Fluent Essays

IINORMATION IN DOX If you were the one grading this paper how would you rate them against the rubric? There have 4 part, each part you need to write 50 to 100 words. To show me, why you give this score. There are three essays for you to grade. NAME XXXX India & Anheuser Busch The country of India has one of the most densely populated regions in the world and boasts one of the most exciting emerging markets on the planet. For this reason, I wanted to look more in depth to this country of over 1.3 billion people. In addition to their massive population India’s economy has been booming the last decade. Other than 2020, do to global pandemic Covid-19, India’s real gross domestic product (GDP) has grown by an average of nearly 6\% a year since 2016, and that trend is expected to continue at least until 2026 with no site of slowing down. In addition to being a massive merging market, India also has a very unique culture that leans heavily on religious faith. Because of this India has a number of Religious Laws, making it a theocracy, and will make it a very interesting region to study. India also has a political history with the British government, and has laws established from that era as well (Chapter 2) The large consumer market, newly urbanized cities, and unique culture make India a perfect country for this case study. For my product I chose a “local” business, Anheuser-Busch, specifically their beer and seltzer products. I select alcohol products because I was curious about the alcohol sales in India. Knowing the country is heavily religious, 80\% Hindu, I felt this may affect their alcohol sales and consumption rate. While Hinduism does not require one to abstain from alcohol, there are religious practices associated which discourage the usage of alcohol to an extent. However, after further research, I found that India consumes more than 663 million liters of alcohol, which is an astounding up 11\% from 2017, and per-capita consumption is rising. Some experts attribute the rise in consumption rate to 2 things. The first, and most obvious, is the Coronavirus global pandemic. The entire world saw an uptick in alcohol purchases, as global residents were isolating in their own homes and local bar and restaurants were shut down. The second reason is due to the urbanization of India. As the country grows economically, residents are moving to big cities and are more commonly finding themselves with disposable income. This is going to drastically affect citizens purchasing habits, and experts believe alcohol sales have benefited because of this new trend. Apart from the Indian aspect just discussed, I chose Anheuser-Busch specifically because of its already global brand name. According to AB-InBev’s latest annual report, the company does business in over 50 countries around the world and is no stranger to entering new markets. The company boasts a workforce of approximately 170,000 employees. Anheuser- Busch experienced a total growth in revenue by 4.3\%, which can be equated to over $21 million dollars. While the company is in a joint venture with Crown Beers, US products such as Budweiser, Bud Light seltzers, and bud select are not offered in India. Bringing a new alcoholic product to India could be a huge opportunity for the company. What are some of the key cultural, ethical, and social responsibility that you should be mindful of when developing the strategy for your country and product? Indians are strongly guided by their respective religions and their shared values. Respect for elders and hierarchy are core values that permeate all aspects of Indian society. Indians also place huge importance on family and community. And as in many Asian cultures, the concept of saving face (avoiding blame or any type of shameful situation) can influence decision-making processes and affect your business dealings in India.  These cultural values, I expect will impact the sale of Anheuser-Busch products in the country.  However, the most practiced religion in India, Hindusim, does not ban the consumption of alcohol, and encourages followers to not “over-consume.”  This may be an advantage for Anheuser Busch as the company has many products with low AVB and even non-alcoholic options.  India is a relatively conservative society, and it is important for visitors to be respectful of societal norms and traditional values, which continue to underpin many customs and business practices. Younger Indians are less particular about decorum than older generations, but will still adhere to many traditions and conventions, especially when around superiors or elders. Positions of power and authority are highly valued and revered. At the same time, Indians are proud of being citizens of the largest democracy in the world and consider their rights under this system paramount.  Key principles of democracy, such as the right to speak freely, can become exaggerated in a business context. It is not uncommon for middle managers to seek time with the CEO to air grievances – whereas in Australia, by contrast, it might only be appropriate to share grievances with a direct superior or a human resources What social responsibility efforts are you going to pursue in your host country? As India rapidly expands, they are experiencing several issues.  Some of the largest issues in the country are, poor infrastructure, poor working conditions, a large number of illiteracies, and a lack of green business practices.  All these issues should be addressed by Anheuser-Busch when setting up a new footing and distribution channel in the country.  Assisting with an improved infrastructure, such as building and maintaining factories and roads around their operation centers, will benefit the local community, but also assist in faster distribution, lower risk associated with business, and allow for improved supply management.  Clean and safe working conditions are a huge issue in India, as their rapid economical expansion has not allowed firms to keep up with the new level of demand.  Work conditions can have a significant impact on morale and productivity. In addition, healthy work conditions also protect the well-being of employees, reducing the chances of workplace injuries along with resulting financial liabilities and the need to take time off.  Parallel to working conditions is practicing green and sustainable business.  Businesses should have a social responsibility to make the world a better place, or at least not heavily pollute and damage the environment and country they operate in.   In 2018, Anheuser-Busch launched ambitious sustainability goals, focused on four key areas where they believe they can have the most impact: renewable electricity and carbon reduction, water stewardship, smart agriculture, and circular packaging.  These practices would benefit the country of India, as the country continues to struggle with high levels of pollution.  One advantage to doing business in India for Anheuser Busch is the countries’ stable economy.  