...Citibank Case Analysis Citibank: Launching the credit card in Asia Pacific Country entry strategy Objectives of this case ... q To understand market evaluation, target market selection, and product positioning issues in services operations. q To appreciate globalization/country entry issues in financial products. q To understand the underlying economics of customer acquisition and retention. Key Strategic Issues qShould Citibank launch the card product ? Why ? Why not ? qGiven the upscale customer base , how should Citibank position its card, if it decides to launch it ? qWhich countries should Citibank enter first? Which countries should it avoid? Few More Operational Issues qHow should Rana Talwar convince his country managers and H.Q to accept the card product? What Organizational mechanisms does he have under his control? qIf you choose not to introduce the card, what do you do to achieve the $100 mio. earnings target by 1990? What kind of Branch banking products should the bank offer? Economic Analysis q How many card customers does Citibank need to break even on its investment ? Economic Analysis q First step is to ascertain the credit card revenue per customer of $163 (table B page 6) qOptions available: - assume Hong Kong experience as “typical” of the region. - If we have to target affluent with premium positioning you may use $250/ customer - for mass market strategy take $140/ customer Cost component of analysis qThree parts...
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...9-389-080 Rev. December 5, 1989 Country Analysis Framework This framework takes the nation as the unit of analysis. Effective managers must be able to analyze systematically the national and international environments in which they operate. This note presents a framework to help them do this. Since government actions shape business environments, that is the starting point for country analysis. In this view, nations have strategic purposes, the capacity to mobilize resources, and the power to affect their economies. The country analysis framework has three interrelated components: strategy, performance, and context. Each of these has economic, political, and social dimensions. All governments have a national strategy composed of explicit or implicit goals and a set of policies to achieve those goals. These lead to performance, which can be judged by assessing how well the country is doing economically, politically, and socially. These outcomes also depend on a country’s context, which has domestic aspects (economic, political, social, institutional, and ideological) and international aspects (trading relationships, political links, multilateral institutions, global industries). In turn, the outcomes affect the context for future strategies. Thus, strategy, performance, and context are interdependent. Country analysis can therefore begin with any of the three components, but requires examining all of them. Country analysis is not a mechanistic or deterministic...
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...This course provides students with the concepts, tools, and skill sets necessary to conduct in-depth analysis of the global economic landscape. The goal is to understand the underlying market and institutional mechanisms that drive globalization, shape the international business environment, and influence strategies of individual businesses. Topics we will cover include: What determines exchange rate fluctuations and currency crises? How do they affect the domestic economies and firms’ international competitiveness? What determines trade and investment across countries? How do culture, politics and international organizations interact with the global marketplace? Given the unique challenges and opportunities of operating across borders, how do firms make sourcing, manufacturing and distribution decisions on a global basis? We emphasize a deep appreciation for, and understanding of, the interdependence and interrelatedness in the world economy; knowledge of specific countries will not be the focus of this course. Classes will use a combination of lectures, case analysis, and analytical discussion of key topics and current events, with students expected to play an active role in the classroom. This course provides students with the concepts, tools, and skill sets necessary to conduct in-depth analysis of the global economic landscape. The goal is to understand the underlying market and institutional mechanisms that drive globalization, shape the international business environment...
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...emphasizes economic analysis of international business strategy formulation. Topics covered include gains from trade, costs of trade, and the competitive strategy of the international business. The course considers alternative modes of market entry, including import and export through intermediaries, contracting with suppliers and distributors, strategic alliances and foreign direct investment (FDI). Case studies are used to illustrate the basic principles of multinational business management and strategy. The course introduces the “Strategy Star” analysis. The first week of the course is dedicated to introducing international business strategy and providing a review of the micro-economics concepts that will be employed during the course. The course then introduces the concept of the ‘Global Value Connection.” This concept is used to develop global competitive strategies that depend on doing business between countries. Weeks 2 and 3 present strategies for providing global added value. The course highlights the economic aspects of gains and costs of trade that are relevant to the international business manager. Weeks 4, 5, and 6 develop the different sets of country features around the “Global Strategy Star Analysis.” This provides a framework for understanding and building an international business, and achieving competitive advantage in the global marketplace. Strategic features of the international business are grouped into (i) home country features,...
