International Business Plan Final Report on Chevrolet in Bangladesh

This report presents an international business plan for Chevrolet, focusing on its potential entry into the Bangladesh market. It begins with an executive summary, followed by an introduction to Chevrolet and its background. The report analyzes Bangladesh's economic growth, highlighting opportunities for Chevrolet. It then examines Chevrolet's business model, including its manufacturing, distribution, retail, and franchise strategies. A SWOT analysis is conducted to identify strengths, weaknesses, opportunities, and threats. The report also addresses strategic issues, entry mode strategies, and key management issues related to marketing, production, logistics, and human resources. Finally, it offers recommendations for Chevrolet's future success in Bangladesh and concludes with a summary of the findings.

Running head: INTERNATIONAL BUSINESS PLAN FINAL REPORT ON CHEVROLET
International Business Plan Final Report on Chevrolet
Name of the Student:
Name of the University:
Author Note:

1INTERNATIONAL BUSINESS PLAN FINAL REPORT ON CHEVROLET
EXECUTIVE SUMMARY
The main aim of the paper is to analyse the business opportunity of Chevrolet in a different
country other than the ones it is already established in. In this connection, the concerned
article plans an international business report on Chevrolet concerning its establishment in the
new venture. The report studies the background of the relevant company and its industry to
analyse the opportunity the business would have in the same. Further, the report focuses on
analysing the market to enter for Chevrolet and studies the economic growth and
opportunities of the same. Thereafter, the study identifies the business model and the SWOT
analysis of Chevrolet considering the facts and figures of the market the report has examined
to enter. Furthermore, the study investigates the strategic issues that are to be faced by the
concerned company to proceed with its business in the new venture. Moreover, the study
examines the entry mode strategy that would prove best for Chevrolet to enter into the
modern market. Further, the report focuses on analysing the critical management issues the
concerned company would be liable to face in terms of its entrance and sustaining itself in the
new globalised market. Finally, the report concludes with providing some strategical
recommendations for the future benefits and retention of Chevrolet in the chosen country to
establish the new business entity.

2INTERNATIONAL BUSINESS PLAN FINAL REPORT ON CHEVROLET
Table of Contents
Introduction to the Company.....................................................................................................3
Company Background................................................................................................................3
Market to enter – Bangladesh’s Economic Growth...................................................................3
Business Model Analysis...........................................................................................................4
SWOT Analysis.........................................................................................................................6
Strategic issues to be faced by Chevrolet...................................................................................9
Entry Mode Strategy................................................................................................................10
Key Management Issues..........................................................................................................12
Marketing Management.......................................................................................................12
Production and Logistics......................................................................................................13
Human Resource Management............................................................................................15
Recommendations....................................................................................................................18
Conclusion................................................................................................................................19
References................................................................................................................................20
Appendices...............................................................................................................................27
Appendix 1...........................................................................................................................27
Appendix 2...........................................................................................................................27

3INTERNATIONAL BUSINESS PLAN FINAL REPORT ON CHEVROLET
Introduction to the Company
The company chosen for the particular business plan report is considered as
Chevrolet (Duhon et al., 2015). The Chevrolet also colloquially known as Chevy and Chev is
a division of General Motors Company. The concerned company is an automotive industry of
America. Chevrolet was debuted by Louis Chevrolet along with the founder of General
Motors, William C. Durant in the year of 1911, dated 3rd November (Flinn, 2017). The
company was then named as Chevrolet Motor Car Company.
Company Background
Researchers examined that the concerned company was branded to become the leader
of the volume in the family of General Motors concerning with the sale of mainstream
automobile vehicles and in turn compete with the highest selling models in the year of 1919.
The Chevrolet operates itself all across the globe with its high quality and premium
automotive, commercial vehicles and trucks (Laszlo & Zhexembayeva, 2017). The paradigm
gained by the company has made it the brand recognition vehicle of General Motors and
thereby is termed as the synonym of GM at times. It was also analysed that Chevrolet has
won awards on a hat trick basis through 2015-2019, for its agility and competency.
Market to enter – Bangladesh’s Economic Growth
As opined by Porter & Heppelmann, (2014), any business in order to expand and
explore needs to spread its wings locally as well as globally. Although Chevrolet is known to
operate on a global basis, there still lies an opportunity for the company to spread its business
operations in the country of Bangladesh. In this context, the prior concern behind the
expansion of business is to get access to a larger share in the market and turn, increase the net
revenue earning capabilities of the firm. Although the concerned company is known to have

