Final Project Guidelines

Prepared By: Shahid Kalim Khan

International business plan Project

Comsats institute of information technology Defense Road off Raiwind Road Lahore URL: www.ciitlahore.edu.pk Email: [email protected]

2010
This document provides the instructions and guidelines for international business plan project to MBA students. This project is required to be completed in 16 modules. Complete guideline of the each module has been provided in this manual. Students are required to choose a local or international company and prepare a comprehensive business plan for its international expansion.

Contents
Contents ............................................................................................................................................. 1 MODULE 1 ....................................................................................................................................... 2 MODULE 2 ....................................................................................................................................... 4 MODULE 3 ....................................................................................................................................... 6 MODULE 4 ....................................................................................................................................... 7 MODULE 5 ....................................................................................................................................... 9 MODULE 6 ..................................................................................................................................... 11 MODULE 7 ..................................................................................................................................... 13 MODULE 8 ..................................................................................................................................... 14 MODULE 9 ..................................................................................................................................... 16 MODULE 10 ................................................................................................................................... 18 MODULE 11 ................................................................................................................................... 20 MODULE 12 ................................................................................................................................... 22 MODULE 13 ................................................................................................................................... 24 MODULE 14 ................................................................................................................................... 25 MODULE 15 ................................................................................................................................... 27 MODULE 16 ................................................................................................................................... 29

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MODULE 1
IDENTIFYING GLOBAL BUSINESS OPPORTUNITIES PURPOSE Some businesses attempt to expand their international operations by seeking foreign markets appropriate for existing products and services. Other enterprises assess foreign business environments in an attempt to meet needs in those markets. In this first module, your goal is to conduct a preliminary assessment of geographic, economic, social-cultural, and political-legal factors that create global business opportunities in foreign markets. Also, you should consider how technology could create new foreign business opportunities by expanding possibilities for production, marketing, and distribution of goods and services. INSTRUCTIONS Using your International Business textbook, library materials, Web sites, field research (interviews, observations), and other resources, prepare a written response for the information requested in the “Research Components” section of this stage of developing a global business plan. TEXT REFERENCE: Chapters 1, 4 (7, 12) TEXT HYPERLINKS  globalization of markets (Chapter 1, p. 5)  globalization of production (Chap. 1, p. 7)  role of technological change (Chap. 1, p. 10)  benefits of trade (Chap. 3, p. 113)  absolute advantage (Chap. 4, p. 117)  comparative advantage (Chap. 4, p. 120)  home country (Chap. 7, p. 205)  host country (Chap. 7, p. 211)  value creation (Chap. 12, p. 379) USEFUL WEB LINKS FOR MODULE 1 International Trade Administration at http://www.ita.doc.gov Asian country information at http://asnic.utexas.edu Eastern European country information at http://reenic.utexas.edu Latin American country information at http://www.lanic.utexas.edu Middle East country information at http://menic.utexas.edu Current international information at http://www.dushkin.com/globalstudies Current country information at http://yahoo.com/regional/countries World Factbook at http://www.cia.gov/cia/publications/factbook World Trade Association http://www.wtca.org United States International Trade Commission at http://www.usitc.gov Federation of International Trade Associations http://www.fita.org Small Business Administration at http://www.sba.gov and http://www.sbaonline.sba.gov International Business Links at http://www.t-bird.edu Page | 2

International Business Links at http://www.ibrc.bschool.ukans.edu Maps at http://www.lib.utexas.edu/Libs/PCL/Map_collection/Map_collection.html Search engines at http://www.yahoo.com http://www.infoseek.com http://www.hotbot.com http://www.lycos.com http://www.excite.com http://www.altavista.com http.//www.snap.com RESEARCH COMPONENTS To plan a global business enterprise, research information related to the following areas:

1. GLOBAL BUSINESS OPPORTUNITIES. Potential foreign business opportunities may be
viewed in two major categories: (A) Various country factors create international business opportunities. These include:  natural resources, agricultural products, or geographic factors (climate or terrain)  level of economic development and infrastructure  cultural characteristics, social activities, or demographic trends  changing political situations or legal factors  technology that may enhance production or distribution of an item

(B) Existing companies attempt to expand into new markets around the world.
List several possible global business opportunities that would be the basis for new or expanding international business operations. These business opportunities may be consumer goods or services or organizational goods and services. Organizational goods and services are those items sold to businesses, government agencies, nonprofit organizations, schools, hospitals, hotels, or other organizations. (Examples of global business opportunities include: processing of fresh fruit in Chile for distribution around the world, sale of water filtration systems in developing economies, sale of food products adapted to the tastes of different cultures, development of cellular telephone systems in countries with a weak communication infrastructure, and expansion of fast-food restaurants into countries with expanding economies.) 2. POTENTIAL MARKETS. Discuss one or more of the global business opportunities from above in terms of: (a) a specific product or service, including customer benefits, and (b) a potential market—a country that would be appropriate for this business opportunity. 3. ABSOLUTE AND COMPARATIVE ADVANTAGES. Analyze for the presence of an absolute or comparative advantage that might be related to a business opportunity in the country where the item will be produced or sold. Describe how this analysis might influence the success of your proposed business idea. (For example, the availability of natural resources can make a business opportunity cost efficient.) 4. BUSINESS OPPORTUNITY ANALYSIS. Compare two or more proposed business opportunities based on factors such as foreign market potential, start-up costs, and foreign business risks. (For example, a proposal to develop construct new highways may be appropriate Page | 3

for a developing economy. However, the risks in this market are probably greater than in an industrialized nation.) 5. THE ACTION PLAN. Recommend one or more foreign business opportunities (with a specific foreign market) for an existing company or a new enterprise. Provide evidence to support your proposal. SUPPLEMENTAL ACTIVITY Based on your review of appropriate Web sites and library materials, research the international operations of a company doing business in several countries. Obtain information related to: (1) the products sold in various regions of the world; (2) current and planned business activities in specific regions of the world--Asia, Africa, Eastern Europe, Middle East, Latin America; (3) the company's strengths and weaknesses related to global business activities; and (4) future actions that might be suggested for the company's international operations.

