Environmental Assessment
As a business consultant you are asked to advise a small business owner in the US. The owner would like to expand his/her product line of custom aluminum tables to Eastern Europe. What do you have to keep in mind when expanding to Eastern Europe? According to "Helen Deresky, International Management, Formulating Strategy, 7th or 8th edition", your "Environmental Assessment" should include the following aspects:
• Political stability
Political instability carries many risks including the loss of profitability or ownership.
• Currency instability
Elaborate on the exchange rate and its effect on international business.
• Nationalism
What are the respective government's objectives for independent foreign business ownership in their country? Check for restrictive policies like import controls, equity requirements, local content requirements, limitations on the repatriation of profits, lax patent and trademark protection laws, and the existence of necessary infrastructure, such as roads and telecommunications.
• International competition
Discuss whether the infrastructure supports new business in the industry you are entering (e.g. sufficient transportation, enough skilled workers, etc.). How much room is there for additional competition, can you secure adequate supply? Is there sufficient demand and what about the ultimate profit potential?
• Environmental scanning
What are your competitors' strategies and objectives? How are their strengths and weaknesses impacting your business?
Choose your entry strategy (export, franchising, strategic alliance, partnership, and/or foreign direct investment) based on the outcome of the analysis above. Conduct a SWOT analysis for this business venture.
Product Adaptation/Customization
• Be sure to identify issues that are not unique to any particular company, but are essential in a broader context. Make sure to point out what companies going abroad have to keep in mind generally.
• Identify strategies for international expansion that may be best suited for Eastern Europe.
• Explore different uses and functions of the product that you feel may work best in Eastern Europe.
• Do you believe a custom aluminum table could be sold as furniture or would you see an opportunity for selling this product with a different function (e.g. as a work bench of some kind, as a storage solution, part of medical equipment, etc.)?
• Which use of this table promises business success in Eastern Europe?
• Do you believe the American manufacturer can export the product?
• How would you market the product?
• Did the field trip provide county-specific cultural information that may help improve the marketing campaign or customization of the product?
• Find out whether a customized aluminum table could be part of a product line. What would be your target market?
The guidelines above and the criteria below will be part of grading. Projects will be graded after your presentation has been completed.
Content (60 points)
• Have you followed the assignment guidelines carefully, including reference to risk assessment strategies by Deresky?
• Are all articles and the excerpt of the Deresky textbook used in a meaningful way?
• Is the PowerPoint presentation written and presented in a professional, business-like manner?
• Is your reasoning logical and persuasive?
• Are problems for the venture in Eastern Europe clearly identified?
• Did you conduct environmental assessment in all areas as mapped out by Deresky in an effort to develop a convincing strategy for entering the Eastern European market?
• Are recommendations realistic and specific?
Structure (20 points)
• Is the PowerPoint presentation supported by evidence?
• In order to emphasize analytical content, only one citation is allowed.
• Are research and analysis conducted in a thorough and convincing manner?
• Are you following all instructions given above?
Grammar and Mechanics (10 points)
• Extensive proofreading is required (consistent use of space and indents, punctuation, etc.).
• You will lose all 10 points in case you have accumulated more than 8 grammatical, sentence structure related, or spelling errors in your PowerPoint presentation.
Citations (10 points)
• Are sources appropriately cited in MLA format in your PowerPoint presentation?
• Is your "Works Cited Slide" accurate and in MLA format?
• Have you used quotation marks where appropriate (direct citations)?
• Have you used all sources as required above?