The purposes of this assignment are to:

• Practice and improve effective business communication skills.
• Introduce you to issues related to conducting business in selected foreign countries.
• Allow you to apply your understanding and knowledge of those issues by explaining how they influence a company’s decision to conduct business in foreign countries.
• Familiarize you with a common type of business writing, the memorandum.
• Familiarize you with information sources for international business, foreign countries, and their business cultures.

In the second assignment, you will work with your team members to write a five to seven (5-7) page extended memorandum in which you will present an International Business Study, which includes data, facts, analysis and recommendations about a company’s plans to initiate, maintain, extend or withdraw business with or in a foreign country. The study will be based on research and analysis of relevant issues pertaining to the environment of the target country–such as social/cultural, economic, political/legal, and technological factors–and issues pertaining to the consumer, the product/service, marketing, and competition.

The assignment includes several tasks:

• selecting a company and product(s)/service(s);
• selecting a foreign country;
• determining and describing the current or intended level of international involvement;
• researching, describing and analyzing relevant issues about environmental factors:
• social/cultural or economic or political/legal or technological environments of the target country
• consumers
• marketing
• competitors
• presenting a recommendation to initiate or maintain or extend or withdraw business in the selected country.

What is an International Business Study? It is a summary of research undertaken to establish

whether a business venture in a foreign country should be initiated (if new) or maintained, extended

or withdrawn (if on-going). It is important to remember that the goal of a well-researched and written study is based on the process used to determine feasibility or continued success, not on whether a venture is currently successful or a new venture is feasible.

Data versus Analysis versus Recommendations. An important point to consider when preparing

an International Business Study is the relative weighting of data, analysis and recommendations. Most teams will have no trouble collecting data about their companies and countries of focus. The true test will come in narrowing data down to those facts that are most relevant to the business venture, analyzing those facts, and making recommendations consistent with the analysis. Since there is a limit on the number of pages, the text of the report should be light on data "rehash", and focus heavily on recommendations and supporting data analysis.

• Select one country from the attached list (APPENDIX "A").

• From your industry group, select one company and the product(s)/service(s) to be sold.

• What company within the industry group has been selected for the foreign business venture? Why?
• What products or services are being considered for sale?
• What country has been selected for the venture? Why?
• Is this a new venture? If so what is the current level of international involvement?
• If not, what level of involvement is being considered?
• Does the company have experience in international trade? If so, explain.
• What issues will be examined? Why are they the most important?

• Research, and then write the body of the study.

• Who are the intended consumers/customers? Describe basis for selected customers?
• What product/service will be sold? Why?
• How will the product/service be marketed?
• Are there/who are local and foreign competitors?

• The section on environmental factors requires information about and analysis of only ONE environment: social/cultural OR economic OR political/legal OR technological.

• Provide a recommendation which addresses and justifies one of the following:

• If the company now does business in the country, should the company continue its current level of involvement, change the level of involvement, or withdraw?
• If the company does not do business in the country, should the company begin

Forms/Levels of international involvement: an increasing degree of commitment of resources and effort by a company to conduct business in another country. From least to most involvement the levels include: exporting and importing, trading companies, licensing and franchising, contract manufacturing, joint ventures and alliances, and direct investment through wholly owned facilities. For a complete description of each level see the Bovee and Thill textbook pp. 54-57.

Economic Environment: condition of the economy in terms of inflation, interest rates, employment; factors that impact supply and demand.

Technological Environment: methods used to convert resources to services and products; possessing or not possessing technological advances often determines whether a company is competitive.

Social/Cultural Environments: prevailing social values and customs, and demographic characteristics of a society in which the industry and its businesses function; social customs and demographics influence taste and the marketability of products and services.

Political/Legal Environments: relationship between business and government and the regulation of business; political views and laws impact business vis-à-vis taxes and regulation.

Competitors: rivals for the same customers; the number of local and/or foreign competitors impact capacity for sales, increase competition for consumers’ money, and the numbers and types of competitors effect the availability of highly trained and low cost labor forces outside the U.S.

You must synthesize and analyze the information you find on doing business in a foreign country.

There are many good sources of information about doing business in a foreign country, but

there is not one source that contains all of the information you need for this assignment. Use several of the sources from the library web page listed below:

Writing:

• Argentina
• Brazil
• Chile
• Costa Rica
• Mexico
• Peru
• Venezuela

• Bulgaria
• The Czech Republic
• Hungary
• Poland
• Russia
• Slovak Republic
• Ukraine
• Turkey

• Spain
• Italy

• China
• Korea
• Indonesia
• Thailand
• Vietnam

Consumers — a singularly important consideration is the consumer:

• who are the current and/or potential consumers, and on what basis are they going to be segmented: business-to-consumer (age, gender, income, etc.)? business-to-business?
• to what segment is the product/service going to be targeted?

Marketing considerations might include:

• what is the size of market segment(s)?
• what is the bargaining and buying power of customers? (does purchase of the good require disposable income?)
• is there a need to modify product/service to meet consumer needs or tastes?
• where will the product/service be sold?
• for what price will the product/service be sold? why and how will it be set?
• what are the channels of distribution?
• how will products/services be promoted? (availability of media and its reach)

Competitors are another important consideration:

• are there existing and/or potential competitors?
• are they native to the country of focus (local) or from other countries (foreign)?

The idea is to determine the competition’s relative strengths & weaknesses so they can be managed

Consider the following points as they relate to different environmental factors:

• The existence of an appropriately trained and educated workforce to make and/or use your product/service.
• Whether cultural beliefs and customs exist that affect the use of your product/service.
• Geographical considerations-- distance to and from the country; physical barriers in the country.
• Considerations related to obtaining materials for your product/service.
• The existence of the necessary after-market services available to support your product.
• Whether there is an adequate infrastructure-transportation, communications, utilities, etc.
• The availability of required technology.
• The significance of economic factors--inflation, interest rates, employment levels.
• The impact of fluctuations in the value of the currency -- people’s ability to buy; reduced company profits.
• Prospects for stabilization of the currency.
• Considerations related to government stability, and impacts on relationships with businesses.
• The existence of trade barriers or trade incentives, and legal issues that might affect business.

• Memos and Memoranda are a means of communicating within a firm.
• A good memo gets its information across simply, clearly and concisely.

Standard Heading (provides a quick guide to contents)

• addresses a specific audience
• makes specific points
• uses diction
• contains well-developed paragraphs
• provides visual clues:

• contains specific recommendations or suggestions

• formal when directed up the chain of command
• less formal when directed across or down the chain of command

Team Writing and Individual Responsibilities:

Ideally, a team assignment should allow you to learn subject content and teaming skills, while accomplishing a task by distributing responsibilities. Well, ideally...

Reality: All members of the team are equally responsible for the document; so don't sign off on anything you don't understand. If you see weaknesses or problems, sensitively and diplomatically bring them up, and offer constructive criticism. Carefully read a copy of the final draft before it is presented to your professor.