4INTERNATIONAL BUSINESS PLAN FINAL REPORT ON CHEVROLET
an efficient base of peer customers, there still lies an endless opportunity to increase the same
and expand itself. As stated by Carley & Christie, (2017), the population of Bangladesh has
increased at a full rate in the past years, and thus the man force has grown in the country. As
examined by the country profile of EIU, the man force rate has doubled itself with the
passing decades in Bangladesh. In this regard, Chevrolet can thereby find great strengths and
opportunities to progress its sector in Bangladesh as this will contribute to the scale of
economies. This is because Bangladesh is examined to be still improving its automotive skills
and still lies way behind because of the industries in Bangladesh produces only local
vehicles.
As stated by Islam (2014), the economic stability of Bangladesh stands at the 42nd
position all across the globe and at the 31st in the power of purchasing parity. This is a piece
of clear evidence that Chevrolet has enormous scope in increasing its market share and
business exploration concerning the country of Bangladesh. The concerned company can be
advantaged with the economy scale of Bangladesh once the business starts to grow. Not only
this, the opportunity to gain discounts and better offers concerning the incentive system from
suppliers and vendors also has a chance to increase. Along with this, expanding its business
may also foster the company to offer a different range of products and services to its potential
customers and thus diversify the chain to earn revenue. The company has excellent chances
to expand the diversification of its products and services and thereby expand its assets in
Bangladesh from the core products they sell in other markets. This will help in preserving the
bottom line of the risks of uncertainty for the company.
Business Model Analysis
As opined by Grant (2016), a business model is an ideology set by a business entity in
order to sustain as well as retain itself in the long run. Thus, a business model describes the

5INTERNATIONAL BUSINESS PLAN FINAL REPORT ON CHEVROLET
way a firm delivers value to its potential customer and gets paid for the same and then turn
that payment into effectively generated profit. In this context, the business model analysis of
Chevrolet is determined as below.
Manufacturer
Chevrolet manufactures its product at a global presence market. It has its presence
across 130 countries concerning its parent company General Motors, and that helps the
concerned company in optimizing its plans, functions, and processes across its delivery chain
to provide their products and services to the potential market (Lee & Johnson, 2013).
Distributor
Chevrolet has initiated the use of advanced technologies in its supply chain
management to ensure the smooth flow of the products they offer to the market. On an
overall rate, there are a rough of 18,250 distributor outlets of Chevrolet alone in the U.S
(Liang, 2018).
Retailer
Chevrolet has spread its wings to deliver its products and services through various
medium and big retail sectors all across the globe in the context that a maximum number of
people can reach to them and adhere themselves to buy their desirable vehicle offered by
Chevrolet (Kano, Inoue & Sanada, 2013).
Franchise
Chevrolet has built its business model in the plan of providing franchise to the
interested business people (Hawkins et al., 2014). The company always welcomes
entrepreneurs interested in opening a franchise to sell the products manufactured by the
Chevrolet. This helps the business to increase its stores as well as sales.

