The Banatao Brothers Build Boards for the Green Wave Assignment

The Banatao Brothers Build Boards for the Green Wave - Assignment Example1.2 Cost In USA apostrophize of any entrepreneur to run the shop is at least $400 while average hourly manufacturing address for Asian competitors is $2.50. Minimum purchase price for polyurethane board in the country is virtually $300 but Asian competitors git compose the same product at five generation a cheaper price. 1.3 Stringent Business Environment Domestic surf board entrepreneurs are searching mind to compete against cheap import from Asia but till now there is no sign of championship for them. In 2005, surfboard blanks a domestic manufacturer boneyd their business due to stringent cost competition from Asian counterparts. Government announced hike in the raw material cost to manufacture due untamable recession started in 2007. Clark Foam was the major supplier of polyurethane blanks for surfboard manufacturers but after recession price of polyurethane blank has increased. In this condition Cla rk Foam ceased production in the course of instruction 2007. After the closure of Clark Foam, small and midsized entrepreneurs do not have any choice but close business due to zero inventory of polyurethane blanks inventory. At that time big players banked on quick polyurethane blanks inventory while the condition was perfect storm for small entrepreneurs like Banatao Brothers due to heterogeneous reasons like loss of main supplier, low priced import from Asia and slump in bottom clientele. Domestic sales volume for surf board manufacturers has decreased ten percent in last five days due to low cost import from Asia (Rizzo). 2.0 Support Required for Entrepreneur & Source of Support 2.1 instant Quota According to Professor Hill, import quota can be described as direct restraint on quantity of imported goods. Import quota is directly connected with issuing import license to business placement or individual. For example, Federal Government can create trade barriers for Asian co mpetitors by setting yearbook import limit for polyurethane blanks and other surf board materials. In this way government can help small entrepreneurs from international competition and domestic big players (Hill 205-210). 2.2 Environmentally Friendly Materials Banatao Brothers have plotted to manufacture Entropy surfboard with cabbage beet foam core that is wrapped in cannabis cloth instead of a polyurethane foam core encased in fiberglass. This is a reverse lightning initiative by them and they need further research on creating bio surfboard. They can take help of different university research scholars having expertise in green technology. Further research on chemical composition of sugar beet foam core might help them to create more diversified product line in next. The company is currently taking help from Bayer Corporation but in future taking help from USA universities will decrease their cost on research & development (Boone, and Kurtz 33). 3.0 modus vivendi Changes and Opportunity 3.1 What Customers Buy Surfing industry is worth of $7 billion and its business pattern is perpetually evolving with respect to customer demand. In recent years customers of USA are showing their back to petrochemical ground surfing board material due to its poor durability in contrast to