Reference no: EM132395240

INT 650 Managing International Trade and Finance Assignment - Southern New Hampshire University, USA

Overview - For the final project scenario, you will assume the role of a project manager working for a large United States-based organization that is planning to establish a manufacturing plant in an emerging market. You will evaluate financial variables, assess trade environments, and research the logistics of production in the emerging market. You will develop an emerging market analysis report for the company's executive team that summarizes your findings and recommends financing options for establishing the manufacturing plant in this international location.

To begin, you will select one of the following United States-based organizations that you are planning the expansion for:

• Archer Daniel Midland (ADM)
• Boeing
• Caterpillar
• Renewable Energy Group

Next, you will select one of the following emerging markets for the organization above to expand into:

• Brazil
• China
• Saudi Arabia
• South Korea

In this assignment, you will demonstrate your mastery of the following competencies encompassing this course:

• INT-650-01: Determine appropriate financial management strategies to finance international trade and business ventures.
• INT-650-02: Analyze the impact of formal and informal institutions and economic theories on international trade.
• INT-650-03: Apply global logistics management strategies to import, export, and sourcing activities.

Prompt - In this scenario, you are a project manager for a large United States-based organization that is planning to establish a manufacturing plant in an emerging market. You will evaluate financial variables, assess trade environments, and research the logistics of production in the emerging market. You will develop an emerging market analysis report for your organization's executive that summarizes your findings and provides financing options for establishing the manufacturing plant in this international location.

Specifically, you must address the critical elements listed below. Most of the critical elements align with a particular course competency (shown in brackets).

I. Introduction: In this section, you will provide a general overview of your selected United States-based organization and emerging market. Your overview should be supported using research.

A. Identify the United States-based organization and provide a general overview which includes their industry, services they provide, their stakeholders, where they are headquartered, and their subsidiaries. [INT-650-01]

B. Identify the emerging market and explain why this would be a strategic fit for the U.S. organization based on their mission statement and strategy. [INT-650-01]

II. Financial Projections: In this section, you will use the provided Excel template to conduct an analysis of your United States-based organization you. You will be determining financial history and making financial projections to help inform your decision of whether this organization should consider investing in the selected emerging market.

A. Determine the last two years of financial history for your selected organization. Your response should include the following financial elements: revenue, expenses, calculated profit, and calculated profit margin. [INT-650-01]

B. Estimate a three-year projection for your selected United States-based organization. Your response should include the following financial elements: revenue, expenses, calculated profit, and calculated profit margin. [INT-650-01]

C. Summarize the financial history you estimated above and provide justification to the organization's executives concerning your three-year projections. Your response should be supported with research. [INT-650-01]

III. Market Research: In this section, you will conduct further research of key market factors related to an expansion into your selected emerging market.

A. Trade Environments: Assess the trade environment between the United States and selected emerging market by providing the following:

i. Describe the general impacts that tariffs can have on importing and exporting logistics and explain how these risks would affect business between the selected organization and emerging market. [INT-650-03]

ii. Describe how tariffs would impact the financial planning process for your organization. [INT-650-02]

iii. Identify any available subsidies and describe the strategic advantages they provide to your organization. [INT-650-02]

iv. Describe the role of foreign currency exchange on the daily financial operations of your selected organization. [INT-650-02]

v. Explain how currency volatility can impact the logistics of sourcing parts and raw materials for the manufacturing plant within the emerging market. [INT-650-03]

B. Summarize the macroeconomics of the emerging market's country. Your response should include GDP, employment rate, inflation rate, and standard of living. Support your response with research. [INT-650-02]

C. Describe the global logistics management strategies required in order to successfully establish a manufacturing plant in the international location. Support your response with research. [INT-650-03]

IV. Financial Justification Modeling: In this section, you will use the provided Excel template to develop baseline financial projections for your organization for the next 10 years, and a second set of 10-year projections to reflect expansion into the emerging market. You will use this information to compare the financial feasibility of an international expansion for the organization.

A. Estimate a 10-year baseline projection for your organization. Your response should include the following financial elements: revenue, expenses, cash flow, ratios of return on assets, return on equity, return on capital, operating margin, gross margin, net profit margin. [INT-650-01]

B. Using the same set of assumptions from the previous projection, estimate a 10-year projection that includes the expansion into the emerging market. Your response should include the following financial elements: revenue, expenses, cash flow, ratios of return on assets, return on equity, return on capital, operating margin, gross margin, net profit margin. [INT-650-01]

C. Compare the financial modeling you conducted above and provide justification to the organization's executives concerning your 10-year projections. Your response should be supported using financial justification modeling. [INT-650-01]

V. Recommendation: In this section, assume the executives of your selected organization have decided to move forward with expanding into your selected emerging market. You will provide your recommendations on this expansion based off your previous research and the financing options available in order to fund this expansion.

A. Recommend whether you feel the organization should expand into the emerging market. Your response should be supported with findings from the previous sections. [INT-650-01]

B. Describe how the organization should finance their international expansion, and provide justification of how this option would successfully fund this project. Your response should be supported with findings from the previous sections. [INT-650-01]

Milestones -

Milestone One: Financial Projections and Summary

In Module Three, you will submit your first milestone, the financial projections and a summary that synthesizes the financials and projections to persuade the leadership of your organization about the viability of the expansion.

Milestone Two: Market Research

In Module Five, you will submit your second milestone, covering the Market Research section. You will develop a white paper that explains key market factors related to the move into the emerging market.

Milestone Three: Financial Justification Modeling

In Module Seven, you will submit Milestone Three, the section on Financial Justification Modeling, where you develop baseline projections and expansion projections. You will continue to use the same set of assumptions that you used for Milestone One. You will also write a brief memo to leadership summarizing your findings.

Attachment:- Managing International Trade and Finance Assignment File.rar