Organizational resources are centered on effective strategies of an organization and focused on the goal of making profits. Setting achievable goals helps in maintaining a sustainable competitive advantage in such areas as cost and quality due to efficiency. Chatime Company is facing the challenge of opening a new outlet in a population that is not an easy target. The company aims to offer its tea product to Asian market, but his 29 franchise feel that it will be a difficult task to take. The company, therefore, is faced with a problem of product life cycle planning as it tries to launch a new outlet.

One issue facing the Chatime Company is in the product life cycle planning in which themarketability. The company Head wants to open more branches to sell their tea in the Asian market. Introducing the brand in the new market will require a lot of market research and promotions to determine the likes of the new customers. The management is against the idea as they feel that it will be a difficult task to undertake since their market is composed of the Chinese. The product life cycles stages are its development, introduction, growth, maturity, and its decline. Products in the first three stages will require an intensive market research to establish them in the market. The product also requires a lot of development and advertisement to enable the consumers know that they exist in the market. Focused leadership is very important in establishing a successful market for the product.  Decision-making in this company is an issue owing to the fact that Zhao and the other Franchise are not in agreement as to where to open the new outlet. There are other tea stores such as Gongcha that will offer stiff competition to Chatime products. Bore they see any substantial benefits from the ne outlet, the company will spend a lot of money and other resources to convince their ne client that they are offering the best product. Another reason that makes the decision a problem is due to the competition that already exist in the beverage market, which will require strong leadership and creativity to enable them capture as many customers as possible. The challenge is that all the leaders of the company do not support the idea although Zhao has the support of a few of them. The company will, therefore, need to focus on product differentiation and leadership to win the market.  The product life cycle planning will cost the company many resources such as high cost, new employees, advertisers, and advertisement materials to help gain entry into the new market.

The model that can help in explaining the issue further is the Porter’s five forces hat analyses the industry for Chatime Company to know whether its tea will compete with the other tea products in the Asia-Australian markets. Will the company compete for the customers in the beverage industry and sell their product?. This model will help Zhao and his team to have a cost leadership strategy that will enable them make good decisions that will not lead to losses and the collapse of the company. The other actor is differentiation strategy that will make their tea preferable to other brands. They must also focus on low costs of advertisements and promotion to reduce their marginal costs in addition to offering lower prices and free samples for their product.  Therefore, the company can adopt the Porters five forces, which will involve differentiation, cost leadership, focused differentiation, and focused leadership as their main strategies.

The Head of the management in the Chatime Company, Zhao, has a lot of work to do to penetrate the tea market