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Technology Transfer and Foreign Strategy

Senior management has approved and provided a first round of funding for your project. However, they require some modifications. They realize the potential of your idea and see an opportunity to turn it into a profit center by spinning off the system and attendant supporting services into a separate business entity that will sell product and services to the global business community (e.g. Bankers Trust, now Deutsche Bank, sold its check processing system to competitors; Amazon.com offers Amazon Marketplace and Merchants@ programs that enable third parties to integrate their products on Amazon's websites. Amazon is not the seller of record in these third-party seller transactions, but instead earns fixed fees, sales commissions, per-unit activity fees, or some combination thereof). Prepare a plan that discusses how to achieve what management suggests. Include the following:

1. Environmental scan of foreign markets and conditions. Discuss a minimum of two foreign markets you suggest the organization enter and why these were selected. Discuss a minimum of one foreign market to be avoided and why. Include discussions on cultural differences, legal and regulatory differences and additional competition within respective the foreign countries.

2. There is a difference between developing a system for in-house use and one that will be sold to third parties. Discuss any changes that might need to be made due to: a) selling the product for use outside of the organization; b) use of the system by diverse cultures, including technological limitations within certain countries (i.e. reliable broadband service is not available in all countries).

3. Discuss possibility of using human resources within the respective foreign countries for development and/or support.

4. Discuss technology transfer problems and opportunities as the result of going global.

Solution Preview

Senior management has approved and provided a first round of funding for your project. However, they require some modifications. They realize the potential of your idea and see an opportunity to turn it into a profit center by spinning off the system and attendant supporting services into a separate business entity that will sell product and services to the global business community (e.g. Bankers Trust, now Deutsche Bank, sold its check processing system to competitors; Amazon.com offers Amazon Marketplace and Merchants@ programs that enable third parties to integrate their products on Amazon's websites. Amazon is not the seller of record in these third-party seller transactions, but instead earns fixed fees, sales commissions, per-unit activity fees, or some combination thereof). Prepare a plan that discusses how to achieve what management suggests. Include the following:

1. Environmental scan of foreign markets and conditions. Discuss a minimum of two foreign markets you suggest the organization enter and why these were selected. Discuss a minimum of one foreign market to be avoided and why. Include discussions on cultural differences, legal and regulatory differences and additional competition within respective the foreign countries.

There can be various tools of research on country analysis:

Automated Country Analysis Tools and services?Commercial off The Shelf (COTS) or service provides (i.e. Datamonitor) which offers in-depth data and analysis covering various industries. It includes detailed data on market size and segmentation, textual analysis of the key trends and competitive landscape, and profiles of the leading companies. This incisive report provides expert analysis on a global, regional and country basis.

Risk Analysis Matrix?tool used to list parameters of risk and opportunities. This tool identifies several Driving Factors (Social/Cultural, Political/Legal, Demographic, Economics, and Technology/Infrastructure) as well as several categories (Business Investments, Business Development, and Business Operations).
Qualitative Research?qualitative research focuses on groups and in-depth interviews have been used in one-off projects commissioned by guideline development groups to find out more about the views and experiences of the targeted group.
Quantitative Research?quantitative research generates numerical data or data that can be converted into numbers, for example the National Census, which counts people and households

Risk Based Decision Making (RBDM)?although defined as a process can be used as a tool for decision making for risk assessment. RBDM organizes information about the possibility for one or more unwanted outcomes into a broad, orderly structure that helps decision makers make more informed management choices.
(Risk Based Decision Making Guideline)

Decision Trees?tools for helping you to choose between several courses of action. They provide a highly effective structure within which you can lay out options and investigate the possible outcomes of choosing those options. They also help you to form a balanced picture of the risks and rewards associated with each possible course of action.
Mindtools (2005).Decision Tree Analysis.

I have taken China and India as countries for expansion.

Recommendation about China's environment
In today's society, there are many cultures that are well established and maintain a high economic, health, and social status. China is becoming one of the most prestigious countries of the world. Industry is largely based on state and joint ownership, noticeable by growing technological advancements and productivity.

Major industrial centers are located in Beijing-Tianjin- Tangshan area, Liaoning Province, Wuhan and Shanghai. Chinese currency is called Renminbi, which means "People's Currency." The popular unit of Renminbi is Yuan. Agriculture dominates in this huge area, usually favored by a mild or sub-tropical climate. The culture is one of the world's oldest and most complex civilizations. China has a history with over 5,000 years of artistic, philosophical, and political advancement. Even though regions differ, they still provide a sense of diversity, but similarities in language and religion that is notable of common important contributions as Confucianism. Confucianism is known for shaping much of Chinese thought and was the official philosophy throughout most of China's history. China will be very attractive business destination because of huge growth as it is in the transition phase. One has to be aware of the local Chinese culture. It encourages a more distant managing style than American. It is having high context cultures managers prefer slow negotiations and trust building meetings, which tend to frustrate low context Americans who prefer to get right down to business.

Fastest Growing Economy in world

China: GDP Statistics
1990 ...

Solution Summary

This discusses the implications of technology transfer and foreign strategy in approximately 2500 words with references.

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