1. You are an Indian Company manufacturing machine parts made of steel and exporting to US.

With Donald Trump imposing Tariffs, you have decided to manufacture some of your products in
North America and use this as an opportunity to expand your business in that part of the globe.
You want to set up the factory either in Mexico or in Canada for this purpose. Evaluate the two
location options of setting up the Plant and Business on basis of International Business &
Marketing Environment parameters to come to a decision.

Answer: The meaning of business condition implies the majority of the inside and outside variables that
influence how the organization capacities including workers, clients, the executives, free market activity
and business directions. A case of a piece of a business situation is the manner by which well clients'
desires are met.

Area explicit points of interest allude to elective nations and areas completing worth included exercises
in various areas. Area preferences incorporate plentiful work, low wages, uncommon duties or taxes and
accessibility of modest crude materials. These days, countless are directing business based on area
explicit focal points. Firms increase or adventure their proprietorship focal points by taking part in
worldwide activities through outside direct venture. Factor blessings likewise assume a basic job in this
procedure. In the present globalized time, firms take choices with respect to their entrance into universal
markets by understanding the factor blessing of a specific market. Area explicit points of interest can be
isolated into four gatherings:

a) Natural assets focal points: Some nations have normally blessed assets. For instance, Gulf
nations have tremendous oil and oil saves that pull in organizations over the globe to make
interests in the oil and gas area. Along these lines, nations that have beach front network can
move their items effortlessly in universal markets.

b) Economic condition favourable circumstances: Economic preferred standpoint nations have

modest and very much prepared workforces, trend setting innovation, semi finished merchandise,
economies of centralization, low duty boundaries and amicable business condition. This enables
the organizations to choose an explicit area for their speculation.

c) Cultural and social favourable circumstances: Countries that share indistinguishable esteem
frameworks, ethnic gatherings, dialect, inclination and general state of mind gain inclination
from a venture perspective. Firms think about social and social points of interest while settling
on a favored area.

d) Political and legitimate condition: Countries that give political steadiness, practical economy,
enhanced lawful and institutional condition, alluring FDI strategies and least directions are
probably going to draw in rewarding worldwide speculation. Political and legitimate condition
are likewise crucial from the speculation perspective in global markets.

Showcasing and business condition in Mexico

Mexico is a simple and energizing spot for working together. The World Bank places Mexico at 39th
rank on its Ease of Doing Business Index. Mexico especially exceeds expectations in the 'Getting Credit'
classification, in which it is positioned twelfth around the world. Other than Mexico's own sizable
market and venture amicable approaches, it has a key preferred standpoint as a portal to the world's
biggest NAFTA showcase and additionally other Latin American markets. Mexico was the main goal
for both capital speculation and FDI extends a year ago in Latin America and the Caribbean area. Indian
organizations have seen this and they are expanding their essence in this locale by making Greenfield
speculations and setting up joint endeavours - on account of Mexico's vital geographic area, accessibility
of exceedingly qualified human capital, aggressive working expense and unhindered commerce
coordinate with 46 nations.

No less than one Indian organization is available in 17 of Mexico's 32 states. As indicated by PwC
records, joined with those of the Embassy of India in Mexico, there are around 180 Indian organizations
in Mexico, out which 52 organizations have a worldwide nearness. Indian interest in Mexico is in charge
of the work of roughly 30,000 people, as indicated by the assessments of the Embassy of India in
Mexico. Mexico's GDP development rate in 2017 is anticipated to associate with 2 percent. Mexico is
the biggest exchanging country in Latin America, representing around 40 percent of the locales outside
exchange. Its market is unguarded with low taxes and an anticipated, financial specialist inviting
approach routine. Over the most recent four years, it has completed numerous changes, opening up to
this point confined segments, for example, vitality. It has turned into an assembling centre point of the
Americas with a worldwide initiative position in some shopper machines; it is aggressive in aviation and
cutting edge enterprises. Mexico has such a great amount to offer on the off chance that you work
together there so we may think to setup the plant there.