MODULE 2
ANALYZING INTERNATIONAL COMPETITORS PURPOSE Much can be learned from the successes and challenges of other organizations that have entered foreign markets. In addition, awareness of competitors is critical to successfully planning and implementing global business activities. In this module, your goal is to identify and analyze the international business operations of organizations related to the global opportunity you are exploring. INSTRUCTIONS Using your International Business textbook, library materials, Web sites, field research (interviews, observations), and other resources, prepare a written response for the information requested in the “Research Components” section of this stage of developing a global business plan. TEXT REFERENCE: Chapters 1, 4 TEXT HYPERLINKS  globalization of markets (Chap. 1, p. 5)  globalization of production (Chap. 1, p. 7)  managing in the global marketplace (Chap. 1, p. 25)  product life-cycle theory (Chap. 4, p. 127)  national competitive advantage (Chap. 4, p. 131) USEFUL WEB LINKS FOR MODULE 2 International Trade Administration at http:// www.ita.doc.gov World Trade Association at http://www.wtca.org World Bank at http://www.worldbank.org Page | 4

Federation of International Trade Associations at http://www.fita.org Small Business Administration at http://www.sba.gov World Trade Organization at http://www.wto.org World Export-Import Bank of the United States at http://www.exim.gov International Chamber of Commerce at http://www.iccwbo.org/ Import-export information at http://www.internationalist.com/ International Business Links at http://www.t-bird.edu International Business Links at http://ciber.centers.purdue.edu International Business Links at http://www.cba.hawaii.edu/aib/resource/links.htm International Business Links at http://www.ciber.bus.msu.edu International Business Links at http://www.ibrc.bschool.ukans.edu Company information at http://www.hoovers.com Annual reports, company information at http://www.zpub.com Export assistance at http://www.unzexport.com/ Search engines at http://www.yahoo.com http://www.infoseek.com http://www.hotbot.com http://www.lycos.com http://www.excite.com http://www.altavista.com http.//www.snap.com RESEARCH COMPONENTS Based on the global business opportunity identified in Module 1 (or a different international business enterprise or idea), research information related to the following areas: 1. POTENTIAL COMPETITORS. Identify companies that (a) have business activities similar (or related) to the business opportunity you are proposing and (b) operate in the country (or countries) that you are considering for your international business enterprise. 2. COMPETITIVE ADVANTAGES. Discuss the competitive advantages of these companies. (For example, some companies may gain a competitive advantage as a result of access to raw materials, while others may gain an advantage through the use of technology for production and distribution). 3. INTERNATIONAL STRATEGIES. Compare the international business strategies of these companies. Do these companies make use of standardized products and operating policies? Or, do they use a strategy that is adapted to various foreign markets? (Film, for example, is sold in standardized formats around the world while laundry detergents are adapted to clothes washing habits and water hardness.) 4. THE ACTION PLAN. Recommend actions for your proposed business operation based on the international business operations of other companies. SUPPLEMENTAL ACTIVITY Interview people who work in similar companies, related industries, or potential suppliers for your business idea. Obtain information about the product or service that might enhance your knowledge of this type of business. Page | 5

MODULE 3
ASSESSING THE ECONOMIC-GEOGRAPHIC ENVIRONMENT PURPOSE The natural infrastructure (such as rivers and seaports) and physical infrastructure (transportation and communication systems) of a nation provide the foundation for economic development. In this module, your goal is to gather information on various geographic and economic factors that influence business opportunities in other countries. INSTRUCTIONS Using your International Business textbook, library materials, Web sites, field research (interviews, observations), and other resources, prepare a written response for the information requested in the “Research Components” section of this stage of developing a global business plan. TEXT REFERENCE: Chapters 2, 8 TEXT HYPERLINKS  market economy (Chap. 2, p. 39)  command economy (Chap. 2, p. 39)  mixed economy (Chap. 2, p. 40)  state-directed economy (Chap. 2, p. 40)  Human Development Index (Chap. 2, p. 50)  levels of economic integration (Chap. 8, p. 225)  implications of economic integration (Chap. 8, p. 246)  exchange rates (Chap. 9, p. 258) USEFUL WEB LINKS FOR MODULE 3 International Trade Administration at http:// www.ita.doc.gov Asian country information at http://asnic.utexas.edu Eastern European country information at http://reenic.utexas.edu Latin American country information at http:// www.lanic.utexas.edu Middle East country information at http://menic.utexas.edu Current international information at http:// www.dushkin.com/globalstudies Current country information at http://yahoo.com/regional/countries C.I.A. World Factbook at http://www.cia.gov/cia/publications/factbook Maps at http://www.lib.utexas.edu/Libs/PCL/Map_collection/Map_collection.html Search engines at http://www.yahoo.com http://www.infoseek.com http://www.hotbot.com http://www.lycos.com http://www.excite.com http://www.altavista.com Page | 6

http.//www.snap.com RESEARCH COMPONENTS Based on the country (or countries) you are analyzing for your global business enterprise, research information related to the following areas: 1. GEOGRAPHIC INFLUENCES. Identify geographic (climate, terrain, waterways) factors that influence business activities in the country. (In some countries, for example, mountains make movement of raw materials and production supplies difficult and expensive.)

2.

MAJOR PRODUCTS AND INDUSTRIES. Describe the country’s (a) main natural resources and agricultural products, (b) major industries, (c) major imports, and (d) major exports. (A country’s natural resources and agricultural products are the basis for foreign investment.) CURRENT ECONOMIC CONDITIONS. Discuss the country’s recent economic conditions related to GDP, inflation, interest rates, currency value, personal income, and employment. Suggest how these economic factors may attract or deter foreign investment. INFRASTRUCTURE. Analyze the infrastructure of the country with regard to availability of transportation, communication, and utilities. (In some countries, getting a telephone installed may take many months.) THE ACTION PLAN. Recommend company actions that might be influenced by various geographic and economic factors in this country.

3.

4.

5.

SUPPLEMENTAL ACTIVITY For the country (or countries) you are researching, monitor recent trends in the value of its currency on world markets. Discuss factors that have influenced the exchange rates.

