IBE Assignment

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Group assignment to be concluded in the class:After Completing Theory of PESTLE analysis apply your brains on the following

situations.
One question each should be taken up by the group already formed by Anoushka for IBE.
Since there are 9 questions only so Group 10 can again start from Q1 and so on. So
probably 2 groups might have the same question, definitely their interpretation might
differ.
Collect all the relevant materials required as you will not get the internet facility here in the
college.
In the IBE class i.e 2/09/15 each group will get 30 min. to compile the information, perform
the analysis and put it on PPT ( preliminary work can be done before hand also).
For class assessment each group will have to present their solution on PPT ( 5-6 slides) on
that very day followed by discussion
1. China is an attractive market partly because of its large size and growing affluence.
Before they begin exporting to China, most firms conduct market research to acquire a
fuller understanding of the countrys market situation. Two useful sites for conducting
research are the China Business Information Center (CBIC; www.export.gov/china) and
UK Trade and Investment (www.uktradeinvest.gov.uk). At the CBIC, for example, firms
can find out if they are China Ready. They can access trade leads and read current news
about doing business in China. Suppose you get a job with a firm that markets various
products, including: (a) breakfast cereal, (b) popular music on CDs, and (c) laptop
computers, and wants to begin exporting to China. For each of these three product
categories, using the Web sites given above and globalEDGE, prepare a wish list of the
information that the firm should gather prior to making a decision to export to China.
2. Wal-Mart is now the largest retailer in the United States, Canada, and Mexico. However,
Wal-Mart still gets only about a quarter of its sales from outside the United States. Coles
Myer is the largest retailer in Australia, and gets very little of its sales from outside
Australia (its main foreign market is nearby New Zealand). Assess the international
retailing sector using online resources, such as globalEDGE and A.T. Kearney
(www.atkearney.com). Based on your research: (a) What factors should these top retailers
consider in choosing countries for internationalizing their operations? (b) What are the
best target markets for these companies to expand to? (c) What types of questions should
management at each firm ask in assessing their readiness to internationalize?
3. The U.S. Census Bureau tracks foreign trade statistics. Visit the site at
www.census.gov/foreigntrade/www/ and find the most recent versions of the report Profile
of U.S. Exporting Companies by entering this title in the search engine. Peruse the report
and address the following questions: (a) What types of companies export from the United
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States? That is, what is the breakdown by company type of U.S. exporters? For example,
are the exporters mainly large or small firms? Do they operate mainly in the
manufacturing, agricultural, or services sectors? (b) What is the role of small and mediumsized exporters in U.S. trade? What percent of U.S. exporters are these types of firms, and
what proportion of total exports do they account for? (c) What countries are the three
favorite targets of U.S. exporters? According to the report, what factors make these
countries the top U.S. target markets?
4. Auto Ornaments Ltd. is a firm that makes accessories for cars, such as seat covers and
window tinting. The firm has never done any international business. The general manager,
Steve Diesel, would like to expand into foreign markets. He heard that roughly three
quarters of the worlds people live in developing economies and emerging markets. He
figures there must be a big market in those countries for Auto Ornaments products. What
should Steve know about the characteristics of developing economies and emerging
markets that make them attractive targets, and unattractive targets, for Auto Ornaments.
Make a recommendation to Steve on the advantages and disadvantages of entering these
markets. Be sure to justify your answer.
5. Suppose you work at Microsoft in their Xbox video game console division. Microsoft has
long targeted Xbox to the advanced economies, especially in North America and Europe.
Management would like to sell more Xbox 360s to emerging markets. What are the main
characteristics of emerging markets that might make them potentially good markets for
Xbox? Identify the major risks and challenges that Microsoft might encounter in selling the
Xbox 360 to emerging markets
6. CBKing has been trying to export its products to various emerging markets and has
enjoyed little success so far. You know a lot about emerging markets and have been anxious
to share your views with CBKings president, Mr. Roger Wilko. What strategies would you
recommend Roger should pursue in doing business with emerging markets? You conclude
there should be some demand in the military and the government agencies. Explain how
your firm should go about selling to emerging market customers.
7. The World Bank sponsors the Doing Business database (www.doingbusiness.org/), which
provides measures of business regulations and their enforcement in 175 countries. Firms
can use these measures to analyze specific regulations that enhance or constrain
investment, productivity, and growth. Visit the site and choose two emerging markets. Then
answer the following questions: (a) How well does each country rank in terms of ease of
starting a business, employing workers, and trading across borders? (b) How long does it
take to start a business? (c) How much time does it take to pay taxes? (d) Review other
statistics and identify which country is most friendly for doing business.
8. Using globalEDGE, find the country commercial guide for two emerging markets of
your choice. Compare the two countries on the following dimensions: leading sectors for
exports and investment and marketing products and services. (a) Which of the two
countries is more promising for marketing laptop computers? (b) Which of the two

countries is promising for sales of portable electrical power generators? (c) Which of the
two countries is promising for sales of telecommunications equipment?
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