Advertising and business condition in Canada

Canada positions ninth among the 60 biggest economies on the planet, says an investigation by Grant
Thornton. The positioning depends on 22 pointers crosswise over five development territories: business
working condition, innovation, work advertise, showcase development and financing condition. Canada
positions first for its business working condition, which considers key markers, for example, remote
exchange and trade routines and controls and strategy towards private endeavour and rivalry. In any
case, Canada needs to chip away at advancing itself as a decision business goal that bolsters the
development of remote organizations. Canada additionally positioned twentieth in innovation, as
organizations need to put resources into the most recent developments to remain focused.

Canada is one of the universes' wealthiest countries. Canada's economy is to a great extent driven by the
administration business, which utilizes around 75% of Canadians. Canada has significant assembling,
vitality and rural divisions. The United States stays by a wide margin Canada's greatest exchanging
accomplice giving a consistent market to Canada's fares. Canada likewise has expansive common stores
of gold, oil and gas. This implies the economy is exceptionally flexible, not depending excessively on
one segment. The legislature has made an empowering domain for organizations to flourish.
Empowering directions have been made to cut down the simplicity of working together.

According to my view, the two nations are great to begin a business there. The two nations have great
relations with India and numerous Indian organizations are as of now working in these nations. Indian
organization may pick any one nation to set up the business there based on previously mentioned data.
2. You are the CEO Starbucks and wish to enter India. Evaluate any 3 entry options to enter into
India. Which of the market entry options would you finally choose & why?

Answer: Passage modes may change from organization to organization or notwithstanding for a solitary
organization relying on an assortment of variables as examined beneath:

a) Size of the organization – Generally, bigger organizations have vast money related assets and
labor aptitude to deal with worldwide tasks in an aggressively better way. Along these lines, they
enter the worldwide markets utilizing the speculation and long haul duty.

b) Market potential – In business sectors with impressive size and development openings, an
organization may enter by method for putting more assets and venture.

c) Company goals – Depending upon the organization's destinations in the objective market, the
firm may settle on the passage mode.

d) Commitment of the organization – The internationalizing firm may settle on its pledge to the
market and pick the most proper section mode.

e) Control – in the event that the internationalizing organization will practice more prominent
authority over its worldwide tasks, it might pick the speculation passage mode.

f) Willingness to go out on a limb – Depending upon the organization's eagerness to go out on a

limb in the market, a firm may settle on the passage mode as fares include least dangers while
completely claimed auxiliaries include the best dimension of dangers.

g) Profitability – Except for entirely claimed backups, in most legally binding section modes, one
needs to impart the neighborhood benefits to the accomplice associations, though in fares, one
needs to fulfill oneself with F.O.B (Free on Board). or on the other hand C.I.F. (Cost, Protection
and Cargo) value acknowledgment as it were.

International Licensing

Licensing is the mode of entry in which a firm of a country offers to allow a company in another country
to use its expertise through a written contract called the “license”. It involves offering a foreign
company the rights to use a firm’s proprietary technology and other know-how, usually in return for a
fee plus a royalty on revenues. Intellectual property rights, manufacturing, processing, trademark, and/or
technological know-how are shared by the licensor company with the licensee company. Licensing is
very common in several industries such as IT and pharmacy. Some of the advantages of licensing are:

 Quick access to international markets

 Less possibility of political risk
 Easy to diversify the product
 Low manufacturing risk
 Focus on marketing efforts only
 Easy entry and exit
International franchising

Franchising is a special form of licensing in which the franchisor avails a total marketing program,
including the brand name, logo, products and methods of operation. Franchising is defined by
International Franchising Association as “the contractual relationship between the franchisor and the
franchisee in which the franchisor offers a continuing interest in the business of the franchisee in such
areas as know-how & training, where the franchisee operates under a common trade name, format
and/or procedure, owned or controlled by the franchisor and in which the franchisee has or will make a
substantial capital investment in his/her business from his/her own resources”. In reality, franchising is a
contractual agreement between a franchisor and a franchisee, which allows the franchisee to conduct a
given form of business under an established name. Usually, the franchise agreement is more
comprehensive than a regular licensing agreement, in as much as the total operation of the franchise is
prescribed. While licensing works well for manufacturers, franchising is often suited to the global
expansion efforts of service and retailing. Most food chains such as McDonald’s, Pizza Hut and KFC
(Kentucky Fried Chicken) are expanding in the international markets through franchising. There could
be various types of franchising such as franchising for product, manufacturing, business, business format
and events. Benefits of international franchising are:

 Name recognition and global branding

 Reputation building
 Economies on advertising
 Support to various franchisers across the world
 Rapid expansion with minimal investment

International strategic alliances

A strategic alliance is arrived at when at least two organizations consolidate for a pre-decided
timeframe. It is a between firm co-agent relationship that upgrades the viability of the aggressive
systems of the taking part firms by the exchanging of commonly valuable assets, for example, advances
and abilities. The organizations, normally, are not in direct rivalry, but rather have related items or
administrations that are coordinated towards a similar target group of onlookers. Key collusions
empower organizations to increase upper hand by giving access to an accomplice's assets, including
markets, advances, capital and individuals. Collaborating with others includes correlative assets and
capacities, empowering members to develop and extend all the more rapidly and proficiently. The major
benefits of strategic alliances are:

 Strategic alliance provides an opportunity for the internationalizing enterprise to expand overseas
by making use of capabilities and competencies from its partner.
 Entering a new market overseas may be complicated and costly. It may expose the enterprise to
several obstacles such as entrenched competition, hostile government regulations and additional
operating complexity. Risks of opportunity costs and direct financial losses due to improper
assessment of the market situations are also involved. Strategic alliances help in overcoming
such issues.
  Enterprises can make use of the strategic arrangement to reduce their individual enterprise’s
financial risk.
 A company might be confronted with political factors and strict regulations imposed by a foreign
government when bringing a product into another country. In such circumstances, a strategic
alliance will enable enterprises to penetrate the local markets of the targeted country.
 A strategic alliance helps combine individual strengths of the internationalizing firm and its
foreign partner, thus enabling it to compete more effectively and perform better compared to
attempting to do so on its own.

Starbucks should choose strategic alliance as a market entry strategy to enter in Indian market. Various
reasons for developing strategic alliances include the following:

 Forming economies of scale

 Enhancing competitiveness
 Dividing risks
 Setting new standards for technology
 Entering new markets
 Overcoming the competition in a market

3. The Tanzania Toothpaste market has strong growth and reasonable volume. The market is
dominated by Colgate which has more than 65% market share and rest 35% percent are scattered
within 6-7 local players. Colgate is the market leader in prices while all the other local players are
about 20-25% cheaper in prices. The top three parameters of buy of Tanzanian consumers are
Health, White Teeth & Freshness in that order. While Colgate positions itself on health platform,
other local players are positioned on other 2. One of the biggest reason for lower market share is
poor print quality on the toothpaste tubes where as Colgate gets its products from Europe where
better quality printing facility on tubes is available. You are an Indian contract manufacturer for
Unilever in India and are now eyeing the Tanzania market where there is no clear number 2. You
have set up a Contract manufacturing and Distribution partnership with C&C which is a local
business conglomerate who apart from other businesses are also into FMCG but not into
Toothpastes. You have decided to export quality printed toothpaste tubes from here for the
purpose to overcome the problem faced by local manufacturers.
a. Suggest what would be your pricing strategy for the new brand of toothpaste that you would
introduce in Tanzania market based on the information.
b. Suggest the possible brand positioning for your Toothpaste in the Tanzania Market.

Answer: a) Various evaluating techniques for another brand of toothpaste in Tanzania market may
incorporate the accompanying:

a. Market infiltration technique – Under this procedure, exporters offer a low starting cost to
accelerate their deals, along these lines enlarging the market base. It goes for catching a
sizeable offer in the market, particularly if the nature of the item is demonstrated with its
wide acknowledgment.
 b. Probe evaluating system – Fixing a low cost for an item may adversy affect the picture of
the firm and of the item. It might bring questions up in the psyches of the purchasers
about the nature of the item in the event that it is lower than the cost of contenders or in
the event that it is lessened hence later.

c. Follow the pioneer valuing procedure – In a focused world market or where sufficient
market data isn't accessible, it might be helpful to pursue the pioneer in the market. The
exporters can contrast their items and that of the pioneer and after that settle the costs as
needs be.

