Chapter 12 global market opportunity assessment 1

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Chapter 12: Global Market Opportunity Assessment 1) Discuss how company chooses and weighs variables prior to investing overseas. Because management’s choices determine the future of the firm they must weigh certain variables. The more managers know about an opportunity the better equip they are to make decisions about it 5
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HOMEWORK ASSIGNMENT 1: CHAPTER 1-7, 15 especially in international business. Managers require information about potential threats and opportunities on how to conduct business abroad. This involves estimating, forecasting and problem solving. Defining the best business opportunities in the global market looks at the global market opportunity which is a favorable combination of circumstances, locations, and timing that offer prospects for exporting, investing, sourcing or partnering in foreign markets. The firm looks at opportunities and determines whether to sell its products and services, establish factories or other production facilities to produce less expensive options, get materials, or services at lower cost or better quality or enter collaboration with foreign partners. 2) Identify six major tasks in global market opportunity assessment. Before venturing into international venture a firm should conduct a formal assessment of readiness to enter foreign markets. Based on their opportunities company must pursue six tasks. Analyze organizational readiness to enter international market, assess suitability of firm’s products and services, screen for attractive target markets, assess industry market potential/demand, choose qualified business partners (distributors or suppliers), and finally estimate company sales potential for each target market. In addition measuring firms degree of international experience, goals and objectives it envisions, quantity and quality of skis, capabilities and resources available, and potential support of firms network of relationships are helpful to review. 3) Assume you work for a company that has decided to look at Nairobi, Kenya as market for its products and Rio de Janeiro, Brazil as a possible location for setting up manufacturing plant. What factors should you consider? In considering the potential of new market for production and manufacturing I would consider the industry market potential and estimate of likely sales, and performance analyzing different trends, monitoring industry specific indicators, key competitors and analyzing customer demand. A decision must be made on negotiating the terms of the relationships, supporting partners and monitoring their performance. 6
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HOMEWORK ASSIGNMENT 1: CHAPTER 1-7, 15 Chapter 13: Exporting and Global Sourcing 1) Briefly discuss the various types of documentations that are necessary in international business.
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