Write an international mini-plan for a company that interests you (or a product/service that you want to sell yourself). Address the following in your mini-plan:
Location of value-added functions: The choice of where to locate each of the functions that comprise the entire value-added chain, from research to production to after-sales servicing Location of sales target;
The allocation of sales among countries and the level of activity in each, particularly in terms of market share Level of involvement the choice of operating through wholly owned facilities, partially owned facilities, or contract arrangements and whether the choice varies among countries Product/services strategy;
The extent to which a worldwide business offers the same or different products in different countries Marketing;
The extent to which a company makes competitive moves in individual countries as part of a global competitive strategy Factor movements and start-up strategy;
Whether production factors are acquired locally or brought in by the company and whether the operation begins through an acquisition or start-up.
International Plan for Selling Automobiles in Canada
Here, in this international plan the product selected for selling in international location is automobiles and the selected international locations are different. In this paper, an international plan will be developed for selling automobiles in different international locations along with the consideration of various diverse business related aspects. All the aspects that will be discussed in this paper are quite substantial and hold prominent significance in attaining success.
Location of Value Added Functions:
The value chain looks at 9 generic activities as origins of value produced by a firm. These activities are grouped into two general categories which are:
- Inbound logistics
- Operations (production)
- Outbound logistics (Distribution)
- Marketing & Sales
- Administration (Infrastructure)
- Human Resources
- Technology Development
- Procurement (The Value Chain in International Business, n.d.).
All these value added functions will remain similar in selling automobiles in different international locations but the two prominent key factors that will change in international context are the institutional & cultural factors and Economic factors. All these factors imply an altering value of both the primary and support activities (The Value Chain, 2007). In international contexts the prominent sources that will work as an international comparative advantage will be:
- Labor, capital and material costs
- Tariffs and government ...
This solution briefly addresses the concepts identified in the question. The student will need to expand upon the framework provided.