I need assistance in developing a powerpoint presentation with notes that covers the following assignment:
'Your proposal to expand into three countries was approved by the CEO. Now you have to decide on a strategy - will PM Company simply sell its products (trade) or expand its markets via investment? Choose one international trade and one international investment strategy to research and recommend. Research the advantages and disadvantages of your chosen strategies. Next, develop a set of recommendations for PM Company. These recommendations should be prioritized and should include time frames for their implementation. Accompanying the recommendations should be the rationale for the international market expansion strategy recommendation chosen and just a few bullet points on which international market expansion strategies would probably not be used by PM Company and why. Since you will be presenting this to the CEO and senior management, use Powerpoint slides with notes.'
I am looking for ideas as well as help understanding some of those ideas as this is a difficult subject for me.
PM manufactures and sells mobility products. I have chosen to expand into the U.K. Canada, and Japan.
For the Investment strategy I thought about FDI where PM sets up some form of operations in the countries by buying facilities and hiring local workers. At least an assembly facility for final assembly of the products.
For International trade I am completely lost as to this subject.
The international expansion strategy with international investment as well as trade strategy will be determined by various factors.
First of all, you have to study the existing markets for mobility products in these countries. You have to cover various aspects such as market size, growth rates in the industry and future growth opportunities, market trends, nature of competition, analysis of competition and their products, etc. This analysis will guide you on chosing the appropriate expansion strategy with respect to both the choices, ie, setting up manufacturing operations or just trading. Further, it will also help you in deciding whether is it worth to make huge investments in plant and machinery or is it better to tie up with a local player with existing presence in these countries.
Secondly, you have to study the governing laws, rules and regulations pertaining to foreign direct investment in these country. You have to cover aspects such as incentives/disincentives for setting up manufacturing operations, repatriation clauses, taxation issues such as dual taxation, etc. You have to cover issues with respect to existing labor ...
Developing Reccomendations for International Expansion of PM