MGT/448 Final Global Business Plan Paper and Presentation
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lt_comprehensive_analysis_powerpoint_part_two.pptxLearning Team Comprehensive Outline
Learning Team C
MGT/448 Global Business Strategies
January 20, 2014
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Hello. During the next 10-minutes we will be providing you with an interesting presentation that focuses on why Learning Team C has decided upon entering into a global venture with Canada, the company Quaker in an effort to sell nutritional granola bars.
Agenda
Introduction
Region Analysis
Regional Alliances, Economic Conditions,
Terrorist Threats
Physical Environment, Political Stability
Finance Options, Health
Country Analysis
Physical Environment, Social, Health
Environment Conditions, Cultural Considerations
Political Stability, Economic Conditions
Finance Options
Organization and Product Analysis
Organization Description
Products Needs Assessement & Description
References
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Learning Team C has selected nutritional granola bars and the country Canada to enter into a global business venture with. This presentation will document pertinent regional, country, and product analysis information which justifies why this new global business venture would be a sound idea for Team C to enter into. We will then conclude our presentation and gladly answer any questions that you may have.
We appreciate your time today and hope that it will be a valuable learning experience for all.
Thank you!
Region Analysis
Regional Alliances
Regional Alliances & FTA’s with Numerous Countries
Provides Competitive Advantages
NAFTA with Canada, Mexico & United States 1994
Economic Growth
Economic Conditions
Cautious Spending, Slow Financial Growth
Increase in Export Demands & Business Investments
Terrorist Threats
Canadians Planning attacks in other Countries
Bin Ladin Threats due to September 11
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Canada has regional alliances and free trade agreements (FTA’s) with more than 10 countries. These free trade agreements “provide a competitive advantage across a wide range of sectors” states (Foreign Affairs, Trade, and Development Canada, 2014). Canada’s Prime Minister Mulroney implemented the North American Free Trade Agreement (NAFTA) with Mexico and the United States in January 1994. “NAFTA has generated economic growth and rising standards of living for the people of all three member countries” states (Foreign Affairs, Trade, and Development Canada, 2014).
Economic conditions in Canada indicate that Canadians have become more carutious with spending their money. As a result of this cautious spending it has resulted in slower financial growth for Canada. Canadians as a whole appear to be holding on to their funds which have resulted in slow financial growth for the Canadian economy. One way to improve the economic growth would be by having an increase in the demand in exports and business investments which could improve the Canadian economy.
While Canada has not often been directly targeted for terrorist attacks it is still vulnerable to terrorism. Examples of terrorism threats include Canadians being involved in planning terrorist attacks in other countries, either while residing in or outside Canada. One other key terrorist threat to Canada came from “Osama bin Laden, whereas he had indicated that Canada was a designated target for terrorism because of Canada's role in Afghanistan following September 11, 2001” states (Canadian Security Intelligence Service, 2014). Canada as a whole should continue to be vigilant and take counter terrorism measures to ensure safety against these terrorism vulnerabilities.
Region Analysis
Physical Environment & Trade
Access to 3 Oceans
Rich Farmland
Political Stability
Cautious Spending, Slow Financial Growth
Increase in Export Demands & Business Investments
Finance Options
Institutional
Social, Health & Environmental
Conditions
Public Healthcare
Proud Citizines
The physical environment has a major effect on trade in Canada. Because Canada touches three different oceans it is a leader in the export of fish. These water ways also allow for easier transportation of goods in and out of Canada. The Great Lakes and St. Lawrence River create rich and fertile land for farming in Southern Canada where they share the largest border between two countries with the United States. This allows for much trade to occur around the border.
The political stability in Canada is among the best in the world and the United Nations ranked them one of the best countries in the world to live. Canada is recognized as having an outstanding quality of life.
Finance options in Canada can come in many ranges and most Canadian chartered banks have a highly developed network of branch operations throughout the country. Since some of them also have a presence in the U.S. and internationally, these banks can be a useful liaison for a foreign investor establishing a business in Canada.
Canada is known for its good social and health conditions of its citizens. Canadians are proud people and work together to keep their lands clean and safe. They also receive publicly funded healthcare which helps the people to stay healthier. Their environmental conditions are much the same with plentiful water and rich soils for farming.
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Country Analysis
Political Stability
Very stable
Partner United States
Low inflation risk
Economic Conditions
Freest economy in North America
Attractive investment destination
Global trade and commerce
Finance Options
Grants
Private Investors
Third-Party Financing
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Canada is a very stable country. Their most important trading partner is the United States, followed by China and Mexico. Canada prefers a large surplus in its trade with the U.S. Canada faces very little inflation risk due to its maintained monetary policy.
Canada has been listed as the sixth freest in the 2014 Index. They show reflecting improvements in investment freedom, the management of government spending, and monetary freedom. This country is one of the world’s most attractive investment destinations due to their transparent and stable business climate.
There are many financing options in the country of Canada. Depending on the business type there is anything from small business loans to any type of third party financing such as term loans on a unsecured or secured basis.
