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Timm Coconut Transnational Motor Corporation has a project that will see the institution of the business and its operations in Africa (South Africa), Asia, and Australia. The company will implement this project in two phases. The first phase will engage the institution of an importation business in South Africa. The company will ship its cars and trucks to South Africa. After the inception of the first phase, the second phase will be realized 24 months after the realization of the first phase. This phase will involve the establishment of a fully operational manufacturing plant in South Africa. This production unit will supply the markets in Asia and Australia which will be established as part of the project. These projects will be managed by a Senior Global Project Manager. The logistics on freight will be handled at both locations through liaison activities between the head office and the South African Office. The financial allocations will be determined by the company’s Chief Financial Officer in collaboration with the Senior Global Projects Manager. The staffs of the head company will be absorbed into the project endeavors and they will be responsible for training additional staffs in local establishments in South Africa, Asia, and Australia.    

Organizational Vision and Mission

Timm Coconut Transnational Motor Corporation is an international corporation with its mother operations in the United States. The corporation has embarked on a project that will culminate with the establishment of a manufacturing plant in Johannesburg, South Africa. The project will have two phases. The first phase will have the project establishing an importation facility in Johannesburg. The second phase will see the company establishing a manufacturing plant in Johannesburg. All the operations of the company are time limited. The project Vision is to establish an automobile subsidiary in Johannesburg, South Africa in 12 months and to finally establish an automobile manufacturing plant in Johannesburg, South Africa in 24 to 36 months. The project mission is to penetrate the South African automobile industry by establishing an automobile subsidiary in South Africa.       

Overall Strategy

The entry formula will be precluded by ascertaining the preferences of the South African automobile industry. This will be achieved through establishing a car and trucks importation subsidiary by our firm. The corporation will gather intelligence on the best location, the statutory regulations of the South African government, in terms of business establishments. The importation business will inform the corporation about the market needs and the market design. The threats and opportunities to the corporation will also be highlighted through this entry avenue. The groundwork for the establishment of the manufacturing plant will be performed by a team that will be on the ground in Johannesburg. This team will also establish the regional offices in Asia and Australia. The management of the entire operation will be managed by the Senior Global Project Manager. Liaison offices will be established in Asia, Australia, and South Africa.     

Generic Strategies and Modes of Entry

The global automobile industry is highly competitive and various automobile manufacturers, assemblies and parts manufacturers have established their businesses in South Africa, Asia, and Australia. The project will establish an import business South Africa. This will be an avenue through which the company will introduce its automobiles into the South African market. The succeeding phases of the plan will see the establishment of a manufacturing firm in South Africa. The firm will provide cars and trucks for the Asian and Australian markets. The strategy is to first establish a presence, evaluate the market response, and establish a production firm.     

Source of Sustainable Competitive Advantage

The company is fully operational in the United States and has a dominant presence in this market. Therefore, the project will be funded by the mother company until the branch in South Africa has achieved self sufficiency. The technical knowledge in processes and management will be borrowed from the personnel in the head office. These will be responsible for the training of the staffs of the projects in South Africa, Asia, and Australia. The company has a global presence and the automobiles produced at the plant are available in various markets across the world.   

Analysis External Environment


The South African Automotive development initiative envisages that they will attain the manufacture of automobiles or increase the production of automobiles to 1-2 million units by the year 2020. The company can capitalize on this agenda and seek exportation and production businesses in South Africa. The company will find a receptive environment that is guided by government principle. The company can capitalize on the needs of the market and establish brands that will compete against the existing foreign and local companies. There is an available need for producers and this means that the company will get ready source of skilled personnel or will spend little on the training of personnel. The economic environment favors the establishment of a manufacturing plant because this has been established by the government. Raw materials for manufacture will be available at better rates because of the proximity to exporters of steel and iron from Zambia and South Africa.


South Africa is the address to some of the big names in the automobile industry. Mercedes, General Motors, Renault, Ford, BMW are some of the automobile manufacturers that have established a business in South Africa. Component manufacturers are also present in the South African market. Therefore, the market is already occupied by manufacturers and distributors. The company must have an excellent strategy and products that will appeal to the market to be able to penetrate the market. The labor situation in South Africa is also volatile. This is compounded by the political situation and the fluctuating economic situation in South Africa. The company must address and guarantee employee satisfaction. The dynamics in fuel costs versus the consumption needs of automobiles have the potential to affect the operations of the company. The company must address the entire market needs to accommodate the high end and the low end consumers.      

Global Business Environment

The global automobile business is highly competitive. Brands like Toyota, BMW, Mercedes, and Nissan are in markets across the globe. The makers of these brands have modeled their brands to appeal to clients from different financial backgrounds. Environmental concerns have made companies invest in research and development and this has made manufacturers produce fuel efficient automobiles that cater for different markets. The rising cost of raw materials, iron and steel, has made the cost of production become elevated. Producers are targeting areas that have low production  cost in terms of labor and they are shipping their products to lucrative markets where the cost of labor is high and other costs of production are also high. Target production and marketing defines the automobile industry.        

