Evaluation of International Marketing Opportunities Module 5 Term and Year: 2018 Qualification: BSB60215 Advanced Diploma of Business Unit Code: BSBMKG605

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Module 5
Term and Year: Term 4 2018
Qualification : BSB60215 Advanced Diploma of Business
Unit Code: BSBMKG605
Unit Title: Evaluate International Marketing Opportunities
Assessment :
Task 1 Short questions
Task 2 Short questions based on case scenario
Student Name:
Student ID No:
Assessor’s Name: Dr Eugene Lim/ Andrey Loburets
Student Declaration: I declare that this work has been completed by me honestly and with integrity. I understand that the Elite
Education Vocation Institute’s Student Assessment, Reassessment and Repeating Units of Competency Guidelines apply to these
assessment tasks.
Student Name:
Student Signature: Date:
Assessment submission (new) requirements
Please save this file as PDF format (include your name to the filename) before uploading onto Moodle.
Assessment deadlines penalty
It is expected that unless a simple extension, special consideration or disability services adjustment has been granted, candidates
will submit all assessments for a unit of study on the specified due date. If the assessment is completed or submitted within the
period of extension, no academic penalty will be applied to that piece of assessment.
If an extension is either not sought, not granted or is granted but work is submitted after the extended due date, the late submission
of assessment will result in a late penalty fee. For further information, please refer to the Assessment Policy.
Assessment/evidence gathering conditions
Each assessment component is recorded as either Satisfactory (S) or Not Yet Satisfactory (NYS). A student can only achieve
competence when all assessment components listed under procedures and specifications of the assessment section are
Satisfactory. Your trainer will give you feedback after the completion of each assessment. A student who is assessed as NYS is
eligible for re-assessment. Should the student fail to submit the assessment, a result outcome of Did Not Submit (DNS) will be
recorded.
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Principles of Assessment
Based on Clauses 1.8 – 1.12 from the Australian Standards Quality Assurance’s (ASQA) Standards for Registered Training
Organizations (RTO) 2015, the learner would be assessed based on the following principles:
Fairness - (1) the individual learner’s needs are considered in the assessment process, (2) where appropriate, reasonable
adjustments are applied by the RTO to take into account the individual leaner’s needs and, (3) the RTO informs the
leaner about the assessment process, and provides the learner with the opportunity to challenge the result of the
assessment and be reassessed if necessary.
Flexibility – assessment is flexible to the individual learner by; (1) reflecting the learner’s needs, (2) assessing competencies held
by the learner no matter how or where they have been acquired and, (3) the unit of competency and associated
assessment requirements, and the individual.
Validity – (1) requires that assessment against the unit/s of competency and the associated assessment requirements covers the
broad range of skills and knowledge, (2) assessment of knowledge and skills is integrated with their practical
application, (3) assessment to be based on evidence that demonstrates that a leaner could demonstrate these skills
and knowledge in other similar situations and, (4) judgement of competence is based on evidence of learner
performance that is aligned to the unit/s of competency and associated assessment requirements.
Reliability – evidence presented for assessment is consistently interpreted and assessment results are comparable irrespective of
the assessor conducting the assessment
Rules of Evidence
Validity – the assessor is assured that the learner has the skills, knowledge and attributes, as described in the module of unit of
competency and associated assessment requirements.
Sufficiency – the assessor is assured that the quality, quantity and relevance of the assessment evidence enables a judgement to
be made of a learner’s competency.
Authenticity – the assessor is assured that the evidence presented for assessment is the learner’s own work. This would mean that
any form of plagiarism or copying of other’s work may not be permitted and would be deemed strictly as a ‘Not Yet
Competent’ grading.
Currency – the assessor is assured that the assessment evidence demonstrates current competency. This requires the
assessment evidence to be from the present or the very recent past.
Resources required for this Assessment
All documents must be created using Microsoft Office suites i.e., MS Word, Excel, PowerPoint
Upon completion, ensure that you have completed your coversheet details, i.e. your name, student ID and signature. If these
details are not present, the assessment would need to be resubmitted again.
The document is then required to be converted to PDF and uploaded to the student learning management system for
assessment.
Refer the notes on eLearning to answer the tasks or any additional material will be provided by Trainer.
