Business Abroad: Pros and Cons

Benefits and Challenges of Expanding into a Foreign Market

Task:

Research Project

Context

Envisage that you are working for an organisation that is considering expanding into a foreign country or doing business abroad. The top management team needs to decide a potential international destination to enter. Your task is to evaluate likely benefits and challenges of doing business in your chosen market and explain which host market you favour and why. You also suggest a most suitable entry method how an organisation should expand.

Note:

Your organisation offers either new products/services or existing products/services in the new targeted market. If your chosen organisation is already established businesses in the targeted market, then you must offer new lines of products/services in that market.

Guidance

1. The title of the research project

2.Executive summary (max. 300 words): Provide a summary of the key points of your project that may include:

-Organisation (products/services)
-Theoretical concepts/framework
-Market characteristics
-Entry mechanism

3.Background (approx. 300 words): Select One organisation of your interest. This can be any of following types of:

•existing profits-based organisations (a multinational enterprise (MNE), a small medium sized enterprise (SME), a state-owned enterprise (SoE), a start-up firm or a family business

•existing non-profit/non-governmental based organisations (NGO or NPO)

•hypothetical organisation which might be established in the future

In your report, include a short overview of its history where the organisation is founded, products/services, key competitors, and strengths and weaknesses of the organisation. Provide the organisation’s international operations and current international presence (if applicable). If you prefer a publicly listed profit-based organisation from developed and emerging economies, the World Investment Reports (UNCTAD 2021) and Fortune Global 500 (2021) provide the list of organisations. These are available from “assessment” folder under the module tab.

4. Product/Service (approx. 100 words): Describe your proposed new or existing product/service that has the potential to bring extra profits or return to your organisation by expanding internationally. The proposed product/service can be radically new or existing lines of product/service that can be beneficial in a new market/host economy. This section can be merged with the Background section 3.

5. Theoretical Concepts (approx. 1000 words). Interpret and evaluate relevant theoretical concepts, its frameworks and/or models. Focus on only literature pertinent to your context (or case) and that is related to the subsequent section. Literature may include seminal works as well as academic journal articles published for the past five years where appropriate. This section can be split or woven into multiple sections 6 and/or

6. Characteristics of a host country (approx. 1000 words): The proposed destination must be outside of the home country of your organisation. For the country/region identified as the most promising market, provide the following information where appropriate and explain how it is relevant in the context of your project. These are just examples of factors that you might consider. Be selective in this section.

a.Economic Environment: Trends in economic development, including GDP/capita, and GDP growth rate, income level and distribution, size of labour force, education level of labour force, labour cost; major sectors of the economy, imports and exports, major trading partners; inflation and currency exchange rates, ease of doing business, infrastructure and logistic (internet penetration, ports, airports, rail services, distribution network and so on) and other relevant economic characteristics.

b.Non-Economic Environment:

b(i): Political and Legal Environment, Government: Political and legal systems, political risks, government policy and regulations toward international trade and foreign direct investment, property rights and intellectual property protection, membership in regional political and trading blocks, corruption, freedom and other relevant indicators.

b(ii): Cultural Environment: Culture, predominant religion(s), language(s), social class structure, values and attitudes, customer preferences and tastes in the market, other relevant cultural characteristics.

Based on these analyses:

7. Entry mechanism (approx. 1000 words): Suggest the most suitable market entry mode (e.g., export, licensing, franchising, management contract, joint venture with a partner, wholly-owned subsidiary, etc.). If you feel the product/service should be developed and/or distributed in a partnership with another firm, provide additional details on how the partnership should be set up (contribution of each company, sharing of profits/losses, and how the partnership will be governed). Explain your suggestions.

8. Conclusion (approx. 300 words): Suggest how the firm should manage various management issues to seize opportunities and manage risks in this market. Issues related to trade, investment and operations, managing people, business ethical, or any other important issues could be discussed. Include some theoretical implications.

Format (Project Report) – Not an essay format

Your research project contains:

-Title of Research Project (declare total word count)
-Executive Summary
-Headings (sub-headings if appropriate)
-References
-Page numbers

The report is Max 4000 words (The breakdown of word lengths shown each section is indicative. You may adjust them according to the context of your research)

The overlength/under-length assessment:

Whilst there is no penalty for summative work that exceeds a specified maximum length, University will normally not mark beyond the stipulated assignment length. The grade reflects only up to the 4000 words of your work. There is no penalty for under-length work.

The late submission penalties:

(a) Up to and including 24 hours after the deadline, a penalty of 10%

(b) More than 24 hours and up to and including 5 working days after the deadline, either a penalty of 10% or the mark awarded is reduced to the pass mark, whichever results in the lower mark

Assessment Submission (for student information)

eSubmission is the approved method for your programme of study. You must hand in your assessed Assignment(s), for all modules that you are taking during the Academic Year using the Canvas system.

Submission of a printed copy is NOT allowed. You should submit via the Assignments menu item on the relevant module Canvas site.

Assignments must be submitted by the date and time stipulated. Deadlines will be strictly adhered to. Students submitting late, and who do not have mitigating circumstances approved by the Mitigating Circumstances Panel, will be subject to penalties for late submission specified by the University. Please note that Saturday and Sunday are treated as “working days” for the purposes of the late submission policy.

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