Section 2.1 Type of goods or service
Section 2.2 Potential Competitor Analysis
Section 2.3 Statement of objectives
Section 2.4 Organizational Structure
Section 2.5 Integrating and controlling systems
An international business refers to trade between two or more countries. The aim is to expand the market by venturing into other countries. Hence it is crucial to prepare an international business plan so as to make it happen. In order to develop an IBP, a series of steps may be followed.
First, we should determine the services to be offered or the goods to be exported. However, before developing an IBP, it is crucial to take into account some factors such as the natural resources, geographic factors such as relief and climate, level of technological development, culture, demographic trends and political stability of that country. For instance, I can venture into the export of ice cream from New Zealand to Finland.
Secondly, we should identify the potential competitors of the goods or services being exported. For instance, Rush Munro Company, Kiwi Ice Cream Company and New Zealand ice cream Company all export ice cream to countries such as Japan, Russia and China.
Third, we should state objectives of exporting the good or service. For instance, to produce an inexpensive product of high quality that will impress the consumer. Such an objective will aim at achieving low production costs and at the same time to produce a product of high quality which will impress the consumer. Centralizing the production of a product will help to achieve the set objectives. Marketing will be somewhat decentralized due to the need to ensure the approach works for the Chinese market .
The fourth step involves laying out the organizational structure which is adopting a global matrix structure in line with a trans-national strategy . The advantage of a matrix structure is the ability to focus on achieving economies through location and experience curves, enable local responsiveness and facilitate the transfer of incompetency internally.
Finally, we need to include Integrating and Controlling Systems whether formal or informal. When the business is still small, it is possible to contact those involved directly and simply. Nevertheless, when it grows and expands, we keep it running via utilization of liaison roles, team work and matrix structures so as to achieve the set objectives. Informally, we will also foster cohesion through internal management networks by using email and other technological aids to communication and holding regular conferences where all managers get together to focus on the business.
Gutterman, R. L. (2011). A Short Course in International Business Plans 3rd Ed., eBook. California: World Trade Press.
S. Tamer Cavusgil, . R. (2009). Conducting Market Research for International Business. New York: Business Expert Press.