Evaluate patterns of global organizational structure and hierarchies.
Write a 3-part, 800-word in-depth analysis in which you assess the feasibility and profitability of launching a product in a foreign country.
The importance of a thorough analysis to determine the feasibility of launching a product in a new market abroad cannot be overstated. A careful consideration of such factors as cultural communications, global organizational structures and hierarchies, negotiations, and international business ethics is vital to the success of market expansion ventures.
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:
Competency 1: Analyze cultural communications that affect international business.
Describe the cross-cultural communication issues that could result from differences in the social, political, and legal structures and hierarchies of a foreign country and those of the United States.
Competency 2: Evaluate patterns of global organizational structure and hierarchies.
Describe the social, political, and legal structures and hierarchies of a country relevant to market expansion.
Compare the social, political, and legal structures and hierarchies of a country to those of the United States.
Competency 3: Analyze the role of international business culture in the negotiation process.
Propose a company management structure suitable for business operations abroad, based on the business culture of the host country.
Competency 4: Assess the feasibility of business operation in other countries.
Assess market potential, considering the market situations of 2–3 competitors.
Determine the price for a product in a competitive market.
Propose an international business strategy for launching and promoting a product.
Identify the key fiscal considerations that might affect profitability.
Evaluate potential barriers to entry into a foreign market.
Describe the key considerations for conducting production operations abroad.
On a daily basis, there are articles in the major business publications (for example, the Wall Street Journal) about global production and logistics, and there is a wide range of orientations for those articles. Some will describe companies that have established highly efficient and successful global production and logistics capabilities. Other articles might describe issues (sometimes major issues) businesses face in this context, such as due to the government of one country nationalizing a corporation, or due to some other major country-specific issue (for example, a government being overthrown). Such events can obviously have tremendous impact on businesses with global operations, including potentially shutting down major portions of the company’s production and logistics.
As but one of many simpler (but significant none-the-less) examples of how global production and logistics can impact a company, there were numerous business media articles in the fall of 2012 about how Apple was experiencing product shortages associated with its otherwise successful iPhone 5 launch. One such shortage was alleged to be due to Apple switching suppliers (within Asia) and the new supplier not being able to meet Apple’s demand (Campbell, 2012).
But despite the controversies and challenges, a large number of medium and large companies continue to pursue global production and logistics because of the significant potential benefits. Companies and their customers can benefit from the expertise of other organizations in other parts of the world. There can be government policy benefits as well. There are countries that prohibit selling products within their geographical boundaries unless the product is in some way manufactured or assembled there. BlackBerry has addressed that in certain countries by establishing assembly operations within those countries as part of their global production and logistics, thus enabling them to sell their products in more countries.
Assume the role of a business manager in a fictitious American company whose task is to assess the feasibility and potential profitability of launching the company’s product outside the United States. Company management has already approved your opportunity proposal and has authorized you to proceed with your market expansion investigation.
To begin, select a product and country from the Products and Countries Lists linked in the Resources under the Required Resources heading. Use the selected product and county to complete the following three parts.
Part 1: Country Analysis
Examine the following characteristics of the country you selected:
Country background and history.
Location and geography.
Inhabitants, lifestyle, culture, and customs.
Communication and language.
Economy and currency.
Identify the issues you will need to consider to determine the feasibility of a successful product launch and address the following:
What are social, political, and legal structures and hierarchies of the selected country that are relevant to market expansion? How do they compare to those of the United States?
What are the cross-cultural communication issues that could result from differences in the social, political, and legal structures and hierarchies between the foreign country and the United States?
Support your analysis with references from the Internet sources.
Part 2: Competitive Product Analysis
Assess the desirability of expanding your company’s product market into the country you have selected in consideration of companies that may already be doing business there. Identify 2–3 competitors and assess their present market situations. Compare your company’s offerings to those of your competitors, and address the following questions:
Would your company be the first in the region? Is the market saturated with competitors?
If there are existing competitors, is there evidence that suggests that they have, or have not, been successful?
What price might consumers pay? Can you establish the sales potential?
Based on your market assessment, what are the potential barriers to market entry? Do any of these barriers present significant risks to market expansion?
Support your analysis with references from the other Internet sources.
Part 3: Company Analysis
When it considers pursuing foreign markets, a company must analyze its ability to establish and maintain its business abroad. Extend your market expansion feasibility investigation by addressing the following questions:
What are the key production considerations for conducting operations abroad? Where would manufacturing operations take place?
What are the key fiscal considerations, such as the foreign exchange market and the international monetary system? How will you determine whether or not this market expansion is a profitable venture?
How would you manage this venture? What management structure would you recommend? What are the elements of the internal workings of the company that you must consider carefully before making your final recommendation to the board of directors?
What political and legal rules and regulations must be followed to sell the product abroad? Are there forms to file? How will existing social and cultural structures and hierarchies affect business operations and company management structure?
What is your strategy for launching and promoting the product? What are the risks and opportunities associated with market expansion?
What is your current assessment of the feasibility of market expansion, based on your overall analysis? Is it still feasible to launch your product in this country?
Support your analysis with references from the other Internet sources.
Use the following guidelines when writing your analysis:
Writing: Your analysis should be free of grammar and spelling errors, demonstrating strong written communication skills.
Format and References: Use proper APA-formatted references and in-text citations when identifying your sources.