Country Analysis
Physical Environment
Northern & Western Hemisphere
Arctic, Pacific and Atlantic
Key Trade Routes
Great Lakes & St. Lawrence
Social, Health & Environment
Dependent on Social Status
Socio Economic Environment
Highest Health Status in the World
Cultural Considerations
Informal & Relaxed
Innovative, Hard Workers, Education
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Canada is located in the Northern and Western hemisphere. From the Atlantic Ocean, The Great Lakes and the St. Lawrence River are important trade routes for Canada. There are three coastlines that surround Canada and they include the Arctic from the North, Pacific from the West, and Atlantic from the East. Canada’s Great Lakes and St. Lawrence River are important because they provide a way to import and export goods. The Northern area of Canada is called the Tundra which, is very cold and plain. The temperature makes it unsuitable to live there. Canada’s climate in the southern part of the region is good for farming.
The social, health and environment in Canada can be dependent on social status. Canadians with more money are said to live longer than Canadians with lower incomes. Individual lifestyles are influenced by the socioeconomic environment, which has a huge important role in Canada. Although genetics are considered to be a determinant of health, Social and physical environments, have strongly moderated their effects. Canada is considered to have a positive social environment however, only one in three Canadians will experience a period of going through poverty in their lifetime. Canada’s health status is considered to be one of the highest in the world.
Canada’s cultural considerations are known to be informal and relaxed. Communication in Canada is known to be moderately indirect. When speaking, Canadians prefer to be at arm’s length, as personal space is important. Canada is innovative and the people there display hard work, education and experience as well-regarded qualities in that country. In Canada, it is very critical to build rapport when conducting successful business affairs. Canada has a multicultural character, which offers many cultural experiences and possibilities.
Organization and Product Analysis
Quaker - Extremely Profitable Company
Acquired by Pepsico in 2001
Leverage use of Quaker Facility in Canada
Quaker Nutritional Bars Expanding Market
Increase in Demand in Canada for Healthy Snack Bars
New Healthy Nutritous Bar
Health Conscious Consumers
Includes Fiber and Omega 3 Fatty Acids
Low price to make product & Profitable Product
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Quaker is an extremely profitable company that was acquired by PepsiCo in 2001. Pepsico’s purchase of Quaker opened up a new segment that PepsiCo did not have.
Quakers cereal, snack, and health foods have expanded the market and added nutrition bars to their product lineup. In Canada there is a major production facility that operates and produces for Quaker. This facility produces multiple products including Quaker granola bars and now adding healthier ingredients to its breakfast nutrition bars that are in demand and the new trend in Canada.
In Canada, since 2005, the snack bars food category has grown 5 percent every year and is estimated to be worth 750 million dollars (Weeks, 2012). Since 2008 through 2010 the number of granola bars eaten by consumers a day rose 32 percent (Weeks, 2012). This growth is believed to be due to the health conscious consumers of Canada and consumers who are always on the go and don’t have time to sit down for a healthy breakfast.
The new nutritious bar that Quaker is introducing to the health conscious consumer now has fiber and omega 3 fatty acids. The price for the nutrition bars is adequate and the prices to create them are low making the analysis of the product profitable. The need for a quick nutritious bite allows for Quaker to enter Canada and have a competitive advantage. This product will not only thrive in Canada but will expand in other areas of the region.
References
Beltrame, J. (2013). Bank of Canada: Economy not growing fast enough. Retrieved January 19, 2014, from http://www.huffingtonpost.ca/2013/10/01/bank-of-canada-economy_n_4023848.html
Canadian Security Intelligence Service. (2014). Examples of the terrorist threat to Canada. Retrieved January 19, 2014, from https://www.csis-scrs.gc.ca/prrts/trrrsm/xmpls-eng.asp
"Canada physical features natural resources and climate 1011." Canada physical features natural resources and climate 1011. N.p., n.d. Web. Retrieved January 18, 2014, from http://www.slideshare.net/patrick_pitts/canada-physical-features-natural-resources-and-climate-1011
"Common menu bar links." Cultural Information. N.p., n.d. Web. Retrieved January 18, 2014, from, http://www.intercultures.ca/cil-cai/ci-ic-eng.asp?iso=ca
Foreign Affairs, Trade, and Development Canada. (2014). Opening new markets: trade negotiations and agreements. Retrieved January 19, 2014, from http://www.international.gc.ca/trade-agreements-accords-commerciaux/index.aspx
Foreign Affairs, Trade, and Development Canada. (2014). Canada’s free trade agreements. Retrieved January 19, 2014, from http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/fta-ale.aspx?lang=eng
"Health Impacts of Social and Economic Conditions:." Health Impacts of Social and Economic Conditions:. N.p., n.d. Web. Retrieved January 17, 2014, from http://www.cpha.ca/uploads/policy/health
Weeks, C. (2012) Granola Bars: A healthy snack or dressed-up junk food? Retrieved on January 16, 2014 from http://www.theglobeandmail.com/life/health-and-fitness/granola-bars-a-healthy-snack-or-dressed--up-junk-food/article572493/
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