Instructions for Students
Please read the following instructions carefully
This assessment is to be completed according to the instructions given by your assessor.
Students are allowed to take this assessment home.
Feedback on each task will be provided to enable you to determine how your work could be improved. You will be provided
with feedback on your work within 2 weeks of the assessment due date.
Should you not answer the questions correctly, you will be given feedback on the results and your gaps in knowledge. You will
be given another opportunity to demonstrate your knowledge and skills to be deemed competent for this unit of competency.
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If you are not sure about any aspect of this assessment, please ask for clarification from your assessor.
Please refer to the College re-assessment and re-enrolment policy for more information.
Procedures and Specifications of the Assessment
Task 1
To complete the unit requirements safely and effectively, the individual must:
Define international marketing
Identify international trade patterns
Explain international trade policies and agreements
Identify legislative requirements
Task 2
Using an Australian company, identify two markets which would most likely be a market that they could expand their e-commerce
business to. Using the Australian Trade and Investment Commission (AUSTRADE), learners are to conduct an initial assessment of
a market analyses to support a proposed international market to be selected (bullet points) that address on the following elements:
Estimate the impact of patterns, policies and agreements on the business opportunities
Identify the political, legal, economic, cultural factors for each country identified
Estimate the impact of these factors on the business (as much as possible given limited access to the Australian
company’s information).
Estimate the ease of entering and trading in each market.
Analyse the political and financial stability and the risk of corruption of each country identified.
Analyse the main legal and regulatory requirements and trade barriers for each country identified.
Rate the acceptability of the risks, regulatory requirements and trade barriers.
Consider the impact of risk factors in light of international business cycles and economic conditions
Summarize current market trends including key industry areas, significant trade partnerships, and consumer
characteristics (such as preferences, segmentation, purchasing patterns, etc.)
Identify any new or emerging opportunities to enter, shape or influence the market.
Estimate the contribution these opportunities could present to the business (as much as possible given limited access to
the Australian company’s financial information).
Discuss the fit of these opportunities with direction and goals of the business
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Task 1
Q1. Assuming you are working for an Australian company and the CEO has recently expressed interest to expand the
business overseas. You are to research and outline relevant Australian (and international) standards, policies and
guidelines for the CEO’s consideration by visiting the Austrade website at http://www.austrade.gov.au
a. Briefly explain what are
the key factors that a
company need to take
into consider before
embarking into
international business?
(see under Getting
Ready for Export)
Developing a business requires time and commitment, which is same as making the business at
home. Each and every person employed in the business need to dedicate the efforts for the
expansion of the business.
Export business requires a lot of complicating issues regarding international trade laws along with
management of currency and various other factors. The necessary knowledge and skills are
required before embarking on international business.
If a successful dominant business has good sales record in the domestic business, this helps in
making a brand image which is recognized internationally. Foreign buyers have a sense of
confidence in the company and its products. Also a successful business will provide financing
cost at a reasonable rate.
A proper plan along with a strategy is necessary before moving into the export business. The
strategy should be good and each and every steps in exporting should be according to the
export plan.
If the business is successful in the domestic front it would have a sustainable financial resources to
bear the cost for expanding overseas in the international market. Also it can hire necessary
manpower who are accustomed to expanding business overseas.
f. Austrade has a new online tool i.e., International Readiness Indicator, to help Australian companies get into export.
Why it is important for first-time Australian companies is encouraged to use this tool? (see under International
Readiness Indicator)
International business is a risky venture in which if a company which is not financially, administratively and managerially capable
enters into it can be turned to ruins. The international readiness indicator is a tool which analyses the company which is ready for
international business based on a questionnaire which is provided by the Australian trade. It summarizes the final result in a report
card to highlight the strengths and the weakness of the business.
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g. What are the key elements of an export strategy? (see under Export Strategy)
Export strategy should be concise and precise which is simple to decipher and implement. The goals generated with the objectives
in the strategy should be realistic and achievable and not unrealistic goals which are not possible to accomplish in the short time
frame.
Export strategy should make goals which are concerned with the business with general basic goals or aims which focus on reducing
competition, expanding operations , improving management expertise, building brand image and stabilizing business operations
over the year.
Export strategy before being implemented in the business need to be checked for viability and feasibility using various scenarios.
