Professional Documents
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Tutoria de Guangala
Tutoria de Guangala
INTERNATIONAL MARKETING
TOPIC
Collaborative Project “Guangala´s Chocolate”
AUTHORS:
Acosta Sandoval, Libia Valeria
González Zambrano, Marianella Maricruz
Salcán Lema, Roxana Paola
Suquinagua León, Maitte Elizabeth
Vásconez Acosta, Félix Andrés
INSTRUCTOR:
Eng. Echeverria Bucheli, Mónica Patricia
Semester A-2019
Content
Content of Chart .............................................................................................................................. 4
Content of Figures........................................................................................................................... 5
1. Identify the country of origin, the target markets, the type of customer ................................ 6
1.1. Origin Country ................................................................................................................. 6
1.2. Target Markets ................................................................................................................. 6
1.3. Type of Customers ........................................................................................................... 6
2. Describe the company (LSE/SME), the product, the value chain .......................................... 6
2.1. The Company ................................................................................................................... 6
2.2. The Product ...................................................................................................................... 7
2.3. Value Chain ...................................................................................................................... 7
3. Find guidance on the management of the company's international operations (EPRG
context). .......................................................................................................................................... 8
4. The model of the 9 strategic windows of the global market and perform an analysis based
on this selection............................................................................................................................... 9
5. Motives for internationalization and internationalization triggers........................................ 10
5.1. Motives for internationalization ..................................................................................... 10
5.1.1. Proactive ................................................................................................................. 10
5.1.2. Reactive................................................................................................................... 11
5.2. Internationalization Triggers .......................................................................................... 11
5.2.1. Internal triggers ....................................................................................................... 11
5.2.2. External triggers ...................................................................................................... 11
6. Barriers hindering the process of internationalization .......................................................... 12
6.1. General Market Risk ...................................................................................................... 12
6.2. Commercial Risk ............................................................................................................ 12
6.3. Political Risk .................................................................................................................. 13
7. Recommendations for the barriers hindering the process of internationalization ................ 13
7.1. General Market Risk ...................................................................................................... 13
7.1.1. Competition from others firms................................................................................ 13
7.2. Commercial Risk ............................................................................................................ 13
7.2.1. Exchange rate fluctuations ...................................................................................... 13
7.2.2. Delays and/or damage in the export shipment and distribution process ................. 14
7.3. Political Risk .................................................................................................................. 14
3
Content of Chart
Chart 1 .......................................................................................................................................... 9
5
Content of Figures
Figure 1: Global Cocoa-Chocolate Value Chain. Taken from (Nicholas School Masters Project,
2013) ............................................................................................................................................... 7
1. Identify the country of origin, the target markets, the type of customer
Guangala is an Ecuadorian company founded in 1978 by Mr. Vicent Zeller, German, with
German bases and Ecuadorian development. Its beginnings were invested in the coffee business,
but due to various social and economic factors that were not profitable. This is how it begins to
Thanks to its success, it has achieved a 10% share in the international markets that export
cocoa to the United States, Germany, Italy, Spain, Holland, Japan and Switzerland. It is also
Guangala seeks to provide an optimal service to its customers, who are international
suppliers and customers who seek cocoa of good taste and appearance.
other organizations that are somewhere between the "small office-home office" ( SOHO ) size
and the larger enterprise . The European Union has defined an SME as a legally independent
2.2.The Product
It offers a series of services and products, such as training and service to the farmer. It also
has finished products such as chocolate, which has 3 types: milk, bitter and white.
The focus will be milk chocolate, which is a chocolate without added vanilla or flavorings,
where we pay special attention to the selection of milk and sugar that form a 100% natural flavor.