Prior to the global pandemic, India’s economic growth had been exceptional in recent years. Buoyed by a robust democracy, key structural reforms, private consumption, and a rise in government investment, India has achieved a high macroeconomic stability ranking (with a score of 90 out of 100 and ranked 41 out of 141 economies) in the World Economic Forum’s (WEF) Global Competitiveness Index. Another advantage of doing business in India is the countries technological and digital capacity.  India has become a powerhouse in terms of technology innovation. High-tech companies in sectors such as telecommunications, information technology, pharmaceuticals, textiles, and engineering are equal in their sophistication and prominence to international counterparts. Indeed, India is now recognized as a major force in global technology innovation alongside the United States and China. There are also risks of engaging in business in the country.  The country unfortunately enforces high tariffs and protectionist policies.  ndia’s tariffs and trade regulations were already non-transparent and often unpredictable, leaving many U.S. investors and exporters with limited access to the market. The country’s average applied tariff is the highest of any G20 country and among the highest bound tariff rates in the World Trade Organization (WTO). Those barriers to trade have not improved in recent years as the Indian government moves to protect domestic producers. In fact, India has increased import tariffs to reduce the market for cheap goods from overseas and support small- and medium-sized manufacturers within its own borders. The country has also extricated itself from the world’s biggest regional trade deal, refuses to join the Regional Comprehensive Economic Partnership (RCEP), and the government plans to take measures to ban the import of any products that may be detrimental to domestic industries.  Finally, India has placed limits on foreign ownership of businesses and has stringent local presence requirements for would-be investors. India is one of the largest economies on the globe and issued a currency called a rupee.  The Indian rupee is the official currency of India. The rupee is subdivided into 100 paise, though as of 2019, coins of denomination of 1 rupee is the lowest value in use. The issuance of the currency is controlled by the Reserve Bank of India.  While India is a large economy the value of the rupee has steadily decreased in recent years. There are a number of reasons that could be to blame for the depreciation of this currency.  The Covid-19 pandemic hit India hard, and impacted the country’s economy and buying power tremendously.   While as of July 2021, the value is slowing reaching pre-pandemic levels, the value had plummeted at the beginning of 2020, to 75 rupees to a single US Dollar.  While nearly all world currencies were affected by the global pandemic, India was hit the hardest out of all world emerging markets.  There are macro-economic reasons as well. A lower interest-rate regime is hurting the Rupee. The Reserve Bank of India (RBI), in a bid to support the Government borrowing, has announced massive bond purchases.  This means, the system will be flooded with excess liquidity. Already, banks are parking money in RBI’s reverse repo basket.  If Rupee liquidity goes up in the market, that puts pressure on the value of the Rupee. A strengthening dollar will add to this weakness. The value of Rupee against the dollar will erode as supply of the local unit increases. Also, by injecting abundant liquidity in the banking system, the RBI is signaling that interest rates will remain low for a long time.  Because of these reasons, Anheuser Busch should continue to operate with their “home” currency; the U.S. Dollar.  What are the National Trade Policy risks in your host country that you must be aware of in developing your strategy? India Was greatly affect by the Covid-19 pandemic and placed many temporary trade barriers in place to counteract the economic affect as well as for the nation’s health. On April 1, India was to unveil the Foreign Trade Policy 2021-2026. The existing policy was extended by a year due to Covid-19, which was to end on March 31. And the government decided to further extend it for 6 more months. The current policy will now be valid up to September 30. Covid-19 was catastrophic for international trade. Indian exports fell by a record 60\% and imports by 59\% in April 2020. Though the situation has improved, the road to recovery is long and hard. That is why the new trade policy must deliver the goods. Based on inputs from traders, trade associations, members of Parliament and a government-appointed high-level advisory group, some key expectations are: WTO-compliant tax incentives: With incentives under MEIS and SEIS under a cloud, the need of the hour is WTO-compliant tax benefits. To this end, the government has announced the Remission of Duties or Taxes on Export Products (RoDTEP) scheme, effective January 1, 2021. It replaces MEIS. Rates and conditions for the new scheme are yet to be announced. A long-standing demand of exporters, especially MSMEs, is credit access. Formal financial institutions such as banks are reluctant to lend to MSMEs due to their lack of adequate collateral. The policy can help open up alternate credit avenues, such as finance technology start-ups. The advisory group suggests raising borrowing limits at the Export Import Bank of India. One reason why China is a manufacturing and export powerhouse is its network of ports, highways and high-speed trains, which are among the best in the world. India needs to learn from its neighbor and improve its flagging infrastructure by upgrading existing ports, warehouses, quality testing and certification centers and building new ones. The Trade Infrastructure for Export Sector, a scheme for developing infrastructure to promote exports, was launched in 2017 for a period of three years. Many in the industry hope it will be extended. If India were to do away with subsidies, exporters would still need some form of government support. Easier and lower taxes are a way of filling this gap. The reduction of corporate tax rates and simplification of duty structures are long-standing demands. The Confederation of Indian Industry suggests simplifying the import duty structure by following “the general principle of higher duties on finished goods and lower/minimal duties on intermediates and raw material”. There are also demands for an overhaul/improvement of existing schemes such as the EPCG and Duty Drawback Scheme. With Covid-19 disrupting traditional supply chains, India needs modern trade practices. Digitization and e-commerce are two ways to go about this. Digitization can start with making common import-export processes paperless. Export awareness: At times, Indian exporters are defeated not by a lack of trade opportunities but by lack of awareness of the same. The trade policy can make a provision for government workshops and awareness programs that educate and inform traders about international laws and standards, global markets, intellectual property rights, patents and geographical. What steps will you take to mitigate these risks? While there are risks associated with India, such as tariffs and a poor infrastructure (currently). It seems the country is taking steps forward to bring business to the country, making now a great time to set up shop within India. Anheuser Busch would be able to take advantage of the tax breaks, and be able to work with local leaders to determine key areas where the countries infrastructure would need to be improved. Being an early entry to the country Anheuser Busch could build a relationship with local leadership and communities, as well as take advantage of the post-pandemic benefits the country is trying to offer. India lost 60\% of its international business in 2020, and is desperate to attract new firms. This gives Anheuser Busch a lot of negotiating leverage and can set the company up for domestic success. Managing International Business A corporate level strategy needed to be implemented, is to build domestic trust. In order for Anheuser Busch to do this in India, they will need to focus on improving to local infrastructure and focus on their digital reputation. As mentioned previously, India is willing to work with new businesses with tax breaks, and infrastructural improvements that will benefit new business. Not only is that a financial benefit for Anheuser Busch, but it can be good brand reputation in India, as the company will be making an important improvement in the country. India is also a global leader in eServices and online business. Interactions and transactions today are becoming digital. This is especially true in India where the Government is aiming at empowering citizens by harnessing digital technologies. Several e-initiatives such as AADHAR, Smart Cities, e-Panchayat to name a few, under the aegis of infrastructure, services and empowerment, have been launched by the Government of India (GOI), and are seamlessly enabling digitization services across sectors. Proliferation of smartphones, social media and reduced data tariffs has further transformed India into one of the most digitally active and connected regions in the world. Over the last few years, we have witnessed a dramatic increase in the breadth and depth of digital services as organizations leverage game-changing technologies, such as cloud and Artificial Intelligence (AI), to digitally transform their business models, products and customer engagement approaches. A business Level Strategy Anheuser Busch will need to undergo is a complete product rebrand. Anheuser Busch will need to look at the changing beer scene in India. The beer market in India is currently in its growth stage. The market evolved from manufacturing usual beer products such as strong-lager beers to flavored beers owing to the adoption of trends and technologies from markets such as America and Europe. Today, there is a presence of more than 140 beer brands in the Indian beer market, which could address the palate of each customer segment. The per capita beer consumption in India is still very low compared to other countries in Asia Pacific region and therefore the market could witness huge growth in the coming years owing to factors such as the shift from hard liquor to beer consumption by consumers in India, increase in disposable income, change in societal perspective and others. Functional Strategy: At a functional level, Anheuser Busch will have to reevaluate their human resource and hiring methods. Recruitment in India has become challenging after the boom of technology. With the emergence of businesses, there is a need for skilled professionals. Millions of job seekers enter the job market every year. So, it becomes a daunting task for the recruitment consultant to find the right candidate for their organization. While the country boasts a large population and employment pool, the country has a serious illiteracy issue, which will play a problem in finding labor positions. IN addition, the country does not have a skilled labor pool of HR professionals. The company may need to outsource or relocate current HR professionals. Entry Method: For Anheuser Busch I would recommend a direct export method of Entry in to the India market. The organization is already set up for international shipping, and has U.S manufacturing breweries that have the capacity to expand. In addition, the poor infrastructure in India, could pose to be a large risk for the company during their first few years of business in the country. The country should start with exporting form the U.S., then slowly evaluate the local infrastructure and work with the governing officials to make the needed improvements before setting up a domestic firm. India’s deep cultural roots play a huge part in the countries business practices and consumer and producer expectations. Doing Business in India is notoriously difficult. India scores badly on the ease of doing business index and a lack of investment in infrastructure over the past twenty to thirty years can test even the most seasoned of business travelers. Firstly, India stands poised to become one of the world’s largest economies over the coming years as economic liberalization kicks in after decades of political stagnation. It has a population of almost 1.3 billion of which 50\% are under the age of 30 and therefore the consumer potential of the country is almost limitless. Secondly, the lack of historical investment in the country means that India needs everything. You cannot point to a sector which is not crying out for investment and new product ideas. Thirdly, and very importantly, India has a highly educated, aspirational workforce who can help you build your business on the ground. When managing a business and a team in India, culture plays a big role. Business relationships are of the utmost importance. Indians will base their decisions on trust and intuition as much as on statistics and data, so be mindful of the importance of a good working relationship. Take the time to engage in small talk and get to know your prospective partner. Rushing straight into the business issue could be perceived as rudeness. Another Cultural aspect of business in India is the role of hierarchy in business. Indian businesses are often very hierarchically structured. In negotiations, decisions are generally made at the highest of levels. Therefore, unless the company director, owner or a very senior manager is present at a meeting, a decision is not likely to occur at that stage. Roles are well defined and tasks such as manual labor will only be carried out by a specific person. An Indian manager is typically not expected to carry out tasks that could otherwise be undertaken by someone at a lower level in the organization. When you choose to set up an India based office you will need to take into account these cultural differences. If your office does not follow a vertically structured hierarchy, with closely defined responsibilities, it will be important to create a dynamic feedback and communication mechanism between your UK and Indian employees to encourage collaboration. Interactions between UK and Indian staff may at times cause miscommunication. For example junior staff in India may not be used to making decisions or questioning senior staff with the same level of freedom as their UK