International Business, Assesment 1
Description/Focus: The purpose of this assignment is to provide an op-portunity to utilise your skills and knowledge in acquiring secondary (i.e. ex-isting) information as the basis of developing a report. The purpose of this assignment is to undertake an analysis of a new overseas market or an ex-isting overseas market where significant expansion should be implement-ed.
Length: 10 A4 Pages (plus unlimited appendices)
Task: Utilise the University library, the Internet and any information made available by the organisation (e.g. annual report, promotional materials) to provide an analysis of the organisation’s current operations as the basis for recommending an entry into a new overseas market or implementing a significant expansion in an existing overseas market where a major new opportunity exists.
Assessment criteria: The submitted assignment is required to demon-strate the following:
1. An ability to utilise sources such as the Internet and University library fa-cilities to search, locate and summarise data relevant to the assignment
2. An ability to utilise appropriate academic theories on international busi-ness that can provide a framework for analysing an overseas market.
3. An ability to develop an effective analysis of an overseas market.
4. An ability to present a well written, well-structured report
5. An ability to critically analyse information, formulate conclusions and ex-hibit original thought.
The levels of achievement for the assignment are measured by demonstration of:
1. The data acquired and summarised from sources such as the Internet and the University library facilities.
2. Presentation of appropriate international business theories about over-seas market conditions and key variables in terms of being used as frameworks to support your analysis.
3. Identification of the factors within the selected overseas market which are key influencers of the organisation’s future performance in tis market.
4. The submission of a well written, well structured report.
5. A critical analysis of information to generate conclusions and provide ev-idence of original thought.
Points to follow as per our teacher requirements:
the following steps should be followed in doing the report:
Business environment:
The fourth pillar, business environment, incorporates the ease of doing business, regulations, cor-ruption and human capital. Better understanding the environment within a market provides an en-hanced context for what business will really be like within the selected region or country.
Market Population Access Business Environment
Macroeconomic Stabil-ity:
- GDP growth (how broad is the base?
- inflation
- The unemployment rate
- current account bal-ance and the budget or fiscal deficits
Size and Growth
Infrastructure
Ease of doing business
Middle class:
- Size
- Levels of disposable income
- Consumer spending
Age structure
Internet
Regulations
Consumer market size and growth Vital statistics Partners Corruption
Openness:
- Levels of international trade.
- Foreign direct invest-ment.
- Ownership rights
- Intellectual property protection
Urbanisation
Retail landscape
Human capital
International market selection:
Euromonitor’s Sarah Boumphery (2014) presents a 4 pillar model for the analysis of an international market. These pillars are:
1. The market
2. Population
3. Access
4. Business environment
The Market
Incorporates macroeconomic stability, the middle class, consumer market size and growth and openness. Questions to consider:
- Is the country sizeable and stable enough to do business in?
- Are consumers well-off enough tp buy my products and services?
- Are the potential growth rates of the market attractive enough to off-set
any risk?
- Are the conditions for foreign business right?
Population:
Understanding and being able to harness population trends enables new market entrants to maximize their profitability by targeting the right people in the right place at the right time.
Marketers and strategic planners should be posing question such as:
- Where do my target consumers live?
- Where will they live in the future?
- Which age segment offers most opportunities?
- What are the opportunities and challenges that lie ahead?
- is my target audience growing and will it continue to do so?
- is it geographically dispersed or concentrated?
Access:
The practicalities of market entry are also key. How accessible is the coun-try? This should be considered in terms of infrastructure, internet, partners and the retail landscape.
- Will it be difficult to get your products to market?
- Are consumers easily accessible for both direct sales and market-ing.
- and promotional activities?
- Would a local partner facilitate market entry? Or is a local partner even
- a prerequisite?
- is the retail landscape modern or traditional?
Business Environment
The Friendliness of the business environment is also a crucial factor. The practicalities of doing business, the regulatory environment, corruption lev-els and the skills available in the workforce, which can all make or break a business. Business can thrive in countries where these factors are not fa-vourable but a carefully thought-out strategy is a must.
- is there a level playing field between domestic and foreign inves-tors?
- is the rule of law sufficient?
- How can the business beat corruption?
- How can the business recruit and retain talent?
source: Boumphery, Sarah (2014) SUCCEED IN EMERGING MARKETS: SELECTION, STRATEGY AND FIRST STEPS. Euromonitor International.
For a view on a global Competitiveness try this source:
http://www.weforum.org/reports/global-competitiveness-report-2013-2014
please use this websites for more resources:
http://www.austrade.gov.au
http://www.imf.org/external/index.htm
http://www.cia.gov/library/publications/the-world-factbook/
http://www.worldbank.org/
http://www.weforum.org/reports/global-competitiveness-report-2013-2014