Case study: taking sun city boards global

Scenario

Sun City Board’s CEO, Tom Wilson, has decided that Sun City should take advantage of the global surfing market. 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.

Preparation

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.

  1. Thoroughly read Module 3 Management Within a Global Organization Learning Unit.
  2. Review the following excerpts from the 2016 report titled “Surfing: A Global Strategic Business Report” (Links to an external site.) 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.

Note: If you are unable to access the link above, please refer to the following to complete the case study:

Surfing: Market Analysis, Trends, Forecasts (Links to an external site.)

Global Surfing Market (Links to an external site.)

Your Task

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 of at least 300 words describing your advice for Sun City. Your essay must include three properly referenced and defined terms from Module 3 Learning Unit. 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 module, 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.

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