counterparts. India’s culture also plays an important part in managing a cross-cultural team. Things work differently in teams where the majority of the team are based in India, and especially in Indian teams who have less exposure to “foreign” ways of thinking and/or the head of the project is also from India. In these teams the lone foreigner can often get frustrated because things aren’t working the way he or she would expect – and they can even start thinking that nothing is happening or it is all out of control. This is often very far from the case, but you need to know a few things to help make collaborating with Indian teams the fun and exhilarating experience it can be. Here we aim to explain some of the differences to Western thinking and give some tips to help. In order to properly navigate this cross-cultural team, the team must be led by an experienced project manager with an understanding of international norms and Indian culture. The project manager must understand how to schedule work actives when working in multiple time zones significantly far apart. Another aspect the project manager must take into account is the Indian hierarchy business culture. Hierarchies make things even more complex as many times you need buy-in from both the senior executive and the operational implementers to avoid either group blocking activities later. This means is that following due process and collaborating effectively may bring you to a perfectly good final product – but that product may get overturned at the very last minute because one person did not participate earlier and now points out that there’s a better way to do things. That view will need to be considered whoever they are, but if they are the boss it will overshadow all work already completed. Managing International Marketing and Operations While a standardized marketing approach would be economical and likely be a reduced cost, Anheuser Busch will need to deploy a customized marketing approach to sell their product in India. Before the Indian economy opened up in the early 1990s, “imported” goods were a sought-after commodity, their foreignness often being their most desirable attribute. Not surprisingly, then, many multinationals didn’t think success would require much effort when their brands finally entered the country after 1991. However, India has expected a shift in expectation, where Indian citizens expect goods and services produced domestically to be produced at that same high standard. Because of this shift, and the counties deep rooted culture, Anheuser Busch will need to develop a specific marketing campaign for India. With India’s large population, the country has a diverse pool of consumers, each of with have different values and cultural beliefs. This is very prevalent in Indian foods and Beverage preferences and habits. For example; Across most of the world, Nestle’s Maggi is known best as a soups-and-sauces brand. However, in India, it has become the generic word for instant noodles. The product sold in India, though, bears little resemblance to the ramen of East Asia. It was introduced in 1982 with a masala flavoring and over the next 25 years, Nestle continued to launch variants that would appeal to local and regional tastes. This is a similar Approach Anheuser Busch will have to take in-order to make their product a staple of the Indian beer market. The key element to Anheuser Busch’s success in India, and when viewing the 4 P’s of marketing (Price, Place, Product, Promotion), is understanding the counties many sub cultures and marketing specifically to each subculture. While this strategy would be costly, it would allow Anheuser Busch to weave their product in the cultural fabric of the Indian beverage industry. Whereas if the company deployed a standardized “One-size-fits-all” campaign, the company would have a high risk of not reaching the Indian market, and ultimately lose more money in the long run. While creating a strong customized marketing campaign in India will be both difficult and expensive, that may not be the biggest challenge facing Anheuser Busch. The two largest challenges the firm may face when managing their international operations, will be logistics, and hiring manufacturing labor. While Anheuser Busch is no stranger to logistics, and boasts an impressive international portfolio, they may find India to be a huge challenge. As discussed previously, the country’s infrastructure has not been able to keep up with the population and business demands. In addition, simple utilities such as electricity can pose a challenge. While the cost of getting electricity is relatively cheap in comparison to the rest of South Asia, the number of procedures involved can be rather exhausting. What’s more, each procedure is in itself quite time constraining, taking around eight days to receive an external site inspection and three weeks to get externally connected, have a meter installed and conduct a test installation. If Anheuser Busch is not able to secure a site with good roads and an already updated infrastructure, they may be unable to meet demand, or even begin operations. The second issue facing international operations would be hiring manufacturing labor. Similar to many other counties in the world, India is facing a labor shortage, and many companies are finding it difficult to fill key manufacturing roles in their firms and production lines. Human resource managers are looking at second- and third-tier cities as the labor pool in bigger cities gets tapped out, advertising on the radio and building strong relationships with colleges to ensure they get a hold of employees. On top of the labor shortage, unskilled laborers in India make up the largest percentage of the world’s illiterate population. Creating another hurdle for hiring managers at Anheuser Busch. As an emerging market, India has its benefits and risks. The largest risk having to do with the counties’ poor infrastructure, followed by a slump in the manufacturing job market. However, with the new and consistently growing young and urbanizing population in India, now is the opportune time to introduce new Alcoholic products to the Indian market for Anheuser Busch. With the Indian government’s new incentives to push new business, and recover from the Covid-19 pandemic, Anheuser Busch is in a strong position to negotiate with the government and come up with a solution for the infrastructure problem. I recommend Anheuser Busch work with the Indian government to build a manufacturing and distribution channel in India, in a less developed area outside of an urban city. This will allow the Anheuser Busch to request new roads and better transportation routes, also giving the local community a positive image of the incoming foreign firm. This also allows Anheuser Busch to make a manufacturing floor specified to their Indian market strategy. · ONeill, Aaron. “GDP of India: Growth Rate until 2024.” Statista, 5 May 2021, www.statista.com/statistics/263617/gross-domestic-product-gdp-growth-rate-in-india/. · “Anheuser-Busch and Crown Beers India Ltd. to Form Joint Venture to Enter India Beer Market.” Home, www.anheuser-busch.com/newsroom/2007/02/anheuser-busch-and-crown-beers-india-ltd-to-form-joint-venture-to-enter-india-beer-market.html.Orgi. · “Religion.” Census of India: Religion, censusindia.gov.in/Census_And_You/religion.aspx.Biswas, Soutik. “Dark Truth behind Indias Post-Lockdown Liquor Lines.” BBC News, BBC, 13 May 2020, www.bbc.com/news/world-asia-india-52640266. · “Anheuser-Busch and Crown Beers India Ltd. to Form Joint Venture to Enter India Beer Market.” Home, www.anheuser-busch.com/newsroom/2007/02/anheuser-busch-and-crown-beers-india-ltd-to-form-joint-venture-to-enter-india-beer-market.html.Orgi · “Religion.” Census of India: Religion, … BSA 540 Final Paper 2 BSA 540 Final Paper NAME;XXX XXXX XXXX University Abstract The country I chose to do business in is the United Kingdom.  