MODULE 4
ASSESSING THE SOCIAL-CULTURAL ENVIRONMENT PURPOSE A country’s business environment may be influenced by the importance of family, religious beliefs, and demographic trends. In this module, your goal is to gain cultural and social awareness about the country (or countries) you are considering for your global business opportunity. INSTRUCTIONS Using Hill textbook content, library materials, Web sites, field research (interviews, observations), and other resources, prepare a written response for the information requested in the “Research Components” section of this stage of developing a global business plan. Page | 7

TEXT REFERENCE: Chapter 3 TEXT HYPERLINKS  what is culture? (Chap. 3, p. 79)  social mobility (Chap. 3, p. 84)  class system (Chap. 3, p. 84)  religious and ethical systems (Chap. 3, p. 86)  Hofstede’s model (Chap. 3, p. 99)  ethnocentric behavior (Chap. 3, p. 103) USEFUL WEB LINKS FOR MODULE 4 International Trade Administration at http:// www.ita.doc.gov Asian country information at http://asnic.utexas.edu Eastern European country information at http://reenic.utexas.edu Latin American country information at http:// www.lanic.utexas.edu Middle East country information at http://menic.utexas.edu Current international information at http:// www.dushkin.com/globalstudies Current country information at http://www.dushkin.com/global studies Current country information at http://yahoo.com/regional/countries C.I.A. World Factbook at http://www.cia.gov/cia/publications/factbook Asia Business Connection at http://www.asiabiz.com Import-export information at http:www.internationalist.com/ Maps at http://www.lib.utexas.edu/Libs/PCL/Map_collection/Map_collection.html Search engines at http://www.yahoo.com http://www.infoseek.com http://www.hotbot.com http://www.lycos.com http://www.excite.com http://www.altavista.com http.//www.snap.com RESEARCH COMPONENTS Based on the country (or countries) you are analyzing for your global business enterprise, research information related to the following areas: 1. DEMOGRAPHIC TRENDS. Identify demographic trends (such as birth rates, literacy rates) that might influence business activities in the country. (For example, lower birth rates result in an aging population with expanded demand for health care.) 2. CULTURAL ANALYSIS. Discuss language, customs, traditions, and beliefs of the country. (Religious beliefs, for instance, may make the sale of certain products inappropriate in some countries.)

3.

SOCIAL INSTITUTIONS. Analyze the influences of social institutions (family, church, labor organizations) on the business culture. (In some countries, for example, a strong tie exists between family and business.) Page | 8

4.

INFORMAL TRADE BARRIERS. Describe informal trade barriers created by social and cultural factors. (For example, communication styles and negotiating tactics vary around the world resulting in the need to adapt to the host country’s culture.) THE ACTION PLAN. Recommend company actions that would be appropriate based on the social and cultural environment of the country.

5.

SUPPLEMENTAL ACTIVITY Interview a person who has lived in, worked in, or traveled to a country you are researching. Obtain information related to eating habits, shopping, leisure activities, the role of family and religion, customs, traditions, and other aspects of the business environment.

MODULE 5
ASSESSING THE POLITICAL-LEGAL ENVIRONMENT PURPOSE Political stability is commonly related to the type of government and degree of corruption present in a country. In addition, a company may face various business regulations when conducting international business. In this module, your goal is to identify political and legal factors that could affect global business decisions. INSTRUCTIONS Using your International Business textbook, library materials, Web sites, field research (interviews, observations), and other resources, prepare a written response for the information requested in the “Research Components” section of this stage of developing a global business plan. TEXT REFERENCE: Chapter 2, 5 TEXT HYPERLINKS  political system (Chap. 2, p. 34)  property rights (Chap. 2, p. 41)  legal system (Chap. 2, p. 41)  import quota (Chap. 5, p. 147)  local content requirement (Chap. 5, p. 148)  antidumping policies (Chap. 5, p. 149) USEFUL WEB LINKS FOR MODULE 5 International Trade Administration at http:// www.ita.doc.gov Asian country information at http://asnic.utexas.edu Eastern European country information at http://reenic.utexas.edu Latin American country information at http:// www.lanic.utexas.edu Middle East country information at http://menic.utexas.edu Current international information at http:// www.dushkin.com/globalstudies Page | 9

Current country information at http://www.dushkin.com/global studies Current country information at http://yahoo.com/regional/countries C.I.A. World Factbook at http://www.cia.gov/cia/publications/factbook World Trade Association at http://www.wtca.org World Bank at http://www.worldbank.org Federation of International Trade Associations at http://www.fita.org Small Business Administration at http://www.sba.gov World Trade Organization at http://www.wto.org World Export-Import Bank of the United States at http://www.exim.gov International Chamber of Commerce at http://www.iccwbo.org/ Import-export information at http://www.internationalist.com/ Maps at http://www.lib.utexas.edu/Libs/PCL/Map_collection/Map_collection.html Search engines at http://www.yahoo.com http://www.infoseek.com http://www.hotbot.com http://www.lycos.com http://www.excite.com http://www.altavista.com http.//www.snap.com RESEARCH COMPONENTS Based on the country (or countries) you are analyzing for your global business enterprise, research information related to the following areas: 1. GOVERNMENT AND POLITICS. Describe the type of government and recent political developments that could influence the economic and business environment of the country. (For example, various events in recent years in the Middle East have contributed to the an uncertainty when doing business with some countries.) 2. FORMAL TRADE BARRIERS. Identify formal trade barriers (tariffs and other taxes, foreign exchange controls, ownership restrictions) that might require a company to adapt its business strategy. 3. PROMOTING GLOBAL BUSINESS. Analyze host government efforts to attract foreign investment. (For example, some nations offer tax incentives to attract foreign capital.) 4. INTELLECTUAL PROPERTY. Discuss the country’s regulations to protect intellectual property, such as brand names, copyrights, patents, software, music, videos. (Some countries do not enforce these laws allowing pirating of products, resulting in lost profits for companies.) 5. THE ACTION PLAN. Recommend company actions that would be necessary to adapt your product or service to the political-legal environment of the country you have researched. SUPPLEMENTAL ACTIVITY Conduct a survey of local businesspeople who are involved with or aware of political and economic trends around the world. Find out their assessments of which regions are the best prospects for international business expansion.

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MODULE 6
SELECTING A GLOBAL COMPANY STRUCTURE PURPOSE As a business organization enters new foreign markets, decisions must be made regarding various organizational factors. In this module, your goal is to develop a strategic plan related to an enterprise’s strategic goals and organizational structure. INSTRUCTIONS Using your International Business text, library materials, Web sites, field research (interviews, observations), and other resources, prepare a written response for the information requested in the “Research Components” section of this stage of developing a global business plan. TEXT REFERENCE: Chapters 6, 12, 13, 14, 15 TEXT HYPERLINKS  horizontal foreign direct investment (chap. 6, p. 182)  vertical foreign direct investment (chap. 6, p. 189)  the role of strategy (chap. 12, p. 380)  pressures for local responsiveness (chap. 12, p. 388)  strategic choice (chap. 12, p. 390)  vertical differentiation (centralization vs. decentralization) (chap. 13, p. 403)  horizontal differentiation (chap. 13, p. 405)  exporting (chap. 14, p. 434)  turnkey projects (chap. 14, p. 435)  licensing (chap. 14, p. 436)  franchising (chap. 14, p. 437)  joint ventures (chap. 14, p. 440)  wholly-owned subsidiaries (chap. 14, p. 441)  strategic alliances (chap. 14, p. 444)  promise and pitfalls of exporting (chap. 15, p. 484)  exporting strategy (chap. 15, p. 487)  countertrade (chap. 15, p. 495) USEFUL WEB LINKS FOR MODULE 6 International Trade Administration http://www.ita.doc.gov World Trade Association http://www.wtca.org United States International Trade Commission http://www.usitc.gov Federation of International Trade Associations http://www.fita.org Small Business Administration http://www.sba.gov and http://www.sbaonline.sba.gov International Business Links http://www.t-bird.edu http://www.ibrc.bschool.ukans.edu/index.htm http://ciber.centers.purdue.edu http://www.cba.hawaii.edu/aib/resource/links.htm http://www.ciber.bus.msu.edu Page | 11