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...What is PEST Analysis? A PEST analysis is an analysis of the external macro-environment that affects all firms. P.E.S.T. is an acronym for the Political, Economic, Social, and Technological factors of the external macro-environment. Such external factors usually are beyond the firm's control and sometimes present themselves as threats. For this reason, some say that "pest" is an appropriate term for these factors. However, changes in the external environment also create new opportunities and the letters sometimes are rearranged to construct the more optimistic term of STEP analysis. Many macro-environmental factors are country-specific and a PEST analysis will need to be performed for all countries of interest. The following are examples of some of the factors that might be considered in a PEST analysis. It is very important that an organization considers its environment before beginning the marketing process. In fact, environmental analysis should be continuous and feed all aspects of planning. The organization's marketing environment is made up from: 1. The internal environment e.g. staff (or internal customers), office technology, wages and finance, etc. 2. The micro-environment e.g. our external customers, agents and distributors, suppliers, our competitors, etc. 3. The macro-environment e.g. Political (and legal) forces, Economic forces, Sociocultural forces, and Technological forces. These are known as PEST factors. Political Factors The political arena has...
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...International business, cultural analyses Cultural analysis, Porter Porter, Risk analyses Risk analysis, CSA / FSA analysis CSA / FSA analysis Overflow 2 3 4 5 6 7 DO NOT FORGET Rugman H1, H2 H3, H5, H6 H5, H13, DO NOT FORGET LAS: International Business period 1 overview 2 THEORIES ON INTERNATIONAL TRADE • Absolute and competitive advantage • Heckscher and olin’s theorem • The leontief-paradox • The flying geese model LAS: International Business period 1 overview 3 THEORY OF ABSOLUTE ADVANTAGE (Adam Smith) Each nation should specialize in producing goods it has a natural or aquired advantage in and therefore can produce more efficiently LAS: International Business period 1 overview 4 THEORY OF COMPETITIVE ADVANTAGE (David Ricardo) It is advantageous for two countries to trade if the cost ratio between the two countries differ (If producing x, expressed in y, is cheaper in country 1 than in country 2, while producing y in country 2 is cheaper than in country 1 , country 1 exports x and country 2 exports y) LAS: International Business period 1 overview 5 HECKSCHER – OHLIN • Two production factors : Labor and Capital • Availability of C and L in countries differ • The ratio C : L differs between countries • If a country has an abundance of (say) Labor labor intensive production will be cheap (relative) and vice versa. • International trade will develop between countries of which one is labor intensive and the other...
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...company and it continually looks to opportunities to grow from the small construction company they started their business as in 1963. Without expanding into the global marketplace the company currently own over twenty properties in South Western Ontario employing approximately twenty-five hundred staff members. They are currently looking to expand throughout Canada with the potential of developing into Northern parts of the United States. However there are a few challenges that are holding Steeves and Rozema back from completely agreeing to move forward with the expansion. These challenges include competition, customer relationships and regulations from the government. To overcome these obstacles would take a great deal of analysis in the two countries including consumer, market and competition evaluation. During the implementation stages a budget must be set forth for research and development including the cost of hiring staff for the work. There are many opportunities to benefit Steeves and Rozema including...
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...Introduction The country in which JC Penny does not currently do business is Iran. There are many reasons why business is not currently done in that country. This paper will cover Iran's financial perspective and business environment. It will also cover if JC Penny should venture out on its own or if it should merge with an existing Iranian company, upon choosing to do business there. Lastly it will cover risks, and payment plans if they were to go thru with the expansion into Iran. The country’s fundamental business environment from a financial perspective JC Penny is not currently doing business in Iran and for good reasons. Of all the countries in the world, the United States has the most abundant of international sanctions that prohibit or restrict business with Iran (Risk of tougher sanctions rises for businesses, 2007). Although it may be possible to conduct business in Iran, it will be difficult for JC Penny to do business in Iran. “Although most activities are not covered by sanctions, beyond a few key sectors such as energy, many banks, [sic] have been reluctant to become too exposed to the country in case tougher measures are imposed” (“Risk of tougher sanctions rises for businesses,” 2007, para. 1). The Obama administration presses allied governments and persuades corporate officials not to invest in Iran (Becker, J. & Nixon, R., 2010). Providing JC Penny negotiates the legal hurdles required to do business in Iran, JC Penny’s apparel is not what most Iranians...
