Term 4 2018: BSBMKG605 Evaluate International Marketing Opportunities

This document presents a solution to a BSBMKG605 assignment focusing on evaluating international marketing opportunities. The assignment includes short answer questions on topics such as international trade, export strategies, free trade agreements, and the role of the OECD. The solution also addresses key factors for Australian companies expanding overseas, including the use of Austrade resources and the importance of an export strategy. Furthermore, the assignment requires an analysis of market entry for an Australian company, evaluating political, legal, economic, and cultural factors, along with the ease of entering and trading in potential markets, and the impact of these factors on the business. It also addresses the potential of e-commerce and the costs associated with export pricing, providing a comprehensive overview of the international marketing process.

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.
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Each assessment component is recorded as either Satisfactory (S) or Not Yet Satisfactory (NYS). A student can only achieve
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Satisfactory. Your trainer will give you feedback after the completion of each assessment. A student who is assessed as NYS is
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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:
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assessment and be reassessed if necessary.
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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
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Rules of Evidence
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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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