A Case of Starbucks in Iceland

Each student will develop a portfolio for a product/service in a foreign country or area of his or her own choice on the issue of entry strategy. The purpose of this project is to simulate the decisions one might be asked to make in a multinational corporation. It is intended to give first-hand experience in identifying market opportunities and developing market entry strategies. In order to develop the complete portfolio, market analysis has to be prepared, which forms the essential foundation for the portfolio. The student should work as if s/he represents an American company planning to expand operations to a new country.
Selecting a product/service:
You must choose a real product/service from an existing American company. The product should be consumer products rather than industrial goods, as the former offer more opportunities to focus on cultural adaptation and consumer needs. Examples of consumer products are baby food, disposable diapers, powered milk, high-protein diet supplements, soft drink mix, children’s toys, instant noodles, etc. While your choice is not limited to the above products, you need to make sure the company has no operation in the country you selected.
Grading
The final project is worth 15% of your total grade. Only the written portfolio will be graded. No presentation is required.
Proposed Framework
The portfolio shall be divided in three parts: Part I: Market Analysis, Part II: Market entry strategies, Part III: Reference.
Part I: Market Analysis
A. General information (location, climate, topography, etc.) about the country along with a brief history
B. Cultural and Social Analysis
Language or Languages Spoken/Written
Religion(s) and Religious Influences in Life and Business
Customs/Traditions/Manners/Habits: Food, Drinks, Clothing, Personal Hygiene, Myths and Superstitions
Core Values, Norms, and Attitudes relating to foreign and domestic products
High or Low-Context Culture; Rankings on Hofstede’s Cultural Dimensions
Aesthetics: Colors, Music, Symbolism, Beauty, etc.
Social Institutions: Family life, Educational institutions, Class Systems, etc.
Business Customs: Protocols, Greetings, Keeping Time, Space, Gift Giving, Hospitality, Negotiations, etc.
C. Economic Analysis
Population: Actual Count (latest), Growth Rates, Number of Households, Working Population, Age Distribution, Density of Population, etc.
Income: GNP or GDP, Per Capita Income, Average Family Income, Distribution of Wealth, etc.
Natural Resources
Infrastructure: Transportation & Communication Systems—modes/types, availability, usage rates
Inflation Rates
International Trade Statistics: Exports, Imports, Balance-of-payments situation, Exchange Rates
D. Political and Legal Analysis
Political Ideology
Role of Politics
Relationship with other countries
Legislation, Regulations, or Special rules affecting marketing of your product
Tariffs, Quotas, and other Restrictions on Imports and Exports
Information on Subsidies Provided
Intellectual Property Rights Protection
Part II: Market entry strategies
A. Introduction: Describe the product and the company you work for
B. Situation Analysis: Describe the environment you operate in (modify Part I of your project by selecting information relevant to your plan)—general information about the industry, competition and governmental controls along with information about the firm and the market
C. Target Market and Positioning: Define your target consumers and the positioning of your product
D. Entry strategy
Decide on entry mode using either a non-equity entry mode such as exporting, licensing, franchising, and turnkey projects or equity entry mode such as joint venture, mergers and acquisitions, and greenfield investment. Specify the local partner if needed.
Justify your decision.
Part III: Reference
Please provide a complete bibliography at the end of the essay for all materials you cite. Information drawn from different sources should be also cited within the body of your paper, indicating which part you cited. Citations should follow the APA (American Psychological Association) style format, which can be found under “citation help” section on Hofstra University Library website (http://www(dot)hofstra(dot)edu/library/).
Requirements
The report should be typed in the font Times New Roman (size 12) using single spacing and one-inch left and right margin. The written report is expected to be approximately 2000 words in total (excluding appendices and supporting materials). Remember to number the pages. Check spelling and grammatical errors before you turn in your portfolio.