This helps to analyse the strengths and weakness of the strategy and is it effective in adverse situation to the business.
h. Free trade agreements (FTAs) are treaties between two or more countries that benefit Australian importers,
exporters, producers and investors by reducing and eliminating certain barriers to international trade and
investment. List four (4) of Australia’s free trade agreements (FTAs) in force.
(http://dfat.gov.au/trade/agreements/Pages/trade-agreements.aspx )
The four free trade agreements or treaties which are still in force are:
1. Australia-New Zealand (ANZCERTA or CER)
2. ASEAN-Australia-New Zealand (AANZFTA)
3. Malaysia-Australia (MAFTA)
4. Australia-United States (AUSFTA)
i. Explain the role of the Organisation for Economic Cooperation and Development (OECD). (see
http://www.oecd.org/ )
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j. Provide a brief discussion on the potential of e-commerce. (see under Export Marketing)
With the advent of technology around the globe people are very dependent on online sites for their needs. Online sites provide
range from all the products and from around the globe. Since the company is Australia are known to provide superior products.
Thus people are vivid and do want to order products from other countries, thus company can use e commerce to test their products,
acquire the taste of consumers. This is relatively cheap than traditional export business but the potential of success of the e
commerce business is good in Australia for exporting.
k. What are the costs to be included when setting export prices? (see under Export Pricing)
The price for selling goods in the domestic market and the international market are very different as various costs are included in
the export prices. Various cost get included in the export prices as maybe known as supply chain cost like from the time the goods
leave the factory till the time it reaches the importer who has added its profit in it as well. The prices will be different for each and
every country depending on the different costs incurred in the supply chain for the particular importer.
l. Briefly explain what is the Export Market Development Grants (EMDG) (see under Market Research)
Export market development grants is a venture taken by the government in Australia along with Austrade to encourage and provide
financial assistance to new and existing exporters. The aim of this grant is to generate exports from Australia to expand its market
internationally and increase revenue for Australia. This grant tends to benefit small exporters to connect with importers and develop
an international brand image for this product. This grant is a help from Australian government to expand the export business in
Australia.
m. Exporting means more opportunities, but also entails greater risks. Although the environment for international trade
has changed substantially over the years, the risks that exporters face when selling their products and services in
other countries remain essentially the same. Explain the following: (see under Risk Management)
i. Political risk
Political risk means the risk arising due to the sovereign government in the importing country. This
type of risk is applicable due to the instability of the ruling government. This type of risk might lead to
losses due to failure of the government, political uprising even sometimes war.
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ii. Legal risk
The exporter can face various legal risk in the importing country as it is not necessary that the rules
and laws of both the countries will be the same. The method of justice might be different and there
may be many laws which might be not in favour of the exporting company. Thus the company has to
have full knowledge of all relevant laws which are important for the exporting company. It should
then decide to export to a particular country after checking all the relevant laws.
iii. Bribery, graft and
corruption risk
Bribery and corruption is one of the most common crimes which is illegal in most of the countries of
the world. If any of the exporting company might be involved in bribing any official of the importing
country it is a serious and potential loss of brand image for the company. Bribing does not limit only
to monetary benefit but also to some other things and even through third party sources.
iv. Quarantine
compliance risk
Some countries have import restriction on some Particular goods which the exporter should have
proper knowledge about before exporting the goods to that country. As if the exporter exports those
goods which are not eligible in the importing country the country might ban, destroy, as well as
restrict the exporter from doing business with the importing country.
v. Exchange rate
risk
This risk is more of an economic in nature as it arises due to currency price fluctuation. It is a type of
market risk. The exporters can hedge this risk by various methods if the fluctuation are very volatile.
This risk can erode away profits even from successful transaction.
vi. Non-payment risk
This credit risk is faced by all the exporters and the exporters have to take all the necessary steps to
mitigate this risk. They can ask for pre-payment or letter of credit which is irrevocable and it does not
matter whether the importer is from a rich country or a poor one.
vii. Social and
cultural
consideration risk
This type of risk is pertained to the exporter as it needs to take a good analysis of the social and
cultural consideration of the importing country before exporting goods. As any goods which hurts the
sentiments of the importing country might lead to a loss to the exporter.
