EXPORT MARKET DEVELOPMENT (BA 3372) Spring 2005
Section 001 - Wed 4:00-6:45 – Jan 12-Apr 27 - Room SM 2.106 Instructor George Barnes, School of Management, UTD
Office SM 2.232, voicemail 972-883-2783, email [email protected] [email protected]
Office hours: Mon appointment, Tues/Thurs 9:00-10:30, Wed 2-3:30 In UTD’s School of Management, Mr. Barnes is a Senior Lecturer in the International Management Studies faculty, and Director, Global MBA Online program. He is a me member mber of the North American American Small Small Business International International Trade E Educators ducators (NASBITE), (NASBITE), co-founde co-founderr of the Export Assistance Task Force at the North Dallas Chamber of Commerce, and served on the Board of the International Trade Association of D/FW, now absorbed by the World Affairs Council of Greater Dallas where he was an Advisory Director. He has done consulting work involving market entry strategies and foreign investment attraction. Previously, he spent 16 years in international business positions, with Citibank (Middle East), and in international planning at Mobil Oil Corporation. He has a Masters Masters degree from the Fletcher School of Law & Diplomacy, Tufts University. Course Objectives
Export Market Development is a course that examines the international environment for trade, the strategic planning duties of an export marketer, and the tactical deployment of the marketing mix. This course is unlike international marketing in several ways: exporting is the only entry mode considered; there is greater emphasis on the structure and influence of trade policies and trading blocs; minimum minimum attention attention is given to certain dimension dimensionss of the marketing marketing mix such such as product product development and promotional techniques. For export marketing the emphasis is on identifying new market opportunities, managing export entry barriers, and selecting and managing distribution channels, logistics, export pricing and trade finance. Two ways students will demonstrate their understanding of export market development are by preparing a market entry recommendation, and, in the process, becoming familiar with Internet-based export assistance resources. Readings Text - Mastering Global Global Markets Markets – Strategies Strategies for for Today’s Trade Globalist Globalist (Thomson (Thomson Southwestern, 2004) by Michael Czinkota, Ilkka Ronkainen and Bob Donath (REQUIRED) Lecture notes - in the form of downloadable Powerpoint Powerpoin t slide sets are available at course website. Information provided by the instructor includes selected interpretation interpretatio n of text, and supplemental information ranging from 20-40% per chapter. (STRONGLY RECOMMENDED) Supplemental reading – see WebCT Course Materials. Included is an excerpt from Entry from Entry Strategies for International Markets, Markets, Franklin R. Root (Jossey-Bass/Wiley, 1994) to accompany text chap 7 (OPTIONAL); and, a partial chapter on Trade Finance from International Financial Financial Management, Manageme nt, Jeff Jeff Madura (Thomson Southwestern, 2003) to accompany text chapter 3 (REQUIRED).
Attendance Attendance is strongly recommended, particularly because selected information for which you are responsible will only be presented in class. Many classes will feature peer-to-peer and peer-toinstructor interactivity using exporting exercises, case study discussions, current events and videos. Assignments
Two written assignments will require students to prepare: Case study One individually-prepared case study analysis, 2 pages (typed, double-spaced, 1” margins, 12 point font), font), responding responding to the questions questions as associate sociated d with each each case av available ailable from website website.. The cases are (most relevant chapters in parenthesis): -Daewoo Corporation (10, 6) -Coastal Equipment (11) -Chaebol Automotive (3) Research report Groups of 4-5 students will submit one report. See Project section of syllabus for details. Two submission dates are important: Preliminary plan Project report
no later than Feb 16 (see Project for details, su sub bmit via email) Apr 20
One grading component is participation, including attendance, submission of an article on an export issue, and relevant contributions to class discussions (such as case studies and exporting exercises). Article: no later than Mar 30 submit article (last two years) and one paragraph analysis about an export issue issue dealing with or affecting a business fir firm. m. To help identify identify an article or to use a search engine, a sampling of key words include: expo export, rt, non-tariff barrier, subsidy, distribution, channel member, member, logistics, trade finance, exchange rates, bilateral or regional market agreements, and WTO. Sources of articles: Wall Street Journal, Dallas Morning News business section, The Economist, Business Week and online news sources. Attendance: periodic attendance checks will take the form of ungraded review quizzes during a class. Examinations There will be 3 exams: the first two during a 75 minute class period, and a final exam on a day and time assigned by UTD. Sample multiple choice questions and answers, answers, and sample essay questions are posted at course website. Course material covered by each each exam is shown in the Schedule of Assignments.
