Part 1 Essay (àplease choose one of two)
Assignment
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Assuming the role of an IB consultant, give your explanation/analysis/recommendations as required.
Be specific. Structure and prioritize your essay in order of logic and importance within the set space limit. Begin writing by summarizing the most important issues and definitions and explaining concepts. Substantiate your points with important theoretical statements and practical illustrations (facts, statistics, etc.).
Option 1: Explain the meaning of and key factors affecting distribution strategy. What are the main differences among countries’ distribution systems?
Option 2: Based on the video A NEW MODEL FOR EMERGING MARKETS, discuss strategic recommendations for U.S. companies expanding into emerging markets. Explain what constitutes the novelty in the context of emerging markets and give specific illustrations from the video on the two business startups.
Part 2 Strategic IB case analysis. Limit ≤1 page, typed. Submit electronically no later than Apr 29, 11:59 PM PST.
Grading strategic analysis in IB:
50% – demonstrated knowledge of theoretical/methodological concepts.
20% – knowledge of specific sources of information and assistance in IB.
20% – quality of practical recommendations.
10% – quality of presentation (structure, priorities, logic and flow).
You are assigned an IB consulting project (international expansion).
SeneGence International (SGI) is a U.S. based, privately owned, network marketing company offering a full line of long-lasting cosmetics and anti-aging skincare. Our company would like to meet interested parties who would entertain a relationship such as Joint Venture Partner or License to open and operate.
Company: SeneGence International; www.SeneGence.com
9211 Irvine Blvd; Irvine CA 92618 United States
SGI Background As a newly single mother, Joni Rogers-Kante began in 1995 with a business plan and set out to make her dream a reality. She founded SeneGence® in 1999 and the company has since become an international leader in the cosmetics industry. Joni traveled across the world with a team of scientists and botanists to find different ingredients than those available in the U.S. for the unique formulas in SeneGence products. Today, these unique ingredients are used to help produce amazing results in SeneDerm® anti-aging SkinCare and long-lasting SenseCosmetics™ products. The SeneGence line stays on the cutting edge of technology with original, patented and proprietary formulations of cosmetics that stay on until you take them off blended with the same anti-aging properties of the skincare that make the skin more beautiful.
SGI is experienced in international operations.
Availability of financial resources for foreign investment – limited.
U.S. market is highly competitive and is dominated by large global companies like Johnson & Johnson and L’Oreal.
SGI asked for your recommendations on international expansion:
Conduct market analysis by SPECIFICALLY using the step-by-step approach: https://www.export.gov/article?id=Step-by-Step-Guide.
Recommend two best attractive countries (markets) for SGI’s expansion worldwide.
Assess and discuss key comparative benefits, costs, and risks of expansion to these markets. Narrow down from two to one best (target) market.
Recommend the best entry strategy to the target market: exporting v. FDI, v. licensing.
