THE COMPANY IS .
Building on the global industry comparative analysis you did in Project 3, develop a business plan for your organization to operate in a new country. Analyze the new country first as a site for certain value-chain activities, and second as a market for your organization’s products. Note that the term products will refer to products, services, or a combination of the two.
Your business plan should include a marketing strategy and an entry strategy. Also take into consideration the requirements of accounting and finance. Develop market share estimates and revenue projections using historical data from your organization in the United States and your own research into market size, pricing, and unit sales for the industry in the selected country. Estimate the investment required for relocating one or more activities of your organization’s value chain from the United States to the selected country. Also estimate the time needed for your organization to break even. Provide the assumptions behind your projections and assessments of both short-term and long-term risks.
You will have to develop the business plan for Gustavo. Be sure to give yourself adequate time for each of the 10 steps of this project.
Ø Develop an entry strategy for Gustavo of in length. The strategy you develop should incorporate the components described here and in Step 3.
As you begin to develop an entry strategy, first perform the following assessments:
- Analyze your site as both a market for your products and as a site for certain value-chain activities.
- Short-list and profile potential partner company candidates.
- Determine what company you will select for partnership or alliance. Evaluate the benefits this partnership would bring to your organization’s market position or profits.
- Detail the pros and cons of three market-entry modes. Which entry mode would you recommend and why? How does your chosen mode fit your organization’s goals and objectives?
- Estimate the financial investment required for the selected entry strategy.
Ø The next step in developing your entry strategy is to determine your organization’s degree of fit with the selected country. Answer the following questions in your entry strategy:
· How would you make the strategic alliance work? Regulations and laws governing different types of business entities vary considerably from one country to another. What kind of legal business entity do you recommend for your organization in the country of operation? What will be the impact of certain country laws on this type of business entity?
· What are the operational roles and activities of the partners? Design an organizational chart for operations in the country. Explain why you have chosen this organizational structure.
· What will be the likely impact of the country’s culture and geography on your organization, the value-chain activities that are being relocated to the country, and the growth in sales of your organization’s products in the country? Review Globalizing the Management Model for depth of understanding.
Ø Now that you have developed an entry strategy and determined your organization’s degree of fit within the selected country, you will create a marketing plan.
In addition to relocating certain activities in the value chain to the selected country, Gustavo wants to evaluate the country for its suitability as a market for your organization’s products. Review Target Markets for help with this evaluation.
strategy for the industry in which your organization belongs. Your marketing strategy should incorporate the components described here and in Steps 5–6 below.
The first step in developing your marketing strategy is to identify and assess the following components:
- your organization’s main competitors in the country
- the actual and potential size of the market
- market and segment growth
- market and segment profitability
- underlying costs and cost structure
- distribution systems channels
Ø As you continue developing your marketing strategy, the next step is to make recommendations to Gustavo on particular aspects of your organization’s marketing strategy that would be tailored to the country’s market for your organization. Specifically, address the following components:
- marketing mix in the country
- promotional practices
- branding strategies
When you have assessed the characteristics of your organization’s potential customers in the selected country,
Ø In the final step of developing your marketing strategy, you will assess your organization’s use of web networks and social media for e-marketing, given the unique ways in which computers, smartphones, the Internet, and social media are used among the country’s consumers. As you undertake this assessment, read more about management, strategies, tools, and practices in e-marketing. To complete this step, address the following components:
· Prepare market share estimates for your product or service in the country and revenue forecasts for the near term (6–12 months) and longer term (2–4 years).
· Provide proper justification for your projections, such as prior industry performance in terms of unit sales, market size, and profit margins in the country.
Ø As you may recall from your meeting with Gustavo, he wants your estimate of the timeframe needed to break even and implement your strategy. As you continue developing your business plan for entering the new country, assess any financial and accounting challenges by answering the following questions:
· Examine the financial statements of competitors in the country. Are there any differences in terms of language, currency, or the type of statements (income statement, balance sheet, financial statement format, extent of footnote disclosures, and the underlying GAAP [generally accepted accounting principles]) between your organization’s reports in the United States and the reports required by law in the country? Review The Role of Similar Accounting Standards in Cross-Border Mergers and Acquisitions.
· What are the challenges your organization may face in the country because of its accounting standards?
· What is the required investment for relocating your organization’s value-chain activities to the country for years 1, 2, and 3? What are the projected savings, if any, for the same time periods? Provide justification for your estimates.
· What are your estimates of revenue projections for your company in the country for years 1, 2, and 3?
Ø The next step of developing your business plan is to address strategy implementation and control measures by discussing the following components:
· Specify the major factors to be tracked for strategy effectiveness using the four perspectives of the balanced scorecard: learning and growth perspective, business process perspective, customer perspective, and financial perspective.
· Specify how your organization will monitor and report issues with joint-venture partners, subsidiaries, suppliers, and distributors in the country.
Ø As you continue developing your business plan, next make recommendations about your organization’s governance and accountability standards by answering the following questions:
· How do your organization’s governance and accountability and code of conduct or ethics address risks such as bribery and corruption? Search for Transparency International’s Corruption Perceptions Index online and make recommendations for changes to the code, if needed, for operations in the selected country.
· Do your organization’s corporate social responsibility (CSR) policies address local community interests, stakeholders’ concerns, and supplier relationships? Make recommendations for CSR changes to the program, if needed.