Each group will conduct research and write a report dealing with specific phases of an export market development plan. First, choose a country from the following list: Argentina, Brazil, Chile, Spain, Poland, Turkey, South Africa, India, South Korea, China Second, choose a manufactured product (not a service) service) to be exported from the U.S. Best (and recommended) approach is to consult c onsult the Country Commercial Guide (CCG) at NTDB, Leading Sectors/Best Prospects for U.S. Exports section. The product may fit any of the following categories: ? finished consumer product ? industrial product, or ? component that goes into the local manufacturing of a finished product. (Not eligible are cell phones, petroleum/mining equipment, airplanes, motor vehicles.) Organize the written report into the following specific sections (page guidance is provided): A. Country information (2 pages) General market conditions facing any exporter, such as cultural, geographic, economic (for example: demographics, economic infrastructure, etc.) B. Product and Target Segment(s) Segment(s) (2 pages) Briefly describe the chosen product (consumer or industrial) and identify the target segment(s). Justify both the product selection and the target segment( segment(s) s) with data from marketing research reports and the CCG. C. Regulatory influences and Product adaptation (2 pages) Identify at least 3 regulations affecting the specific product (such as product standards, testing requirements, tariffs, government pricing regulations, packaging, etc.) and describe at least one adaptation to physical product or its pricing which will be necessary. D. Channel of distribution (1 page) Assume you will use use direct exporting: agent, distributor, distributor, or sales branch. Discuss the criteria for the one you selected based on the channel member infrastructure of your country, product characteristics (including after sales service, technical support requirements), and how end-users typically obtain the product.
E. Trade finance (1 page) Describe the trade financing structure of the country and how it influences the method of payment and export credit insurance (if applicable) which you would recommend for this export transaction. F. Sources (1 page) Minimum are NTDB, Countryand Commercial (CCG), one ISA or ic IMI marketing requirements report—all from one other Guide country or industry-specif industry-specific source of information from the Internet. Internet. For Internet sources, in addition addition to URL, provide name of report/survey/article, report/survey/articl e, author/institution, date. The written report - - typed, double-spaced, 1” margins, 12 point font; may be longer than recommended pages (Section A-E) if supplemented by relevant tables, figures or graphs. Research tools: -WebCT course site Course Materials, Project Research Guidance -attend Library project research orientation -Chapter 9 and demonstrations of online resources in class Chapter references for each section follow: A-2, 4 B-7, 9 C-5, 10, 11 D-6, 12 E-3, Madura F-9 Preliminary plan (due F eb 16) Submit to instructor via UTD email: -names of group members -name of country c ountry -brief description of product -short paragraph identifying targeted buyers and justification for product’s market potential -date of Country Commercial Guide (CCG) being used Policies
Evaluation of group project:
B y gro gr oup It is the intention that all members of a group receive the same project grade. However, individuals may submit a confidential evaluation of the group's performance, grading group members by distributing points to each person, including self, for a total score of 100. Consider pr oj ect A pr 20. research effort, cooperation, presence at and contributions to meetings. D ue with pr B y I nstr nstr ucto uctor using using evaluation form (sample at website) and written comments in the report.
Grading Exam 1 or 2 (best grade) Final exam Group project
30% 30% 20%
Individual Individu al case
Use scantron no. 882-ES, or equivalent Use scantron no. 882-ES, or equivalent See requirements for preliminary plan, report and peer evaluation Choose 1 of 3 identified in syllabus and available at WebCT course site 0-5 points for article 1-5 points for attendance/discussions full 10 points requires article, good attendance and frequent relevant contributions to class discussions
Late assignments: generally not accepted, but if exception is made, maximum grade is 80. Make-up exam: a student may request a make-up exam no later than one week prior to the scheduled exam; instructor will approve or disapprove on the merit of extenuating circumstances subject to agreement on a mutually acceptable make-up time. Policy on cheating: The University administration has asked that I remind you of the following policy, which is excerpted from their guidelines. Students are expected to be above reproach in all scholastic activities. activities. Students who engage in scholastic dishonesty are subject to disciplinary penalties, including the possibility of failure in the course and dismissal from the university. “Scholastic disho dishonesty nesty includes but is not limited to cheating, plagiarism, collusion, the submission for credit any work or materials that are attributable in whole or in part to another person, taking an examination for another person, any act designed designed to give unf unfair air advantage to a student or the at attempt tempt to commi committ such acts.” (Regents’ Rules and Regulations, Part One, Chapter VI, Section 3, Subsection 3.2, Subdivision 3.22.)