Exporting information http://www.unzexport.com Search engines http://www.yahoo.com http://www.infoseek.com http://www.hotbot.com http://www.lycos.com http://www.excite.com http://www.altavista.com http.//www.snap.com RESEARCH COMPONENTS 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. STRATEGIC PLANNING. Develop strategic objectives that communicate major goals related to: (a) a description of the product(s) or service(s) being offered, (b) target market and customer benefits, (c) financial aims (market share, return on investment), (d) employee satisfaction, and (e) social contributions. State strategic goals in a manner that can be measured objectively--e.g., “to provide households with clean drinking water at a moderateprice”—and be as specific as possible. 2. ENTRY MODES. Analyze different global business entry modes that a company might select when planning international business activities. Compare the benefits, costs, and risks associated with using exporting, turnkey projects, licensing, franchising, joint venture, and wholly-owned subsidiaries. (In general, exporting is less risky than some other entry modes. An organization’s entry mode, however, will also be influenced by the nature of the product or service being offered, as well as the economic, social-cultural, and political-legal environment of the host country.) 3. ORGANIZATIONAL STRUCTURE. Discuss the extent to which the organization will be centralized or decentralized. (Centralized organizations tend to offer standardized products or services with decisions made in upper levels of the organization. In contrast, decentralized organizations usually involve products or services that need to be adapted to various geographic, economic, social-cultural, and political-legal influences.) 4. STRATEGIC ALLIANCE. Identify local companies of the country or international companies operating in the country that could be potential business partners. These strategic alliances may be with suppliers, distributors, sales representatives, or consultants. (For example, a bottled water company might reach an agreement to transport and sell its product through the existing distribution system or a soft drink company.) 5. THE ACTION PLAN. Recommend an organizational structure for your global enterprise. Provide a summary of: (a) mission statement, (b) organizational objectives, (c) entry mode, (d) organizational structure, and (e) proposed strategic alliances. SUPPLEMENTAL ACTIVITY Prepare an in-class presentation (with visual support) comparing alternative entry modes for implementing international business activities. These could include exporting, turnkey projects, licensing, franchising, joint venture, and wholly-owned subsidiaries. Page | 12

MODULE 7
FINANCING SOURCES FOR GLOBAL BUSINESS OPERATIONS PURPOSE Both global expansion by large organizations and initial international business activities by smaller companies require financing. In this module, your goal is to obtain information related to start-up costs and sources of funds for your international business enterprise. INSTRUCTIONS Using your International Business textbook, library materials, Web sites, field research (interviews, observations), and other resources, prepare a written response for the information requested in the “Research Components” section of this stage of developing a global business plan. TEXT REFERENCE: Chapters 9, 10, 11, 15 TEXT HYPERLINKS  foreign exchange market, exchange rate (chap. 9, p. 258)  currency conversion (chap. 9, p. 260)  fixed versus floating exchange rates (chap. 10, p. 297)  benefits of the global capital market (chap. 11, p. 344)  global capital market risks (chap. 11, p. 353)  the global bond market (chap. 11, p. 358)  the global equity market (chap. 11, p. 359)  foreign exchange risk and the cost of capital (chap. 11, p. 360)  export and import financing (chap. 15, p. 490)  financing decisions (chap. 20, p. 619) USEFUL WEB LINKS FOR MODULE 7 International Trade Administration http://www.ita.doc.gov International Monetary Fund http://www.imf.org The World Bank at http://www.worldbank.org World Export-Import Bank of the United States (www.exim.gov) Financing information http://www.sba.gov and http://www.sbaonline.sba.gov Overseas Private Investment Corporation http://www.opic.gov Exchange rate information, global stock exchanges http://www.globalfindata.com Exchange Rates at http://www.ibrc.bschool.ukans.edu/resources/exchange/exchange.htm International credit reporting agency http://www.owens.com World Trade Association http://www.wtca.org United States International Trade Commission http://www.usitc.gov Federation of International Trade Associations http://www.fita.org International Business Links http://www.t-bird.edu International Business Links http://www.ibrc.bschool.ukans.edu/index.htm Page | 13

International Business Links http://ciber.centers.purdue.edu International Business Links http://www.cba.hawaii.edu/aib/resource/links.htm International Business Links http://www.ciber.bus.msu.edu Search engines http://www.yahoo.com http://www.infoseek.com http://www.hotbot.com http://www.lycos.com http://www.excite.com http://www.altavista.com http.//www.snap.com RESEARCH COMPONENTS 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. 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.) 2. 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. 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.) 4. THE ACTION PLAN. Recommend actions related to the financing for the start of international business operations. SUPPLEMENTAL ACTIVITY Obtain recent currency exchange rates for the country you have researched. Graph changes of these currency values in relation to two or three other countries. Discuss economic and political factors that may have influenced any changes in the country’s exchange rate.

