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Identification And Analyzing Domestic And International Opportunities
Opportunity Recognition And The Opportunity Assessment Plan
Opportunity assessment plan is not a business plan:
1. Be shorter2. Focus on the opportunity, not the venture3. Have no computer-based spreadsheet4. Act or wait on an opportunity
Opportunity Recognition And The Opportunity Assessment Plan
Opportunity assessment plan contain four section: Two major and Two minor sections.
MAJOR SECTIONS:1. first major section: Develops the product/service
idea, analyze the competitive products and companies
Opportunity Recognition And The Opportunity Assessment Plan
MAJOR SECTIONS:1. Second major section: Focus on the market its size, trends,
characteristics, and growth rate
Opportunity Recognition And The Opportunity Assessment Plan
MINOR SECTIONS:
Third Minor section: focus on the entrepreneur and the management team in terms of skills and experience.
FINAL SECTION: Timeline, successfully launch the venture and translate the idea in to a viable business entity.
Information Sources
Helps in starting the new business. 1. General Information: Help taken from the online websites e.g.
www.score.org (non profit organization).2. Industry And Market Information: There are the wide variety of database that provide
you the significant information about the industry and the market e.g. plunkett (trends) , frost and sullivan (specific info)
Information Sources
3. Competitive company and product information: supply significant information on product and services: Example: business source complete (industry
information).
4. Government sources And Search Engine: Census reports & export/import authority Search engine provide industry, market and competitive
information
5. Trade Association and Trade publishing: Trade association do market surveys. Trade publishing's provide insight on trends e.g. growth
rate
The Nature of International Entrepreneurship
The Importance of International Business to the Firm
International versus Domestic Entrepreneurship
International Entrepreneur: An entrepreneur doing business across his or her national boundary. It is more complex due to uncontrollable factors:
1. Economics: In domestic: Single economic system, same
currency In international: Dealing in differences in level of
economic development, Govt. regulation.2. Stages of economic development: Rational and regional variance. 3. Current Account: The trade status of import/export between
countries.
International versus Domestic Entrepreneurship
4. Type of economic system: Distribution rights Barter (directly exchange) or Third-party
arrangements (indirectly).5. Political-legal environment: Price fluctuation - VAT (value added tax) Political risk analysis (prior to entering into
business) critical areas (property right, contract law,
product safety & liability 6. Language: Native tongue
Technological Environment
Technology Varies Across Countries New Products are created based on conditions and infrastructure operating in the country
Culture
Culture refers to common ways of thinking and behaving
Culture Includes› Social Culture› Language› Religion› Manners and Customs
Culture in Entrepreneur’s Context
Crossing Cultures are the Problems for entrepreneurs
Entrepreneur must have command over country’s language
Both Verbal and Nonverbal languages are important
Culture Norms and Values
Social Culture Religion Political Philosophy Economics and Economic Philosophy Education Manners and Customs
Culture Norms &
Value System
Social CultureReligin
Language
Manners & Customs
Economics &
Economic Philosophy
Education
Social Culture
Refers to social institutions in a culture Social Stratification affect the behavior
of the people in one particular strata Reference Groups provide influencing
values and attitudes
Religion
Ideas for life reflected in values and attitudes of society
Impact on entrepreneurship varies Impact depends on dominant religious
tenets on attitudes and values
Particularly important for entrepreneurs in negotiations
Gifts can be important part of developing relationship in a culture
Manners and Custom
Available Distribution Systems
Factors to be Considered: Overall sales potential Amount and type of competition Product’s cost Geographical size and density of the country Investment policies of the country Exchange rate and any controls Level of political risk Overall marketing plan
Motivations To Go Global
Profits Competitive Pressures Unique Products or Services Excess Production Capacity Declining Home Country Sales Technological Benefits Tax Benefits
Strategic Effects of going Global
New set of wide ranging problems New set of domestic and international
regulations Physical and Psychological closeness
does matter
Foreign Market Selection
Market selection and market entry strategies are critical issues
Decision should base on past sales and competitive positioning
Appropriate market-selection model should be followed
Entrepreneurial Entry Strategies
Exporting Nonequity Arrangements Direct Foreign Investment
Exporting
Direct Exporting Indirect Exporting
Nonequity Arrangements
Licencing Turn-Key Projects Management Contracts
Direct Foreign Investment
Minority Interests Joint Ventures Majority Interest Mergers
Entrepreneurial Partnering
Amongst best methods for entering International Market
Foreign entrepreneurs know country and culture
Finding good partner can be beneficial for the entrepreneur
Entrepreneurial Partnering
How to find Good Partner?› Information needed on industry and
potential partners› Appropriate trade shows should be attended› Should Check References for the partner› Meet with the potential partner several
times before commitment
Barriers to International Trade
General Agreement on Tariffs and Trade Increasing Protectionist attitudes Trade Blocs and Free Trade Areas Entrepreneur’s Strategy and Trade
Barriers
Implications for the global entrepreneur