Internal Environment


The corporation has global experience and is already manufacturing and exporting to other markets. This experience will provide the background for the fast tracking establishment and conformation with government requirements. The company’s legal department will oversee the conformation with the statutory requirements and the establishment of compliance needs. The business manufactures a diversity of products that can be exported to South Africa. The business has an investigative and development branch that will oversee the research needs for the South African, Asian, and Australian markets. The company has an automobile tracking mechanism that will allow the company to establish the movement of its brands in the market. This is handy in times when automobile recalls is necessary.


The company is dependent on the US market and the company must capture this opportunity to expand its market. The global automobile industry is becoming too competitive for a company to rely on one market. The dependency on the US market has made the company’s profits stagnate expansion is one avenue through which the company will expand its coverage to other markets and improve on its profitability. The corporation must strategically place itself at levels where it can compete with big manufacturers like GM and Toyota. Despite the company having a diversified product range, the company must also ensure that its vehicles are energy efficient for the markets of target. Globally, there is a call for fuel efficiency and environmentally friendly vehicles. The company must ensure that it has diverted from its conventional models and engage research and development in the production of fuel efficient brands. 

Summary: SWOT analysis

Timm Coconut Transnational Motor Corporation is an established corporation with its operations in the United States. It has the advantage of having manufacturing and distribution of automobiles in a very competitive market. Therefore, the staffs in the corporation have the expertise to manage the operations of the automobile business. However, the company is entering into a new market that already has existing automobile assemblers and automobile manufacturing firms. The corporation is not aware on the competitive nature of the South African market and they have to conduct a market analysis before entering the market. The changing client requirements in South Africa will benefit the corporation if they will enter the market and establish competitive brands. The corporation can benefit from the vast raw materials and the cheap labor in South Africa to boost its production. Competition from local manufactures can be a threat to the manufacturer. Political situations and the constant instability among employees in the manufacturing sector can derail company operations.     

Gap analysis

The business has main operations in the United States. The entry into the markets in Asia, Africa, and Australia is a market diversification strategy that can elevate the company’s profit levels. However, the company must realize these markets have been penetrated by other multinational automobile manufacturers. Therefore, the company must ensure that its products attract the attention of the client. The marketing strategy should address the market needs. Market needs are diverse. Clients need fuel efficiency, utility vehicles, trucks, and others want comfort. Clients are very analytical of the product they get. The company must ensure that all the products suit the clients needs and this can be informed by researching the market preferences.   

Project Management Organization

The project will progress in stages. The initial stage will be setting up of operational project management office in Johannesburg. The entire operations of the company will be conducted from this office. The second task will be to pilot the importation of the cars and trucks. The third task will be the establishment of an operational plant for the manufacturing and assembly of the cars and the trucks. The projects will be partaken individually and progressively. This means that the importation project will be initialized and its operations commissioned. The project will run for its entire life as envisioned in the project vision and mission and the second phase or section of the project will be activated before the termination of the first phase. This means that the setting up of the second part of the project will start before the first phase outlives its life phase. The office that has been established for the management of the importation project will be modified and additional staffs hired into it, before and during the procedure or process of the second phase of the project, that is, manufacturing.

 The organization of the management will have a project manager, who in this case will be the Senior Global Project Manager. The Senior Global Project Manager will be assisted by a Project Manager, who will be based in Johannesburg. The project administrator or overseer will be in charge of the operations in Johannesburg. The project manager will oversee the staffs at the Johannesburg office. The Project manager will identify suitable sites for the establishment of the exhibition site. The project manager or administrator will oversee the management of the sales staffs, automobile trials staffs, and other logistics as automobile insurance and licensing. The senior projects manager, through the assistance of the Project manager or administrator will oversee the organization of the manufacturing unit. This unit is technical and will need the services on technical and professional staffs. A manager in charge of production will be hired to oversee the operations of the manufacturing plant. This manager will benefit from the assistance of a sales and marketing department, which will also have a manager.

The Project manager will be the liaison between the regional office in Johannesburg and the Head office in the United States. The production teams will be supervised by supervisors who will report to the production manager. The manufacturing plant will need a training department that will be necessary for recruiting and training staffs on the various matters of the company. The various aspects that will require the training of staffs will include manufacturing, sales, marketing, and distribution. Liaison offices will also be established in Asia and Australia. The offices in Asia and Australia will have similar functions and mode of operation as the office of importation that will be established in Johannesburg under the first phase of the project. These offices will have the services of a manager who will report to the manager in Johannesburg. The operations of these offices will be similar to the operations that detailed the operations of the first phase in Johannesburg. The production manager reports to the project manager while the Project manager reports to the Senior Global Project Manager. The staffs that will be in the first phase will be absorbed into the second phase depending on the expertise and need.      

