Stand-Alone Project: International Business Plan (200 points)
You should begin working on the Stand-Alone Project early in the course. Each lesson provides a benchmark for completing the Stand-Alone Project in a timely manner while working through the course. You will find this information in the “Stand-Alone Project Benchmark” section of each lesson. (200 points) (A 10-page response is required for the combination of Parts A, B, C, D, E, F, and G.)
Instructions: Assume the role of a corporate manager responsible for selling your company’s products in three (3) new international markets. You have been directed to conduct a competitive analysis of potential international markets for distribution of your company’s products/services and to develop an international business plan, which is both strategic for each region (European Union, Pacific Rim, and Latin America) and specific in detail for the establishment of milestone, forecasts capital requirements, human resource, and financial issues. Your business plan is to be submitted to the Executive Committee by the third business quarter.
First, select a product or service. It cannot be a product that is sold solely via the Internet, although the Internet can be one distribution outlet. You must have a physical sales presence in each region. For example, your product must be sold in “stores” in each of the three (3) new international markets. The Internet can be used as a communication tool to build awareness and drive traffic to your physical location within the region.
Next, select three (3) international markets for marketing your product/service. The Executive Committee has provided the following guidance for your selection.
European Union: We want to have a physical presence with our name on the building.
Pacific Rim: We must be focused on China.
Latin America: We must be protected from the downside risks in this potentially unstable environment.
While this situation is hypothetical with respect to your role and your new product/service, base your competitive analysis on reality. Below is a guide (outline format) to assist you in writing your International Business Plan. You must provide the information identified in the outline (at a minimum), and you must also include descriptive explanations. Your business plan should be tailored to the specific needs and requirements of your selected product/service and international markets.
If you feel that any part of the instructions does not apply to a specific region/product, then you must address why the issue does not apply.
Part A Title Page
In addition to the required Activity Cover Sheet, you must submit a title page for your International Business Plan. Create a title page including the name of your company, a description of your product/service, the three international markets, your name and student identification number, and the date.
Part B Executive Summary
Your International Business Plan is a proposal to the Executive Committee. The committee members must first understand the scope of your proposal before delving into the details. So, summarize the primary points of your proposal, get to the point quickly, and report the most important facts contributing to the adoption of your proposal and your anticipated business results. This is not a selling document, but rather a clarifying document to ensure the reader has a general understanding and positive disposition toward your proposal. Use the key approach (who, what, where, why, when, how, and how much) to summarize the following.
Your globalization plan
Factors critical to the plan’s success
Key issues that require decisions by the Executive Committee
Key risks, risk triggers, and contingency plans to manage the identified risks
Part C Product/Service (By Region)
Description of the Product/Service: Include pictures or graphic representations; these can be very important to your success. Detail the product/service, marketing channels, distribution, etc. Make sure you indicate any modifications to the product description needed for each of your new international market regions. A product description is a clear, precise statement of the “product,” including, from an international perspective, factors that must be included to be accepted in the specific region. Provide detailed information on the transformation required to be regionally successful.
Description of Consumer Target Market: This information must be supported with specific information about the size in units and value ($). You must be specific in your target market information. For example: males, ages 18-24, high-school graduates going to college must be linked to individual countries. Alternatively, limit the market size information by excluding select elements.
Target Market Size
Product/Service Consumer Benefits and Costs: For each region, provide region specific information on the value proposition to the consumer. This information must be specific and detailed to the region. This section must answer the questions, “What’s in it for me?” and “When I purchase your product what benefit do I receive?”
Price Strategy and Estimate of Price Elasticity: Each region requires a separate pricing strategy. Make sure that your pricing strategy is specific to the region, as well as to the cultural and economic realities of the target market. A “poor response” is one claiming that your product will be the lowest priced product. Establishing a price on an international scale requires an understanding of the relationship between price and demand: elasticity. In most cases, this is the difference between profitability and losses. You must develop price elasticity curves consistent with your pricing strategy and your target market.
Part D Manufacturing/Operation/Supply Chain (By Region): Discuss each of the following.
Compatibilities of Supply Chain: Both global and corporate business strategies
Configuration of Supply Chain: Location and type of operations
Coordination of Supply Chain: Relationship to other global operations
Control of Supply Chain: Span and freedom of independence
Capital Requirements (very broad brush)
Part E Market/Sales (By Region): Discuss each of the following.
Global Marketing Strategy
Sales Structure (local, regional, global)
4 P’s of Marketing (product, price, place, promotion)
Part F Financial, Payment, Collections, Currency (By Region): Discuss each of the following.
Currency Issues (By Country and Region)
Part G Management Structure and Human Resource Requirements
Management Structure (By Country and Region)
Experience and Skill Level
Form of Operations