The marketing plan describes how the products or services will be distributed, priced, and promoted. Research is conducted and discussed in detail as evidence to support the marketing strategy is shown. Forecasts for products or services are indicated to the project’s profitability. The financials: These are a critical component of the plan. They determine the potential investment commitment required for the new venture or expansion to be feasible or not. There are three financial components discussed in this section of the business plan. The summary of the forecasted sales and the
appropriate expenses for at least the first 3 years, with the first year’s projections provided monthly, are the parts discussed. It includes not only the forecasted sales, but also the cost of goods sold and the general administrative expenses associated with the company or expansion. The net revenue after taxes is then projected. The cash flow for 3 years is the second component discussed. The first year’s projections are provided monthly. With sales being potentially irregular and expenses generally being variable and fixed, the need for capital to meet fixed expenses must be determined. The third and last financial item needed is the projected balance sheet that shows the financial condition of the business at a specific period of time. It is a summary of the assets of the business and its liabilities, any investments made by the owner, partners, or investors, and the retained earnings or (losses). The global business plan needs to carefully discuss all aspect of the global venture. It is a major source of information for the investors and other stakeholders of the company; they use it to make prudent decisions about the company’s future. The business plan should also be protected and only provided to those needing it because it gives critical information that other companies could use to their advantage. Business Ethics and the World Economy International Strategies There are a range of strategies available to a company doing business in a host nation. These strategies range from responding reactively to challenges as they arise, developing proactive policies that anticipate ethical challenges before they arise, and having written policies in place to inform any possible courses of actions and consequences. The best strategy would be a proactive one that anticipates potential issues and provides guidance on how to respond. The guidance may cover topics such as dealing with customers, suppliers, host nation governmental agencies, the press, bidders, and U.S. agencies. The document should be prepared so that a manager faced with an immediate ethical question can refer to both materials prepared under calmer conditions, and responses that have been vetted with senior management, corporate counsel, appropriate U.S. agencies and host nation agencies, and investor groups.
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