5.

Select Foreign Business Partners

business partners are critical to the success of firm in international business. These partners
include distribution-channel intermediaries, facilitators, suppliers, and collaborative venture
partners, such as joint venture partners, licensees, and franchisees. Once our target market has
been selected, we need to decide on the type of partners it needs for its foreign-market venture. It
also needs to identify suitable partner candidates negotiate the terms of its relationship with
chosen partners, and support as well as monitor the conduct of chosen partners.
Perhaps the most important decision for the focal firm is to identify the ideal qualifications of
potential foreign partners.
Criteria for Selecting our Partners:
1. Committed and loyal in the long run
2. Known in the marketplace and well-connected with local government
3. Possessing a good knowledge of the industry, and has access to distribution channels
and end-users
4.Competent and professional management, with qualified technical and sales staff
The process of screening and evaluating business partners can be overwhelming. It is a non
going task for most internationally-active firms. To identify prospective partners and gather
background information, managers, consult various sources as well as conduct field research.
Commercial banks, consulting firms, trade journals, and industry magazines, as well as country
and regional business directories.
According to the Criteria, we selected 2 potential partners.
1. Fortuna Evenimente
provider with decorations and utilities necessary
Address: B-dul Regina Maria nr. 19, Ap. 1, sector 4, Bucuresti, Romania
2. Aristocrat Events Hall.
Rental of Places for organizing our events
Adresa: Soseaua Pipera Nr. 48, Sector 2, Bucuresti
Both of them are located in Bucharest, Romania, and are disposed to collaborate.
6. Task Six: Estimate Company Sales Potential
Company sales potential is an estimate of the share of annual industry sales that the firm expects
to generate in a particular target market. Estimating company sales potential is often much more
challenging than earlier tasks.

Determinants of Company Sales Potential:

1. Partner capabilities, competencies and resources including channel intermediaries and
facilitators, tend to determine how quickly the firm can enter and generate sales in the target
market.
2. Access to distribution channels.
3. Intensity of the competitive environment.
4. Pricing and financing of sales.
The degree to which pricing and financing are attractive to both customers and channel members
is critical to initial entry and to ultimate success.
5. Human and financial resources.
6. Risk tolerance of senior managers. Results are a function of the level of resources that top
management is willing to commit, which in turn depend on the extent of management’s tolerance
for risk in the market.
7. Special links, contacts, and capabilities of the firm.
The extent of the focal firm’snetwork in the market—its existing relationships with customers,
channelmembers, and suppliers—can have a strong effect on venture success.
8. Reputation.
The firm can succeed faster in the market if target customersare already familiar with its brand
name and reputation.
Practical Approach to Estimate Company Sales Potential: Competitor assessment and
Estimates from local Partners

Firm 2014 (total revenues, E) 2015 (total revenues, E) 2016 (total revenues, E)

”Aristocrat Events 375 200E 382 000E 399 100E

Hall”(partner)
”FEST 414 563E 442 320E 560 080E
EVENT”(competitor)

Our company Estimated Sales for next 3 years

Firm 2018 2019 2020
OUR FIRM 200 000EE 250 000E 350 000E

4. Task Four: Assess Industry Market Potential

1. Market size, growth rate, and trends in the specific industry
Romania is a market with excellent potential, a strategic location, and an improving business
climate. Its economy is among the EU’s fastest growing; 3.9% growth for 2015 and 4.8% in
2016 (highest since 2008), primarily driven by consumption. According to the International
Monetary Fund, consumption is the primary driver of growth with 3.8% projected for
2017. Romania’s membership in the EU is one of its most persuasive advantages.
Romania has been a member of the European Union since 1st of January 2007, benefiting from
financial support made available under EU policies in two subsequent programming periods,
namely 2007-2013 and 2014-2020.
In 2003 service sector constituted 55% of gross domestic product (GDP), and the sector
employed 51.3% of the workforce. The subcomponents of services are financial, renting, and
business activities (20.5%); trade, hotels and restaurants, and transport (18%); and other service
activities (21.7%). The service sector in Romania has expanded in recent years, employing some
47% of Romanians and accounting for slightly more than half of GDP.

2. Standards and regulations that affect the industry

EU legislation and standards created under the New Approach are harmonized across the
member states and European Economic Area countries to allow for the free flow of goods. A
feature of the New Approach is CE marking.
ASRO is the Romanian national institution for standardization. ASRO is a full member of CEN,
CENELEC, ISO and IEC and an observer member of ETSI. ASRO’s main duties include
establishing the principles and methodologies of the national standardization, developing and
approving national standards, and participating in European and international standardization
activities. In addition, the institution is responsible for providing information to the public in the
field of standardization, as well as publishing and disseminating standards.
The Romanian standards collection includes 28,000 currently in-use standards, original
Romanian standards and transposed European and international standards. They apply in various
domains, such as: management, environment, services, mechanical engineering, electrical
engineering, construction, chemistry and others.
3. Barriers
Romania overthrew its communist regime more than twenty seven years ago, yet the Romanian
government still plays an oversized role in the economy in terms of employment, ownership of
assets, and influence on the business environment. State-owned enterprises shape many
industries as dominant customers, suppliers or, in some cases, competitors. Despite cries from
the international finance community, state-owned enterprises in the country do no regularly
employ private management.
According to the European Council recommendation on the 2016 National Reform Program of
Romania, some progress has been made with regard to the independence, quality, and efficiency
of the judicial system, fighting corruption, and effective implementation of court decisions. The
poor condition of Romania's physical infrastructure continues to affect business costs,
productivity, public safety, and the country's ability to attract foreign investment. The country's
connections to the rest of the EU's transportation infrastructure are still underdeveloped, thus
thwarting the country's ability to realize its full potential for new investment, trade and tourism.