You are employed by SunGrabber Pty. Ltd., an Australian alternative energy company based in south-east Queensland. SunGrabber is a medium-sized organisation which engages in R&D and manufacturing . You are employed in a research role specialising in the strategic planning and strategic marketing development.
Although the opportunities for the company look good domestically (given the enormous discussion over Australia’s current high level of carbon emissions and the pending introduction of an Emissions Trading Scheme), management have been discussing the possibilities of developing new markets overseas, in particular in South America, for the past six months.
You have just come from a meeting with senior management. During the meeting, you have been advised that the company has decided to commission a feasibility study research project to examine the potential business opportunities available to SunGrabber in South America. . No country should be ignored during the initial research phase of the project, however the focus is to consider the best medium to long-term business proposition for SunGrabber. One of the many questions that the feasibility study report will need to address is whether to export from Australia, or alternatively establish a manufacturing operation somewhere in South America.
Your team is to undertake preliminary market research to identify two particular countries and prepare a report to management that addresses the following requirements:
Your first step is to undertake a “Country Scan”. This scan should address each of the following requirements:
1. Explain the levels of economic integration within South America and it’s potential business practice implications on SunGrabber.
2. Discuss the current political, economic, legal and cultural state of the country in question.
3. Discuss the implications for your organisation in terms of:
a. potential benefits
i. size of target market
ii. purchasing power of consumers
iii. future prospects
iv. first-mover advantages (if any)
b. potential costs to the organisation
i. value systems and norms
ii. necessity for bribes
iii. sophistication of economy
iv. regulation of business practice
c. identified risks
i. political changes
ii. economic mismanagement
iii. political interference
iv. lack of adequate legal safeguards
d. potential ethical considerations
i. violation of human rights
ii. product safety
iii. worker safety