Case Study 3 - iii PDF

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Case Study 3: International Business Plan 1. What could Patricia have done differently in her overall approach to her task in developing international sales for Unlimited Combines? When Patricia was tasked with developing an international business plan, she failed to incorporate the most basic step right from the start, which was to set a clear objective for the company’s international approach as well as the measures that would be used to evaluate it. She did not mention how many international markets would UC limited be seeking to enter, the time frame that was designated for pursuing this objective, and the criteria that would be used to measure the success of this operation. The absence of these key points about the company along with more specific background information about their industry has led to unsuitable replies from the trade officers that were contacted, as they presented many opportunities that weren’t associated with UC Limited’s domain. Although the contents of her plan discussed culture and ethics, she still didn’t dedicate effort to translating the letters and surveys that she sent out to companies into languages other than English. This resulted in a very low number of replies which limited UC Limited’s international partnership options and highlights the lack of resources that were invested into the planning process. Furthermore, a clear corporate strategy should have been defined for UC limited to follow when it comes to exploring new markets. This would have outlined the terms that UC limited wanted to follow, and hence would’ve allowed them to focus on markets that conduct business based on similar terms. Once Patricia has identified promising business partnerships abroad, she should have revised the business plan in order to tailor it to each specific country and company of interest. This would have allowed UC Limited to research the countries identified further and evaluate whether their business practices were aligned with the company’s objectives and needs. Additionally, there was no mention of key elements in the business’s external environment such as an analysis of competitors or an evaluation of the size of the market that UC Limited was seeking to enter. This resulted in wasting the time and resources of the company as Patricia attempted to pursue a business partnership in Japan despite their main farming focus being rice. Patricia should have also ensured that the necessary financial resources were in place prior to rushing into discussions with another business. Many businesses want to be assured that their new partners are capable of financing their operations and the lack of planning in this area was seen as a concerning factor in the Japanese’s decision-making process. Similarly, Patricia’s lack of willingness to obtain support on the pricing and global logistics aspects of the business agreement showed that she wasn’t well prepared or dedicated to accommodating any of the demands of global trade, and that she would rather stay reserved and avoid any risks or additional tasks. This can also be tied into the failure of UC Limited to prepare a cost-benefit analysis prior to pursuing this venture in Japan, which could have been used for guidance on what business terms are worth the risk and what terms the company should refrain from pursuing. On that basis, a contingency plan was never put in place, which put Patricia under

a large amount of pressure to make sure that she could make the most out of her stay in Japan and devise a deal. 2. What could Patricia have done differently in order to plan her business trip to Japan– and if she decided to go, make it more successful? The failure to devise a more effective business plan has limited UC Limited’s partnership options specifically to Japan, which may have not been the best partner for UC Limited to sell their farming equipment. However, in order to make the most out of the situation, Patricia should have prepared before hand by translating all communication prior to the trip to both English and Japanese. This gesture would make the company respond in whichever language that they felt most comfortable conducting business in and would’ve cleared any misunderstandings. This would have also allowed her to better understand their approach to this venture and hence would have resulted in a better strategy to be implemented moving forward. Additionally, upon deciding to pursue the only promising deal that UC Limited has received so far by visiting Japan, Patricia could have prepared differently in a number of ways. To begin, Patricia should have put more research into the company and their location. This would allow her to estimate the distance from the airport and arrange her transportation accordingly. It would also give her a better idea of what business setting to expect and allow her to prepare for it. Moreover, Patricia should have contacted an interpreter before landing in Japan and arranged for them to accompany her through her trip and aid her in her business negotiations. Translating the business documents and brochures that she brought along into Japanese as well would have been very informative to the Japanese executives and would have given them a clearer picture of UC Limited’s practices and resources. This would show the Japanese that she was serious about striking up a deal, and that she has put thought into accommodating their needs. Furthermore, Patricia could have prepared for the trip by researching Japan’s cultural practices, such as their business etiquette and the importance of gifts. This would show her effort to blend in and would be seen as a token of her respect and appreciation for their cultural differences and UC Limited’s willingness to accommodate their future partners. Research into Japan’s business practices would have also revealed the commonality of paying bribes in order to facilitate business deals, which would have presented an important ethical question for Patricia in terms of the best way to go about this dilemma. It could have even allowed her to find an alternative solution to this practice, that is more guaranteed and would not present any financial or legal challenges. In the case of being bombarded by this fact upon arrival, she should have had a good contingency or exit plan in place that would have allowed her to negotiate on better terms or terminate the deal altogether for the sake of upholding her company’s values and reducing their financial commitments. Also, in fears of her product being reverse engineered, she should have ensured that patent and copyright restrictions were put in place or obtain a legal agreement that would clearly forbid the imitation of the equipment offered. A well devised legal agreement would have eliminated many fears and risks that Patricia had, which held her back from being more compliant with the Japanese’s demands. Similarly, knowing that Patricia would be visiting Japan, she should have

attempted to reach out to more than one company there in her pursuit of a new partnership. This would have given her leeway for negotiation and would have allowed her to exercise a more promising contingency plan and learn from her mistakes along the way as she prepared for the next meeting....