BBB4M – International Business
International Business Proposal (IBP) – DRAFT COPY
Issued: 16 Oct – Tuesday
DUE DATE: 18 January 08 - Monday No extensions will be granted for this course activity.
FORMAT: Written Report
TEAM: Individual/Pairs Individual attempts are NOT recommended.
CLASS TIME ALOTTED: 14 Work Periods [See also course calendar for scheduled dates]
October16, 17,18,19 / November
05, 15, 16 / December
18,19,21 / January
07, 08, 09, 18
For the IBP project we will be following the outline given in the Ministry of Education’s Exemplar booklet. A PDF copy has been entered into the BBB4M hand out folder. All students are expected to review the IBP submissions given in the booklet and the teacher’s comments associated with the evaluation for each. Students should note the contrasting features connected with an IBP assigned a low level of achievement (Level 1), an acceptable level of achievement (Level 3), and that of an IBP that was given a high level achievement (Level 4).
A copy of the exemplar can be downloaded at It is advised that each student download a copy for their personal use.
Below is a copy of page 9 from the exemplar that outlines the IBP requirements. The evaluation rubric is on page 10 of the exemplar.
The IBP will be submitted as a report in the format outlined in the exemplar.
SUGGESTED COMPLETION TIMELINE – Schedule of Events
Students are:
advised to check the course web page and the handout folder often for any announcements or updates
set up a communication scheme so that each member has access to the latest version of the IBP and is able to contact each team member if necessary
Students are reminded that they should not rely solely on class time to complete the IBP. Teams must set aside time outside of class to meet deadlines and to produce a business-like final report at a level of achievement of their choosing as set out in the exemplar and the evaluation rubric
DATE / ACTION / COMMENTS / SUGGESTED COMPLETION DATE16 - 19 Oct 07 /
- IBP info issued, reviewed and discussed
- Identification of IBP team members.
- A fictitious Canadian Company invented (See Exemplar examples)
- Country selection
- Preliminary research and group discussions about possible countries and businesses opportunities in those countries
- Team communication scheme set up
- It is recommended that you start on this project as early as possible.
- Decide in advance who you would like to work with and begin creating a short list of countries you think would be worthy of further research. Look in the media for evidence of opportunities that are emerging from recent consumer trends, target market needs and wants, etc.
- You will need to discuss research strategies and to delegate responsibilities.
- Set up a communication link between team members to keep each member up to date with the latest accomplishments and to give each person access to the latest version of the proposal.
06 Nov - Tuesday / Country/Product Rationale presentation given to peers.
Write a detailed description of the product or service you are interested in exporting, the consumer you are targeting, and provide a rationale for doing so. (See Product Selection and Description below.) /
- This is a peer review exercise.
- Each team will be given an opportunity to share their rationale for selecting the country and the product they chose to export to that country. Your peers will scrutinize your selections, which should test the feasibility of your proposal.
- In the past, many teams have found this exercise to be most valuable early in the proposal schedule. In some cases peer reaction to their ideas forced teams to re-evaluate their choices and to move on to another country and/or product.
Assessments:
Economic/Political/Legal
(See details below.)
/- This section is important. Investors need to know what level of risk exists in your country’s business environment. Focus on factors that directly affect business and trade activities.
- You need to show that your country provides the kind of business environment that will make the sale of your product a likely success. (In other words, it provides the necessary success factors.)
Page 1 of 8
Cultural Factors/Societal Customs/Consumer Habits
/- A detailed description of the typical consumer in your target market. This requires demographic, psychographic, and geographic information.
- A discussion of what needs to be done to prepare the product to match target market consumer demands will be expected from investors.
Target Market Description – Consumer Profile/Product Modifications
/- It is important that investors are able to assess the risk and the potential cost of dealing with competing businesses and their products. Investors are most interested in this section.
Competitor Analysis
/- You will need to identify and list any of factors that investors should be aware of in order to adequately assess the risks and challenges connected with the business proposition.
Promotion
/- Investors know that sales will depend on consumers being aware of your product. This means naming it, branding it, positioning it (pricey, or low cost, for example), and advertising it. What’s really important is letting investors know what media restrictions, if any, are enforced.
Pricing
/- An approximate price is needed to give investors the ability to project sales and estimate profit, which determines the return on their investment.
Transportation/Logistics
/- Investors will want to know how you would get your product into the hands of the consumers, and what modifications will be needed to ship it safely.
Business Etiquette
Bibliography /- One false move at a business meeting could thwart the deal. You need to know how to conduct yourself in a meeting with foreign clients.
