Global Business Term Project
In this project, assume that you are an entrepreneur of a company of your choice. This company could be from any industry below:
Your current business OR your own business idea.
-cosmetics/skin care,
-sport management agency,
-food/restaurant,
-textile/clothing,
-agriculture,
-logistics,
-technology (software, hardware, services),
-hospitality (hotel, bed & breakfast, motel, consultancy, HR, travel services)
-entertainment (music, movies, live performance, shows, concerts, circus, videos, games)
-financial services (private equity, stock brokerage, digital currency, investment banking),
-education
Your company has been established a while, and has succeeded in your home country. Due to your initial success, you are looking to expand your business operations globally.
You have been tasked with performing a detailed Country Analysis and Market Entry strategy for expanding your international business to one of the following countries: China, India, the Philippines, Hong Kong, Japan, Thailand, Brazil, Mexico, Germany, France, UK, and Italy.
In brief, you will analyze the political, economic, legal, cultural environment and norms of the country; outline the challenges and opportunities of conducting business in that country and provide relevant guidelines as well as recommendations for entering the market.
You will be examining the country from every possible perspective. Areas you will consider include: Economic and business environment, political environment, cultural analysis, market opportunities and threats, costs, branding, and market entry strategy recommendations
The report and presentation should be more than just a collection of key facts and figures; it should offer valuable management and cultural insights about that country. For example, “in Japan – the distribution system is very complex with many levels and built on long-?standing personal relationships. One “takeaway” for a foreign company entering Japan is that there must be sufficient margins and incentive programs to motivate the many layers of channel members. Also, a joint venture with a local partner may be necessary to gain access to the complex distribution.”
Use charts and graphs wherever possible, but explain them in more detail to make your points known and clear. Think creatively to make your report fun, lively and interesting.
All sources of information must be clearly referenced. The assignments must be based on research, using online and global databases as well as the business strategy you believe will work as the leader and decision maker of your company.
Your reference list must include at least 8 published/referenced sources
Your project grade will be divided between 90% for content (critical analysis, quality and variety of research) and 10% for organization. Organization refers to readability, flow, logic, professional organization and writing mechanics of the report. It should be clear, concise, with a logical flow of thoughts and ideas. It is important to use theory and concepts from your readings and class discussions to frame the information you present.
No late reports will be accepted.
Project outline
This project outline is designed to guide you through the assignment.
Title Page: This should be a about a 2-page summary assessment of;
Executive Summary
– Briefly explain your business idea, the type of product or service you are offering to potential customers.
– The country’s political, and legal situations as well as risks (if any)
– The country’s current economic situation, opportunities, challenges and risks (if any)
– Whether the country represents a good opportunity for your product or service. And, do you recommend entering or not entering that market? If you recommend not entering that market, provide valid reasons and references as well as potential alternative markets.
Components of the report
1) Political environment analysis: (2pages)
a) Political system and structure
b) Stability of government
c) Future political risks, if any
d) Bribery and corruption risk/index
2) Economic and business environment analysis: (2 pages)
a) Demographics: Population, growth rate, distribution of population (age groups), rural vs. urban, cities vs. villages
b) Per capita income levels, wealth distribution
c) Major exports and trading partners
d) Business environment: Government attitude to foreign investment and trends, ease of doing business, trade regulations
e) Inflation levels, currency exchange rate; risks of devaluation versus the dollar
f) Education and literacy levels, availability of skilled labor, labor costs
g) Membership in regional economic and trading blocks
h) Legal system: Protection of intellectual property rights, enforcement of contracts
3) SWOT Analysis
a) Strengths: Start by asking the question, “What are we good at?” This is a broad question, but in the beginning stages of your discussion, you should accept all answers.
Example:
-Financial Strengths: What is your most reliable source of financial growth?
-Customer Strengths: Where is your customer growth coming from? Is it due to excellent service ratings or low prices? Why are your customers choosing you over your competitors?