MODULE 8
CREATING A GLOBAL MANAGEMENT INFORMATION SYSTEM PURPOSE Computers and other technology have intensified the importance of information in all organizations. Raw data converted to useful information makes managerial decision making Page | 14

easier in the areas of financial planning, marketing, inventory, and human resources. In this module, your goal is to identify and organize the information needs of a global business operation. INSTRUCTIONS Using your International Business textbook, library materials, Web sites, field research (interviews, observations), and other resources, prepare a written response for the information requested in the “Research Components” section of this stage of developing a global business plan. TEXT REFERENCE: Chapters 16, 19, 20 TEXT HYPERLINKS  strategy, manufacturing, and materials management (chap. 16, p. 504)  coordinating a global manufacturing system (chap. 16, p. 520)  country difference in accounting standards (chap. 19, p. 591)  currency translation (chap. 19, p. 600)  techniques for global money management (chap. 20, p. 627)

USEFUL WEB LINKS FOR MODULE 8 International Trade Administration http://www.www.ita.doc.gov World Trade Association http://www.wtca.org United States International Trade Commission http://www.usitc.gov Federation of International Trade Associations http://www.fita.org Small Business Administration http://www.sba.gov and http://www.sbaonline.sba.gov International Business Links http://www.t-bird.edu http://www.ibrc.bschool.ukans.edu/index.htm http://ciber.centers.purdue.edu http://www.cba.hawaii.edu/aib/resource/links.htm http://www.ciber.bus.msu.edu Search engines http://www.yahoo.com http://www.infoseek.com http://www.hotbot.com http://www.lycos.com http://www.excite.com http://www.altavista.com http.//www.snap.com RESEARCH COMPONENTS 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. GLOBAL INFORMATION NEEDS. Identify the types of reports and other documents that would provide managers with knowledge that would be required for organizational decision making (e.g., management information include financial documents, inventory data, sales and marketing reports and human resource records). Page | 15

2. GLOBAL INFORMATION SOURCES. List the main (a) external and (b) internal sources of data for your global business enterprise. (External sources include government agencies, financial institutions, trade associations, suppliers, and customers. Internal sources include research information, accounting data, employee records, sales figures, and inventory reports.) 3. TECHNOLOGY FOR MANAGING INFORMATION. Describe computer systems and other technology that would facilitate the processing, reporting, and use of information for international business operations. (For example, a global computer network may be used to record and report inventory and sales from various branch offices.) 4. THE ACTION PLAN. Recommend a management information system that identifies: (a) input sources, (b) processing activities, and (c) output reports that would serve the decisionmaking needs of managers within the organization. SUPPLEMENTAL ACTIVITY Develop a suggested format for a Web site that would communicate to customers, suppliers, investors, and prospective employees some of the benefits and opportunities of your global business enterprise. List the types of information and interactive features you might include.

MODULE 9
IDENTIFYING HUMAN RESOURCES FOR GLOBAL BUSINESS ACTIVITIES PURPOSE In every organization, people are the resource that makes things happen. Without employees and managers an enterprise is nothing more than raw materials, supplies, unfinished goods, and unsold inventory. In this module, your goal is to gather information related to staffing, training, and managing workers for international business operations. INSTRUCTIONS Using your International Business textbook, library materials, Web sites, field research (interviews, observations), and other resources, prepare a written response for the information requested in the “Research Components” section of this stage of developing a global business plan. TEXT REFERENCE: Chapter 18 TEXT HYPERLINKS  the strategic role of international hrm (chap. 18, p. 564)  staffing policy (chap. 18, p. 565)  the expatriate problem (chap. 18, p. 569)  training and management development (chap. 18, p. 573)  performance appraisal (chap. 18, p. 577) Page | 16

 compensation (chap. 18, p. 578) ”

USEFUL WEB LINKS FOR MODULE 9 International Trade Administration http:// www.ita.doc.gov Asian country information http://asnic.utexas.edu Eastern European country information http://reenic.utexas.edu Latin American country information http:// www.lanic.utexas.edu Middle East country information http://menic.utexas.edu Current international information http:// www.dushkin.com/globalstudies Current country information http://yahoo.com/regional/countries World Factbook http://www.cia.gov/cia/publications/factbook World Trade Association http://www.wtca.org United States International Trade Commission http://www.usitc.gov Federation of International Trade Associations http://www.fita.org Small Business Administration http://www.sba.gov and http://www.sbaonline.sba.gov International Business Links http://www.t-bird.edu http://www.ibrc.bschool.ukans.edu http://ciber.centers.purdue.edu http://www.cba.hawaii.edu/aib/resource/links.htm http://www.ciber.bus.msu.edu Maps http://www.lib.utexas.edu/Libs/PCL/Map_collection/Map_collection.html Search engines http://www.yahoo.com http://www.infoseek.com http://www.hotbot.com http://www.lycos.com http://www.excite.com http://www.altavista.com http.//www.snap.com RESEARCH COMPONENTS 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. STAFFING. Identify job positions and required skills for employees and managers. (Most organizations need employees skilled in clerical work, marketing and sales, financial planning, and technical areas such as production, research, and maintenance.) Compare the use of ethnocentric, polycentric, and geocentric approaches to staffing. 2. TRAINING AND DEVELOPMENT. List topics for ongoing training and management development related to technical, interpersonal, language, and cultural sensitivity skills. 3. PERFORMANCE APPRAISAL. Suggest performance guidelines for various job positions that would balance organizational goals and individual needs.

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4. COMPENSATION. Determine wage and salary levels for various job positions and propose an employee benefits package, taking into account economic and cultural factors. 5. THE ACTION PLAN. Recommend human resource management actions related to (a) staffing, (b) training and development, (c) performance appraisal, and (d) compensation. SUPPLEMENTAL ACTIVITY Develop a video or in-class presentation that focuses on cultural differences in various human resource management functions. Using examples from two or more countries, compare and contrast hiring, training, performance appraisal, and compensation methods.

MODULE 10
MANAGING INTERNATIONAL FINANCIAL AND BUSINESS RISKS PURPOSE High inflation and import restrictions are just two of the many risks that a company may encounter when doing business in another country. In this module, your goal is to obtain information related to managing various elements of global business uncertainty. INSTRUCTIONS Using your International Business textbook, library materials, Web sites, field research (interviews, observations), and other resources, prepare a written response for the information requested in the “Research Components” section of this stage of developing a global business plan. TEXT REFERENCE: Chapters 9, 10, 11, 20 TEXT HYPERLINKS  foreign exchange risk (chap. 9, p. 259)  insuring against foreign exchange risk (chap. 9, p. 260)  currency convertibility (chap. 9, 276)  countertrade (chap. 9, p. 277)  fixed versus floating exchange rates (chap. 10, p. 297)  global capital market risks (chap. 11, p. 353)  foreign exchange risk and the cost of capital (chap. 11, p. 360)  adjusting for political and economic risk (chap. 20, p. 614)

USEFUL WEB LINKS FOR MODULE 10 International Trade Administration http://www.ita.doc.gov International Monetary Fund http://www.imf.org The World Bank http://www.worldbank.org Page | 18

