Chapter 6 Understanding and Identifying International Business Opportunities & Trends

1. Chapter 6Understanding and Identifying International Business Opportunities & Trends

2. 6.1 Understanding International Opportunities • What are some major trends influencing products and services around the world today? • List some products available in other countries but not in Canada.

3. 6.1 Understanding International Opportunities Business Idea vs. Business Opportunity What's the difference? Idea = an opinion or thought Opportunity = favourable opportunity that presents itself • Not all ideas make good opportunities. WHY? • Timing not right • Too expensive • Transportation difficulties

4. 6.1 Understanding International Opportunities • What makes a good opportunity? • ensure that company's product will meet a need or solve a problem in another country • How to obtain international opportunity? • Win contract • (REQUEST FOR PROPOSAL-RFP)‏ • Take initiative "seize the moment" • Go abroad and see something that doesn't exist here • Based on international reputation

5. 6.1 Understanding International Opportunities 1. Idea Creation FINAL Application Product Innovation Process Initial Experimentation Feasibility Determination • Why is innovation important? • Stay competitive • Increased performance • Improve processes • Ex. POSCO's • – Steel mill in S.Korea, entrance • sign reads: "Resources are limited, creativity is unlimited"

6. 6.1 Understanding International Opportunities • Mission Statement • Answers "Where are we going" • Visionary, Broad, Realistic, Motivational, Short & Easily Understood • Mission Statement examples: • "McDonald'svision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile.“ • “At IBM, we strive to lead in the invention, development and manufacture of the industry’s most advanced information technologies, including computer systems, software, storage systems and microelectronics. We translate these advanced technologies into value for our customers through our professional solutions, services and consulting businesses worldwide.” • Harold M. Brathwaite – "To be a community of active learners and engaged citizens in which all members are intellectually curious, environmentally responsible and socially active

7. 6.2 Identifying International Opportunities and Trends • Entrepreneur • Organizes manages and assumes risk of starting and running business • Global Entrepreneurs have vision to see their business in • international markets • Approach business with GLOBAL MINDSET: • Motivated, sensitive, respectful & driven by new cultural settings • Provide equitable environment in workplace • Be a leader in discovering new opportunities

8. Cooling Off Take Off Maturity Production Stops Growth SALES New Trend Embryo Decline TIME 6.2 Identifying International Opportunities and Trends TREND = Direction or movement of marketplace today or in immediate future Product Life Cycle Re-birth Stage ex. VW Beetle!

9. 6.2 Identifying International Opportunities and Trends • Estimate where the following products are in their • life cycles: • A three-year-old cell phone • A one-year-old textbook • A television sitcom that has been running for • 5 years.

10. 6.3 Mapping International Trends Key International Trends • The Global Workplace • Canadians to sell professional services • Decline of lifetime employment – must be flexible and skill portable • International careers RISKY • Job jumping has negative effect on resume • Lose ties to family, friends – become a "nomad"

11. 6.3 Mapping International Trends Key International Trends 2. Increased Global Competition • Hyper-competition – disruption of existing markets by flexible, creative and fast moving firms • Wal-Mart – moving in with LOW prices • H&M travels from Europe to find home in Canada • Entertainment Industry in B.C. & Ontario

12. 6.3 Mapping International Trends Key International Trends cont’d… 3. Global Information Technology, Convergence & Infrastructure • Easier to enter foreign markets • Technological Convergence – able to enter each others markets • World "shrinking"- time to get info across shrinks • Imagine NO MORE PAPER! • Internet café growth

13. 6.3 Mapping International Trends Key International Trends cont’d… • Asia's Global Impact • At current growth rates, by 2050 Asia will make up ½ world population and 40% of the global economy • Naisbitt outlines major trends within Asia being: • Move from export led to consumer driven economies • From government to market driven • From farms to super cities • From labour intensive to high tech industries • China driving decision making in Asia

14. 6.3 Mapping International Trends Key International Trends cont’d… 5. Global Consumer, Global Culture • World forming a monoculture as a result of increased buying power • World considered to be one large market • English as global language • Standardization of products • Global brands, i.e. McDonalds

15. 6.3 Mapping International Trends Key International Trends cont’d… 6. Global Companies versus Nations • Companies worth more money than country they are in, govt losing control • Govt intervene to prevent monopolies