You will work on a group project and present your work in writing as a group report at the end of the three-week term. Each team (8 teams of 4) formed by me will be assigned a country and an industry.
Industry: Medical Devices
As a consultant for XYZ Consulting, you were asked to advise the CEO of ABC Inc. on starting an operation in a country for both domestic consumption and export. The assignment for the team is to write a report to the CEO about the merits of the proposed undertaking in that country, its comparative strengths and weaknesses in that country and the global market, and a conclusion/recommendation whether operations are worth opening there.
US multinationals/international businesses have used a variety of foreign entry modes to enter the global market. Foreign entry modes can be Greenfield investments, licensing, franchising or strategic alliances and others. Your team will provide a report to the CEO answering the following questions:
Consider the overall merits of the proposed investment by the CEO’s Company into the country you have been assigned:
1. What are the strengths and weaknesses of a decision to start an operation in that country?
2. Depending upon the country and industry assigned to your team, discuss the entry mode with which you will enter the country/marketplace.
3. Explain both challenges and advantages that each of these entry modes has for your entry into your particular country
4. Explain the impacts of these foreign entry mode choices on the firm performance.
5. Use the Porter Five Forces Model to determine the viability of the Investment in the Country at issue. As part of this, think and discuss critically Competitors, Potential Entry and your Market definition.
6. Discuss the life cycle of this Firm in the CEO’s industry.
7. Explain whether you anticipate the structure of the operation changing over time as the CEO’s firm experiences growth.
8. Determine the long-term merits of the firm’s investment in this particular country.
After consideration of all relevant factors, advise the CEO on the soundness of his investment decision.
Final report: Each group will prepare a “Final Report” of your arguments and findings. A hardcopy submission is required and is due on the last day of the class. This report should be 10-12 pages, Times New Roman 12-point font, 1 in. all-around margins, and single-spaced. (Make sure to add your citations at the end of your report as additional pages.)