Problem or Challenge Facing the Firm

1. What is the key problem or challenge facing the firm that you will try to resolve

The company has to deal with the problem of counterfeit wines in its market segment originating from their partners and other swindlers now that much sales is online. Through analysis, the wine traders particularly ASC can expose a counterfeiter wine products online and request for the counterfeit site to be closed. However a big challenge still exist for nothing can be stops the swindlers from creating another site with a different name.

2. Your external analysis (the industry and economic environment)

China market where the company ASC operates has high stakes particularly given the huge population and online potential of the wine target market. For instance, The Internet is the fourth-most popular channel for buying wine in China. The potential growth and market penetration thus becomes massive for the company and industry at large. This is further supported by the massive economic growth witnessed in recent past.

3. Your internal analysis (the firm’s internal resources and capabilities)

ASC has realized the potential of human resources and this has given them a huge strength. The company invests massively in its staff and employees and appraises them in time to know their strengths and weaknesses. Such appraisal is key in training and development of this staff thus long term increase in productivity. Similar effort is made on underperforming staff who are gotten rid of in time. In addition the distribution channel at ASC is an assest with great capability. The direct link with major distributers ensure timely delivery of wine to target market.

4. Two mutually exclusive alternatives that solve the problem

One alternative would be granting exclusive distribution rights so as to outsmart swindlers. This will ensure that every wine out in the market is actually released by the company and when it is actually need by the target market. Secondly, It is important for the company to partner more with the government agencies to ensure intelligence is received and disseminated promptly to avoid losses from counterfeits.

5. Your recommended chosen alternative course of action and your justification for the alternative you have chosen

Involving all the stakeholders in formulation of new regulations to curb the vice is key. It becomes critical for business operations have become dynamic and there are various players who each have an active role to play to ensure success of the business. Management, employees, suppliers, government and the customers all have a say. In this regard formulation of new regulations would not only increase profitability but help the company position itself well in the target market.