World Export-Import Bank of the United States (www.exim.gov) Financing information http://www.sba.gov and http://www.sbaonline.sba.gov Overseas Private Investment Corporation http://www.opic.gov Exchange Rate Information, Global Stock Exchanges http://www.globalfindata.com Exchange Rates at http://www.ibrc.bschool.ukans.edu/resources/exchange/exchange.htm Asian Country Information http://asnic.utexas.edu Eastern European Country Information http://reenic.utexas.edu Latin American Country Information http://www.www.lanic.utexas.edu Middle East Country Information http://menic.utexas.edu Current International Information http://www.www.dushkin.com/globalstudies Current Country Information http://yahoo.com/regional/countries World Factbook http://www.cia.gov/cia/publications/factbook World Trade Association http://www.wtca.org United States International Trade Commission http://www.usitc.gov Federation of International Trade Associations http://www.fita.org Small Business Administration http://www.sba.gov and http://www.sbaonline.sba.gov International Business Links http://www.t-bird.edu http://www.ibrc.bschool.ukans.edu http://ciber.centers.purdue.edu http://www.cba.hawaii.edu/aib/resource/links.htm http://www.ciber.bus.msu.edu Search engines http://www.yahoo.com http://www.infoseek.com http://www.hotbot.com http://www.lycos.com http://www.excite.com http://www.altavista.com http.//www.snap.com RESEARCH COMPONENTS 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. ECONOMIC AND FINANCIAL RISKS. Identify key areas of uncertainty related to level of economic development, infrastructure, and changing economic conditions in the country being considered for business operations. (For example, a weak infrastructure or volatile currency increases the risk of doing business in a foreign market.) 2. SOCIAL AND CULTURAL RISKS. Discuss customs, traditions, and social values in your proposed location that could create risks for the enterprise. (Religious beliefs or the role of family, for example, can increase uncertainty when starting and implementing an international business operation.) 3. POLITICAL AND LEGAL RISKS. Analyze the uncertainty that might be created by political stability, potential for corruption, and business regulations. (For instance, required labeling, tariffs, or ownership restrictions may be encountered in various nations.) Page | 19

4. 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. THE ACTION PLAN. Recommend company actions for a risk management plan related to your global business enterprise. SUPPLEMENTAL ACTIVITY Interview a person who has worked with business enterprises in other countries. information about how to identify and manage global business risks.

Obtain

MODULE 11
PRODUCT AND TARGET MARKET PLANNING PURPOSE A clear definition of an organization’s product (or service) along with a detailed description of potential customers provide the foundation of a marketing plan. In this module, your goal is to develop a product description and obtain information about the target market for your global business enterprise. INSTRUCTIONS Using your international business textbook, library materials, Web sites, field research (interviews, observations), and other resources, prepare a written response for the information requested in the “Research Components” section of this stage of developing a global business plan. TEXT REFERENCE: Chapters 4, 16, 17 TEXT HYPERLINKS  product life-cycle theory (chap. 4, p. 127)  total quality management (chap. 16, p. 505)  where to manufacture (chap. 16, p. 506)  universal needs (chap. 16, p. 510)  make-or-buy decisions (chap. 16, p. 515)  globalization of markets (chap. 17, p. 533)  market segmentation (chap. 17, p. 535)  product attributes (chap. 17, p.536)  new product development (chap. 17, p. 552)

USEFUL WEB LINKS FOR MODULE 11 International Trade Administration http://www.ita.doc.gov World Trade Association http://www.wtca.org Page | 20

United States International Trade Commission http://www.usitc.gov Federation of International Trade Associations http://www.fita.org Small Business Administration http://www.sba.gov and http://www.sbaonline.sba.gov Exporting Information http://www.unzexport.com Asian Country Information http://asnic.utexas.edu Eastern European Country Information http://reenic.utexas.edu Latin American Country Information http://www.www.lanic.utexas.edu Middle East Country Information http://menic.utexas.edu Current International Information http://www.www.dushkin.com/globalstudies Current Country Information http://yahoo.com/regional/countries World Factbook http://www.cia.gov/cia/publications/factbook International Business Links http://www.t-bird.edu http://www.ibrc.bschool.ukans.edu http://ciber.centers.purdue.edu http://www.cba.hawaii.edu/aib/resource/links.htm http://www.ciber.bus.msu.edu Search Engines http://www.yahoo.com http://www.infoseek.com http://www.hotbot.com http://www.lycos.com http://www.excite.com http://www.altavista.com http://www.snap.com RESEARCH COMPONENTS 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 attributes, customer benefits, and competitive advantages of the product (or service) to be offered by the organization. (A product concept should list as many features and benefits as possible to better communicate the product message within the organization and to potential customers.) 2. PRODUCT LIFE CYCLE. Discuss economic, cultural, political, or technological factors that might affect the speed at which the product (or service) goes 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 for the company (or specific product) that would create a distinctive identity. Analyze cultural and legal factors that could influence packaging of the product. 4. TARGET MARKET. Describe the characteristics of potential customers in terms geographic location, demographics, media habits, consumer behavior patterns, and lifestyle activities. (For business-to-business markets, define the target market in terms of factors such as geographic location, type of organization, and size of organization.) Page | 21

5. THE ACTION PLAN. Recommend a product strategy for your global enterprise. Suggest company actions related to product characteristics, branding, packaging, and target market.

SUPPLEMENTAL ACTIVITY Prepare a visual presentation in the form of a product concept board. Include information on the product attributes, customer benefits, competitive advantages, branding, packaging, and target market.

MODULE 12
DESIGNING A GLOBAL DISTRIBUTION STRATEGY PURPOSE The transportation of goods and services between the producer and consumer is a vital element of global marketing activities. Distance and documentation can make this movement expensive and time consuming. In this module, your goal is to obtain information related to your proposed global distribution strategy. INSTRUCTIONS Using your International Business textbook, library materials, Web sites, field research (interviews, observations), and other resources, prepare a written response for the information requested in the “Research Components” section of this stage of developing a global business plan. TEXT REFERENCES: Chapters 15, 17 TEXT HYPERLINKS  the promise and pitfalls of exporting (chap. 15, p. 484)  exporting strategy (chap. 15, p. 487)  distribution strategy (chap. 17, p. 538)  channel length (chap. 17, p. 539)  choosing a distribution strategy (chap. 17, p. 540)

USEFUL WEB LINKS FOR MODULE 12 International Trade Administration http://www.ita.doc.gov World Trade Association http://www.wtca.org United States International Trade Commission http://www.usitc.gov Federation of International Trade Associations http://www.fita.org Small Business Administration http://www.sba.gov and http://www.sbaonline.sba.gov Exporting Information http://www.unzexport.com Overseas Private Investment Corporation http://www.opic.gov Page | 22