The product I chose to sell is ice skates.  The reason I chose this product and country is because while there is professional ice hockey in the United Kingdom, it is not considered elite by any standards when compared to other countries across the globe.  In addition, sports like soccer are the dominant force in the countries.  However, in recent years the popularity of hockey has grown in the United Kingdom.  This means that more people than ever have some form of an interest in the sport, and ice skating is the first step to getting a kid to want to play.  With it not being a dominant force in the UK, this gives the company the opportunity to introduce a product that while in existence, is not one that is considered popular or essential.  It gives the company the chance to set the standard for the market and do it in a manner that will entice more people to want to purchase ice skates.  As more people do that, then more people will want to try to try to play hockey, which could lead to the opportunity to begin selling other pieces of equipment.  Country Demographics The United Kingdom has about 66 million people. The majority of the citizens live in England in comparison to Wales, Scotland, and Northern Ireland. Similar to the United States, the United Kingdom typically has their children attend school through the teenage years and into university level afterwards if they choose. The country uses the Pound as its unit for currency. Culture and Its Impact on Business The US and the UK are very similar in many cultural regards, which would make it easier to sell a product in this country than others.  One of the big differences in the working culture in the UK vs the US is the rights afforded to workers and the communication.  This makes is necessary to be mindful that the employees in the UK will not want to listen to somebody talk up their accomplishments and instead simply get to the point and talk business.  In addition, it is important to understand that employees in the UK are given extended vacation days, sick leave, and maternal/paternal leave time so it is important to be mindful and understanding if the people are out of the office when you attempt to contact them for business reasons. Social responsibility efforts to pursue in the UK include ones that the country already focuses heavily on.  The environment, and managing waste and emissions when manufacturing the product.  In addition, focusing on the mental well-being of the employees that we work with in the UK, and by trying to engage the community through events, and other things that can get people to appreciate our work and back what we are trying to do when we being performing business in the country. One of the major differences in culture between the US and the UK in the workplace involves vacation/sick day/maternity and paternity leave.  The means that one of the biggest things that we will need to keep in mind from a managerial perspective when operating in the UK is ensuring that the employees are given the opportunity to rest, relax, and recoup.  Being understanding of the need to take a break every so often at work will be important when managing employees in the UK.  Scheduling a short break into the work schedule every 2-2.5 hours is something that could help as potential groundwork to show the employees that we value their well-being as much as the work they put in to help the business succeed. Steps we can take to help manage a cross-cultural team include creating a work schedule that includes employee breaks besides a lunch break to help bridge the culture barrier between the UK and the US.  There is no language barrier but learning different words and phrases that the UK uses in comparison to the US would be an important step, and then training the US employees on these so they can relate better.  We can then put both countries employees into the same training programs so that everybody is on the same page as to what management is expecting.  Finally, planning projects and deadlines around the different time zones will be imperative.  It is unfair to expect things to get done based on a timeline that varies differently from the other countries due to their different locations around the world. Country’s Banking System Financial considerations to evaluate will include the exchange rate for the US dollar vs the pound sterling that is used i the United Kingdom.  Understanding the exchange rate will be important when pricing the product as well as when considering where to set up manufacturing plants. 1 pound sterling is equal to about 1.4 US dollars so it would be advantageous to work in the United Kingdoms currency in this scenario.  The people in the country will understand the currency better because it is what they use every day. This will allow us to also understand all costs as if we are working in that country fully, as we will be setting up what is essentially a new market. This allows us to help set the precedent by doing so in the country’s currency so that the managers and employees we have overseas will also be able to better understand the financial side of our growing business. Trade Environment The UK does not have many significant trade restrictions or investment barriers that will be needed to worry about when attempting to do business in the country.  This is shown already by the numbers of exports to and imports from the United States that the United Kingdom made in recent years.  The US was the country that the UK exported to the most, as well as the country that it imported from the most.  Therefore, trade between the two countries is already an ongoing thing that does not face many restrictions or holdups.  We will be able to utilize this previously existing relationship in order to do business there.  This also makes it appear to be wise to manufacture the product in the United States vs somewhere else overseas.  