Operation management

This is initial guidance on how to prepare the three-part assignment to complete an “Export Report” for a
target company of your choosing. I will be updating the guidance on parts 2 and 3 later on (though mainly
expanding and providing more detail, not changing the substance). The details on part 1 will not be changed
but possibly a little additional clarification will be added on Moodle if needed.
You must choose a real company offering a real good or service to be exported to an overseas market where it
is not currently being offered now.
Having selected the company and product/service export candidate, you must then choose a minimum of three
candidate country markets where that good/service might be exported. You will analyse the likely success
that the candidate export might have in those potential markets and choose one of those country markets
which, based on your analysis, you believe will have the greatest likelihood of success. You must not only
analyse the information you collect but argue persuasively for the conclusions that you draw from that
Your analysis should be informed by the theories and concepts presented in class (such as theories of trade
and investment); your analysis should be informed by those theories and indicate an understanding of them.
However you are not required to explicitly refer to those theories and concepts except as needed to support
your case for moving into specific country markets.
Each part of this assignment must follow the templates as described below.
RT 1 contains two modules.
1. Module One Company and Product/Service Situation Analysis
In this module, you will describe the company and the product or service that the company is considering for
1.1 Product/Service Profile
– Describe the product or service to be exported
– Describe the general ‘business model’ behind the product/service (see slides for chapter 2 for
definitions of business model)
– Advantages to exporting
– Disadvantages to exporting
1.2 Current Market Profile (in market where product is currently being sold)
– Description of end user i.e. income, lifestyle etc
– Is the User in international markets the same as domestic market?
– Usage of the product i.e. daily, weekly or monthly?
– Other relevant information
– Basic idea here is to describe who currently consumes the good or service.
1.3 Product/Service Industry Analysis
– Description of substitutes
– Their advantages compared to our product
– Their disadvantages when compared to our product
– How does the company’s product compare to competition in terms of quality and price?
1.4 SWOT (company analysis)
– List and explain the internal strengths of the company
– List and explain the internal weaknesses of the company
– List and explain the external opportunities of the company
– List and explain the external threats to the company
Module 2 Global Market Search
In this module, you will select a minimum of three target markets and compare them with each along basic
socio-economic dimensions. You must provide at least the following data in the template below (noting where
there might be missing data; some data may not be quantitative) and may add other relevant information. (You
are welcome to do more than 3 countries if you wish but this is not required and will not gain you any extra
credit per se.) Some the data may be qualitative. Then draw conclusions, i.e. analyse the variables you’ve
collected about both the company and the target countries and rank the countries in terms of prospects as
markets for exports in terms of those variables. Note that it is likely that some countries will rank higher
in one category and not in another.
2.0 Map of Region with target countries identified
2.1 Demographics and Population
2.2 Economic Criteria
Country 1 Country 2 Country 3
2.1 demographics
income distribution
Age distribution
household income
population size
population growth
unemployment %
human development index
2.2 Economic criteria
consumer expenditure
current account balance
GDP and GDP per capita
inflation %
currency unit and current value on world markets
exchange rate determination (free or convertible?)
2.3 infrastructure
Internet/communications links
2.4 local consumption for target product market
consumption of product (quantity)
Current imports of your product category
per capita consumption of product category ($)
2.5 political/legal environment
corruption perception
ease of doing business
economic freedom
free trade zones?
political stability
tariffs and duties (general)
PART 2 Contains two modules
Module 3 In-Depth Market Analysis and Selection of target market
In this module you will use the data collected above to do further more targeted comparisons of your target
countries as potential export markets. In this case you will convert your mixed rankings into a final
ranking which picks the target market (and you may add any other relevant criteria you choose). You will
explain why this market is superior to the other alternatives analysed.
Module 4 Entry Strategy
Having selected your target country market, you will describe here how you plan to successfully enter that
market and offer your product or service there.
4.1 Distribution Strategy
– Define, explain and discuss your strategy relating to channel exclusivity, retail concentration and
channel length
– construct a figure of a typical distribution strategy to help explain intermediaries
4.2 Exchange Rate Strategy
– State whether you will set prices in home countries or in the destination countries currency and
explain what the cost and benefits of each
– Define and explain financial tools such as forward contracts and how they might be of use to you
– construct a 12 month retrospective figure or graph of movements between the relevant currency pairs
– Use the figure to help you explain how you will use financial tools such as forward contracts and
promotions to either stabilize prices or profits
4.3 Marketing Strategy
– State how you will market your product to consumers, through advertising, promotions etc.
– Describe and give some examples of promotions that you might employ or use and explain how they might
be of use to you
4.4 Cultural Strategy
– Describe how your target market differs from your current markets and what challenges those
differences might provide. Indicate how you will overcome those barriers.
4.5 Corporate Social Responsibility Strategy
– Describe any ethical issues that you might confront in this market. How will you deal with them?
4.6 Conclusions
In this report you will take the key data you have collected in parts 1 and 2 and integrate them into a
single analysis considering all the variables together, not just in isolation. You must present your export
strategy and consider how that strategy might be affected by changes in key variables and how your strategy
will adjust accordingly.
This should be a ‘smooth’ and finished report, something that senior managers will consider acceptable. The
final report will contain an executive summary, contents page, introduction, main body of text, final
conclusions and recommendations, and supporting references and, if applicable, explanatory notes.