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...culture factor 3 Technological factor 3 The SWOT analysis for the Alphabet Games 3 Strength 4 Weakness 4 Opportunities 4 Threats 4 A set of guidelines to conduct an Effective SWOT Analysis 6 Step 1 6 Step 2 6 References 7 Introduction of the Alphabet Games Alphabet Games is the game company which is providing the software and games apps. Alphabet Games is established in 2001 at Scotland. The company began three friends pursing a passion for the software development has grown into multi- million pound nosiness at the cutting edge of the games development market. The rented office that housed three students has been replaced by a custom built facility that houses research development and production which ranks alongside any of its comparable competitors. This report is going to claim about the PEST analysis and SWOT analysis of the Alphabet Games according to the case. Firstly, PEST analysis will be claim as follow. The four forces for change may impact upon Alphabet Games The four forces for change may impact upon the Alphabet Games in the fact of PEST analysis. PEST means that the Political factors, Economic factors, Social culture factors and Technological factors of a country which is the target market of the company. Political factor Political factor of a country means that the law, rule and regulation of the country. Of course the Alphabet Games can be impacted by the political factors. Now a day, every country is making changes and added to their law. Political...
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...its journey and become a renowned organization. Eventually this small company of 1958 turned into a publicly listed diversified group of companies and employing more than 12,000 people. The current yearly group turnover is 300 million USD. And now Square Pharmaceuticals Limited is the largest pharmaceutical company in Bangladesh and it has been continuously in the 1st position among all national and multinational companies since 1985. It was established in 1958 and converted into a public limited company in 1991The sales turnover of SPL was more than Taka 7.5 Billion (US$ 107.91 million) with about 16.92% market share (April 2006– March 2007) having a growth rate of about 23.17%. B. Background of the Export: ➢ When, Why & How Square Pharmaceuticals stared its export business? They stared their business in 1987. They are the pioneer of this sector. They started their export business with some definite objectives like to ensure company’s growth, to engrave opportunities, to earn foreign currency and along all with these to increase the overall market image. At the very beginning the found their demand in Nepal, Myanmar and USA. Thus they started their...
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...Cultural Analysis The marketer needs basic information to evaluate a country market’s potential, identify problems that would eliminate a country from further consideration, identify aspects of a country’s environment for possible adaptation, and develop a strategic market approach. One further use of the information collected in the preliminary analysis (cultural analysis) is as a basis for country notebook. A country notebook includes a Cultural Analysis, Economic Analysis, Market Audit and Competitive Market Analysis. The data suggested in the cultural analysis includes information that helps the marketer make market-planning decisions. However, its application extends beyond product and market analysis to being an important source of information for someone interested in understanding business customs and other important cultural features of the country. The information in this analysis must be more than a collection of facts. You need to interpret the meaning of cultural information. That is, how does the information help in understanding the effect on the market? For example, the fact that almost all the populations of Italy and Mexico are Catholic is an interesting statistic but not nearly as useful as understanding the effect of Catholicism on values, beliefs, and other aspects of market behavior. Furthermore, even though both countries are predominantly Catholic, the influence of their individual and unique interpretation and practice of Catholicism can result in important...
