Reference no: EM132210309
Question: This exercise will provide students with the opportunity to integrate and implement theory to practice and develop a business plan at a global level.
This assignment involves starting a new business or off shoring of an existing business in a foreign country. This may be a new enterprise that is started in a foreign country or an existing business that is expanded to a foreign country. Students need to identify the foreign country, propose and describe the business in that country, develop an environmental scanning of that country, explain the reason for expansion, entry strategy and competitive advantage of the company, discuss operations management, suppliers and distribution channels, and present a risk/reward analysis for the proposed business in that country. In addition, exchange rate risk exposures and strategies for covering the risk of exchange rate exposures for the proposed business need to be determined. All of the following must be covered in detail. However, the student might not limit the assignment to these alone.
The specific components of the proposed plan should include:
1. An environmental scan of the foreign country including socio-political, economic, cultural, demographic, technological, and legal structure of the country.
2. Description of the proposed business and product and reason for expansion.
3. Projecting the present value of return on investment.
4. Identify international means of financing including euro-currency, euro-credit and euro-bond markets.
5. Identifying entry strategy and core competencies providing the proposed business' competitive advantage in the foreign country.
6. Discuss operations including suppliers and distribution channels, and marketing of the proposed business in the foreign country.
7. Discuss the exchange rate risk exposures including transactions, economic and translation exposure for the proposed business. Identify currency instruments to cover the exchange risk exposures, including currency forward contracts, futures and options for the proposed business.
8. 8-10 pages