Assignment:
Global business plan project
1. Identifying Global Business Opportunities
Module is just a brief introduction on the company and the country you've selected, and what your goals are. This should be simply a summary of the plan. One to two paragraphs is adequate.
2. Financing Sources for Global Business Operations
Conduct Research
Based on the global business opportunity identified in Module (or a different international business enterprise or idea), research information related to the following:
1. ECONOMIC ENVIRONMENT
Discuss the influence of the country's infrastructure and economic conditions (inflation, currency exchange rate, interest rates, unemployment, personal income) on startup costs and the financial potential for this business enterprise.
2. START-UP COSTS
Identify expenses (and estimated amounts) that would be necessary when starting this global business enterprise. (Be sure to consider equipment, buildings, vehicles, infrastructure improvements, training costs, consultants, legal fees, and licenses.)
3. FINANCING SOURCES
Compare the availability and costs associated with different sources for funding this global business enterprise. (Large companies may sell stock, issue bonds, and obtain loans. Smaller organizations might make use of personal investors, small business loans, venture capital sources, or government-guaranteed loans.
ADDITIONAL INFORMATION:
1. Currency fixed or floating?
2. Gold reserves
3. Has there been a debt, banking, or currency crisis?
4. National debt
5. Debt to GDP ratio
3. Identifying Human Resources for Global Business Activities
Conduct Research
Based on the country (or countries) you are analyzing for your global business enterprise, research information related to the following areas:
1. STAFFING
Identify needed skills of employees and managers. Compare the use of ethnocentric, polycentric, and geocentric approaches to staffing. (Most organizations need employees skilled in clerical work, marketing and sales, and financial planning. Also identify needed technical skills for production, research, and maintenance.)
2. TRAINING AND DEVELOPMENT
List needed topics and instructional methods for ongoing training and management development related to technical skills, interpersonal skills, language, and cultural awareness.
3. PERFORMANCE APPRAISAL
Suggest performance guidelines that would balance organizational goals and individual needs, and which would reflect the cultural and legal situation.
4. COMPENSATION
Determine suggested wages and salary levels for various job positions based on company and country factors. Propose an employee benefits package based on economic and cultural factors.
4. Accessing the Social-Cultural Environment
Conduct Research
Based on the country (or countries) you are analyzing for your global business enterprise, research information related to the following areas:
1. RISK MANAGEMENT TECHNIQUES
Compare various risk reduction strategies available when doing business in other countries. (Common risk management methods include insurance, diversification of product line, strategic alliances with local partners, and employing local managers.)
5. Product and Target Market Planning
Conduct Research
Based on the global business opportunity identified in Module 1 (or a different international business enterprise or idea) and the country you have analyzed, research information related to the following areas:
1. PRODUCT CONCEPT
Identify the physical attributes, customer benefits, and competitive advantages of the product (or service) to be offered by the organization. Analyze geographic, economic, cultural, and legal factors that would influence offering a standardized or an adapted product for this market. (A product concept should list as many characteristics as possible to better communicate attributes and benefits within the organization as well as to potential customers.)
2. PRODUCT LIFE CYCLE
Discuss economic, cultural, political, or technological factors that might affect the speed of movement of the product (or service) through the stages of the product life cycle (introduction, growth, maturity, decline). (For example, the presence of several competitors may result in faster innovation and move a product quickly through the product life cycle.)
3. BRANDING AND PACKAGING
Suggest a brand name that would create a distinctive identity for the company (or specific product). Analyze cultural and legal factors that could influence packaging of the product.
4. TARGET MARKET
Describe the characteristics of potential customers in terms of geographic location, demographics, media habits, consumer behavior patterns, lifestyle activities, and psychographics.
6. Designing a Global Distribution Strategy
Conduct Research
Based on the country (or countries) you are analyzing for your global business enterprise, research information related to the following areas:
1. INFRASTRUCTURE ANAYLSIS
Describe transportation, communication, and utility facilities in the country that might enhance or deter your organization's ability to move goods from one destination to the end-user of the item. (In many countries, a lack of roads combined with mountainous areas make truck shipping very difficult and expensive.)
2. DISTRIBUTION BARRIERS
Discuss cultural, political, or legal hurdles that might slow or block distribution in the country. (For example, import duties and documentation might add to the cost of selling products shipped from another country.)
3. INTERNATIONAL INTERMEDIARIES
Analyze the costs and benefits associated with using wholesalers, brokers, and agents for your global business operations.