This will allow us to avoid worrying about any potential issues that could arise from shipping in products from a different country that does not have the trade relationship that the US and the UK does and can benefit us in the manufacturing costs from a shipping standpoint. Country’s Political and Legal System Politically, the United Kingdom is a constitutional monarchy. The head of state is a monarch who is to remain politically neutral. Currently, the Queen is the monarch, and the Prime Minister is the head of government. The political system is a two-part system. The legal system in the United Kingdom has four legal systems which derives from a particular geographical area due largely to historical reasons. There is English Law, Scots Law, Welsh Law, and Norther Ireland Law. The legal systems default to its jurisdiction and the choice of which jurisdiction law is used is possible only in private law. Marketing We are going to pursue a customization strategy.  The reason for this is because although the market will be the same in the sense of marketing to people interested in playing the sport of hockey as well as people who are already playing hockey (no matter what age), the market for hockey in the United Kingdom is dramatically different than that of the United States.  Hockey is not a huge sport over there for there is an additional need to get more people interested in the sport in order to increase our sales.  Therefore, we need to use a customization strategy with a polycentric approach that includes marketing in a way that entices consumers to want to try ice skating, hockey and therefore, our product. The most important element of the 4 Ps for our business in the United Kingdom is promotion.  This is because our product is something that is already a well-known commodity across the globe and even in the country itself.  However, it is not a product that is heavily utilized in the United Kingdom, so the promotion is a key element for our business.  The choice of how we advertise and promote the product will be imperative as we will want to show how much fun ice skating and playing hockey can be in order to entice more people into trying it which will increase demand and sales for our product. I think the biggest challenge in managing this operation will be to plant the seeds to grow the product interest to begin with.  I think that if we can help increase the desire to ice skate, then we will easily be able to endure massive success in the United Kingdom because there is not currently a huge market for it.  However, the challenge will be to grow the market into one that can be sustainable one to ensure that we can continue to do business overseas. Political Environment and Strategic Alliances We could consider a strategic alliance with a more established company that sells ice skates prominently in North America. This could give us the opportunity to help grow the industry by having a proven brand name work with us on various aspects of the industry.  Bauer would be an example of this, but it would be something that would need to be of great benefit for our company, as they would likely not see a great reason to join into any type of arrangement with us with their current standing and profit share. Government Position Toward Foreign Business The UK does not have many significant trade restrictions or investment barriers that will be needed to worry about when attempting to do business in the country.  This is shown already by the numbers of exports to and imports from the United States that the United Kingdom made in recent years.  The US was the country that the UK exported to the most, as well as the country that it imported from the most.  Therefore, trade between the two countries is already an ongoing thing that does not face many restrictions or holdups.  We will be able to utilize this previously existing relationship in order to do business there.  This also makes it appear to be wise to manufacture the product in the United States vs somewhere else overseas.  This will allow us to avoid worrying about any potential issues that could arise from shipping in products from a different country that does not have the trade relationship that the US and the UK does and can benefit us in the manufacturing costs from a shipping standpoint. Business Strategy The corporate level strategy will be done by a board of directors and will involve the decisions of entry via exporting, setting up manufacturing plants in the United States, and determining if taking part in a strategic alliance makes sense for our company.  This is something that would be worth looking into, but it will come down to the specific arrangement to decide if this is really something our company needs, or if we prefer to go about our business differently. The main strategy we will implement from the business level, is performing actions to lay the foundation of growth for this industry in the new country.  From a business level we will implement a lot of marketing and promotional type items in the UK itself.  This will involve promoting our product at various youth hockey tourneys with pop up booths.  We can do the same type of thing at various rinks in general to help promote the product.  In addition, it would be wise to try and help sponsor/set up learn to play programs within these rinks.  This will help us grow the business through more of a marketing and promotional style by getting more people interested in the industry at a young age.  By doing so, we will be able to establish a market and continue to sell them our products as they grow up through the sport. For the functional level, Ice hockey has been growing in recent years in the UK and the countrys professional hockey league (while much smaller and of lower caliber than most others across the globe) have begun expanding.  This makes it the perfect opportunity to take part in this market.  We will set up various departments to take part in each component of the business.  A separate department to take part in research and development will be used to constantly develop a better skate to protect against pucks, as well as provide optimal speed and agility when cutting.  A human resources department can be developed to handle those fabrics of the business etc.  However, it will be important to keep the company smaller and give everybody the ability to speak with everybody.  This will allow all employees to work together to achieve our common goal: grow the sport of hockey and give everybody the chance to learn how to skate. Exporting the goods from the US is going to be the initial mode of entry as we would basically be the first to market company for this industry. This would give us the ability to help grow and set the market, and give us a leg up on competition that tries to enter the market after we are able to establish it.  From there we could consider avenues such as licensing agreements and more as additional methods of entry. Conclusion   After reviewing all of the information that has been presented, I would move forward with the opportunity. The reason for this is because it has the potential to be a massive gain for the company if done the right way. With the market for this product existing in the United Kingdom, but not in a large way, it represents an opportunity with great potential. In order to grow our company in the business we would be working in, taking on new opportunities that pose an opportunity for a substantial gain in competitive advantage and establishing an entirely new market is a must. There are already well-known players in the industry of selling ice skates so it would be hard to compete in countries like the United States alone unless we tried a strategy involving being the cheaper alternative. However, by going overseas as well, we can attempt to build and grow a whole new market for ice skates. In doing so, we would gain profit share, credibility, and potentially even clients who come overseas representing our product over the current industry leaders. If done the right way, this is an opportunity that is absolutely worth going for and I would recommend that our company does just that.     