Value chain “is a business model that describes the full range of activities needed to
create a product or service.” Companies that produce chocolate are guided by a segmented global
Guangala follow these 6 steps in order to be taken and distributed to the final consumer:
Figure 1: Global Cocoa-Chocolate Value Chain. Taken from (Nicholas School Masters Project, 2013)
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Marketing
Internal and sales: Post sales
Operations:
logistics: services:
External -Pricing
-Local and
-Location of logistics: -Delivery
international Communication
distribution distribution of -Order -Call
facilities the processing -Promotion center
-Trucks merchandise -Product based
on community
-Inventory needs
The nature of the firm’s response to global market opportunities depends greatly on the
management’s assumptions or beliefs, both conscious and unconscious, about doing business
around the world. This world view of a firm’s business activities can be described according to
the EPRG framework with the four orientations. (Hollensen S. , Global Marketing, 2014)
Businesses with a polycentric orientation adopt the belief that every country is unique and
needs a different approach to match cultural and societal norms. (Wright, 2018)
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countries. For example, when it is exported to the United States changes label to English version
4. The model of the 9 strategic windows of the global market and perform
To analyze in what section is Guangala, is necessary to know that the nine strategic
windows is a model uses industry globalism and the firm's preparedness as criteria for deciding if
the firm should go abroad, internationally or rather to stay at home. (Stavrou, 2015)
in more international markets and is going to make alliances in the future.AQUI VALERIA
DIJO QUE YA IBA A VER XQ NOSE SI ESTE BIENNNNN EL PORQUE ELEGIMOS ESO
Chart 1
Industry Globalism
Local Potencially global Global
Mature
Preparedness for
Adolescent Guangala Company
internationalization
Inmature
Note: Adapted from (Stavrou, 2015)
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The decision to internationalize must be supported by many strong reasons as this process is
not only complicated throughout it, but rather in the risk and time incurred by the company when
for the company. Growing up is a basic reason. But another key reason is that
large. There are four main reasons why companies become internationalized: a) growth, b)
competitiveness, c) diversification of markets, d) ensure the supply of inputs for their production.
(Fanjul, 2017)
5.1.1. Proactive
According to the company they decide to internationalize because they want to maximize
Today, consumers worldwide are looking for a new trend of eating more natural foods.
Especially internationally it represents a rising market, in front of a consumer who wants treats
or a sweet pleasure, but without affecting their heal, something difficult to achieve in products
5.1.2. Reactive
Domestic market
In the United States and Europe there are many chocolates on the market and well-known
The international triggers are the internal or external taking place to initiate
internationalization. In the internal triggers have perceptive management, specific internal event
Perceptive management
Many times, the experience allow it to grow to a point that allows them to
internationalize, in the case of Guangala, experience in the cocoa market makes them take
advantage of this 100% raw material to produce the final product that everyone wants.
Competing firms
United States and Europe have many brands than sale a similar chocolate, and for that
General market risk is the risk of a broad market movement unrelated to any specific
securities. The long and short position in the market would be calculated on a market-by-
market basis, i.e. a separate calculation would have to be carried out for each national market in
Within United States and Europe, we can find big brands that have a high position in te
market, therefore these are our direct competitors within the cocoa market. In Unites States we
have companies like: M&M1, Hershey´s, Reese´s, and others. Also in Europe we have
Commercial Risk can be defined as Financial Risk taken by a seller while extending credit
without securing any collateral or recourse. It generally includes all risks other than the Political
Risk. It refers to probable losses arising from the business partners or from the market. In order
to reduce Commercial Risk, it is very important to ensure that the trading partners are reliable.
(Mbaskool, s.f.)
The possible commercial risk that Guangala had in this process of internationalization
were: a) Exchange rate fluctuations; b) Delays and/or damage in the export shipment and
distribution process
1
M&M.- Mars and Mars
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Political risk is the risk an investment's returns could suffer as a result of political
changes or instability in a country. Instability affecting investment returns could stem from a
change in government, legislative bodies, other foreign policy makers or military control.
Political risk is also known as "geopolitical risk," and becomes more of a factor as the time
According to the research, the political risk is mostly reflected with the United States
as with Europe it maintains a harmonic relationship. Such as the non-signing of the free trade
internationalization
We think that the company must gain a better knowledge of the market and its needs, so
it can think of a strategic alliance with the big brands and so that it can be better scope and
market share.
7.2.Commercial Risk
The Company need to use a currency option, where you can protect a certain exchange
rate but also be able to participate if market rates move in your favor.
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7.2.2. Delays and/or damage in the export shipment and distribution process
The Company must be aware of the consumers request in advance to avoid delays and
damage.