United States International Trade Commission http://www.usitc.gov Asian Country Information http://asnic.utexas.edu Eastern European Country Information http://reenic.utexas.edu Latin American Country Information http://www.www.lanic.utexas.edu Middle East Country Information http://menic.utexas.edu Current International Information http://www.www.dushkin.com/globalstudies Current Country Information http://yahoo.com/regional/countries World Factbook http://www.cia.gov/cia/publications/factbook International Business Links http://www.t-bird.edu http://www.ibrc.bschool.ukans.edu http://ciber.centers.purdue.edu http://www.cba.hawaii.edu/aib/resource/links.htm http://www.ciber.bus.msu.edu Search Engines http://www.yahoo.com http://www.infoseek.com http://www.hotbot.com http://www.lycos.com http://www.excite.com http://www.altavista.com http.//www.snap.com RESEARCH COMPONENTS 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. INFRASTRUCTURE ANALYSIS. Describe transportation facilities in the country that might enhance or deter your organization’s ability to move goods from one destination to another. (In many countries, for example, a lack or 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 customer. (A common channel of distribution may include a wholesaler and a retailer; global operations are likely to involve additional intermediaries.) 5. THE ACTION PLAN. Recommend a distribution strategy for your global business enterprise. Suggest company actions related to infrastructure, distribution barriers, and intermediaries. SUPPLEMENTAL ACTIVITY Propose a Web site that could enhance the distribution capabilities of an organization. Possible Web site services might include product information, retailer locations, customer service assistance, and online ordering. Page | 23

MODULE 13
PLANNING A GLOBAL PROMOTION STRATEGY PURPOSE International communications create some of the most interesting and difficult aspects of global business activities. In this module, your goal is to plan various elements of an international promotional plan. INSTRUCTIONS Using your International Business textbook, library materials, Web sites, field research (interviews, observations), and other resources, prepare a written response for the information requested in the “Research Components” section of this stage of developing a global business plan. TEXT REFERENCE: Chapter 17 TEXT HYPERLINKS  communication strategy (chap. 17, p. 541)  push versus pull strategies (chap. 17, p. 542)  media availability (chap. 17, p. 543)  global advertising (chap. 17, p. 544) USEFUL WEB LINKS FOR MODULE 13 United States International Trade Commission http://www.usitc.gov Federation of International Trade Associations http://www.fita.org Asian Country Information http://asnic.utexas.edu Eastern European Country Information http://reenic.utexas.edu Latin American Country Information http://www.www.lanic.utexas.edu Middle East Country Information http://menic.utexas.edu Current International Information http://www.www.dushkin.com/globalstudies Current Country Information http://yahoo.com/regional/countries World Factbook http://www.cia.gov/cia/publications/factbook International Business Links http://www.t-bird.edu http://www.ibrc.bschool.ukans.edu http://ciber.centers.purdue.edu http://www.cba.hawaii.edu/aib/resource/links.htm http://www.ciber.bus.msu.edu Search engines http://www.yahoo.com http://www.infoseek.com http://www.hotbot.com http://www.lycos.com http://www.excite.com http://www.altavista.com http.//www.snap.com RESEARCH COMPONENTS Page | 24

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. 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 or lower prices.) 2. BUSINESS ENVIRONMENT. Discuss cultural and legal factors that might influence promotional decisions. (In some countries, for example, certain information is required in television commercials when selling products aimed at children.) 3. MEDIA PLAN. Analyze media availability in the country to determine the most cost efficient methods of communicating with potential customers. (While television, radio, newspapers, magazines, and the Internet may be common in industrialized countries, advertising in developing economies may require the use of other media such as billboards, leaflets, etc. In some countries, for example, 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.) 5. THE ACTION PLAN. Recommend a promotional strategy for your global enterprise. Suggest company actions related to promotional goals, needed adaptations due to cultural or legal factors, and a media plan. SUPPLEMENTAL ACTIVITY Design a story board, video commercial, or print advertisement for a product or service intended to be sold in a foreign market. This presentation should reflect the economic, cultural, and legal influences of the country’s business environment. +

MODULE 14
SELECTING AN INTERNATIONAL PRICING STRATEGY PURPOSE Prices are most commonly influenced by production costs, potential demand, actions of competitors, and government regulations. In this module, your goal is to obtain information related to various factors influencing international pricing activities. INSTRUCTIONS Page | 25

Using your International Business textbook, library materials, Web sites, field research (interviews, observations), and other resources, prepare a written response for the information requested in the “Research Components” section of this stage of developing a global business plan. TEXT REFERENCES: Chapters 9, 10, 17 TEXT HYPERLINKS  foreign exchange market (chap. 9, p. 258)  currency conversion (chap. 9, p. 259)  fixed versus floating exchange rates (chap. 10, p. 297)  pricing strategy (chap. 17, p. 546)  strategic pricing (chap. 17, p. 549)  regulatory influences on pricing (chap. 17, p. 550) USEFUL WEB LINKS FOR MODULE 14 International Trade Administration http://www.ita.doc.gov World Trade Association http://www.wtca.org United States International Trade Commission at http://www.usitc.gov Federation of International Trade Associations http://www.fita.org Exporting Information http://www.unzexport.com International Monetary Fund http://www.imf.org The World Bank http://www.worldbank.org World Export-Import Bank of the United States (www.exim.gov) Financing Information http://www.sba.gov and http://www.sbaonline.sba.gov Overseas Private Investment Corporation http://www.opic.gov Exchange Rate Information, Global Stock Exchanges http://www.globalfindata.com Exchange Rates http://www.ibrc.bschool.ukans.edu/resources/exchange/exchange.htm International Credit Reporting Agency http://www.owens.com Asian Country Information http://asnic.utexas.edu Eastern European Country Information http://reenic.utexas.edu Latin American Country Information http://www.www.lanic.utexas.edu Middle East Country Information http://menic.utexas.edu Current International Information http://www.www.dushkin.com/globalstudies Current Country Information http://yahoo.com/regional/countries World Factbook http://www.cia.gov/cia/publications/factbook International Business Links http://www.t-bird.edu http://www.ibrc.bschool.ukans.edu http://ciber.centers.purdue.edu http://www.cba.hawaii.edu/aib/resource/links.htm http://www.ciber.bus.msu.edu Search engines http://www.yahoo.com http://www.infoseek.com http://www.hotbot.com http://www.lycos.com http://www.excite.com http://www.altavista.com http.//www.snap.com Page | 26

RESEARCH COMPONENTS 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. 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 accrued in 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) over a five-year period, based your assessment of the current and expected market size. (As a product gains 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. 5. THE ACTION PLAN. Recommend a pricing strategy for your global enterprise. Suggest specific prices based on economic factors, costs, and potential demand. SUPPLEMENTAL ACTIVITY Conduct an interview with a person who has worked, lived, or conducted business in another country. Obtain information about economic conditions, production costs, and other factors that influence pricing.