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n. What are considerations when it comes to managing legal issues (see under Legal Issues)
i. Government
sanctions
Australian economy are involved in a various number of sanctions laid by the united nations security
council. Also with various countries it has been into with many sanctions. These sanctions range
from business to travelling to a specific person. Thus a person doing business has to be aware of
these sanctions.
ii. Intellectual
Property (IP)
registration
Intellectual property is important as it is the most important part of the business. As any company
plans to do its business in foreign they need to file for intellectual property patents and trademarks.
This registration is although applicable in Australia only and so the company needs to file for patents
and trademarks in the foreign country where it plans to do its business.
iii. Dealing with
terrorists
The Australian government has made several laws to curb the influence of terrorist organization.
The company can find a list of pro claimed terrorist organization and any help in terms of property ,
recruiting persons , receive training , provide or give funds are acclaimed as terrorist activity. Thus
the company should abide by the rules and sanctions placed by the government.
iv. Dispute resolution
Trade disputes can arise in the normal course of business and the Australian government can only
provide assistance in terms of advice of the countries they are dealing with and legal documents
they can provide for that country.
However the Australian government cannot directly be involved in the legal litigation of the
commercial dispute as it only is related to the company.
v. Foreign bribery
As stated earlier bribing is a criminal offence in almost all the countries. If any Australian company
official bribes a foreign official then the criminal case is applicable for the Australian company for
bribing.
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Task 2
1. Choose an Australian company of your choice and assume you are heading the marketing department which you
are tasked to provide a review to the CEO on which country would be best suited for its business expansion plans in
e-commerce.
i. Browse the Australian Trade and Investment Commission (https://www.austrade.gov.au/Australian/Export/Export-
markets/Countries ) and identify two (2) countries of your choice to determine for the company to expand its e-
commerce business to.
ii. Provide a brief on each countries’ background including its trade agreements with Australia.
iii. Conduct an analysis on each countries’ business environment and rank each country’s business feasibility.
Name of Australian company A2 milk Company Ltd.
Company profile
The company was founded on 27th February 1997 in Australia. It mainly sells video games
consoles and accessories for various other manufacturers and is spread over Australia
through a number of retail stores. It has operation available in new Zealand as well.
Business goals and direction
To be the most admired and commercially attractive dairy-based nutritional company
globally
To be the innovative and smart choice for dairy nutrition
Current export activity
(if applicable) It exports goods to new Zealand, USA ,Hong kong and Singapore.
Products/ service focus for
export as an e-commerce
business
A2 milk and baby infant milk products
Target customers/ users All age groups of every demography particularly health aware consumers or people with
upset stomach after they consume milk.
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Overview international business analysis for two countries
Country
name Provide a brief market profile What are the trade agreements with
Australia?
Identify and analyse impact of economic, political, legal, social and
cultural (rank each factor from 1 –poor, 2 – fair, 3 – average, 4 – good
and 5 - excellent)
Overall
country
feasibility
(High,
Moderate, Low)
Political
climate
Economic
condition
Legal
requirement/s
Social & cultural
consideration/s
china
China has a market which is comprised of
people of every demography and with
milk being the basic requirement for
nutrition.
The China Australia Free Trade Agreement
(ChAFTA) 3 5 4 3 high
india
India being the second most populated
country with the maximum population
among the age gap of 18-25
4 4 3 3 moderate
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2. Provide a brief market review on the short-listed country mentioned above, on the following:
i. Market trends evaluation
Country’s market
readiness for new e-
commerce product/
service
(consumer preference)
China has a market where e-commerce websites have been a success stories. Also the
company is planning to sell milk products online which have valuable nutrient benefits
and also the product is unique which is manufactured by the company itself over the
globe
Competitor
considerations
A2 milk company has competitors in almost every e commerce website but Ali baba is
the biggest competitor as it needs to tackle the pre-held market by Ali baba. To tackle Ali
baba it needs to tackle the competition by providing exciting discount and offers on its
site. This marketing strategy will attract the teen crowd to the EB games website.
Market attractiveness in
terms of fit and
contribution to the
company’s business?
(opportunities)
The opportunities for A2 milk Company is very high in china like:
China has the world’s largest population.
The number of teens or the target demography is high.
Due to cheap postal service in china courier charges are relatively low.