The restrictions that governments place should have a resounding and total change so that
free trade can exist and help each other economically between countries. This is recommended
for the signing treaties and reforms such as taxed that contributed to the free trade.
meet the needs of users in many countries or designing them so they can be easily modified, to
achieve this goal. Internationalization might mean designing a website so that when it's
translated from English to Spanish, the aesthetic layout still works properly.” (2019)
There are several types of internationalization models, for Guangala we select the
traditional model, this model “reflects the traditional marketing focus on the firm’s core
competences combined with opportunities in the foreign environment. The cost-based view of
this tradition suggested that the firm must possess a ‘compensating advantage’ in order to
As we know Guangala is a chocolate producer, in order to have a place in the market and
be positioned in the market of the customer, it must have something that makes it different from
the other products. Guangala has a type of chocolate that is 85% chocolate and the other 15% is
of milk, sugar and butter. This means that the flavor of the cocoa beans is more intense and better
than the other chocolates this can help them to overcome the cost of foreignness.
9. PESTAL Analysis
works. PEST is an acronym of the factors: Political, Economic, Social and Technological
context. These external factors are usually beyond the control of the organization and, often, they
are presented as threats and at the same time as opportunities. (Universidad Nacional de
Colombia , 2010)
presidential regime as a form of government based on the separation of powers in three branches:
It has a bipartisan system where there are two political forces, which are the progressive
Democratic Party in the social sphere and is in favor of government intervention to regulate the
market economy. The other is the Republican Party which is conservative on the social level,
The United States is the third largest country in the world both in total area and in
population. In addition, it has the largest national economy in the world, with an estimated gross
domestic product (GDP) of 16.62 billion in 2012, which represents approximately 25 percent of
global nominal GDP. Its national GDP in purchasing power parity is also the largest in the world,
approximately 20 percent of the world total. The United States has a mixed economy and has
maintained a stable pace of global GDP growth, a moderate unemployment rate, and high levels
The US economy is essentially based on services. The tertiary sector contributes more
than three quarters of GDP and employs more than 79.40% of the country's labor force. A large
part of the GDP is made up of the finance, insurance, real estate, rent and lease (18.2%) sector
and the education services, health and social assistance sector (8.2%). The government sector (at
the federal, state and local levels) contributes about 11% of GDP. The remaining 5.7% of the
The average American has access to many sources of recreation and entertainment, the
sport being the preferred one, especially so-called football, basketball and baseball. It is common
to say that there is an "exaggerated consumerism" in the United States. A good standard of living
and access to all kinds of products makes people want (and can) have it all. (Mequieroir.com,
s.f.)
There are department stores and shopping malls, a wide range of specialities and goods,
offers of all kinds called "sales", and in general an organized and equipped trade that provides a
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good service. The average American consumes five times more than a Latin American, 10 times
more than a Chinese and 30 times more than a Hindu. (Mequieroir.com, s.f.)
In this PESTEL analysis of the USA is the legal environment. Though a detailed
discussion on the legal environment of the USA is beyond the scope of this article, the article
addresses some of the key areas in brief. Each state in the USA has its own government structure
and legal scheme. Businesses come under the regulatory environment of the state in which they
operate. The country upholds equal treatment of nationals and foreigners. Expatriate employees
can expect an unbiased trial from the judicial system. The USA also offers a strong legal system
The U.S. Constitution describes the functions of government. Then were added the 10
amendments called "Bill of Rights" or "10 Amendments" that limit the government's powers and
establish individual rights. These amendments are treasured by citizens because they represent
The USA is the global leader in science and technology. Americans have a longstanding
fascination for technology, and companies such as Apple, Microsoft, Google, Facebook, and
many others have addressed the technological needs of the Americans and the people around the
world. And in doing so, they have become the global leaders in their respective field. (Jo, s.f.)
The USA has been at the forefront for adapting and applying technologies in a wide
variety of fields. Technologies have changed the ways many things are done. Many jobs have
been transferred from the USA to other countries and production facilities have been relocated.
