Taino+Construction+Case


 * Taino Construction Case**

Reading:
Taino Construction Supplies: Managing Innovation Risks at an SME in a Small Developing Nation

Who:
Mario Rivera, President of Taino Construction Supplies

-How to turn Taino's current investments in innovation into a competitive edge for the comcompany
====-How to assess the risks and rewards of either expanding in the local (San Felipe) Market or expanding into the global market. To make the assessment, the company will use the Tlarvard Business Review's recently published model for managing innovation portfolios.==== I can see why you stated this the way you did; however, it would be better if you could express the Immediate Issue in a single statement - for your own sake in doing the rest of the analysis.

-Estimating a project's probability of success or failure in term of risks.
Decision criterion. What basic issues are contributing to risk?

-Evaluating a project's feasibility in terms of the Real, Win and Worth it screen.
Decision criterion.

-Evaluating a project's success based on the financial side and social responsibility.
Decision criterion.

Urgency/Importance:
The matrix shows that the need for solution is both extremely urgent and extremely important. Taino must act quickly to respond to the collapse of the local construction omdistry or to capitalize on its competitive advantage at the international level. The company's continuing profitability is at stake. Good.

-The cost and sales, and timeline of all alternatives.
What part does local versus US (and other) understanding of green initiatives play in making a strategic decision? Operational impact of various decisions (shipping or starting production in the U.S., for example). The company must find a way to generate more sales to cover fixed costs (9).

Alternatives:
====1.Do nothing - keep doing the current market and expanding operations in the local (San Felipe) market by taking advantage of the increasing in sales of fly ash. Is this a legitimate alternative for a company known for innovation? ====

2.Choose the global market for the main market company focus on and sale the construction materials in Louisana and mississippi in USA.
3.Expand in both the local and international markets.

Missing Information:
====-For the local market we need to know if the cement retailers, concrete mixer companies and independents are willing to buy the Taino's fly ash. This could help us to know more information about the local market for the market share of Taino could get. This could be discovered by conducting a survey of the local cement industry. -If the Solid Waste Management Authority will extend its recycling tax credit to other companies besides Taino? This will decrease the competitive advance of company in the competeting in the market.====

1. Do nothing - Expanding operation in local market by increasing in sales of fly ash.
Advantages: Taíno has the top knowledge of the local market and a trusted company reputation, so that customers will trust it and select it. The high reputation will keep the royal customers to use the fly ash of constructions. It will save relevant cost of supply chain. By increasing the sales of fly ash, Taíno had no local competition in the production of concrete. So it increases the competitive advantages.

Disadvantages: But if there is nothing changed, there is the risk for finding mroe supply chains and decrease the sales of cement in the concret. It also increases the fuel cost so the local market will facing the financial risk. The tax credit is used for all the recycling activities so that the cusomers who purchase the concret will take the recycle activities.

2. Open the global market to sustain the innovation, especially first in Louisana and mississippi in USA Advantages: The innovation will open the global market step by step and find the most valuable place to invest. It will reduce the risks for innovation and sustain the innovation. It will still increase the use of eco-friendly product and green product to add the social responsibility and attract more customers. Disadvantages: It is hard to find the new supplies. It needs time to research and development and to do the assessment.

3.Expand in both local and international markets. Advantages: The advantages are similar as option 2, and the expected performance is more excellent than otion2 because the international market is more than 2 places. So it will increase the reputation and sales more. Disadvantages: It is really a big investment and need a lot of assets to do the innovation. It is hard to find the related supplies to make the value chain sustainable. It will need some changes to fit the cultures in different countries and change some business models.

Selection of Preferred Alternative:
====It is better for Rivera to take the alternative 2 which is open the most valuable global market because this is less risk, as well as increase the sales in the valuable market. Also it will be suitable for the regulation in Louisana so that it has the competitive advantages there. But it will need time to get into the market and find the supply in Louisana.====

Action/Implementation Plan:
Find the innovation opportunity and do the research and development in Louisana first. Increase the green product theory and find the valuabe supplies in Louisana to make the value chain sustainable. Redesign the existing product to be eco-friend product by the fly ash. Develop the new business model in Louisana to suit the culture in Louisana and survey the customers' needs as well. Practice the new platform, which can be use the parallel method or pilot method to assess the model. If it works, the innovation will be successful into practice. Good plan based on your chosen alternative.