MODULE 15
DETERMINING ORGANIZATIONAL FINANCIAL RESULTS PURPOSE Profit margin, return on investment, and market share are some of the common financial measurements used to assess business success. In this module, your goal is to estimate potential financial results. INSTRUCTIONS Using your International Business textbook, library materials, Web sites, field research (interviews, observations), and other resources, prepare a written response for the information requested in the “Research Components” section of this stage of developing a global business plan. Page | 27

TEXT REFERENCES: Chapters 19, 20 TEXT HYPERLINKS  country differences in accounting standards (chap. 19, p. 591)  multinational consolidation and currency translation (chap. 19, p. 598)  accounting aspects of control systems (chap. 19, p. 602)  global money management: tax objective (chap. 20, p. 621)  techniques for global money management (chap. 20, p. 627)

USEFUL WEB LINKS FOR MODULE 15 International Trade Administration http://www.ita.doc.gov Federation of International Trade Associations http://www.fita.org Exporting Information http://www.unzexport.com International Monetary Fund http://www.imf.org The World Bank http://www.worldbank.org World Export-Import Bank of the United States (www.exim.gov) Financing information http://www.sba.gov and http://www.sbaonline.sba.gov Overseas Private Investment Corporation http://www.opic.gov Exchange Rate Information, Global Stock Exchanges http://www.globalfindata.com Exchange Rates http://www.ibrc.bschool.ukans.edu/resources/exchange/exchange.htm International Credit Reporting Agency http://www.owens.com Company Information http://www.hoovers.com Annual Reports, Company Information http://www.zpub.com International Business Links http://www.t-bird.edu http://www.ibrc.bschool.ukans.edu http://ciber.centers.purdue.edu http://www.cba.hawaii.edu/aib/resource/links.htm http://www.ciber.bus.msu.edu Search engines http://www.yahoo.com http://www.infoseek.com http://www.hotbot.com http://www.lycos.com http://www.excite.com http://www.altavista.com http.//www.snap.com RESEARCH COMPONENTS 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. REVENUE SOURCES. Identify market segments and estimate annual income 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.) Page | 28

2. OPERATING COSTS. List and estimate annual 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 the planned business operation. 4. PROFITABILITY. Describe an expected profit level for your global business venture over a five-year period, which takes into account economic conditions, competition, the size of the operation, and the market environment of the country. (Most new business ventures 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.) 5. THE ACTION PLAN. Recommend company actions related to enhancing revenue by maximizing sales and reducing operating costs. SUPPLEMENTAL ACTIVITY Conduct a financial analysis of a global company using the organization’s most recent annual report and data from the World Wide Web. Compare revenue amounts and profit for domestic and international operations. Discuss company plans and potential financial gains from international business activities.

MODULE 16
MEASURING INTERNATIONAL BUSINESS SUCCESS PURPOSE While every business enterprise is primarily concerned with financial success, economic and social impact on the host country should also be considered. In this module, your goal is to determine potential dimensions for measuring global business success. INSTRUCTIONS Using your international business textbook, library materials, Web sites, field research (interviews, observations), and other resources, prepare a written response for the information requested in the “Research Components” section of this stage of developing a global business plan. TEXT REFERENCES: Chapters 12, 13, 19, 20 TEXT HYPERLINKS  pressures for cost reductions (chap. 12, 387)  pressures for local responsiveness (chap. 12, p. 388)  types of control systems (chap. 13, p. 417)  control systems and strategy (chap. 13, p. 419)  country differences in accounting standards (chap. 19, p. 591) Page | 29

 multinational consolidation and currency translation (chap. 19, p. 598)  accounting aspects of control systems (chap. 19, p. 602)  global money management: tax objective (chap. 20, p. 621)  techniques for global money management (chap. 20, p. 627) USEFUL WEB LINKS FOR MODULE 16 International Trade Administration http://www.ita.doc.gov World Trade Association http://www.wtca.org United States International Trade Commission http://www.usitc.gov Federation of International Trade Associations http://www.fita.org Small Business Administration http://www.sba.gov and http://www.sbaonline.sba.gov Exporting Information http://www.unzexport.com International Monetary Fund http://www.imf.org The World Bank http://www.worldbank.org World Export-Import Bank of the United States (www.exim.gov) Financing Information http://www.sba.gov and http://www.sbaonline.sba.gov Overseas Private Investment Corporation http://www.opic.gov Exchange Rate Information, Global Stock Exchanges at http://www.globalfindata.com Exchange Rates at http://www.ibrc.bschool.ukans.edu/resources/exchange/exchange.htm International Credit Reporting Agency http://www.owens.com United States International Trade Commission http://www.usitc.gov Federation of International Trade Associations http://www.fita.org Asian Country Information http://asnic.utexas.edu Eastern European Country Information http://reenic.utexas.edu Latin American Country Information http://www.www.lanic.utexas.edu Middle East Country Information http://menic.utexas.edu Current International Information http://www.www.dushkin.com/globalstudies Current Country Information http://yahoo.com/regional/countries World Factbook http://www.cia.gov/cia/publications/factbook International Business Links http://www.t-bird.edu http://www.ibrc.bschool.ukans.edu http://ciber.centers.purdue.edu http://www.cba.hawaii.edu/aib/resource/links.htm http://www.ciber.bus.msu.edu Search engines http://www.yahoo.com http://www.infoseek.com http://www.hotbot.com http://www.lycos.com http://www.excite.com http://www.altavista.com http.//www.snap.com RESEARCH COMPONENTS 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: Page | 30

1. FINANCIAL GAINS. Identify profit levels and other measures of financial success likely to result from this global business operation. (Common 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 make in 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. Assess 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 heath care and other benefits for workers, or additional housing facilities.) 4. SOCIAL COSTS. Describe 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.) 5. THE ACTION PLAN. Recommend company actions related to measuring financial gains, providing economic and social benefits, and minimizing social costs. SUPPLEMENTARY ACTIVITY Create a video or in-class presentation with a summary of all phases of your global business plan.

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