Inka Gold S.A.C. is a Peruvian manufacturing and gold jewelry export company with over 25 years of experience. Its business objectives are to improve its long-term business, offer innovative new products, and minimize environmental and social impacts. It has facilities in Lima and Ica and exports mainly to South America and Europe. Inka Gold's strengths include its expertise in rope chain production and access to gold resources. However, it faces weaknesses such as institutional barriers and low access to financing. Opportunities exist in the US and EU markets, while threats include growing competition from other countries. The company's key product is a rope chain made of tiny interlaced gold rings. It aims to export this product
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Business Plan ADEX
1. INKA GOLD S.A.C.
BUSINESS PLAN PRESENTATION
COURSE: ENGLISH FOR BUSINESS
MANAGEMENT
STUDENT: JOHN FIGUEROA
2. 1. Company Profile
Name:
Inka Gold S.A.C. (a Peruvian Company)
Kind of Company:
Manufacturing and exportation of gold jewelry.
Business Objectives:
- To improve the way of taking our long-term business.
- To Offer our customers new products with innovative
technology.
- To Minimize environmental and social impacts in our
community.
3. 1. Company Profile
History of Business:
We have over 25 years of uninterrupted force in the international
market and, since more than 18 years, we hold the tenth place in the
ranking of Peruvian export companies in the field.
Mainly we export to South America and Europe.
We have departments of hand made chains, machine chains, and
others.
On these departments we can manufacture bracelets, earrings,
necklaces, anklets, rings, etc.
We have two facilities: Lima and Ica.
4. 1. Company Profile
Mission:
To seek the greatest satisfaction of our customers by offering quality
products and services.
Vision:
To be international leaders in sales, design and manufacturing of Jewels.
Commercial Activities:
As a policy of diversification in recent years, we decided to project our sales
to the largest possible number of exporting countries and, currently, we
have been planning export to the United States.
We believe that our force in the market is mainly due to our commitment to
personalized service with our customers, strict compliance with delivery
dates, quality, constant innovation reflected in our processes and products
and our commitment to social and environmental responsibility.
6. 2. S.W.O.T. Analysis
-Strengths:
Comparative advantage in the rope chains production.
Plenty of relatively cheap labor.
Plenty of gold and silver.
Capacity for rapid attention of orders to the USA for
relative geographical closeness.
Myth of Peruvian ancestral jewelry shop as foundation of
it marks of flag.
Potential high place to develop the best collection of
pieces combining the handmade thing with the industrial
thing.
7. 2. S.W.O.T. Analysis
-Weaknesses:
Institutional hobbles that prevent from canalizing the plenty of gold
and silver towards the exporting jeweler.
Weak capacity of development and innovation of designs in function
to international tendencies.
High informality in the golden acquisition to handmade miners.
Lack of specializing centers of training and education.
Access limited on credits for capital of work.
Labor and tributary over costs opposite to main competitors.
High concentration of the exports on the market of the USA.
Under competition level between companies of the sector.
Exclusivity relation with the client that there prevents the direct
access to retail channels of commercialization.
Under level of access and use of top technology.
8. 2. S.W.O.T. Analysis
-Opportunities:
Potential high place of penetration market of USA and
European Union. Peru only takes part with 5,8 % of the
imports of chains and necklaces of USA.
Increase of the purchasing power of hard-working women in
USA intensified by the relating to the moment recovery of the
North American economy.
Existence of a law for to encourage the local golden
consumption.
Negotiations in perspective for signature of a FTA with USA.
Golden jewelry shop does not pay tariffs in USA and European
Union for FTA and Widespread System of Preferences,
respectively.
9. 2. S.W.O.T. Analysis
Threats:
Major penetration of the competitors (Italy, Thailand, Turkey,
China etc) to the North American market.
Under cost of the labor in Zimbabwe and India, direct competitors
in the exportation of chains golden drawstring.
Increasing productive capacity and of handmade skills in China,
Zimbabwe, Hong Kong, Taiwan, Thailand and Bolivia.
Competitors' propensity towards the modernization and
standardization of its production.
Rise of the international quotation of the gold.
Permanent robbery risk.
Increase of labor and tributary over costs.
Major capacity of answer of rival countries before new tendencies.
Major preference to silver articles on a global scale.
10. 3. Product Profile
Product:
Rope chain of gold.
Description of the product:
Rope chain is a continuous series of tiny rings, solid or hollow, interlaced
some with others. Its appearance is that of a drawstring or cord.
Slogan:
Millennial chain of gold.
Tariff reference:
7113190000
Market Segment:
31% of American consumers that expenses less than USD 300 per year.