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Assess Possible Risks

Autor:   •  March 14, 2019  •  Coursework  •  387 Words (2 Pages)  •  49 Views

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This report research project is created to meet the demand of YikeBike expanding the overseas market as well as to demonstrate a clear perspective towards Chinese market. This report is divided into five parts, including introduction, financial planning, channel arrangement, export logistics, risk management and a conclusion. The entire study will focus on the process of YikeBike entering into the Chinese market. The purposes of this report are to:

♦ determine the number of products and planned profits through doing break-even analysis

♦ analyze and evaluate reasons why Chinese market is an attractive market for YikeBike

♦ compare four forms of transportation modes

♦ assess possible risks

♦ put forward reasonable managerial recommendations for the development of YikeBike.

We conduct break-even analysis and SWOT analysis to ensure future profits and analyze Chinese market separately. Also, we utilize online analyzing and drawing tools to get transit times and transportation routes.

Key findings

♦ Chinese market is lucrative. Three thousand units of e-bikes and per unit price at USD$ 4500 are able to break even fixed and variable costs.

♦ Sea freight is better than air freight

♦ YikeBike faces various risks such as payment risk and foreign currency risk.

Recommendations

Recommendations for YikeBike exporting e-bikes to China include:

♦ selecting reliable, economical and financial secure freight forwarder

♦ adopting multi-modalism strategy

  1. Export logistics

Due to the development of international trade, international logistics has became a frequently discussing topic in these days. International logistics is the management of flow of physical products from the point of origin to the point of usage across the national border. Good logistical management allows an organization to gain competitive advantages such as low cost and high quality products. The exporting logistical management of e-bikes from YikeBike may include transportation, packaging, warehousing, customs, distribution and labeling.

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