Your final report should follow these guidelines:
- 14–15 pages, excluding the title page, table of contents, and reference page
- in-text citations and references should abide by APA format
- 12-point Times New Roman font
- one-inch margins
- double spaced
Your final report should include the following components:
1. Title page
o states the client company, country, the client’s product or service, type of legal structure, and the selected alliance partner
o date and your name
2. Table of contents
o page numbers for each major section
3. Executive summary
o summarizes the results of your analysis and how you arrived at the recommendation
o belongs on a separate page from the introduction to the paper
o Start your executive summary as follows: “Business Plan for [selected client company] to enter [selected country] $(size of market in US Dollars) market for [product/service] through a [type of legal structure] with [selected alliance partner].”
4. Introduction (first page of paper body)
o states the purpose of the paper
o explains what the paper will do
o introduces the industry, country, and company’s name
5. Analyzing organization’s resources and capabilities
o choice of a local alliance partner and entry strategy
o organization’s degree of fit with the country
6. Understanding your organization’s industry
o market analysis
o characteristics of potential customers in the country
o use of web networks and social media for e-marketing
7. Analyzing country’s external environment
o finance and accounting
o strategy implementation
o governance and accountability
o one- or two-page summary of the recommendations and rationale
o APA-style reference page
o if needed
I. Executive summary – a brief synopsis of the marketing plan that provides highlights about a company’s offerings and marketing strategies
II. Situation analysis– presents pertinent information about a company. Commonly included sections include:
- Mission statement – explains a company’s purpose, goals, and/or strategy. See Finding a Company’s Mission Statement for more information about how to find existing company mission statements and how to write a mission statement.
- Product or service description – provides a detailed description of a company’s products and/or services
- Value proposition – explains the benefits that customers will receive from a company’s products and/or services. For more information, see Value Proposition.
- SWOT analysis – explains a company’s internal strengths and weaknesses, as well as its external opportunities and threats. For more information, see SWOT Analysis Research.
- Critical issues – outlines the strategy that would best utilize a company’s strengths and opportunities while minimizing the effects of its weaknesses and threats
III. Market analysis – includes information about market trends and dynamics, as well as about the target market and the competitive environment. Commonly included sections are:
- Macro environment – includes information about the political, economic, social, and technological factors affecting a company, as well as information about the industry in which the company operates
For information about establishing a company in another country, see Finding Country Information.
For information about establishing a company in a U.S. city or town, use Google, Bing, or another search engine to find the city’s or town’s chamber of commerce, which will provide information about existing area businesses and may provide information about establishing a new business in a particular locale, etc.
For demographic and psychographic information, see Finding Demographic or Psychographic Information.
For technology research, search in some of the Library’s Marketing databases, using a search strategy such as [your topic] AND technolog*
- Market size – discusses current market size as well as expected growth rate. See Finding Market Size Information.
- Market trends – discusses the market factors that may affect purchasing behavior. See Conducting Market Research and/or Finding Industry Trends and Projections.
- Target market analysis – explains which particular population will be the focus of a company’s marketing efforts and why the population’s characteristics are relevant to the company’s marketing plans
- Consumer analysis – discusses demographic, psychographic, and behavior characteristics of the target market identified above. Search in some of the Library’s Marketing databases, using a search strategy such as
[your target market] AND (demograph* OR psychograph* OR “consumer behavior”)
- Need analysis – explains what needs the target market has and how a company’s products and/or services could meet those needs. Target market needs may be identified from the consumer analysis conducted above.
- Competitive analysis – lists a company’s major competitors and their marketing strategies. See Finding a Company’s Competitors to find a company’s major competitors. To find those companies’ marketing strategies, search in some of the Library’s Marketing databases, using a search strategy such as
[company name] AND “market* strategy”
IV. Market strategy– provides measurable information about how a company will meet its objectives and the time frame in which it will do this
- Marketing objectives – describes a company’s goals, usually in terms of sales (units or dollars) or market share
- Financial objectives – describes a company’s expected profits or revenue
- Positioning strategy – discusses how a company’s products or services will be introduced to the marketplace and differentiated from the products or services of its competitors
- Product strategy – provides detailed information about a company’s products or services, including potential future offerings
- Price strategy – explains how a company’s products or services will be priced, taking into account internal as well as external factors that may affect supply and demand, etc.
- Distribution strategy – describes where and how a company’s products or services will be provided to customers
- Integrated marketing communications strategy – discusses how customers will be informed about a company’s products or services
- Branding strategy – describes how a company’s name, logo, slogan, design, etc. will be marketed so that they will be increasingly recognized by members of the company’s target market. For more information, see Brand Management.
- Marketing research – describes the market research activities that will be conducted during the period for which the marketing plan is being written — for example, consumer research, industry research, forecasting, competitive analysis, etc.
V. Financial analysis – provides detailed information about a company’s projected financial situation
- Break-even analysis – estimates how much of a company’s products or services need to be sold in order to cover the company’s costs
- Sales forecast – estimates a company’s sales for a given period of time. For more information, see Business Forecasting.
- Expense forecast – lists the marketing expenses needed to achieve a company’s marketing objectives
VI. Implementation and control – explains how a company’s marketing plan will be implemented and what measures the company could in place in order to handle unexpected events
- Implementation – provides a detailed timeline for the execution of the various activities described in the company’s marketing plan
- Controls – discusses the benchmarks a company will use to chart its progress against its implementation schedule
- Marketing organization chart – outlines the structure of a company’s marketing team, specifying which person is responsible for which marketing activity
- Contingency planning – explains how a company will handle unexpected events