Description
Human Resources (HR) Plan Align the organizational and management structure with the business and international strategy selected.Will your management staffing approach be:ethnocentric, polycentric, global, or Regio centric?Try to determine if Clorox already is operating in the host country and, if so,what HR structures and policies exist. Given the organizational and national culture, identify the major HR/talent management considerations for recruiting and retaining talent.[Exclude factory workers, as their compensation would be included as part of production costs.] Organizational chart Develop an organization chart that shows the different positions (managers, staff, and salespeople) needed to conduct your strategic and functional plans.Indicate where in the country the position will be located and how many people you plan to hire. Avoid creating too many managerial or staff positions. Compensation plan Design a compensation plan for the management personnel to be employed in the business unit. Research and determine the salary levels and the benefits of the managers and staff.If you plan to send U.S. expatriates to the host country, recognize that the compensation package of an U.S. expatriate usually includes allowances (e.g., relocation, housing, hardship, travel to the U. S., et cetera) and those salary and benefit packages can end up being three times as costly as what the position would cost a firm if filled by a host-country hire.Therefore, use expatriates cautiously and wisely.I already explain it and take a look at the file
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Your International Business Plan
Major Team Assignment #4: WGB 650
After a promising domestic launch, Corporate has given the “go-ahead” for each team to take its new product
to an emerging economy in support of Clorox’s strategic agenda. From your three “short-list” candidate
countries, now you are defending your entry into just one. The challenge will be showing us how you will be
successful there.
In your international new product launch, risk and adaptation issues are crucial to identify and strategically
address.
You will present a three-year plan for your international product launch into the emerging company of your
choice. You will be submitting the Plan to Clorox’s senior management in the form of a Business Plan
Review. The assignment is expected to be a comprehensive, compelling, and well-written report—aimed at
convincing management that an investment in your new product is worthwhile.
Formatting Guidelines
•
Your written paper should not exceed fifteen single-spaced pages. Appendices are excluded
from this page restriction; you may include as many appendices as are useful, but they
should be referenced or referred to in the body of the report.
•
Remember that an Executive Summary is not an introduction; it should summarize the entire
scope, assumptions, and findings that are more fully developed in the body of the report.
Your Executive Summary should not exceed three pages in length. Typically, it would be
the last section of your business plan to be written.
•
Teams should include a Table of Contents to help Clorox’s experts quickly find the areas of
the report they are most interested in reviewing.
•
A Reference Page is required; also use APA to cite sources within the report, including
charts.
•
All charts, text, and appendices should be readable—translation use 12 point type as your
guide.
•
The written paper should be engaging to read; feel free to include charts/graphics and high
impact formatting to enhance your written business plan.
•
The Excel worksheets showing your financial statements and projections should be
submitted as a separate document. For emphasis, you may want to cite or refer to your
Excel worksheets and calculations.
The components of the international business should include:
I.
An Executive Summary. Speak as general managers, identifying strategic issues in the
international marketplace and the functional areas of your operation that will affect the
successful launch of your new product. Doing business in another country is never as easy as it
sounds, what circumstances do you need to deal with and overcome in order to prosper? And
how will you measure your success?
➢ Include a brief discussion of the major product adaptations your team made to maximize
consumer demand—given the host country’s culture, infrastructure, and economy.
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➢ Succinctly recap the rationale for choosing country X vs. others available to you, including a
summary of the key opportunities and challenges you foresee.
➢ State your business launch strategy: timing, entry strategy, and competitive strategy.
➢ In a table/chart, include the highlights of your revenue, profit, cash flow, and market share
projections as well as a few of the significant financial calculations (e.g., investment
requested, entity valuation and underlying assumptions, IRR) for the new business.
Before or after the table/chart, include a compelling rationale of the financial and strategic
benefits that Clorox would obtain for the investment you are requesting.
II.
General Business and International Strategy
Extending from the Executive Summary, explain in more detail the following:
▪
Strategic fit between the new product in the host country and Clorox’s strategic mission,
vision, values, and strategic goals.
▪
Mode of Entry: exporting, licensing, strategic alliance, joint venture, acquisition, existing or
new wholly-owned subsidiary.
▪
Industry analysis (anticipated industry and category growth, Porter’s 5 Forces, strategic
groups)
▪
The competition—local and global
▪
Competitive strategy selected (i.e., which one of Porter’s generic strategies and why)
▪
International strategy envisioned [multidomestic, global, or transnational (These are similar
to P. Ghemawat’s concepts of adaptation, aggregation, and arbitrage.)]