Milk being the most essential food for all age groups have a competitive advantage
The company has a product which is unique and it has a monopoly market
Due to high population and if service is excellent and offers is provided then it leads to
marketing strategy by the consumers itself.
ii. Country’s current business environment
Political risk
(http://www.eulerhermes.us
website)
As the political environment in china is fairly stable with the ruling communist party of
china in power. There is no current threat of political risk.
Financial stability
(http://www.beri.com )
As china is still is a developing economy, but it is one of the fastest growing economy in
ASEAN countries. It is financially stable with the Yen-Aud price fairly stable.
Corruption risk
(http://www.transparency.org )
Corruption is there at certain administrative levels of the china government, but there are
stringent rules and punishment if the crime of corruption is proved.
Legal considerations in
terms of human rights
Human rights is placed above all in china as the labour force is the highest in the world.
Since due to such high labour force the government has made stringent provision and
laws for the benefit of the work force. Thus suitable human rights consideration is in
place in china
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Legal considerations in
terms of labour relations
There are many labour law in place in china due to the high work force. They cater to
every relationship between the employer and worker but a formal agreement is required
to for the law to be enforceable.
Cross cultural
communications
considerations
The culture in china is very different as compared to the culture in Australia. The official
language of china is Chinese while English is used in Australia. Also since Australia lies
in the southern hemisphere while china in the northern hemisphere. There is a difference
of time zones as well. Although even due to these difficulties it is possible to maintain
proper communication with the advent of technology across both the continents.
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iii. Return on investment Short-term
(within 2 years)
In the short term the company has to market its product heavily within china among the
ecommerce websites to grab the markets attention. The product is unique and is
produced by the A2 milk company only, so in the first two years the consumers would try
and use the product and the company will try to gain market share.
Long-term
(beyond 2 years)
The long term focus of the company is to establish its product with the ecommerce
website in china. The product has a comparative advantage as it is a monopoly product
produced only by the A2 milk company. The company has patented the product and the
creation formula is a secret. In the long term the company would acquire a significant
market share in the country and would expand its operations to capture the market by
starting to produce the product in china.
3. Identify and analyze international marketing opportunities according to their likely fit with the organization’s
goals and capabilities. Using the competitive advantage and market attractiveness analysis, rank each variable
criteria in relevance if the competition is stronger or the company is stronger and negative or positive
respectively.
i. Cost-benefit analysis on competitive advantages
Estimate the contribution these
opportunities could present to the
business
Competition is
stronger Company is stronger
Competitive advantages/ success criteria 1 2 3 4 5 6 7 8 9
Market share
Cost structure/ cost advantages
Product/ service quality
Technological know-how
Marketing know-how
Management
Location/ distribution advantages
Financial resources
Own brands, patents, etc.
Spare capacity
Average score (add total score and divide by
9 to give the average)
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Overall evaluation on current business
and customer base summary
(In your own words, what is your opinion on this
analysis, i.e. is the competition stronger or is the
company case stronger?)
As per the analysis of the data it is highly that the company is stronger
and has a more strong case.
ii. Cost-benefit analysis on market attractiveness
Estimate the contribution these
opportunities could present to the
business (cont.)
Negative Positive
Market evaluation criteria 1 2 3 4 5 6 7 8 9
Market size
Market growth
Branch profitability
Innovation potential of industry
Competition intensity
Recession susceptibility
Substitution danger
Client loyalty
Security of supply (materials/ spare
parts).

Regulatory/ public opinion risks
Average score (add total score and divide by 9
to give the average)
Overall evaluation on current business
and customer base summary
(In your own words, what is your opinion on this
analysis, i.e. is the situational analysis is more
positive or otherwise?)
As per our analysis the situational analysis is positive
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4. Identify and analyze international marketing opportunities according to their likely fit with the organization’s goals
and capabilities
iii. Mapping of strategic matrix based on the position in the market (plot
chart according to the above average from section I and ii scores and connect the two points with a line)
Evaluation of market attractiveness
High
9
Concentrate
(concentrate activities on
niches and specialize in the
few products/ services that the
company can do best)
Selective investment
and growth
(consider building up
strengths, i.e. management
improvements, cost
reduction, quality upgrading,
new technologies)
Maximize investment
and grow
8
7
Medium
6
Partnership
(consider aligning with a
partner which is also keen in
entering similar market/s)
Gradual development
(strengthen competitiveness
through incremental
improvements and shift
emphasis to the most
attractive market segments)
Selective investment
and growth
(Identify the most attractive
growth segments of the
market and intensify
marketing/ promotions,
expand geographically, etc.)