Project Portfolio

  • ) Establishment of a South African Office in Johannesburg

This project precludes all the operations in South Africa (Africa), Asia, and Australia. The entire operations that will be assumed and that will be realized in the above said markets will depend on how effective the office will be and on how receptive the authorities in South Africa will receive the company. The team from United States will lead the mission to South Africa under the guidance of the Senior Global Projects Manager. The Senior Global Projects Manager will require the services of the corporation’s legal team. This team will spearhead the pursuit and compliance with legal and statutory requirements of registration. The project is being funded by the mother company in the US. Therefore, the entire financial commitments on this project will be guided by the finance department in the US office.

 The estimates for the project have been worked out by the head office based on market analysis and past experience in Latin America and Europe. The personnel for the office in South Africa will be trained in handling exportation and importation and in regulatory compliance by personnel who will be seconded from the head office in the US. Later on in the Asian and Australian markets, personnel will be trained by the personnel who were overseeing operations in Johannesburg, and additional personnel will be acquired from the head office in the US. The project is a long term endeavor and the company has adopted a phase by phase strategy to accomplish the various milestones. The initialization of the project through exportation cushions the company against risks. The export venture will be managed through the head office in US because all the production figures will be from the US.

  • ) Importation of Vehicles

After the establishment of the Office and compliance with all the statutory and legal necessities or obligations in South Africa, the next procedure or step will be to identify sites for the setting up of the showrooms for the company. The logistics of moving the automobiles from the port to the showrooms will be handled by the project manager who will be in assisting capacity to the Senior Global Projects Manager. The financial obligations for this project will be handled from the head office. The logistics of freight from the United States will be handled by the Senior Global Projects manager and the United States team, but the freight logistics, in South Africa, will be handled by the management at the South African office.

Staff at the South African office will be remunerated according to local rates, and will be hired, trained, and inducted into service by the management in South Africa in liaison with the management at the head office. The first or initial six months of the plan will require the financial backing of the head office. The financial assistance will stop after the company has stabilized its operations in South Africa. The South African jurisdiction will maintain a strong training division in preparation for the subsequent operations. The training will be offered by personnel from the head office. Although the pricing of the automobiles is done at the head office, conformity with the local market variables will determine the prices for most of the vehicles. The company must maintain a competitive edge on all the automobiles exported to the South African market. The establishment of operations will be achieved six months after the establishment of the South African office.

  • ) The Manufacturing Plant

This will be a production subsidiary of the head office operations. The Senior Global Projects manager will work in liaison with the management at the head office to ascertain the financial obligations. This is a multileveled phase of the project and it is the culmination of the project. It covers the entire markets of Asia and Australia. The offices, in Asia and Australia, will be established according to the protocols that were adopted for the establishment of the export office in South Africa. This is because they will be handling exports from the production stable in South Africa. The personnel in these markets will be trained by staffs from the United States and South Africa. The projects will be initiated 24 months after the first phase or segment of the plan or project has been accomplished in South Africa.

The personnel in Asia and Australia will be compensated based on regional figures and their compensation will be delivered by the head office or by the office in South Africa for the first six months, depending on the determination of the board in liaison with the finance departments in the US and South Africa. Basically, the establishments in Asia and Australia are branches of the South African subsidiary. To guard against operational risks, the establishments in Asia and Australia will be managed by a subsidiary in South Africa until they have stabilized their operations and this is not expected to be for a period exceeding 6 months after they receive their first consignment of automobiles from the South African unit. Project communication will be delivered by the project managers, in the various jurisdictions, through the Senior Global Projects Manager to the head office.          

Scope Schedule and Linkages

The project will strictly be time limited. The initiation of the first phase will be twelve months from the date of presentation of this report. The second project will be initiated 24 months after the closure of the first phase. The essence is that all the projects must be self sustaining six months after their initiation. The projects communication will be achieved through the Senior Global Projects Manager. The mission in South Africa is under the leadership of the manager, but the manager will be assisted by project managers in South Africa, Asia, and Australia. The first phase of the project will provide technical expertise and skills to the second phase with support from the head office in the US.    


This is a multi-phased project. The first or initial phase will be the organization of the export business in Johannesburg in South Africa. The company envisions establishing an export business in South Africa. This is an entry strategy into this market and precludes the establishment of a full scale manufacturing firm in South Africa that will control and distribute company vehicles to the Asian and Australian markets that will be established in the second phase of the project. The second phase of the project will be initiated 24 months after the first phase has outlived its implementation phase. The office or department in South Africa will be managed or administered by the Senior Global Projects Manager who will be assisted by various managers and supervisors in the different markets in South Africa, Asia, and Australia. Operations at the manufacturing plant will drive the sales of the company in these markets and this move is aimed at elevating the returns of the company.     


Richman, L. L. (2002). Project Management Step-by-Step. New York: Amacom.

Vanhoucke, M. (2012). Project Management with Dynamic Scheduling: Baseline Scheduling, Risk Analysis and Project Control. Berlin: Springer.

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