Global Business: Financial and Economic Analysis

Overview

Your overall goal is to select a publicly traded US consumer products company NOT in the Fortune 100. Then select a country in which your company does not currently operate, and devise a plan within your area of expertise.

As you embark upon your work, you should keep several things in mind

1. You must submit each section to Black Board in a PDF format. The system does not recognize Apple/Mac files of any sort.
2. Be sure to focus on analysis, and not simply presenting information. A “data dump” without analysis will result in a low grade.
3. Be sure to explore the rich resources provided to you on Black Board – there are sample papers, data sources, analysis tips, and advice for doing business presentations there.
4. Each project is designed for either four or five students. Make sure your team is no larger or smaller than that.

Specifics

• Each section will contain three (3) parts:
  1. Data and information, properly cited from a credible source.
  2. Some graphical representation of that information (photos, charts, diagrams, etc).
  3. A sound analysis of the data you presented.
• Use Bar Charts, Line Charts, Pie Charts, and photos where appropriate.
• Be sure to analyze the data – do NOT just report it! Questions to ask for each item are things like: What is making these numbers move like this?  Why was that year different?

What is the key difference between this firm and their competitor?

• Cite using footnotes at the bottom of the page.

Financial and Economic Analysis

Overview

One person will tackle this section on his or her own.  This aspect of the project consists of three parts:

• Financial Analysis (2-3 pages)
  1. Analyze the firm’s Income Statement for the most recent 5 years available.
     1. How have revenue and net income changed over time?
     2. What has caused these changes?
  2. Analyze the Balance Sheet for the most recent 5 years available.
     1. How have their overall debt and cash holdings been changing over time and why?
  3. Provide or calculate their Current Ratio, Debt/Equity Ratio, and Inventory Turnover Ratio for the past 5 years and comment on how these ratios have changed over time.

Then compare these ratios with one of their main competitors. i) How do they compare to this competitor?

• Economic Analysis (2-3 pages)
  1. Provide a 5-year history of GDP (Per Capita), Unemployment, Currency Exchange vis-àvis the US Dollar, and Inflation for that country.
     1. How have these numbers been changing over time?
     2. What explains these changes?

• Financial Plan (2 pages)
  1. How much will it cost to bring this company, store, products or services to the chosen country?
  2. How much revenue do you expect to earn in the first year (explain this in detail)?
  3. How will you mitigate Foreign Exchange Risk? Be specific

Industry Analysis

One person will tackle this section on his or her own.  This aspect of the project consists of three parts:

1. US Industry Overview and Competitive Landscape (1-2 pages)
2. a) Describe the industry in which your company operates in the US. If you choose to sell a specific product in the new country, then describe that industry.
   1. What is the overall size of your industry in sales?
   2. List the major competitors.

• What is the relative market share of you and you major competitors in the US?

(A pie chart will do.) iv. How has each firm’s market share been changing over time and why?

2. Target Country Industry Overview and Competitive Landscape (1-2 pages)
   1. What is the overall size of the industry in sales in that country?
   2. List the major competitors.

• What is the relative market share of you and you major competitors in that country?

(A pie chart will do.) iv. What laws, licenses, and other regulatory factors will impact your firm the most in this country? What will you do about this?

3. Competitive Strategy (1-2 pages)
4. Using Michael Porter’s Diamond, how will your firm compete in this country?

Consumer Analysis

One person will tackle this section on his or her own.  This aspect of the project consists of three parts:

1. Current Market Analysis
   1. Describe your current target market in the US, to include demographic, geographic, and psychographic segmentation variables.
   2. What is the size of the target market? In other words, how many people fit into the group you have chosen?

• What is the reasoning behind why the company chose this segment?

2. Culture (2-3 pages)
   1. What major cultural factors will affect your company the most in this country? In other words, give examples of the top 3-4 factors that will impact your decisions regarding your target market related to the determinants and expressions of culture  (Education, Language, Religions, Social Structure, Class System, Food, Music, Literature, etc.) Be specific.
   2. Describe their culture more broadly conceived – general perceptions, common attitudes (if any), generational differences, consumer behavior, and anything else that relates to your brand and its potential in this country.
   3. Hofstede’s Chart should go here – analyze and discuss the top 2-3 factors.

3. Market Analysis and Target Market (2-3 pages)
   1. Describe your NEW target market to include demographics, and psychographic, segmentation variables. ii. What is the size of the target market? In other words, how many people fit into the group you have chosen?   Develop a consumer profile of your targeted segment examples can be found online or in the BlackBoard folder).
   2. Explain WHY you chose this segment.

Operations Analysis

One person will tackle this section on his or her own.  This aspect of the project consists of two parts:

1. Operations (1-2 pages)
   1. Focusing specifically on manufacturing and supply chain management, describe your company’s current global operations.
   2. What is unique or different about your company’s operations as compared to its main competitor? Back this up with detailed information and facts about these companies. Specifics would include number and locations of manufacturing (even if they outsource), how they distribute goods and services, and their locations globally.

• What makes this company so much better than others, in terms of production?

1. Place – Supply Chain and Location (1-2 pages).
2. Select a location for the launch of your product – down to the mall/street/block. Why did you chose this location and how does it fit your overall strategy? ii. How will you firm handle distribution and supply chain management? In other words, how do you plan to get your products from the manufacturing site to the location you have chosen?  Be as specific as possible.

iii.        What will be your firm’s initial entry modes?  Why did you choose these modes?

Product and Promotion 

1. Marketing Mix: Product and Promotion (3-4 pages)
   1. Describe the company’s current Product mix. Listing the product lines will be sufficient, but provide examples.
   2. Describe the company’s current Promotional mix. Be sure to be specific – simply listing the different media is not sufficient. You should understand their social media strategy, their main messaging strategy, etc.

1. Product – Local Responsiveness (2-3 pages)
   1. How will your firm change its products or services to adapt to cultural differences and consumer preferences in your target country? Think about all aspects of the product including instructions, packaging, colors, styles, flavors, options, product lines, menus, etc.
   2. Give examples in photographic form, if possible.

1. Promotional Mix (4-7 pages)
   1. Discuss how you will attract customers using Advertising, PR, Sales, Social Media, Direct Marketing, and/or Sales Promotions. Give specific examples and illustrate with graphics and visuals the messages, media, and other promotional approaches will you use in light of the cultural and other differences you found previously? Spend time on the media and messages very carefully.
   2. Provide examples or mock ups.