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This week's goal is to get your client company into the new country in order to execute the strategies that team members have been developing! Your assignment is to recommend a business structure that will be the most effective form of entry into the new

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Paper Instructions;

This week's goal is to get your client company into the new country in order to execute the strategies that team members have been developing! Your assignment is to recommend a business structure that will be the most effective form of entry into the new country market you have recommended.  
Consider different forms of alliances, since some form of alliance is very common in entering new country markets. where the entering company typically has little experience, knowledge, or support networks.  If your client company has any of those weaknesses, you may consider various forms of legal structures for such alliances:  joint venture, joint marketing contract, agent, distributor or licensing.  
You may determine that your company does not need an alliance partner (it has no such weaknesses or faces no significant entry barriers or threats in country), in which case you may consider other  direct investment structures, like opening a branch office or  building a "greenfield" facility in country; or exporting strategies, like  sending sales representatives from your home  country, or even using a wholly internet based entry without in-country  presence of any kind.  You will determine the most appropriate entry structure based on what is needed to best implement the strategies you have recommended in weeks 6 and 7.
Resources:
http://www.quickmba.com/strategy/global/marketentry/
Assignment Overview:  In this assignment, you will recommend an entry strategy, consisting of a business structure (entry vehicle) and organizational structure for Walmart to enter Vietnam and operate in Vietnam. 

The business and competitive strategies developed in Weeks 6 and 7 are the strategic objectives you will want to accomplish through the entry strategy you develop this week.  

You will (a)  write a formal paper proposing and comparing  two potential entry vehicles (the legal structures)  that will allow  the client company to accomplish the strategic objectives  and (b)  design the organizational structure showing who will implement the strategic objectives.

Assignment  Objectives    (1) You will propose and compare two different business structures and recommend the one that is better able to realize the recommended risk mitigation and opportunity exploitation strategies and is consistent with Walmart’s rationale for expansion (which you identified  in your company profile).

(2) For the one recommended business structure, you will create a supporting organizational structure, and will specify the roles and responsibilities that will ensure that the strategic recommendations will be implemented.  The organizational chart will show the costs of each person required to implement your proposed strategic activities..

(3) Because most international expansions require some form of alliance with a local organization, any such alliance will be described in both the business structure and the organizational structure.

Note 1:  Business structures have inherent advantages and disadvantages; but your responsibility is to assess the advantages and disadvantages of the potential business structures specifically in terms of how effectively they meet Walmart’s strategic objectives. (e.g., an inherent  disadvantage of  contracted manufacturing as a business structure  is that it risks loss of intellectual property; but if your company is manufacturing a commodity item, it has no intellectual property  at risk, so that is not a disadvantage for Walmart.
Note 2: You will develop a marketing plan next week, but include in your organization structure who will be responsible for marketing and sales.  You may modify the organizational chart next week if you determine that your marketing plan will need more or different roles. But you need at least have a functional place holder to start.

Assignment  Requirements and Format  of the paper:
I. The Introduction to this paper should consist of (a) statement of purpose (b)  description of the company and its industry, (c) the  product/service that will be entered in the new country; (d) description of the target country and why it was recommended as better opportunity than the other country (use the summary information  from your week 4 country selection paper); the target Buyer and the size and growth of the target market. 
II. The body of this paper  (approximately 20 pages,double spaced) will:
A. Summarize

•    Describe the structure of the business  (the “ entry vehicle”  e.g.,  joint venture, distributorship, contract, franchise, license, sales agent,  branch office,  Strategic Business Unit --SBU; or direct export with no in country presence)

•    EXPLAIN why each structure  is being considered (i.e.,  each must meet  at least one of the most critical strategic objectives or you would have no reason to consider it)

•    Specify any alliance partner or relationship with an in- country organization (e.g., distributor, joint manufacturer or marketer) by name if possible or at least by descriptive requirements

•    Specify the strategic value of the alliance to your client AND to the alliance partner (the strategic "fit") ;
§    What the alliance partner will contribute to your client's success;
§    What the alliance partner will gain (why would it enter such an alliance)

C.  Compare the advantages and disadvantages of each business structure, specifically how well each will help to realize the strategic objectives you have identified  and recommend one as the better entry vehicle.

D.  For the recommended entry vehicle (business  structure):
•    Specify the organizational structure needed for successfully operating  the business (who does what, and where they are located) and show on an organizational chart.

o    the client company's headcount requirements
§    Show  all people your client company will need to implement this strategy. whether they are to be employees or contracted human resources, or borrowed resources from headquarters..
§    Show all contracted human resources by dotted line connection to the management role responsible for managing, evaluating, and contracting for those services.
§    show the client company's costs for each role in this proposed organization
§    indicate  start up cost and year one of operation, as two numbers: ($  / $  )
§    Your organization chart should show who will do marketing and sales. You will  develop  a marketing plan next week (detailing who will do what and materials/supplies needed) .
o    the alliance organization's headcount and relationship to the client organization
•    Describe in text the roles and responsibilities of each headcount in the organization
o    state salary per employee and number of those employees needed, as represented in each ($/$) box of the organization chart.
o    for headquarters people, determine how much time each  devote to this project and equate that time to dollars to show on your organizational chart.
•    Specify where the organization will operate and develop the costs of any facilities required for implementing this strategy(e.g,  manufacturing or assembly plant, office space, showrooms, equipment needed)


Required Readings and materials:
•    MBA Reference Guide: Foreign Market Entry Modes
•    Corporate level entry modes:
http://web.archive.org/web/http://2012books.lardbucket.org/books/challenges-and-opportunities-in-international-business/s12-03-international-expansion-entry-.html
•    Corporate level strategy: https://saylordotorg.github.io/text_mastering-strategic-management/s12-selecting-corporate-level-stra.html
•    Strategic business unit: https://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/marketing-strategies-and-planning-2/the-strategic-planning-process-24/strategic-business-units-138-1053/
•    Target markets and modes of entry: https://saylordotorg.github.io/text_fundamentals-of-global-strategy/s07-target-markets-and-modes-of-en.html
•    Distributors and dealers: http://ezproxy.umuc.edu/login?url=http://go.galegroup.com.ezproxy.umuc.edu/ps/i.do?id=GALE%7CCX2687200186&v=2.1&u=umd_umuc&it=r&p=GVRL&sw=w&asid=9fa142455e18a4a30c609e33f882b754
•    Franchising and licensing: http://sk.sagepub.com.ezproxy.umuc.edu/reference/hdbk_intlmarket/n9.xml
•    Direct export: http://sk.sagepub.com.ezproxy.umuc.edu/reference/businesstoday/n299.xml
•    Blue Ocean Strategy:http://web.b.ebscohost.com.ezproxy.umuc.edu/ehost/detail/detail?sid=267cfdc7-77d2-4871-abfb-2230dbc436cb@sessionmgr107&vid=0&hid=107&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRl#AN=17070054&db=
•    Foreign direct investment, horizontal and vertical: http://sk.sagepub.com.ezproxy.umuc.edu/reference/businesstoday/n402.xml
•    Joint ventures:https://www.boundless.com/business/textbooks/boundless-business-textbook/international-business-4/types-of-international-business-41/joint-ventures-212-5291/
•    Executing Strategy Through Organizational Design:  https://saylordotorg.github.io/text_mastering-strategic-management/s13-executing-strategy-through-org.html

1216 Words  4 Pages
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