other financially and technically strong competitors. It is also worth noting that there should be proper balance between the amount of money spent on any of the activities in the production and the exportation of the products so that any unnecessary expenses are avoided and also to ensure proper funding of all levels of production and exportation. The financial strategy will therefore require that the production process be limited to the available funds but should also be flexible as there are many fluctuations expected over time because the export business is expected to be long term. Thus the strategy will be based on three major pillars which are firstly by ensuring that funds are spent based on the performance in the entire process, controlling the finances to be flexible in response to the changes in the process in relation to time and growth of the business and also maintaining a reasonable capital base for the business (Bender and Ward 2009).
The major components of the financial strategy which affect the business directly and those that may impact on the sustainability of the business are firstly insurance against risks that may affect the financial structure of the business. Bachu Holdings should be insured because this type of business does not have a guarantee in safety. Then secondly there is the risk management itself which should be effective and have internal controls to minimize wastage and other kinds of risks that might lead to loss of funds. Lastly, the financial strategy should strike a considerable balance between the short term goals and the long term goals and all these should be based on the returns and the general level of risks involved (Fruhan 1979).
The exportation of cars parts by Bachu Holdings to Ghana for assembly and sale is expected to last even more years after 2020 because of the suitability of the market. As one of the fastest growing economies in Africa and also in the whole world, Ghana is expected to be the best market for the assembled cars because of the assurance of continuity as evidenced by the economic growth which will in return lead to better sales for the assembled cars. The economy is mainly based on export of considerable amounts of gold, diamond, cocoa, timber and manganese. Although most of these exports are subject to depletion with time which might affect the per capita income for most of the citizens, there is an assurance from the exportation of cocoa which will continue for as long as the economy exists. The other exports are also rated as high value exports and so they will enable high economic growth which is not short term either. In 2007, an oilfield expected to contain as much as 3 billion barrels of oil was identified in Ghana and this is also expected to be a major economic booster for a long term (Aryeetey, Harrigan and Nissanike 2000).
Economic growth translates to better incomes for the citizens and so they will be able to buy more cars therefore there is the need to start a motor vehicle assembly in Ghana as a wider market is almost guaranteed. Like most other African countries, there is also a considerable population growth in the country which will also increase the demand for more vehicles as there will be need to increase transport services for both the public sector and the private sector. With vehicles being assembled in the same country, there is very high possibility of selling the same vehicles to local companies, the government, international companies which have branches in the country and also to individuals who are helped by the economic growth to afford private means of transport. Therefore Bachu Holdings can expect to have a long lasting market for its products (Alpine and Pickett 1993).
Although the Ghanaian economy is growing at a very high rate, it is very unlikely that the government will adopt other modern means of transport such as electric trains in the near future. The affordability of such means of transport is minimal and this may make it difficult provide the same for all regions in the country (Alpine and Pickett 1993). The assembly of cars in the country will lower the cost of production and therefore the vehicles will be affordable for most of the citizens. These will in return increase the demand for the vehicles therefore there will be an increased sales volume. Ghana being a third world country, there is limited likelihood that people will buy vehicles for prestige. More often than not, it will be due to necessity and therefore there is the need to consider the cost of the vehicle so as to lower the selling price. Therefore the motor vehicle assembly will be helpful in attaining this goal and consequently gather a wider market as it helps to lower the price of the vehicles (Alpine and Pickett 1993).
The discovery of the oil field will also lower the cost of fuel in the country and so many people will be able to afford fuel for their vehicles. One of the limiting factors in the motor vehicle market is the cost of fueling. Due to the likely availability of cheap fuel, many middle class citizens are likely to shift from public means of transport to private vehicles and therefore there will be increased demand for the private cars. This will therefore act in favor of Bachu Holdings as the company will be able to assemble and sell more vehicles to more people who would otherwise have opted for public means of transport such as buses (Hilyard 2008).
Ghana is also known to have one of the most stable political systems in Africa. This has both direct and indirect benefits to Bachu Holdings in relation to the profitability of the business (Herbst 1993). An export business is very sensitive to insecurity because whenever there are riots the foreigners' investments are more targeted by rioters and so they make more losses than the local investors. With the current political stability in Ghana, Bachu Holdings is assured of continuity without threats of destruction of the company's properties. The cost of insurance is also lower and therefore there is a general reduction in operation cost which translates to reduced prices for the vehicles. This will in turn lead to increased sales due affordability of the vehicles exported and assembled by Bachu Holdings (Herbst 1993).
The system of governance in Ghana has also enabled to minimize cases of corruption which has halted development in many other third world countries (Boafo-Arthur 2007). This has therefore enabled existence of a competitive economy as opposed to development for a few individuals as is the case in many developing countries. The competitiveness is a major booster for economic growth which in turn promotes the purchasing power of most of the potential consumers. The system of governance has also attracted sponsorship from international donors who have helped in promoting economic development as well as increased incomes for individuals thereby increasing their purchasing powers. All these will translate to increased sales for Bachu Holdings as more people will be able to buy their exports (Boafo-Arthur 2007).
As a growing economy, Ghana is one of the best preferred markets for the exports made by Bachu Holdings. There is a great atmosphere for businesses to thrive and perform at levels similar to those of markets in developed countries. This is mostly because the economy is growing at fast rates even with a growing population which opens even more markets for the vehicles exported by Bachu Holdings. An established of the motor assemblage and with guaranteed quality and considerable prices will help in ensuring consumer loyalty and therefore the export business is guaranteed a long term existence. It is therefore appropriate that Bachu holdings start a motor vehicle assembly in Ghana and export the motor vehicle parts from the mother country with an emphasis on the affordability of the vehicles and also based on how favorable they are to the local road conditions, environmental suitability and compliance to international standards for the quality of the vehicles.