GOODIES INC. INTERNATIONAL TRADE CONFERENCE
Goodies Inc. is a Canadian-based confectionery manufacturer which was first established in Alberta in 1906. Today Goodies, Inc. produces an exquisite selection of candy treats: rich milk caramel and chocolate truffles, delicious double-dipped cherries and a variety of assorted candy selections.
Goodies, Inc. currently distributes its products to confectionery retailers throughout their home markets of Canada, the United States and the United Kingdom under a variety of brand names familiar to the public:
Goodies Candy Bar, Goodies Cherry Delight, Goodies Chocolate Sampler and Goodies Truffle Treat Box. However, given the consistent sales momentum and anticipated growth in all three markets, the company is now seriously considering expanding into a larger, global arena.
In 2015, Goodies, Inc. boasted total international sales of $950 million CAD and is projecting sales to increase by 5% in the next year.
Goodies, Inc. currently operates 12 manufacturing plants in their home markets which employ approximately 2,400 people and intends to open another plant within the next few years in a foreign country to be determined shortly.
As confectionery industry representatives from your respective country, Goodies Inc. has invited you to attend an International Trade Conference in Canada. Your nation has been selected by Goodies, Inc. as a potential location for construction of a new plant, which is appealing to you because of all the benefits which would result from new investment in your country.
It is anticipated that the establishment of the new plant will bring not only employment opportunities and foreign capital investment but also the introduction of new products (i.e., confections) to the home of the winning bid. However, international business is extremely competitive and you are informed that other countries will be vying for the same opportunity at the conference.
Your task is to prepare both an oral and written sales pitch to the Board of Directors of Goodies, Inc. that will successfully convince them to invest in your country and bring construction of the new plant to your corner of the world.
You must work independently to complete this assignment
To research this assignment, you should employ the CIA World Factbook website, your textbook notes, your course wikis and any additional websites that may be helpful
Each individual must select a different country for this assignment
There are two components to this assignment:
(1) International Trade Conference Oral Presentation
(30% of your summative mark)
(2) Written Trade Manual (70% of your summative mark) – 1000+ words
(1) International Trade Conference Oral Presentation
On the final three due dates, we will be hosting an international trade conference with each of the participating countries in attendance. Each national representative is expected to bring cultural artifacts that reflects his/her home country.
For example, you may bring in items such as a sample of proposed confectionery products to market in your country in addition to local music, food, dress or other cultural artifacts.
This is your opportunity to represent your nation at the trade conference and to provide information to the Board of Directors of Goodies, Inc. as well as answer any questions they may have on the viability of your nation as home to their new plant.
(2) Written Trade Manual
By the assigned due date, you will have to show your knowledge and understanding of your country in the form of a comprehensive written trade manual. Your trade manual must include the following information:
|A. General Information||D. Marketing Information|
|B. Political & Economic Information||E. Industry Specific Information|
|C. Cultural Information||F. Recommendations & Conclusion|
Formal Guidelines for the Written Trade Manual
The following are the requirements for each section of your written trade manual. You may include additional information in each section as you see fit.
General information about a country provides potential investors with a starting point to begin learning about a foreign nation. If this information piques the interest of the potential investor, he/she may choose to conduct additional research.
For your country, provide the following general information and explain how they enhance a business environment:
Brief overview of current political/social/environmental challenges (CIA Introduction)
Geographic location including map
Natural hazards and environmental issues
National population and growth rate
Capital city and major cities including populations
Major ethnic groups/religions/languages spoken
General assessment of communication systems (internet, telephone, etc.)
Total kilometers of railways, roadways and waterways; total number of airport
POLITICAL & ECONOMIC INFORMATION
A country’s economic and political structure tells potential investors much about a country. Is the government corrupt? How strong is their economy? Potential investors must carefully study these questions and their answers before choosing to invest in a foreign country.
For your country, provide the following political information:
Type of government and current national governing party and leader
Major political pressure groups
Level of political corruption or transparency (Corruption Perceptions Index)
Major international political and territorial disputes (CIA Transnational Issues)
For your country, provide the following economic information for the most recent period and why is this good for business?
Type of economic system (e.g., market, mixed, command)
GDP real growth rate/GDP per capita
Major import and export partners
Major natural resources
Domestic exchange rate vs CAD
National and/or regional minimum wage in local currency and CAD
Major international trade organization memberships and agreements
The majority of commercial transgressions committed by international investors involve ignorance or disregard of a foreign nation’s cultural norms. Culture can be defined as the shared beliefs, customs, norms and values that guide the everyday life of a group of individuals. Potential investors must study the culture of a foreign country in order to gain insight into that nation, its citizens, and how business is conducted so as to enhance the likelihood of future success.
For your country, provide the following cultural information and how this relates to Goodies’ current North American corporate culture:
Common forms of formal and informal greetings and goodbyes (e.g., handshakes, kissing)
Cultural norms regarding use of hand gestures, head nodding, physical contact, personal space and eye contact
Preferred decision-making and leadership styles (e.g., autocratic, laissez-faire, democratic)
Appropriate attire in the workplace
Use of gifts and business cards in the workplace
Importance of punctuality in the workplace
Traditional foods and drinks served at business gatherings
Role of men, women and children at home and at work
Effective marketing often constitutes the difference between success and failure when entering a new market. In this section, you must prepare a marketing mix plan for Goodies, Inc. so as to address any potential marketing challenges they may face if and when they decide to establish their new plant and offer their confections in your country.
On behalf of Goodies, Inc., provide the following domestic market-entry information for your country:
Primary and secondary market research questions that must be answered
4 Ps Product considerations including selection of brand names, logos and slogans, taste and ingredient preferences, product features, product quality, product benefits, packaging and labelling, and local language issues
4 Ps Place considerations including choice of distribution channels and potential use of e-distribution, branch plants, licensing (manufacturing/distribution) agreements, franchising and/or acquisitions
4 Ps Pricing considerations including preferred pricing strategies (e.g., penetration, economy, skimming, premium) taking into account local costs of labour, natural resources, capital, overhead, shipping, legal fees, packaging and inspections
4 Ps Promotion considerations including potential multimedia advertising campaigns, free publicity strategies, public relations campaigns, direct marketing campaigns, and strategic sales promotions
2 Cs Consumer considerations including domestic target market demographic and psychographic determinations, local cultural norms and spending patterns, and motivation of domestic consumers
2 Cs Competition considerations including direct and indirect competition, local competitive advantages in terms of production/distribution costs, product differentiation and brand equity
COUNTRY SPECIFIC INFORMATION
The potential for success of the confectionery industry in your country is obviously a significant concern for the Board of Directors of Goodies, Inc. More specifically, the level of profitability of the local confectionery industry and the anticipated return on Goodies, Inc.’s investment are just some of the factors that must be taken into account by the Canadian confectionery manufacturer before their final decision.
Provide information with respect to your country, such as:
Confectionary industry domestic volume, revenue and profit figures
Number of domestic and international manufacturers, wholesalers and retailers
Any other information that you believe may be relevant to potential investors (e.g., banking systems, technologies, environmental concerns, internal or external security threats, crime and terrorism threats, etc.).
RECOMMENDATIONS AND CONCLUSION
In this final section, you are to consider all of the information that you have gathered in sections A through E of your report in order to provide a summative argument as to why Goodies, Inc. should select your country as the next location in which to invest.
Your argument should demonstrate the knowledge and understanding of international business that you have gained throughout this course. It is especially important that you address the cultural obstacles that Goodies, Inc. will likely encounter if they choose to invest in your country and how you foresee the Canadian company overcoming such challenges once they eventually begin operations.
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