Develop a business plan for your organization to operate in a new country
Building on the global industry comparative analysis you did in Project 3, develop a business plan for your organization to operate in a new country. Analyze the new country first as a site for certain value-chain activities, and second as a market for your organization’s products. Note that the term products will refer to products, services, or a combination of the two.
Your business plan should include a marketing strategy and an entry strategy. Also take into consideration the requirements of accounting and finance. Develop market share estimates and revenue projections using historical data from your organization in the United States and your own research into market size, pricing, and unit sales for the industry in the selected country. Estimate the investment required for relocating one or more activities of your organization’s value chain from the United States to the selected country. Also estimate the time needed for your organization to break even. Provide the assumptions behind your projections and assessments of both short-term and long-term risks.
You will have to develop the business plan for Gustavo. Be sure to give yourself adequate time for each of the 10 steps of this project.
Ø Develop an entry strategy for Gustavo of about 6–7 pages in length. The strategy you develop should incorporate the components described here and in Step 3.
As you begin to develop an entry strategy, first perform the following assessments:
- Analyze your site as both a market for your products and as a site for certain value-chain activities.
- Short-list and profile potential partner company candidates.
- Determine what company you will select for partnership or alliance. Evaluate the benefits this partnership would bring to your organization’s market position or profits.
- Detail the pros and cons of three market-entry modes. Which entry mode would you recommend and why? How does your chosen mode fit your organization’s goals and objectives?
- Estimate the financial investment required for the selected entry strategy.