GENERAL INFORMATION – Preparing the Report
- Max 2 students per team. No team can have the same country as another team.
- You will need to research your foreign market thoroughly. It is suggested that you do not rely solely on the Internet to gather pertinent information. Libraries offer a wider selection of useful resources. Seek the help of librarians. They can direct you to specific information much quicker than if you were to search on your own. You also now know how to access electronic resources through EBSCO. You can also reference your textbook. The Embassies of foreign countries may be willing to help provide information that would otherwise be difficult to obtain. It would be wise to contact embassies as early in the project as possible.
- Canadian government web sites such as DFAIT, STRATEGIS, EXPORT CANADA, INTERNATIONAL BUSINESS OPPORTUNITIES CENTRE (see page 186), are good starting points. Search the web pages of associations and agencies that focus on exporting and any sites that are closely related to your product. There are many sites that offer free resources and export report templates that can be used as support materials. Use the keywords FREE SAMPLE EXPORT REPORTS and surf through the offerings provided by your search engine. Use a variety of search engines. Other resources will be distributed as the project progresses. Search through .org type sites; they can sometimes offer great research opportunities. Ex. resources will be made available as the semester progresses.
- Students may consult with the teacher for advice and direction throughout the writing period. Students may also enlist the help of outside professionals and government personnel and they are encouraged to do so. However, complete contact information for each person involved, and a summary of his or her contribution must be included in an appendix.
- The computer lab may not always be available on scheduled days due to system problems. Bring research materials to class to read, and always have a set of tasks that can be done without the use of a computer to avoid the loss of valuable class time. In the case of teacher absence students will work on their IBP (or the Media Portfolio) as a default activity.
- Be brief and succinct in your report. Research the facts and present them in a business-like fashion (See hand out on BUSINESS STYLE WRITING). PERFORM GRAMMAR AND SPELL CHECKS AND BE SURE TO PROOF-READ the report prior to submission.
- Do not cut and paste from web pages. Condense the essential information and write it in your own hand. A mark of 0 will be given if any report, or part of a report, is plagiarized. All sources, including web sources, must be included in a bibliography written in MLA format. The bibliography will be the last section in your report.
- Any report can be submitted before the due date.
REPORT COMPONENTS
EXECUTIVE SUMMARY (ES)
This is the last section you will write, but it will appear as the first section in your proposal.
In the ES you pull together the content of your report and synthesize it into a descriptive but comprehensive summary of essential points that an investor can read in a short time. It is through the ES that you try to convince an investor that your product opportunity is worth the risk and that rest of the report is worth the time spent to read it.
ECONOMIC ASSESSMENT This list could appear as a table in this section; labeled as Table 1.
Type of economy
Population
Languages spoken
Essential economic indicators: Bank rate, Inflation rate, Unemployment rate
Name of currency
Current CAD exchange rate (as of …)
Market performance of the currency over the past year (stable? volatile?) Would you recommend the use of forward contracts to reduce the risk of future transactions?
GDP (CAD), GDP/Capita (CAD), GDP/Capita as % of Canada’s
Rate of economic growth in each of the past 3 years
Percent change in GDP over the past 3 years
Current Balance of Trade
Total value of imports (preferably converted to CAD)
Current import partners (include % of total imports for top 3 partners)
Trade relationships – Trading Bloc memberships, WTO, etc. Include all that are relevant. Top three major trading partners.
This section should have 250-300 words.
In general, what shape is the economy in?
You can gauge the condition of the economy by looking at media articles and business related publications that discuss, or provide information about the country’s basic economic indicators (see course notes on Economics).
After you have assessed the general health of the economy, you need to consider economic indicators that are pertinent to your particular product. For example, if unemployment is high there may be insufficient discretionary spending to generate an adequate level of demand to generate sufficient sales of the product to establish it in the market place. This would especially true for high value-added products and for non-essentials, like luxury goods.
To be more specific, if you are looking at the possibility of exporting home furnishings you will need to look at housing starts and home resale levels because new homebuyers make up a large portion of your primary market. Is there a middle class with buying power? In other words, what is your assessment of investors’ opportunities in this economy with the product you have selected? FOCUS ON ECONOMIC INDICATORS AND ECONOMIC DATA THAT ARE MOST IMPORTANT TO YOUR PARTICULAR PRODUCT
Political/Legal Analysis
This section should have 250 - 300 words.
Name of current ruling party and party leader
Position of the current government on the political spectrum
Assessment of political stability: now, and in the immediate future (next 3-5 years)
- Are there significant political changes on the horizon that should be noted?
- Will these changes, if any, have direct impact on the investor’s ability to conduct business?
