Case Study #3: International Business Plan
- What could Patricia have done differently in her overall approach to her task in developing international sales for Unlimited Combines?
As the President of Unlimited Combines (UC), I believe the company needs to explore a substantial competitive advantage by forming a strategic alliance with a Japanese firm. The company’s new technology can assure and generate growth of production in harvesting grain. During the market research process at UC, the company believes the product can perform better in Japan. Although the agriculture industry focuses on rice, UC can help Japan to expand the usage into other products such as barley, and wheat, among others. Patricia’s captured all the major components of an international business plan. According to Gabler et al., the global business assessment includes the supply chain, nature of the industry, technology, culture, and ethics (261). In addition, the strategy should capture the logistics, market-entry, distribution, legal issues, environmental barriers, as well as the nature of competition. Patricia demonstrated strong business skills in developing a business plan.
However, the business graduate lacked a few competencies. Gabler et al. recognize the most significant part of developing an international business plan is to prepare in-depth research of the foreign market, including information about prospective business partners (262). Patricia should have employed several methods to inquire about information about the prospective partners before embarking on the trip. Artis and Toshihiro argue that potential investors to any foreign economy need to understand more about the country’s culture (111). Notably, Patricia emailed more than 130 Canadian trade offices in search of suitable markets, which provided her with information for over 400 potential investors. After back-and-forth communication, only 12 showed an interest in the farm equipment. Patricia’s biggest mistake was to send all the questionnaires in the English language. She assumed everyone around understood the language. The business graduate should have conducted further research on the cultures of each of the contact to assess the best way of framing the questionnaire.
- What could Patricia have done differently in order to plan her business trip to Japan– and if she decided to go, make it more successful?
Through collective bargaining in the Trans-Pacific Partnership, any Canadian firm can do business in Japan without significant challenges. This information would have been crucial to Patricia while making business trip plans to Japan. Upon arrival, she faced a considerable challenge to accomplish her objectives in the new country. Gabler et al. highlight that language barriers create problems for companies wishing to establish oversea operations. In addition, businesses may lose the opportunity to develop a credible brand image with prospective investors. Patricia could have hired an interpreter before pursuing the Japan trip. In addition, she could have approached a firm that specializes in international communication to avoid a stressful situation.
Effective cross-cultural communication is a crucial ingredient for international businesses. According to Viktorija, intercultural business understanding involves the knowledge of how people from different cultures speak, relate, perceive, value, and communicate with the world around them (5). If Patricia had comprehended this concept, she would have engaged with the potential Japanese investors easily. During the business negotiations, the business graduate found it challenging to discuss terms with the other party. The Japanese offered exciting payment terms, but Patricia demanded advance with the fear of non-payment. She lacked the skills to observe the willingness of the Japanese in the deal, especially their intention to leverage their distribution network in selling UC’s products. In addition, she became afraid that the Japanese would use reverse-engineering to acquire the products. In contrast, Japan incorporates strict regulations that govern intellectual property. Therefore, Patricia could have integrated cultural evaluation before pursuing potential international investors.