5
4
Low
3
Divest
Partnership
(consider forming alliances
with a partner)
Harvest/ diversity
(maintain position in present
market and consider
diversifying into new markets
through development of new
products)
2
1
1 2 3 4 5 6 7 8 9
Low Medium High
Evaluation of competitive advantages
Identification of a best
option international
marketing strategy to use
(in your own words, what is
your opinion of this analysis)
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Assessment Submission Checklist to be completed by the Trainer/Assessor
Unit name: BSBMKG605 Evaluate International Marketing Opportunities
Assessment: Task 1
Did the student complete and provide evidence for the following (please ): Yes No
1. Provide a discussion on the short questions?
2. Provide a discussion and analysis of conducting international business by referring to the Australian Trade
and Investment Commission (Austrade)?
3. Submit within agreed timeframe?
Did the student complete and provide evidence for the following (please ): Yes No
1.1. Assess international trade patterns and identify their likely importance for the business
1.2. Research international business and electronic commerce market factors, and assess
opportunities to enter, shape or influence the market for their likely contribution to the business
1.3. Identify international markets operating under free trade or protectionist arrangements and
estimate likely ease of entering and trading successfully
1.4. Identify international trade policies and agreements and estimate their likely impact on
international marketing opportunities
Feedback and result outcome for Task 1 (please
)
Satisfactory
Not Yet Satisfactory
Re-assessment
required
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Unit name: BSBMKG605 Evaluate International Marketing Opportunities
Assessment: Task 2
Did the student complete and provide evidence for the following (please ): Yes No
1. Provide a discussion on the short questions?
2. Provide an Australian company to be used in determining its business expansion plans for e-commerce
business?
3. Proposed two countries of choice for an Australian company to export its products/ services via e-
commerce to?
4. Provide a discussion and analysis of economic, political, social and cultural factors affecting international
marketing?
5. Provided an analyses on international marketing opportunities according to their likely fit with the
organization’s goals and capabilities?
6. Submit within agreed timeframe?
Did the student complete and provide evidence for the following (please ): Yes No
2.1. Identify and analyse impact of economic, political, social and cultural factors affecting international
marketing opportunities
2.2. Investigate international market trends and developments to identify market needs relevant to the business
2.3. Identify new and emerging business and electronic commerce markets, and assess opportunities to enter,
shape or influence markets based on their fit with business goals and direction, and their likely contribution
to the business
3.1. Analyse and rate acceptability of political, financial stability and corruption risk factors of potential market
3.2. Analyse and rate acceptability of legal and regulatory requirements, and trade barriers to potential market
3.3. Relate risk factors to international business cycles in terms of economic conditions and estimate their
impact on potential market
4.1 Identify and analyse international marketing opportunities according to their likely fit with the organisation’s
goals and capabilities
4.2 Evaluate each opportunity to determine its impact on current business and customer base
4.3 Use an assessment of costs, benefits, risks and opportunities to determine financial viability of each
marketing opportunity
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4.4 Determine probable return on investment and potential competitors
Feedback and result outcome for Task 2 (please
)
Satisfactory
Not Yet Satisfactory
Re-assessment
required
Assessment Summary Result (please
)
Task 1 Short questions S NYS DNS
Task 2 Short questions relating to a
case scenario S NYS DNS
Final Assessment Result for this unit C NYC
Feedback is given to the student on each Assessment task YES NO
Feedback is given to the student on final outcome of the unit YES NO
The result of my performance in this unit has been discussed and explained to me (please place signature below)
Student Signature Date
Trainer/ Assessor’s declaration: I hereby certify that the above student has been assessed by myself and all assessments are carried
out as required by the Principles of Assessments (Clause 1.8 of the Standards for RTO 2015).
Trainer/ Assessor’s Initials Date
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Appeal Process (only for mitigating circumstances)
I would like to appeal the outcome of this assessment as per the appeals procedure in the Student Handbook
Student Signature Date
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