Small business and entering a foreign market
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Developing your own small business and entering a foreign market with your goods or services. The US will be your home base, and you will choose the foreign market. This plan will document in detail the steps and considerations necessary to enter the chosen market. Analyze the country’s business practices, culture, currency, policies, and any other factors that influence your decision (norms, traditions, leadership, ethics, legal structure, trade, investments, national products, and country trends). Finally, you will use all your available resources to put together a completed entry report into your targeted market.
The objective is to provide evidence on how your company will enter a foreign market and what hurdles you will have to overcome. Finally, you will conclude with an assessment and recommendations for which market to enter and why (your recommendations maybe not to enter the chosen market).
Follow the outline format exactly – each section and subsection should be titled accordingly – addressing and expanding on all points relative to the foreign market(s) you are researching.
YOU SHOULD BE USING TERMS FROM THE BOOK TO DESCRIBE:
How your business is operating – i.e., exporting, joint venture, turnkey project, green-field investment, just-in-time inventory, TQM, distribution channels, push/pull strategies, predatory pricing, expatriate, etc.
Describe political-legal, social-cultural and economic-geographic environments – which could include: collectivism, individualism, democracy, privatization, purchasing power parity, power distance, social mobility, poly/ethno/geocentric strategies, exchange rates/currency value/convertibility, FDI, absolute/comparative advantage, economies of scale, trade creation/diversion, efficient/inefficient markets, countertrade, arbitrage, corruption, moral hazard, experience/learning effects, first-mover advantage/disadvantage.
What global organizations does your company participate in or seek assistance from (i.e., WTO, IMF, World Bank, UN, EU)?
Lastly, your paper must adhere to APA and be submitted as an MS Word document via blackboard. You will need a minimum of six content pages (not including title page, appendices, charts, or reference page). You must also have a minimum of five academic sources. Be sure to proofread your final paper for spelling, grammar, and APA.
Sample Solution
My small business, a jewelry shop located in the United States, is interested in entering a foreign market. After careful consideration and research of various countries, I have decided that my targeted market should be China.
In order to successfully enter this foreign market, I must first analyze the country’s business practices, culture, currency policies as well as any other factors that may influence my decision such as norms, traditions, leadership styles and ethics; all of which can vary greatly from my home base here in the US. Additionally it is important to look into trade laws and restrictions so I can be aware of how any existing tariffs or taxes will affect my product before entering the Chinese market. Furthermore examining investments within the country would provide me with more information about what types of industries are most successful at present along with things like national products that could potentially compete with mine.
Finally, once I have gathered all available resources (like trends in consumer spending habits etc) I will develop an entry report into the chosen foreign market detailing each step necessary for successful entry along with potential obstacles/hurdles likely to come up during this process such as language barriers or cultural differences between our two countries. With this information I can then make an informed decision regarding whether or not it is feasible for me to enter China—or any other foreign markets—and if so what measures should be taken beforehand in order to ensure success upon arrival.