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...e 2/4/2014 | 1 Comparative Country Studies (CCS) BSc IB - EBB686A05 International Business Lecturers: Henk Ritsema, coordinator Abdul Erumban Huib Stek 2/4/2014 | 2 Overview › › › › Introduction Course format Course plan Literature / Individual assignment › About Comparing Countries 1 2/4/2014 | 3 Introduction › The goals of this course are: 1. To develop and apply analytical skills to understand socio-economic differences between countries; 2. To assess how these differences impact the climate for doing business across countries. Theory and Application 2/4/2014 | 4 Course format › Tutorials (with student teams): • Theory tutorials (TT) • Application tutorials (AT) › Combining theory with application country Factbook • • • • Tools/Methods Application of tools Comparative analysis Recommendation › Industry perspective 2 2/4/2014 | 5 Assignments and Grading/Feedback › Team assignments (70%) & Individual assignment (30%) › Team assignments: • Paper on / synopsis of materials of Theory tutorials (30%) • Factbook grade (40%) › All assignments: minimum of 5 › Overall: minimum of 5.5 › Participation / performance as presenters, reviewers or chair (+/- 1 grade point on team assignments) › Are you allowed to take this course? Propaedeutics or positive BSA › Passing 2nd year courses but failing 1st year courses leads to removal from the program 2/4/2014 | 6 First Application tutorial (starting tomorrow) › Each team...
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...online appendix a to chapter 9 Tariff Analysis in General Equilibrium Chapter 9 takes a partial equilibrium approach to the analysis of trade policy. That is, it focuses on the effects of tariffs, quotas, and other policies in a single market without explicitly considering the consequences for other markets. This partial equilibrium approach usually is adequate, and it is much simpler than a full general equilibrium treatment that takes cross-market effects into account. Nonetheless, it is sometimes important to do the general equilibrium analysis. In Chapter 6 we presented a brief discussion of the effects of tariffs in general equilibrium. This appendix presents a more detailed analysis. The analysis proceeds in two stages. First, we analyze the effects of a tariff in a small country, one that cannot affect its terms of trade; then we analyze the case of a large country. A Tariff in a Small Country Imagine a country that produces and consumes two goods, manufactures and food. The country is small, unable to affect its terms of trade; we will assume that it exports manufactures and imports food. Thus the country sells its manufactures to the world market at a given world price P * and buys food at a given world price P * . M F Figure 1 illustrates the position of this country in the absence of a tariff. The economy produces at the point on its production possibility frontier that is tangent to a line with slope -P * >P * , indicated by Q 1. This line also defines the...
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...concept should be reduced to successfully achieve the objective of family tourism in Bangladesh. Through the limited secondary data, and qualitative analysis we are trying to find out the prospect of it in Bangladesh. Tourism is a leisure activity which involves a discretional use of time and money and recreation is often the main purpose for participation in tourism (Ghosh, 2001). Tourism is emerged from the movement of people to and their stay in various destinations. There are two basic elements in tourism, such as the journey to the destination and the stay. In short, tourism means the business of providing information, transportation, accommodation and other services to travelers (Ghosh, 2001). Tourism may be broadly divided into domestic tourism and international tourism. In domestic tourism, people move within their own country whereas in international tourism, the barriers exist in travelling destinations beyond national boundaries ((Zulfikar, 1998). In tourism, tourist acts as the key player in this system. The term tourist is defined as who goes on holiday to visit places away from his home. Foreign tourist is a person who visits a place and stays at least 24 hours on a foreign passport for the purposes of leisure, business, meeting and so on. On the other hand, domestic tourist is a person who travels within the country to a place other than his place of residence and stays at hotel or rented place and uses the sightseeing facilities for duration of not less than...
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...OVERVIEW This is initial guidance on how to prepare the three-part assignment to complete an “Export Report” for a target company of your choosing. I will be updating the guidance on parts 2 and 3 later on (though mainly expanding and providing more detail, not changing the substance). The details on part 1 will not be changed but possibly a little additional clarification will be added on Moodle if needed. You must choose a real company offering a real good or service to be exported to an overseas market where it is not currently being offered now. Having selected the company and product/service export candidate, you must then choose a minimum of three candidate country markets where that good/service might be exported. You will analyse the likely success that the candidate export might have in those potential markets and choose one of those country markets which, based on your analysis, you believe will have the greatest likelihood of success. You must not only analyse the information you collect but argue persuasively for the conclusions that you draw from that analysis. Your analysis should be informed by the theories and concepts presented in class (such as theories of trade and investment); your analysis should be informed by those theories and indicate an understanding of them. However you are not required to explicitly refer to those theories and concepts except as needed to support your case for moving into specific country markets. Each part of this assignment...
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