References https://www.studentjob.co.uk/blog/4509-how-uk-work-culture-differs-from-other-parts-of-the-world https://www.gov.uk/government/news/our-commitment-to-corporate-social-responsibility-csr https://www.investopedia.com/terms/f/four-ps.asp https://www.insider.com/biggest-differences-between-us-and-uk-life https://www.businessinsider.com/uk-and-us-compared-biggest-cultural-work-difference-2018-4 https://www.business-to-you.com/levels-of-strategy-corporate-business-functional/ https://www.trade.gov/knowledge-product/united-kingdom-trade-barriers https://www.worldstopexports.com/united-kingdoms-top-import-partners/ NAME XXX Case Study: ABii Robot BSA XXX August 15, 2021 Table of Contents Executive Summary 3 Country and Product Background 3 Macro Environment 4 Demographic 4 Pestle Analysis 4 Conclusion 7 Recommendations 8 Reference: 10 Executive Summary This case study explores details and highlights of certain challenges and performance indicators experienced by Van Robotics new development ABii Tutor. This report covers material and different topics to come to conclusive learnings on ABii’s business. This report will cover Van Robotics new product ABii PESTLE analysis of problems and issues that the company could potentially face. The goal of this case study is to understand and examine whether the robotics company’s innovation will evolve with the times, be a great investment, and sustain profits for an even brighter future for the children of the world. Country and Product Background The ABii robot was created by Laura Boccanfuso of Van Robotics in Columbia, South Carolina. The tutoring robot helps K-5th grade students improve their math and reading skills by interaction throughout online lessons. Van Robotics created a tool that’s been named one of the best inventions of 2020: “A kid-friendly robot that climbed to new levels of success as a result of the coronavirus pandemic.” ABii Robot initial strategy is to offer efforts to close the student achievement gap. ABii Robot did $180,000 in sales in the first 4.5 months of operation as a new-to-market product. An Article from Omdia states, “worldwide consumer robot revenue will grow from $5.6 billion in 2018 to $19 billion in 2025, at a CAGR of 19.1\%.” The robotics company, Van Robotics, has made an innovative product to evolve with the current transition to virtual learning due to the global pandemic, but their main focus is still providing students K-5 an educational resource. ABii is a robot tutor aimed at closing the math and reading proficiency gap for K-5 students. The product is designed to work with teachers and parent to help provide additional assistance to students outside of school. There are so many children now learning from home. This robot tutor is perfect for students transitioning from in-person to virtual learning. Children are known to gravitate towards electronics. This product without a doubt will do well. Macro Environment The macro environment factors of foreign exchange rate, economic growth rate and inflation rate play into the economic cycle of supply and demand that ABii must watch closely. ABii can use these factors as tools to analyze how much consumers are going to spend based on their wage class and growth trajectory of the industry. Culture is a big word with a great amount of weight when it comes to how a company is socially. This product pricing will be sold at an affordable price so the tutoring robot can be in the schools and households where it’s needed. Demographic The ABii Robot demographic are investors, U.S board of education, school districts, tutoring companies, and children of the ages 5 through 13. Van Robotics’s ABii Robot is the first robot to market K-5th grade students using national standards that are aligned with reading and math lessons. Primarily our demographic will be low- and middle-income families, along with school districts. Were aware families of a lower income class lack the resources of someone in a higher income class. We want our product to reach where its needed and eventually provided by the school. Van Robotics international demographic would depend on the grade level curriculum for that specific country and or foreign city. Pestle Analysis The PESTLE analysis below will provide details on the threats, opportunities, and factors that Van Robotics’s ABii Robot could face. The macro environment is a wide set of economic conditions that are specific within an industry in an economy. The PESTLE analysis is used to identify the different forces that affect along with makes up an organization in its macro environment. PESTLE provides an analysis of an organization’s social, technological, political, economic legal, and environmental factors. Van Robotics runs their robotics operation in the U.S with aspirations of going international. Van Robotics are aware that of the different local governing systems where they must obey all the rules, regulations, safety guidelines and the geographic location posing different political climates. The political factors are wage legislation, competition regulation, and anti- trust laws. Van Robotics has to monitor the previously stated factors in order to be able to serve K-5TH graders domestically and internationally. Van robotics goal is to achieve diversification in the systematic risks of political environment. The macro environment factors of inflation rate and economic growth rate incorporate into the economic cycle of supply and demand that Van Robotics must monitor frequently. The micro-environment factors such as competitive norms impact the competitive advantage. Van Robotics can use the factors as tools to observe which consumers segments are purchasing and how much are they spending based on the growth trajectory. The impact can affect Van Robotics overall profitability and competitive advantage. The impact can also result into Van Robotics strategy and competitive landscape to be analyzed and/or modified. The industry’s economic indicators to determine what strategy needs to be modified to adapt to the curriculum expectation domestically and internationally. Van Robotics must be able to quickly adapt to a forever evolving curriculum to lead in its robotic industry. Culture is influential when it involves how a company is projected socially. In the business world, it’s essential that a company’s social culture plays a huge role in the positivity and productivity of its product. A culture involves the values and attitudes among a group of people. The marketers at Van Robotics can use the factors of culture roles, demographics, education, and standards to design an