III.
Marketing Plan
The detailed requirements for the marketing component of the business plan will be described in
a separate document from Prof. Ravi Dhingra. In many respects, it resembles your domestic new
product marketing plan for Year 1. Carefully read and follow his instructions.
IV.
Production and Supply Chain Management Decisions
Product and supply chain decisions need to be described in the global business plan. Include
commentary on the following:
Production
•
Where will your product be manufactured? Justify your answer.
•
Do you plan to produce by yourself or have a partner company manufacture your
product?
•
How much labor cost do you expect to save?
•
How much space do you need for manufacturing your product?
•
What key supplies must be imported from the home country and/or other countries?
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What can be obtained from the country where the product is produced?
•
How will import of raw materials to the production country impact cost? How will local
procurement(s) of raw materials impact cost?
•
Would you need to ship your finished product from your home or another country to the
target country? If yes, what will be the cross-border transportation cost?
•
Are there tariffs and/or other taxes/restrictions imposed by the target or third country?
Supply Chain
V.
•
What are the risks you will likely face in the supply chain for your product? What do you
plan to do to mitigate those risks?
•
How will you distribute in the target country and what will be your distribution costs?
•
How much space do you need for your logistic operations (storage, shipping, receiving,
and warehousing)?
Human Resources (HR) Plan
Align the organizational and management structure with the business and international strategy
selected. Will your management staffing approach be: ethnocentric, polycentric, global, or
Regio centric? Try to determine if Clorox already is operating in the host country and, if so,
what HR structures and policies exist.
Given the organizational and national culture, identify the major HR/talent management
considerations for recruiting and retaining talent. [Exclude factory workers, as their
compensation would be included as part of production costs.]
▪
▪
▪
▪
▪
Recruitment and selection of management staff
Method of compensation and performance management
The optimal management/leadership philosophy
The optimal organizational structure
Leveraging Clorox’s human resources from the home or host country
Organizational chart
Develop an organization chart that shows the different positions (managers, staff, and
salespeople) needed to conduct your strategic and functional plans. Indicate where in the
country the position will be located and how many people you plan to hire. Avoid creating too
many managerial or staff positions.
Compensation plan
Design a compensation plan for the management personnel to be employed in the business unit.
Research and determine the salary levels and the benefits of the managers and staff. If you plan
to send U.S. expatriates to the host country, recognize that the compensation package of an U.S.
expatriate usually includes allowances (e.g., relocation, housing, hardship, travel to the U. S., et
cetera) and those salary and benefit packages can end up being three times as costly as what the
position would cost a firm if filled by a host-country hire. Therefore, use expatriates cautiously
and wisely.
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VI.
Financial Plan and Projections and Benchmarks for Success
What is the general outlook for the next three years: 2025, 2026, and 2027, assuming a stub
period of 6-months as you ramp up (from 6/1/24 to 12/31/24).
i. What are the expectations for continuous improvement in cost of goods sold
(COGS) over the plan period, including the impact of new technology, process
reengineering, and quality initiatives?
ii. What are the expectations for continuous improvement in selling, general, and
administrative (SG&A) over the plan period due to organizational learning?
In other words, translate your functional plans for marketing, organization, human resources,
production, `and supply chain into measurable financial targets. You are required to complete a
full set of financial statements (income statement, balance sheet, and cash flow), along with
detailed support schedules for the start-up period and the above years. Your start-up period will
be focused on building inventory for your product launch in January of 2025.
Within this section, provide about a one to two-page analysis of the results of the financial
statements, explaining the reasons for the results or changes.
Remember to complete the valuation Excel and graphs. Incorporate the most significant
financial results into the Executive Summary.
Prof. Patrick Lapera will provide you with specific guidelines for your financial statements and
schedules. Note that the financial statements will be prepared in the foreign currency of your
host country and translated into U.S. dollars using the convenience method. You are expected to
make a minimal PP&E or other asset investment, representing 30% of the total investment
amount you are requesting. Instructions on how to present the highlights of your financial
analyses and projections in the discussion of your financial plan will be provided in Prof.
Lapera’s lectures and Excel templates.
You are also required to specify your hedging strategy and incorporate the costs of hedging into
the financial statements.
Grading of Global Business Plan by Component
Executive Summary
Strategy Decisions
Marketing Plan
Production & Supply Chain Decisions
Human Resources (HR) Plan
Financial Projections
Writing Quality [strategic integration and adherence to
10%
20%
20%
10%
10%
20%
10%
business writing conventions]
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