Takala Investments PTE Limited is a small business specializing in design, production, and retail of

locally made handicraft items targeted at the tourist market. Whilst the target is the holiday makers

and pleasure seekers who grace Fijian shows from abroad, their product has been of interest to some

locals who value local craft work. It commenced its operations in the early 2014 and has recorded

some moderate profits from its inception. With an exponential growth in Fijis' tourism market, Takala

aims to be the leader in handicraft market.

Takala is based in Coral Coast, Sigatoka. Currently 7 full time and 2 part time workers are employed

by the organisation. These employees do not have any formal training and qualification in design and

manufacture of handicraft but Takala relies on their creativity and natural talents. Close relatives and

family members occasionally assist the 9 employees in the manufacture of products at no cost. The

company actively works with women from Vatukarasa village in Sigatoka and Vatulele Island for

supply of natural fibres and required raw materials for its products. The raw materials are readily

available and at very low costs.

In terms of existing business operations, Takala has a small home-based workshop studio for

production of authentic and contemporary handcrafted items. It also has a retail outlet trading as 'The

Art Cart' at a Lagoon Resort in Sigatoka.

Whilst Takala mostly retails its own crafted products at the Art Cart, it sometimes sells products from

other artists on commission basis. From the sales and commission it has grossed on average $120,000

per annum for the past 5 years.

Takala is in the process of expanding its retail business to a new resort location. Alongside, it plans to

secure business from wedding market at the Lagoon Resort, and perhaps along the coral coast. For

this, Takala needs to increase its production, more importantly to diversify its range of items to

furnish this market.

Strategically, the company has a fair understanding of where they see themselves going forward;

however, it regards it essential for an accurate and profound strategic assessment with mapped out

strategies to be undertaken by an independent professional. This exercise will assist Takala to identify

strengths and opportunities and also identify all the possible threats and the weakness that needs to be

overcome.

Questions

1) Analyse Takala's external environmental using the PESTL framework. ( 5 Marks)

2) Apart from Hotel operators, identify two other active tourism players that Takala can associate

itself with to meet its strategic objectives. Explain how each association will be of help to Takala.

( 10 marks)

3) Given there is local interest in Takala's products, discuss two strategies that the firm can use to

penetrate the local market. ( 5 marks)

4) What would be some of the key considerations for Takala if it intends to export its products to the

international market? ( 6 marks)

5) Handicraft business is saturated with many players. How should Takala ensure they achieve

strategic competitiveness in terms of;

a) Pricing

b) Customer Loyalty. ( 4 marks)