Developing an international entry strategy

  

Country is:  Tanzania  Organization: TJX Companies

The report should be 10–12 pages, excluding cover page, executive summary, reference list, and appendices. Any tables, graphs, and figures should be included as appendices. Your report should have one-inch margins and be double spaced in 12-point Times New Roman font. In-text citations and references should abide by APA format. The report should be organized using headings and subheadings to improve its readability.

Your final international entry strategy should include the components outlined in the Project 4 Report template (attached)

  

As you prepare to select a new country for your client to expand into, remember that you will need to accomplish one of the following actions:

  • * offer your client organization’s products in that country
  • * establish value chain activities in that country
  • * some combination of the first two options

  Step 1 –   Assess Opportunities and Challenges of International Expansion –  You should also consider principles of internation strategy for doing business in your selected country. What products are good candidates for generating additional revenue for your client’s organization from expansion into the selected country? Your country risk assessment should include a detailed analysis that answers the questions posed in the following steps 

Step 2 – Conduct a PESTEL Analysis – in relation to the industry in which your client’s organization operates. In other words, you are looking at the country through the prism of the industry in which your client conducts business.

Step 3 – Assess Global Value Chain –   

What activities, if any, in your client’s value chain are candidates for relocation to the country you selected? If there are no activities that can be relocated, explain why. If there are activities that can be relocated, provide a brief justification and examine the challenges you see in coordinating the global value chain after the proposed value chain activities of the organization are set up in this country.

Step 5 – Examine Cultural Issues –  Include information about the following cultural issues in your analysis:

· What cultural differences are likely to influence your client’s operations (e.g., marketing, human resources, etc.) in this country? For background and guidance, read about international cultural differences and the impact of culture on best-practice production and operations management.

· Would your client’s products need to be localized or marketed differently in this country? Explain why or why not. Read about conducting market research for help.

· Are there any issues that your client’s corporate social responsibility or compliance programs may need to address while operating in the selected country?

Step 6 – Choose a local alliance Partner & Develop Your Clients (TJX) Entry Strategy –   consider the types of international strategies that are often employed, the benefits of a local alliance partner, and the degree of fit your client has with the selected country. 

Perform the following assessments as part of your strategy formulation:

· Analyze your selected country as both a market for your client’s products and as a site for certain value chain activities.

· Short-list and profile potential partner company candidates in the selected country.

· Determine what company you will select for partnership or alliance. Evaluate the benefits this partnership would bring to your client organization’s market position or profits.

· Detail the pros and cons of three market-entry modes. Which entry mode would you recommend and why? How does your chosen mode fit your client’s goals and objectives? For help in answering these questions, review modes of entry.

· Estimate the financial investment required for the selected entry strategy.

Step 7 Determine the Clients Degree of Fit with the Country

  

The next step in developing your entry strategy is to determine the degree of fit your client’s organization has with the selected country. Answer the following questions in your entry strategy:

· How would you make the strategic alliance work? Regulations and laws governing different types of business entities vary considerably from one country to another. What kind of legal business entity do you recommend for your client in the country of operation? What will be the impact of certain country laws on this type of business entity?

· What are the operational roles and activities of the partners? Design an organizational chart for operations in the country. Explain why you have chosen this organizational structure.

· What will be the likely impact of the country’s culture and geography on your client’s organization, the value chain activities that are being relocated to the country, and the growth in sales of your organization’s products in the country? Review Globalizing the Management Model to deepen your understanding.

Be sure to use template and include: Executive Summary, graphs and charts, graphics to enhance your report/findings. 

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