4/9/18

FACULTY OF ECONOMICS AND BUSINESS

UDAYANA UNIVERSITY

Agoes G. Rahyuda, Ph.D.

ANALYZING
INTERNATIONAL OPPORTUNITIES
International Business – Week 9

AG Rahyuda

Core Teaching Topics

ENVIRONMENT TOOLS
1. Globalization 3. International Trade
2. National Business Environments 4. Foreign Direct Investment
5. Regional Economic Integration
6. International Financial Markets
7. International Monetary System
STRATEGY AND STRUCTURE
8. International Strategy and Organization
9. Analyzing International Opportunities
10. Selecting and Managing Entry Mode

MANAGEMENT
11. Managing International Operations
12. Developing and Marketing Products
13. Managing Global Accounting and Finance
14. Hiring and Managing Employees

AG Rahyuda

Topic 9: Analyzing International Opportunities

1) Assessing Global Market Opportunities

2) Six Steps in Analyzing the Opportunities

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AG Rahyuda

1. Assessing Opportunities

• Organization’s future depends on its managers

• Making choices
• Depends on having information, objective evidence, and
hard data about threats and opportunities

Global Market Opportunity

• Circumstances • Exporting/Importing
• Locations • Investing
• Timing • Sourcing
• Partnering

AG Rahyuda

2. Six Steps

STEP 1.
• Readiness to internationalize

• Appropriate financial and tangible resources

• Relevant skills and competencies
• Commitment to international expansion

1. What do we hope to gain from international business [OBJECTIVE]?

2. Is international expansion consistent with other firm goals [COHERENCY]?
3. What demands will internationalization place on firm resources [CAPACITY]?
4. What is the basis of the firm’s competitive advantage[COMP. ADV.]?

AG Rahyuda

2. Six Steps

STEP 2.
• Suitability of products for foreign markets

• Sell well in the domestic market

• Cater to universal needs
• Address a need not well served in foreign market
• Address a new or emergent need abroad
1. Who initiates purchasing?
2. Who uses the product?
3. Why do people buy the product?
4. Where do people purchase the product?
5. What factors in the target market may limit sales?

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AG Rahyuda

2. Six Steps

STEP 3.
• Screen countries to identify target markets

• Size and growth rate

• ‘Market intensity’ (customers’ buying power)
• ‘Consumption capacity’ (size and growth rate of the middle class)
• Receptivity to imports
• Infrastructure for doing business
• Degree of economic freedom
• Country risk

AG Rahyuda

2. Six Steps

STEP 4.
• INDUSTRY MARKET POTENTIAL
• An estimate of the likely sales for all firms in
a particular industry over a specific period

• Size and growth rate of the market and trends in

the specific industry
• Tariff and nontariff trade barriers to market entry
• Standards and regulations that affect the industry
• Availability and sophistication of distribution for the • TREND ANALYSIS
firm’s offerings in the market • MONITORING INDICATORS
• Unique customer requirements and preferences • MONITORING COMPETITORS
• FOLLOWING KEY CUSTOMERS
• Industry-specific market potential indicators
• TAPPING SUPPLIER NETWORKS
• ATTENDING INTERNATIONAL TRADE FAIRS

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2. Six Steps

STEP 5.
• Foreign business partners

• Financial soundness and resourcefulness

• Competent and professional management
• Solid knowledge of the industry
• Reputation in the marketplace and good
connections with local government
• Commitment, loyalty, and willingness to invest

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AG Rahyuda

2. Six Steps

• COMPANY SALES
POTENTIAL
• An estimate of the
share of annual
industry sales that the
firm expects to
generate in a particular
target market

AG Rahyuda

Topic 9: Analyzing International Opportunities

1) Assessing Global Market Opportunities

2) Six Steps in Analyzing the Opportunities

AG Rahyuda

Next Week Assignments

¨ Group Presentation
1. Select an emerging market that your team would like to learn more
about. Start by compiling fundamental country data, and then do
additional research, following the steps in this chapter, to flesh out the
nature of the market opportunity offered by this country or its suitability
as a manufacturing site.
2. Make a list of the international companies pursuing market opportunities
in the country, and identify the products or brands that the companies are
marketing.
3. Are their reasons for doing business in the country consistent with the
market opportunity as you have researched it? Determine whether these
companies have established facilities for manufacturing, sales, or both.

¨ 20mins presentation + 20mins discussion

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AG Rahyuda

Core Teaching Topics

ENVIRONMENT TOOLS
1. Globalization 3. International Trade
2. National Business Environments 4. Foreign Direct Investment
5. Regional Economic Integration
6. International Financial Markets
7. International Monetary System
STRATEGY AND STRUCTURE
8. International Strategy and Organization
9. Analyzing International Opportunities
10. Selecting and Managing Entry Mode

MANAGEMENT
11. Managing International Operations
12. Developing and Marketing Products
13. Managing Global Accounting and Finance
14. Hiring and Managing Employees