4. DISTRIBUTION CHANNEL
Identify a channel of distribution for getting a product from the production site to the ultimate customer. (A common channel of distribution may include a wholesaler and retailer; global operations are likely to involve additional intermediaries.)
ADDITIONAL INFORMATION:
• Add distribution system, channel length
• Add make or buy decision
• Add multiple or single site
7. Planning a Global Promotion Strategy
Conduct Research
Based on the country (or countries) you are analyzing for your global business enterprise, research information related to the following areas:
1. PROMOTIONAL GOALS
Identify specific objectives related to the promotion of your global business operations and product (or service). (Promotional goals vary. Some organizations need to create awareness of their product's benefits compared to competitors. Other promotional goals may involve communicating new uses for an item, or informing customers of lower prices.)
2. BUSINESS ENVIRONMENT
Discuss cultural and legal factors that might influence promotional decisions. (In some countries, certain information is required in television commercials selling products aimed at children.)
3. MEDIA PLAN
Analyze media availability in the country to determine cost-efficient methods of communicating with potential customers. (While television, radio, newspapers, magazines, and the Internet may be common in industrialized countries, developing economies may require other different media. In some countries, advertising messages are broadcast through large speakers mounted on moving trucks.)
4. PROMOTIONAL STRATEGY
Compare the benefits of push and pull promotions for your global business operations. (A pull strategy is aimed at the end-user of consumer goods and services. A push strategy is aimed at intermediaries, such as retailers, and is more common among firms selling industrial products or services.)
ADDITIONAL INFORMATION:
• Add will you use a push or pull strategy
8. Selecting an International Pricing Strategy
Conduct Research
Based on the country (or countries) you are analyzing for your global business enterprise, research information related to the following areas:
1. THE ECONOMIC ENVIRONMENT
Identify economic factors (personal income level, inflation rate, taxes) that might influence pricing decisions in this country. (In many countries, people may not be able to afford products that are considered minor purchases in industrialized nations.)
2. COST ANALYSIS
Estimate production costs and other business expenses that would be encountered when offering this product or service. (The total cost of providing an item must include both direct production costs as well as administrative and overhead expenses.)
3. DEMAND ANALYSIS
Analyze the potential demand for this product (or service) based on the current and expected market. (As a product gains in popularity or a country's economy improves, demand for various items is likely to expand.)
4. COMPETITOR ANALYSIS
Compare your pricing plans with those of any competitors that may be providing identical or similar products or services.
ADDITIONAL INFORMATION:
Add pricing: which type (predatory, multi-point, etc.), and answer if demand for your product is elastic or inelastic.
9. Determining Organizational Financial Results
Conduct Research
Based on the country (or countries) you are analyzing for your global business enterprise, research information related to the following areas:
1. REVENUE SOURCES
Identify and estimate amounts for product (or service) sales for various market segments. (For example, some companies sell both to consumers and businesses. A heating company may sell furnaces to homeowners as well as to companies.)
2. OPERATING COSTS
List and estimate operating expenses necessary for producing (or obtaining), storing, marketing, and distributing the product (or service) for this business enterprise.
3. START-UP COSTS
Review your start-up cost estimate from Module 7. Suggest any revisions based on additional information or expanded knowledge of planned business operation.
4. PROFITABILITY
Describe an expected profit level for this global business venture based on economic conditions, competition, the size of the operation, and the market environment of the country. (Most new business activities take two, three, or more years before becoming profitable. Many ventures never earn a profit and either cease operations or a revised plan is implemented.)
10. Measuring International Business Success
Conduct Research
Based on the country (or countries) you are analyzing for your global business enterprise, research information related to the following areas:
1. FINANCIAL GAINS
Identify potential profit levels and other measures of financial success for this global business operation. (Commonly considered measurements of financial success include profits, return on investment, market share, sales growth.)
2. ECONOMIC BENEFITS
Discuss positive economic contributions that this business operation might have for the host country. (Economic benefits may include improved infrastructure, creation of jobs, more efficient use of natural resources, or increased personal income.)
3. SOCIAL BENEFITS
Determine improvements to the country's society that might result from the company's global business activities. (Positive social results might include improved employee training, expanded health care and other benefits for workers, or additional housing facilities.)
4. SOCIAL COSTS
Describe the potential drawbacks for the host country that might result from this business venture. (Social costs of global business operations may include pollution, reduction in natural resources, or changes in traditions.)
Attachment:- Global Business Plan.rar