You must choose a real company offering a real good or service to be exported to an actual overseas market where it is not currently being offered now. Having selected the company and product/service export candidate, you must then choose three (3) candidate country markets where that good/service might be exported. You will analyse the likely success that the candidate export might have in those potential markets and choose one of those country markets which, based on your analysis, you believe will have the greatest likelihood of success. You must not only analyse the information you collect but argue persuasively for the conclusions that you draw from that analysis.

(The Company has been chosen and attached by a word document)

Your analysis should be informed by the theories and concepts presented in class (such as theories of trade and investment) and indicate an understanding of them. However you are not required to explicitly refer to those theories and concepts except as needed to support your case for moving into specific country markets.

The export report detailed outline:

1. Module One Company and Product/Service Situation Analysis

In this module, you will describe the company and the product or service that the company is considering for export.

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1.1 Product/Service Profile

– Describe the product or service to be exported

– Describe the general ‘business model’ behind the product/service (see slides for chapter 2 for definitions of business model)

– Advantages to exporting

– Disadvantages to exporting

1.2 Current Market Profile (in market where product is currently being sold)

– Description of end user i.e. income, lifestyle etc

– Is the User in international markets the same as domestic market?

– Usage of the product i.e. daily, weekly or monthly?

– Other relevant information

– Basic idea here is to describe who currently consumes the good or service.

1.3 Product/Service Industry Analysis

– Description of substitutes

– Their advantages compared to our product

– Their disadvantages when compared to our product

– How does the company’s product compare to competition in terms of quality and price?

1.4 SWOT (company analysis)

– List and explain the internal strengths of the company

– List and explain the internal weaknesses of the company

– List and explain the external opportunities of the company

– List and explain the external threats to the company

Module 2 Global Market Search

In this module, you will select three target markets and compare them with each along basic socio-economic dimensions. You must provide at least the following data in the template below (noting where there might be missing data; some data may not be quantitative) and may add other relevant information. Some the data may be qualitative. Then draw conclusions, i.e. analyse the variables you’ve collected about both the company and the target countries and rank the countries in terms of prospects as markets for exports in terms of those variables. Note that it is likely that some countries will rank higher in one category and not in another.

2.0 Map of Region with target countries identified

2.1 Demographics and Population

2.2 Economic Criteria

Country 1

Country 2

Country 3

2.1 demographics

income distribution

Age distribution

household income

population size

population growth

unemployment %

human development index

2.2 Economic criteria

consumer expenditure

current account balance

GDP and GDP per capita

inflation %

currency unit and current value on world markets

exchange rate determination (free or convertible?)

2.3 infrastructure

Internet/communications links

Transport

Water/Electric

2.4 local consumption for target product market

substitutes

consumption of product (quantity)

Current imports of your product category

per capita consumption of product category ($)

2.5 political/legal environment

corruption perception

ease of doing business

economic freedom

free trade zones?

political stability

tariffs and duties (general)

Module 3 In-Depth Market Analysis and Selection of target market

In this module you will use the data collected above to do further more targeted comparisons of your target countries as potential export markets. In this case you will convert your mixed rankings into a final ranking which picks the target market (and you may add any other relevant criteria you choose). You will explain why this market is superior to the other alternatives analysed.

Module 4 Entry Strategy

Having selected your target country market, you will describe here how you plan to successfully enter that market and offer your product or service there.

4.1 Distribution Strategy

– Define, explain and discuss your strategy relating to channel exclusivity, retail concentration and channel length

– Construct a figure of a typical distribution strategy to help explain intermediaries

4.2 Exchange Rate Strategy

– State whether you will set prices in home countries or in the destination countries currency and explain what the cost and benefits of each

– Define and explain financial tools such as forward contracts and how they might be of use to you

-Construct a 12 month retrospective figure or graph of movements between the relevant currency pairs

– Use the figure to help you explain how you will use financial tools such as forward contracts and promotions to either stabilize prices or profits

4.3 Marketing Strategy

– State how you will market your product to consumers, through advertising, promotions etc.

– Describe and give some examples of promotions that you might employ or use and explain how they might be of use to you

4.4 Cultural Strategy

– Describe how your target market differs from your current markets and what challenges those differences might provide. Indicate how you will overcome those barriers.

4.5 Corporate Social Responsibility Strategy

– Describe any ethical issues that you might confront in this market. How will you deal with them?

4.6 Conclusions (PRELIMINARY)

SYNTHESIS FINAL REPORT

Using the research from your outline and considering feedback received from me, you will submit a final report of around 20-25 pages. This final report will be a ‘smooth’ and finished report, something that senior corporate managers would consider acceptable. The final report will contain an executive summary, contents page, introduction, main body of text, final conclusions and recommendations, and supporting references and, if applicable, explanatory notes. Depending upon feedback you have received after submission of the draft report, you may also be making substantive changes.

The final assignment is supposed to be both a strategic summary and a compelling sales pitch. As a strategic summary you are to take the raw material, both facts and arguments, that you have already collected and meld those into a new concise and focused analysis that makes the case that the market you have selected for your product and the entry strategies and tactics you have chosen will be successful in gaining market share, profit growth and sales and ultimately an increase in firm value. As a sales pitch the document should make this case in a way that is convincing to investors who are busy, sceptical and relatively uninterested in purely intellectual exercises (notionally here members of your corporate investments committee). To sum all this up concisely, imagine you were going to put your own money into this venture (and for all I know, you plan to do just that). Would this document you are writing get you to part with your own money, or at least give it a second thought? If not, then you probably need to do some more work.

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