d. Skimming valuing procedure – Under this system, a high basic cost is settled to skim the
cream of the interest at the plain start. This approach is by and large presented when there
is no opposition in the market.

e. Differential exchange edges technique – Variation in exchange edges might be embraced

by the exporter as the estimating methodology in fare showcase. This technique permits
different sorts of limits on the rundown cost. Amount limits support in obtaining
enormous requests.

f. Standard send out valuing technique – now and again, the exporter cites the standard cost
or rundown value, that is, one cost for all. Yet at the same time there ought to be some
edge for transactions – particularly in immature nations – in light of the fact that bartering
over costs is a piece of life in numerous business sectors.

g. Lower cost for unique hardware and more expensive rate for extra parts – In specific
cases it may be helpful to cite bring down costs for the first gear and charge more
expensive rates for extras and new parts to be sent out later, as and when required. This
methodology is valuable where just the provider of the first hardware can supply standard
extra parts.

For the new brand of toothpaste we would utilize Follow the Leader valuing approach. Pursue the
Leader evaluating strategy is an estimating approach in which one firm in the business accept the job of
a pioneer in deciding the cost, and alternate firms in the business rough their costs to that of the pioneer
(i.e.- the firm that starts the cost). The firm which starts the cost is known as the pioneer and alternate
firms following the cost are known as the devotees. By and large, the pioneer decides the costs of his
items in such a way, to the point that it might make a feeling that the costs of his association's items are
low. We are giving an item which is like the pioneer in the market and along these lines will value our
item when contrasted with the pioneer.

b) Positioning is the procedure by which an organization sets up a picture for its item in the psyches of
clients with respect to the picture of the items offered by contenders. Worldwide situating is undeniably
more convoluted than situating in the household showcase. The significance of item characteristics may
shift from market to advertise. Open doors for worldwide situating may likewise be obliged by the
diverse degrees of advancement in the nearby showcasing framework, for example, electronic media.
All around settled in nearby brands can likewise cause issues by making aggressive weights that request
an alternate situating. Be that as it may, the open doors for worldwide situating are growing because of
the assembly of tastes. Worldwide correspondence media and regular travel crosswise over nations are
making a level of homogeneity in purchaser tastes over the world. When all is said in done, worldwide
situating is prescribed

 When comparative client fragments exist crosswise over nations,

 Similar methods for achieving such fragments are accessible,

 The item is assessed also by clients over the world and

 Competitive powers are equivalent.

By and large, an organization must dodge four noteworthy situating blunders.

a) Under situating: Some organizations find that purchasers have just an unclear thought of the
brand. The brand is viewed as simply one more section in a swarmed commercial center.

b) Over-situating: Buyers may have excessively slender picture of the brand.

c) Confused Positioning: Buyers may have a befuddled picture of the brand coming about because
of the organization's such a large number of cases or changing the brand's situating too as often
as possible.

d) Doubtful Positioning: Buyers may think that its difficult to trust the brand guarantees in
perspective of the item's highlights, cost or producer.

Different situating systems are as per the following:

a) Attribute Positioning: An organization positions itself on a quality, for example, size or number
of years in presence. For instance, Sunfeast positions its snacky image as greater lighter and
crisper.

b) Benefit Positioning: The item is situated as the pioneer in a specific advantage.

c) Use or Application Positioning: Positioning the item as best for some utilization and application.
For Example, Kenstar situated its item as suddenly chilly.

d) User Positioning: Positioning the item as best for some client gathering.

e) Competitor Positioning: The item professes to be preferred here and there over a specific
contender.

f) Product Category Positioning: The item is situated as the pioneer in a specific item classification.
 g) Quality or Price Positioning: The item is situated as offering the best esteem.

The organization can pursue Product classification situating to position their item in global market.
Situating by item class is a critical promoting strategy in light of the fact that a business can acquire
buyer presentation by offering an item that works with or has a connection to an underlying item they
may know and trust. Likewise, situating by item class can build an organization's benefits by exhibiting
more things from your product offering to shoppers who might be comfortable with or faithful to your
image name. This is particularly key when comparable items you position in your item class are
exceptional with no comparative contributions by contenders.