Since scholastic dishonesty harms the individual, all students, and the integrity of the university, policies on scholastic dishonesty will be strictly enforced. Numerical Numeric al grade correlation correlation (no rounding up): Grade of A = 91+ A89.1-90.9 B+ 85.1-89 B 81-85 B79.1-80.9 C+ 75.1-79 C 71-75 C69.1-70.9 D+ 65.1-69 D 60-65 F < 60
Emailing UTD provides each student with a free email account that is to be used in all communication with university personnel. This allows the university to maintain a high degree of confidence in the identity of all individuals corresponding and the security of the transmitted information. Beginning September 1, 2004, the Administration has informed faculty to require any email communications to be through UTD email accounts. An alternative is email using the password protected protec ted WebCT WebCT course managem management ent system. system. The Department of Information Resources at UTD provides a method for students to forward email from other accounts to their UTD address and have their UTD mail sent to other accounts. Students may go to the following URL to establish the email forwarding if necessary: http://netid.utdallas.edu . This web page will also allow students to maintain their official UTD computer NetID account, e.g. updating the account password. WebCT online course site This course is available in WebCT, an online software platform supported by UTD. The online dimension is intended to enhance you learning and participation eexperience. xperience. Go to the following URL: http://webct.utdallas.edu and http://webct.utdallas.edu and log on using your UTD-assigned Net-account User ID and password; passwo rd; click click on this course. course. Student Studentss who don't don't have a web-access web-access ac account: count: g go o to the rd Computer Lab or Information Resources office on the 3 floor of McDermott Library. For more information about NetID, go to http://netid.utdallas.edu/. http://netid.utdallas.edu/. For help with access, call student help desk 972-883-2911, or email [email protected] [email protected]
In addition to a confident level of computer and Internet literacy, certain minimum technical requirement must be met to enable a successful learning experience. Technical requirements include but are not limited to: Hardware • A Pentium processor or equivalent Mac system; Windows 98/Me/2000/XP or Mac OS 9.x or OS X 10.1. • Internet access with 56.6 modem (minimum). A high-bandwidth connection is recommended. • 32 MB system Ram; 200 MB free disk space or sufficient storage • Sound card
CD-ROM capabilities Software Internet Explorer 5.0 to 6.0 (but 5.5 SP1 not supported), or Netscape Navigator 6.2.x • (see notes) and 7.0 (4.78, 4.79 and 6.0-6.1 not supported), or AOL 7.0 and 8.0. See browser configurati configuration on informa information tion below. below. MS Office 2000 is the minimum standard. (Microsoft software is available at a • nominal cost from the UTD/Microsoft Program. For more information, visit the Global MBA Online Student Service web page at: http://som.utdallas.edu/globalmba/gmba_online_services.htm ). • Virus detection/protection software (such as McAfee) • “Plug-ins” including the most current version of RealPlayer (available at: http://www.real.com) and Adobe Acrobat Reader (available at: http://www.adobe.com/products/acrobat/readstep2.html ) A zip file expansion tool such as WinZip or Stuffit Expander (available at: • http://www.download.com http://www.download.com). ).
Web Browser Configuration
Syllabus Calendar (Instructor will post key dates, and students may personalize Calendar with "private" entries) Course materials 1) lecture slides as downloadable PowerPoint 2) supplemental readings 3) the fruits of free trade 4) exercises 5) project research research 6) case studies Communications 1) in Discussions, Main Topic for questions about the course which concern all students, and may be answered by students and/or Instructor 2) Course announcements (for use only by Instructor) 3) Chat rooms which students may use to have a text-based real-time discussions 4) Private Discussion area for project teams to use for communicating, exchanging files Evaluation tools 1) self-tests in multiple choice format for each of the three (3) exams 2) sample essay questions for each of three (3) exams Student tools 1) My Progress 2) My grades
BA 3372 Export Market Development Spring 2005 (Wednesday, 4-6:45pm) Date
Chapter/ Reading -
Jan 26 Feb 2 Feb 9 Feb 16 Feb 23
4 5 5 9 6 7 (to 142), Root
Mar 9 Mar 16
Mar 23 Mar 30 Apr 6
11 (3) 11 3, Madura
Syllabus and WebCT Export motivations/dimensions of trade Trade’s economic environment Regional economic integration Cultural context of marketing Trade institutions and protectionism Library: project research tips (4:00-5:00) Legal and ethical factors (starts 5:15) Exam #1 (chap 1-5) Market research (starts 5:30) Export readiness, export channels of distribution Market selection and segmentation Breathe Right video Services exports and “offshoring” Review SPRING BREAK Exam #2 (chap 6-9) Product issues, branding (starts 5:30) Export product issues Branding video Export pricing and price quotations Foreign currency and transfer pricing Countertrade Trade financing, methods of payment Managing channel relationships Logistics, documentation Negotiations, communications, trade shows Export management problems (bring notes for chapters 3, 11, 12) Video: Secret World of Air Freight Review Final exam (chap 3, 10-13)
Project plan due
Daewoo case Article due Coastal case Chaebol case Project due