-Internal Strengths: What do you do very well as an organization? Are your operations easily scalable? Do you have an exceptionally high employee retention rate? How complex is your maintenance program?
-Learning & Growth Strengths: Where do you excel insofar as your employees are concerned? Is it your compensation model? Could it be your workforce development program? Are people coming or leaving because of your culture?
b) Weaknesses: Next you should ask yourself, “What are we not good at?” or “Where do we have opportunities to improve?”
c) Opportunities: Following your discussion on threats, ask those in leadership to look toward the future and consider, “Where do we see big possibilities for our organization?”
d) Threats: After identifying opportunities, zero in on your biggest threats by asking, “What do we see on the horizon as being potentially harmful to our organization?”
4) Cultural dimensions of doing business in the country: ( 2 pages)
Cultural insights summary: This should be about a 1 to 2-?page summary assessment of key guidelines for success when doing business in that country – how some of the cultural habits and differences are likely to impact doing business and the marketing
and distribution of your product in that country, as well as marketing challenges.
a) Major religions, ethnic makeup and languages
b) Major sports, recreation
c) Major differences in beliefs, values, customs and behaviors, role of family
d) Unique business customs, etiquette and practices one should be aware of when doing business in that country (time and decision-?making, meetings, negotiations, business relationships, dress code, status, gift-?giving, etc.)
e) Unique aspects of written, oral and non-?verbal communications
f) Describe the country’s culture using Hofstede’s model of cultural dimensions (Power distance – hierarchy, Individualism/collectivism, Masculine/feminine, Uncertainty avoidance, Time)
5) Market Analysis
Purpose: The purpose of the Industry and Market Research section is to prove that the market is large enough in your area to support the survival and growth of your business.
Market Segmentation
a)Who exactly is your market? (identify with demographics, psychographics, and niche market specifics).
b)What is the present size of the market?
c)What percent of the market will you have?
Market Entry mode: (1 page)
a)Suggest the most suitable market entry mode, e.g. exporting, licensing, franchising, joint venture, wholly-?owned subsidiary, etc. Explain rationale.
b)Provide at least 2 recent examples/case studies of market entry strategies of other multinationals in that country that have succeeded or failed.
Market Needs
a)Identify specific needs within each market segment
b)Why you can service this market better than your competition
Market Trends
a)Identify industry trends and customer trends
b)How are you going to satisfy the market?
c)How will you attract and keep your share of the market?
Main Competitors
a)Who are your five nearest competitors? List them by name.
b)Competition (describe major competitors assessing their strengths and weaknesses.
c)How will your operation be better than theirs?
d)How is their business: steady? increasing? decreasing? Why?
e)How are their operations similar and dissimilar to yours?
f)What are their strengths and/or weaknesses?
6) Marketing plan
Purpose: The purpose of the Marketing section is to demonstrate how you plan to tap your market. This includes pricing, distribution, sales and promotional strategies.
a) General Description (budget % allocations on- and off-line with expected ROIs).
b) Method of Sales and Distribution (direct sales, direct mail, email, affiliate, reciprocal, viral marketing, stores, kiosks, catalogs, website).
c) Sales Forecast
d) Packaging (quality considerations and packaging).
e) Pricing (price strategy and competitive position).
f) Branding.
g) Sales Incentives/Promotions (samples, coupons, online promo, add-ons, rebates, etc.).
h) Advertising Strategies (traditional, social media, emails, etc).
i) Networking (strategic alliances, memberships and leadership positions).
7) Financial Plan:
Purpose: To show the financial requirements to start the business, and to keep the business profitable and liquid.
a)Balance sheet
b)Cash flow forecast
c)Income statement
d)Startup capital needs ( how much do you need and how are you getting it)
8) Bibliography/References: (1-2pages)
This section will be a listing of all your research – your sources of information for the project. This must include at least 5 diverse sources, including relevant research using some of the business newspapers, magazines, and online databases.
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