- Does the current government support private enterprise?
- Is the government a proponent of state owned and operated industries? If yes, which industries is the government involved, and to what extent?
Assessment of the effectiveness of the justice system
- Will business agreements and contracts be enforced in the courts? For example, why would a business set up in a country where there is no protection from criminal activity, such as fraud, or from businesses not paying what they owe, or not honouring all the conditions set out in a contract, etc.
Country’s position on the Corruption Perception Index
- Will bribery and corruption present a challenge? (Will it be an added cost to doing business?)
- Are there other criminal activities that might present a barrier to entry?
Assessment of the threat of terrorism in this country.
- Is this country a target?
- How real is the threat?
- Will the government’s reaction to terrorism interfere with business activity within the country?
CULTURAL FACTORS/CUSTOMS/CONSUMER HABITS
This section should have 250 – 300 words.
Will your product blend in with the daily living habits of your target market consumers? For example, some cultures don’t eat breakfast like North Americans, nor do they eat the same kind of foods as we do in the morning. This means the product might fail if your promotion strategy can’t convince consumers to alter their habits to at least try your product. Much like fast food has altered the eating habits of Europeans.
Cultural and religious rules and expectations may limit the demand and availability of your product in some societies. Identify these and the level of risk that can be expected from them. For example, pork and alcohol are essentially banned for sale in Muslim countries, and some European countries will not allow certain ingredients in foods.
Religion and customs can shape the value system of a county’s people: What is important to us as Canadians may not be as important to consumers in other countries.
Product Selection rationale and Description
This section should have no more than 200 - 250 words.
Choose your product and provide a detailed description of what will be exported. Remember that you can assume the product is “export ready”, which means that the product does not require further research and development and that domestic sales have been successful. Modifications may be required, however, to prepare it for entry into foreign markets.
Write a brief rationale for choosing this particular product. [In other words, why have you chosen this product? Provide evidence to support your claim that there would be a demand for this product in your country.
You may have recognized consumer trends, changing consumer tastes, demographic changes, or discovered other opportunities that make this product a good choice for export. (See Chapter 6 pages 190-208)
For example, you may point out that consumers in your country do not have access to high quality, inexpensive equipment for handicapped persons, while a recent increase in work related accidents in the country means that the demand for the equipment is high or expected to increase steadily.
Or, you may argue that since no major competitors exist at this point in time the product/service would enter the market early and gain first-mover advantage.
No matter what your rationale may be, remember that your team must provide evidence to prove your claim.
TARGET MARKET DESCRIPTION
This section should have no more than 150 - 175 words.
Provide a brief consumer profile of a consumer in your target market: demographic, psychographic, and geographic characteristics.
Your product should address the needs/wants of this market.
PRODUCT MODIFICATIONS
There is no word limit to this section.
What expectations will your country place on how your product is packaged? There may legal requirements as to what is allowed , what information must be on the package, etc.
What packaging will be needed to get the product to its destination intact and undamaged?
What promotional elements will be needed to get your product noticed by consumers?
Will the product be already assembled or will it need to be assembled by consumers with given instructions? In how many languages will those instructions have to be printed?
allowed, what information must be on the package, etc.
What packaging will be needed to get the product to its destination intact and undamaged?
What promotional elements will be needed to get your product noticed by consumers?
Will the product be already assembled or will it need to be assembled by consumers with given instructions? In how many languages will those instructions have to be printed?
COMPETITOR ANALYSIS
This section should have 250 – 300 words..
What domestic or foreign firms are currently active that poses a threat to the entry of your product? Identify them.
To what extent has the competitors’ products penetrated your target market: brand name awareness, brand loyalty, total sales, accessibility, partnerships, recent mergers, etc.
What are the strengths and weaknesses associated with existing competitor products available to consumers in your target market? For example, does a competitor benefit from having entered the market first? Is the competitor’s competitive advantage linked to the fact it is a domestic company? Perhaps a competitor has distribution networks that would be difficult to match, etc.
PROMOTION
Limit this section to 250 words. Any promotional strategy must be effective at creating brand awareness in the new market. It is important to focus on actions that reach your target market.
What brand name will you use? [There have been many product launches in foreign countries that have failed because of a poor choice for a brand name.] What words should you avoid?
What strategies would work best in your country to create consumer awareness about your product; to position it; and to brand it? [The use of media, endorsements, etc.]
Will you need the services of a sales agent to get your product to interested buyers? Why?
Is selling from a web page in YOUR COUNTRY a viable option? [How internet-ready (wired) is the country? What are the statistics for internet use? Is your target market comprised of users?]