effective strategy to increase positive feedback for K-5th graders during the pandemic. Technology is forever evolving and so is the ABii Robot. The robotics industry has reached an all-time in demand due to the global pandemic. ABii Robot being a part of the robotics industry has been able to serve the greater good of K-5th graders. Van Robotics has mastered education and robotics to help bridge the gap in K-5th graders worldwide. The robotics company understands how beneficial the advancement of technology is and how it enables business growth. Van Robotics has produced a user-friendly website to inform potential consumers and investors on the ABii Robot. There are a few technological factors to consider: 1. impact of innovation 2. value chain 3. capturing the cost structure of technology advances. Understanding the previously stated factors will result into the success or failure of Van Robotics potential to hit quotas. It’s important the robotics industry, in particular Van Robotics, understands the environmental enormities effects that impact the company and its cash flow. The environmental factors are air, water, pollution, and waste management. Van Robotics must monitor certain factors to determine which approach should be taken when moving forward. Van Robotics is a robotics company located in the United States of America with aspirations of going international. Some legal factors Van Robotics must know before making the next step being aware of the local governments’ patents/copyright laws, taxes, rules and regulations, foreign exchange, and local laws of the countries where the ABii will be accessible. Van Robotics should carefully evaluate each legal factor before making a decision to go international. Van Robotics established PESTLE factors, one may conclude of the threats and opportunities the company could potentially face. Van Robotics is the 1st company to produce a product of its technological nature to serve students K-5th grade. The robotics company getting ahead of all opportunities that could potentially increase their brand positivity. Along with, the support of their stakeholders. Implementing strategies that will seek student achievement across an educational spectrum, global market forces, along with bridging the gap can maximize the growth of consumers. Van Robotics has many strengths compared to its weaknesses that are present throughout the PESTLE chart. The robotics company should consider using a few of the strategies to further expand the competitive gap. Van Robotics’s ABii Robot can rise student engagement. Positive student engagement is what will increase revenue and profit along with help achieve their ultimate goal of providing a resource to help student academic achievement. Conclusion Van Robotics’s ABii is a robot tutor aimed to close the reading and math proficiency gap for K-5th grade students. The product is designed to work with teachers and parent to help provide additional assistance to students outside of school. There are so many children now learning from home. This robot tutor is perfect for students transitioning from in-person to virtual learning. Children are known to gravitate towards electronics. ABii Robot initial strategy is to offer efforts to close the student achievement gap. ABii robot did $180,000 in sales in the first 4.5 months of operation as a new-to-market product. An Article from Omdia states, “worldwide consumer robot revenue will grow from $5.6 billion in 2018 to $19 billion in 2025, at a CAGR of 19.1\%.” The robotics company, Van Robotics, has made an innovative robot to evolve with the current transition to virtual learning due to the global pandemic, but their main focus is still providing students K-5 an educational resource. The ABii Tutoring Robot without a doubt will do well in the homes of children. Recommendations It is recommended that Van Robotics tackle the U.S market before going international. It’s important the robotics company do several case studies on K-5th graders and thoroughly analyze students specifically those under the proficiency gap who were or currently enrolled in virtually learning. The robotics company has already conducted a pilot with 4 schools, reporti states “67\% of students have improved by 34\% after only 3 sessions with the robot.” Following this success, received a Department of Education grant to put their robots in 16 school districts serving over 1000 students. The recommendation in moving forward with Van Robotics’s ABii Robot is influenced by its social responsibility, easily assessable target market, the managerial behavior, culture, and marketing strategy. The social responsibility were going to pursue is making our product affordable and appealing for all social classes. Primarily our target market will be low- and middle-income families and school districts. Were aware families of a lower income class lack the resources of someone in a higher income class. We want our product to reach where its needed. The impact the managerial behavior the country has on the ABii Robot is When it comes to culture, the United States is a melting pot. The managerial behavior we will need to pursue in a cultural sector is one that is a free and strong. A free and strong cultural sector will promote the values and rights such as diversity, freedom of expression, and debate about needs in society. ABii’s culture will ensure unity, equality, resourcefulness, debate and dialogue, and influences identity. It is important that our product nation-building for peace and reconciliation. The steps taken to manage a cross-cultural team are the following: overcome language and cultural barriers, plan projects around different time zones, being open to all cultures and their differences, avoid stereotypes, and having a diverse team. An appropriate marketing strategy to purse would be customization. The tutoring robot is created to serve the academic needs of K-5th grade students. Pricing is the most important element of our marketing mix. Pricing is important because it defines the value that our product is worth for us to make and for our customers to use. It is the tangible price point to let customers know whether it is worth their time and investment. The pricing strategies shape the overall profitability for the future. The biggest challenge in managing our international operation outside of establishing would be the operation of potential dispersed resources, varied cost structure, cultural differences and governmental factors all provide international management obstacles. An investment in Van Robotics’s ABii will be the best move for the firm to take. This robot tutor has been approved by the U.S Board of Education and soon will be accessible to all grade school students. It’s important we take this opportunity to invest rather wait until it’s too late. Reference: “ABii by Van Robotics, Inc.” StartEngine, www.startengine.com/abii. “About 4.” ABiis World, www.smartrobottutor.com/about. Robotic - Ed.gov Search Results, search.usa.gov/search?utf8=\%E2\%9C\%93&affiliate=ed.gov&query=robotic. “Technology Research That Connects the Dots.” Omdia, omdia.tech.informa.com/. 1