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While this has helped companies reduce their production costs, it has also made many Americans
upset. The rate of technological innovation and change is extremely rapid in the USA. However,
the country faces strong challenges from several countries e.g. China, South Korea, and India.
(Jo, s.f.)
The USA has an extremely diverse geography, climate, and wildlife. This diversity
coupled with other factors has been a driving force to draw millions of tourists to the country.
(Jo, s.f.). The United States has an obligation to implement restrictions and activities that prevent
attacks on nature.
It was the first country to have such a large national park for its inhabitants and has
established several green areas throughout the country for that they have ecological ports where
Psychic distance within the internationalization process is not only based on the nature of
the specific business and the degree of adjustment, but also on authoritative and administrative
qualities. Therefore, the distinction between different environments, the country of origin, as
well as the foreign marketplace establish the concept of psychic distance. (Korte, 2016)
Language: In Ecuador they speak Spanish and in the United States they speak
English
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Culture: In this aspect Ecuador and United States are very different by their
traditions since some celebrations are the same in these two countries but their
way of celebrating them are different as Christmas, Happy New Year, etc...
Religion: In these two countries there are varieties of religion but in Ecuador the
The physical distance between two markers is measured with the number of nucleotides
between them. If these markers are 1000 base apart, the physical distance will be 1000 nt.
Physical distance can be measured with sequencing and counting the nucleotides. (Can, 2017)
According to the time difference between the Ecuador and New York, N.Y has one hour
ahead. To send goods to N.Y can be done by sea and by air and the difference in the distance line
4,810 Kilometers
2,989 Miles
11. Bibliography
Nicholas School Masters Project. (2013). Evaluating opportunities for enhancing Mondelēz’
sourcing strategies to ensure sustainability of its cocoa supply. Obtenido de Duke
University: https://sites.duke.edu/adhoc_sitesdukeedusustainablecocoaso/methodology/
Tardi, C. (15 de Abril de 2019). Value Chain: Investopedia. Obtenido de Investopedia:
https://www.investopedia.com/terms/v/valuechain.asp
Stavrou, R. (3 de July de 2015). The Nine Strategic Windows Model: Global Marketing.
Obtenido de Global Marketing: https://globalorientation.blogspot.com/2015/07/the-nine-
strategic-windows-model.html
Fanjul, E. (2017). Iberglobal. Recuperado el 16 de 06 de 2019, de
http://iberglobal.com/index.php/escuela-de-comercio-exterior/1453-por-que-
internacionalizarse
Hollensen, S. (2011). Global Marketing. Obtenido de A decision-oriented approach:
https://nscpolteksby.ac.id/ebook/files/Ebook/Business%20Administration/Essentials%20
of%20Global%20Marketing%20(2009)/8.%20Chapter%202%20-
%20Initiation%20of%20internationalization.pdf
Riskinstitute.ch. (s.f.). Recuperado el 16 de 06 de 2019, de http://ifci.ch/141730.htm
Mbaskool. (s.f.). Recuperado el 16 de 06 de 2019, de https://www.mbaskool.com/business-
concepts/marketing-and-strategy-terms/11793-commercial-risk.html
Chen, J. (07 de 2018). Invetopedia. Recuperado el 16 de 06 de 2019, de
https://www.investopedia.com/terms/p/politicalrisk.asp
Kenton, W. (12 de June de 2019). Internationalization: Investopedia. Obtenido de Investopedia:
https://www.investopedia.com/terms/i/internationalization.asp
Hollensen, S. (2008). Global Marketing. Pearson Education.
Universidad Nacional de Colombia . (2010). Análisis PEST. Obtenido de
http://www.odontologia.unal.edu.co/docs/claustros-colegiaturas_2013-
2015/Guia_Analisis_PEST.pdf
El Economista. (2010). Sistema Político. Obtenido de
https://www.eleconomista.es/especiales/elecciones-estados-unidos/sistema-politico.php
Santander Trade. (2019). Estados Unidos: Politica y Economía. Obtenido de Santander Trade
Portal: https://es.portal.santandertrade.com/analizar-mercados/estados-unidos/politica-y-
economia?&actualiser_id_banque=oui&id_banque=0&memoriser_choix=memoriser#pol
itical
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