Identify potential global business opportunities for various foreign markets.

Learning Goals
To assess factors that create international business opportunities
To identify potential global business opportunities for various foreign markets
Purpose
Some organizations attempt to expand their international operations by seeking foreign markets appropriate for existing products and services. Other enterprises assess foreign business environments in an attempt to meet needs in those markets.
Global Business Opportunities
Potential foreign business opportunities may be viewed in two major categories:
A. Various Country Factors create international business opportunities. These include:
Natural resources, agricultural products, or geographic factors (climate or terrain)
Level of economic development and infrastructure
Cultural characteristics, social activities, or demographic trends
Changing political situations or legal factors
Technology that may enhance production or distribution of an item
B. Relevant Industry Factors- companies attempting to gain entry into new global markets must also evaluate industry factors in order to effectively expand overall market penetration and increase revenues. These include:
Marketing potential
Entry Strategy
Organizational Structure
Business Operations
Marketing and Management Focus
You should consider several possible global business opportunities that could be the basis for new or expanding international business operations- but select only one for this project. This business opportunity may be consumer goods or services; or organizational goods and services, sold to businesses, government agencies, nonprofit organizations, schools, hospitals, hotels, or other organizations.
Some examples of global business opportunities may include:
sale of water filtration systems in developing economies;
sale of specialty food products adapted to the tastes of different cultures;
development of communication systems in countries with a weak infrastructure;
promotion of a variety of businesses (construction, medical, travel, etc.) into countries with expanding economies.
**Remember that you are trying to fill a ‘unique’ need with your business idea. Whether it is a product or service, it should provide something that other competitors do not currently offer. Your business focus also needs to use local resources from your selected country to justify the business being located there.
Development Targets:
1) Use local country resources with your new product or service.
2) Keep your start-up costs below $500,000
3) Avoid involvement with franchises or already existing companies.
4) Have your business operational in 3-6 months.
Conduct Research
Collect data and information to use in formulating this aspect of your business recommendation by considering the following:
POTENTIAL MARKETS
Discuss one of the global business opportunities for your business focus in terms of:
(a) a specific product or service, including customer benefits; and
(b) a potential market—a country that would be appropriate for this business opportunity.
POTENTIAL COMPETITORS
Identify companies that:
(a) have business activities similar (or related) to the business opportunity you are
proposing; and
(b) operate in the country that you are considering for your international business
enterprise.
COMPETITIVE ADVANTAGES
Discuss the competitive advantages of these companies. (For example, some companies
may gain a competitive advantage as a result of access to raw materials; others may gain
an advantage through the use of technology for production and distribution or as a result
of a well-known brand name.)
ABSOLUTE AND COMPARATIVE ADVANTAGES
Analyze for the presence of an absolute or comparative advantage that might be related to
a business opportunity in the country where the item will be produced or sold. Describe
how this analysis might influence the success of your proposed business idea. (For
example, the availability of natural resources can make a business opportunity cost
efficient.)
BUSINESS OPPORTUNITY ANALYSIS
Compare two or more proposed business opportunities based on factors such as foreign
market potential, start-up costs, and foreign business risks.
Prepare your summary report/recommendation in two parts-
A three-to-four page business plan abstract AND
A PowerPoint presentation (10-12 slides)
The above report should be addressed to your manager or CEO as an employee of the firm.
In addition to the above report content, you MUST include a cover page, table of contents, and reference page (in MLA or APA format) for both components of your project. These items are not counted in the minimum page/slide requirements for your report.
Your report must include the following components:
A clear description of your FDI business plan with specific details about its potential, organizational structure, timeline to be operational, etc. You MUST include the reasons why your selected country is appropriate for this business investment.
An overview of geographic, economic, cultural, political, and technological factors that creates the proposed global business opportunity.
A description of the market potential for this product or service.
A discussion of potential competitors (if any) and their global business activities.
A synopsis of any absolute or comparative advantages (as applicable).
A discussion of global business strategies that could create competitive advantages.
Recommend one foreign business opportunity (within a specific foreign market) for an existing company or a new enterprise based in the United States. Include modes of entry, organizational structure, and management focus as appropriate. Provide evidence to support your proposal.

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