GIobaI Business Group Project

Team Questions

nstructions: The team projects are meant to be done as a team. Every team will have to
assign roles/ determine who does what. There will be a scheduled classroom
presentation that should last 20 30 minutes. Preferably each group will use MS
PowerPoint to make their presentations. Additionally, each team will submit a write up of
no less 7 pages, (double spaced, font size 12) in the APA standard writing format.
Please include a listing of references. Points will be awarded individually and
collectively and will go towards your final grade.

Use the nternet as a Key Resource, the Library (yes, the library), and your nstructor.
The best part of the team project is that every team member will have a say in your final
team grade, i.e., you will be required to grade team participation at the end of the
project and that will help provide a less biased grade for the team project (5 persons
cannot all be wrong, can they?)



1. Going GIobaI.
You are part of the nternational Sales, Operations and Marketing Division of
Platteville Industries a fast rising manufacturer of Electronic components used in a
wide range of computers and other electronic gaming devices. Realizing that you
have to expand to remain relevant in this fast changing industry, management has
decided to explore opportunities (for both manufacturing and sales) outside of the
USA.

Given the limited resources available at the moment, the strategy is to initially start
marketing Platteville ndustries' products in one country, and given the success of
that venture, to further expand to other nations. Your team has narrowed its sights
on the following 28 countries, grouped by continent as potential locations to set up
business:

1rica sia ustraIasia MiddIe East
South Africa China Australia srael
Kenya Japan New Zealand Saudi Arabia
Botswana Malaysia Philippines Turkey
Nigeria ndia
Papua New
Guinea U.A.E



Europe
N & CentraI
merica South merica

Germany Canada Brazil
Poland Mexico Argentina
Ukraine Cuba Venezuela
Russia Jamaica Chile

Your mission, should you choose to accept, is to analyze these nations to determine
which nation would be the best investment option. To aid your decision making
processes, please review these countries in terms of:
O Country Risk
O Barriers to Entry
O Education levels
O Political Systems and
Stability
O nfrastructure
O Culture
O Financial and Capital
Markets
O Governmental ncentives
for Foreign nvestments
O Market Size

Give a 6 8 page write up on your selection process and how you came up with the
country that Platteville ndustries finally decided to invest in.

. In-sourcing
A lot has been said about outsourcing. Business executives have seen it as a means to
profitability and greater levels of efficiency. A vast number of US and Canadian
corporations have moved manufacturing operations to plants in China, ndia, Brazil,
Ukraine and a host of other countries where labor has traditionally been much cheaper,
and laws targeting employee rights are not as stringent as they are in North America.
As executives of Mainly Jameson Mopeds, a midsized manufacturer of electric mopeds
and smaller engine motorcycles based in Madison, W, you have embarked on a Made
in the USA strategy that would bring back approximately 75% of your manufacturing to
Madison. Your operations currently rely heavily on the NiHao Bicycles Company in
Taiwan for engine components and on the Johor Bahru Electronics Corporation in
Singapore for all electrical and electronic components.

While the strategy is great on paper (and patriotic too!!), you face an uphill battle, with
competitors who will continue to outsource manufacturing to other nations.

You are now faced with the daunting task of putting together a plan that will enable you
to begin manufacturing operations in Madison or Milwaukee, W. Your mission, should
you choose to accept, is to analyze the following:
O The Pros and Cons of setting up a new plant in W
O Conduct a relative labor cost comparison between labor in the US and in
Singapore and Taiwan or China
O Compare skilled labor force educational capacities between the US, Singapore
and China/Taiwan.
O Analyze the levels of governmental support or incentives for manufacturing found
within the US (State and Federal), China and Singapore.
O f possible factor in logistical costs involved in moving product from factory to
showroom
O Review other factors that would go into the decision making process such as
political climate, local and foreign markets for Mainly Mopeds, Management
Control, Unions, etc
O Determine whether it is logical to move operations back into the US, or whether it
would make sense to leave operations in Asia.
O f you determine that you would rather leave operations in Asia for now, discuss
what needs to occur to enable operations to be shifted back to Wisconsin.

. Trade Embargos and Sanctions
Sunfresh Juices, a fast rising producer of all natural fruit juices has experienced
dynamic growth over the past decade. This success has lead to expansion into Mexico,
the Latin American nations of Brazil, Ecuador, Argentina, Nicaragua and Colombia. The
marketing team (you!) has done an exceptional job and is currently considering
expanding even further into new territory. James a new exec, came up with the -right
idea of tapping into the Cuban market for fruit juices. He has even come up with an
elaborate business plan and strategy to help Sunfresh conquer this market.

One look at the plan and the company's legal department quickly sent out an email to
the marketing team advising against this idea, after all this is Cuba and who knows how
many rules, regulations or red tape one would have to cross to initiate trading
operations there. So its back to the drawing board for the marketing team.

Your mission, should you choose to accept, is to analyze the following:
O Current political issues affecting US- Cuban relationships
O What do company personnel require to travel to Cuba?
O What countries do business with Cuba?
O What does the US currently export to Cuba?
O How would Sunfresh pay for investment costs in Cuba, given that there are
restrictions providing payment or financing credit terms to anyone in Cuba?
O What is the population size of Cuba?
O What are Cuba's key imports?
O What is the mid-term view of trade with Cuba, and do you foresee any changes
that would positively impact trade relations with the country?

. 1rica - The SIeeping Giant
When discussing global trade, not much mention is given of Africa. t is possible that
this is due to its low level of participation in global trade. A surprising fact that many
might not know is that the State of California's nominal GDP at $1.9 trillion, is greater
than that of Africa's combined nominal GDP at $1.73 trillion. As international business
strategists for Fordham Motors, you have been tasked with exploring the African market
for sedans and pickup trucks. Currently the market is dominated by Asian car
manufacturers, namely Toyota, Nissan, Kia and Hyundai.

Your mission, should you choose to accept, is to analyze the following:
O Socio-Economic situations by country (filter your scope to a maximum of three
African nations (One from the south African nations of South Africa, Botswana, Namibia,
Zimbabwe, One from the North African Nations of Morocco, Egypt, Algeria, and One from the
West African Nations of Nigeria, Ghana, Cameroon and Senegal)
O Political Systems and stability
O Difficulty in setting up operations (business registrations, infrastructure, language
barriers, corruption)
O Competition by other automakers and market size
O Manufacturing locally versus exporting to Africa
O Government ncentives for Foreign Direct nvestments
O Financial Structures in Africa
O Availability of Skilled Workforce
O Taxation systems
O Discuss what would be considered the greatest challenges of venturing into the
African market. Also, discuss what you would consider the greatest opportunities
available through doing business with Africa.

. China - Best Friend, Worst Enemy
Over the past four decades, China has risen to become the world's largest export
economy. US-Chinese relations have been at best tricky, with China being tagged a
"currency manipulator in stark contrast to the United States laissez faire policies that let
the market determine what the value of the dollar should be with minimal government
intervention. The value of China's exports to the US in 2010 was pegged at $365 billion.
During the same time period, the value of US exports to China stood at $ 92 billion.

Your mission, should you choose to accept, is to analyze the following:

O Discuss why US lawmakers believe that China indulges in unfair trade practices
and also advise on what steps the US government is taking to attempt to ensure
that China isn't taking undue advantage of international trade loopholes
O Discuss the mportance of China to the US, in terms of US exports and in terms
of market potential
O Discuss current barriers to US-China trade
O Discuss China's role as a financier to US government and business
O s China a threat to the US economy, or should it be embraced a friendly trade
partner?
O Discuss what can be learned from China's partnerships with developing nations
of Africa and Asia