6INTERNATIONAL BUSINESS PLAN FINAL REPORT ON CHEVROLET
Figure 1: Showing Strategies of Business Model of Chevrolet
(Source: Based on Bohnsack, Pinkse & Kolk, 2014)
SWOT Analysis
As implied by Sadgrove (2016), SWOT analysis is a matrix that helps a business
entity to identify its potential strengths and opportunities as well as the danger of weakness
and threats that the business is impacted from. This identification fosters the company to
amend and improve the required changes that would help the company to get an effective and
efficient paradigm in the business environment. The limitations to the analysis of the SWOT
matrix that identifies the same for Chevrolet is determined as below (Crawford, 2016).
Strengths
 Effective and efficient Research and Development strategies in the segment of the
automobile industry.
 Present globally across six continents, 130 countries out of which it has its prominent
presence in the USA, India, China, Europe, Japan, and Canada.
 A higher level of brand equity in its local market as well.

7INTERNATIONAL BUSINESS PLAN FINAL REPORT ON CHEVROLET
 Variety of different models of vehicle that it offers to its customers.
 Recognizable Human Resource Management with over an average employment scale
of 300,000 workers in all their global sector.
 The company caters the sale of over 4 million vehicles annually across all over its
wings.
 Present in international level racing competitions such as NASCAR.
Weaknesses
 Significantly affected because of the bankruptcy in its owner industry General
Motors.
 Promising competition from its peer international brand competitors such as Toyota
and Honda Motors also excelling in the field of price, quality as well as servicing.
 Weak sales and marketing as compared to the other potential Japanese brands of
automotive vehicles.
Opportunities
 Diversification in the future development of various hybrid cars as well as fuel
efficient vehicles that would benefit the potential customers.
 Expanding into markets that desire to emerge and improve in the sector of the
automotive industry can prove to be a beneficiary opportunity for Chevrolet.
 The rapid growth in the sector of the automotive industry because of the increase in
the demand and desire of the customers and their changing lifestyles.
 Dealers of Chevrolet can increase the value-added offerings after the sales procedure
has taken place.
Threats

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 The global appearance of the intervention of Government and its strict order and
policies in the sector of the automobile.
 The substitution in the modes of transport that the public can adhere themselves to,
such as the bus, cabs and also the metro trains.
 The rapid and frequent rise in the price of fuel that leads to a decrease in the interest
rate of the customer to opt for purchasing cars.
 The intense level of competition from other globalized automotive brands producing
similar substitute vehicles and fulfilling the demands of the customers has a chance to
affect the market share of Chevrolet adversely.
Figure 2: Increase in sales of Chevrolet after implementation of SWOT analysis
(Source: Based on Sanda, 2018)
Based on the above examination of the Business model and SWOT analysis of the
concerned company, the study tends to examine that Chevrolet has successfully implemented
its Business Model and analysed its potential strengths and weaknesses in order to gain
compelling competitive advantage and maintain its higher paradigm in the market of the
automotive industry. However, in the connection of expanding its business sector the

9INTERNATIONAL BUSINESS PLAN FINAL REPORT ON CHEVROLET
concerned company is liable to follow and execute some strategical implications in its
working procedure to understand the market of Bangladesh. The same is explained as below.
Strategic issues to be faced by Chevrolet
As opined by Boons & Lüdeke-Freund, (2013), business strategy is those issues that a
business entity is liable to face and solve in order to establish its entrepreneurship in a new
state or country. The market condition and business structure of the particular country the
business set up is to be done happen to impact and influence the complete working structure
of the business firm. In this connection, the business issues to be faced by Chevrolet in
regards to setting up its entity in Bangladesh are specified as below.
 The generated revenue from the public sector of Bangladesh is estimated to be only at
the rate of 9% of the total GDP of the country. The reason behind this is the
insufficient rate of BOP of Bangladesh.
 The birth rate of Bangladesh exceeds at a higher rate than that of its mortality rate.
This leads to serious growth in the population of the concerned country and thereby
lack of resources. The number of people needs more amount of resources (Mathews &
MacDorman, 2013).
 Bangladesh lacks behind in its banking industry because of the insufficient
performance of the banks in providing loans and rate of interest. This becomes a
significant issue for Chevrolet to start up a new business plan as the company will not
be able to fund itself through banks if needed.
 The weakness in the economic scale of Bangladesh because of the undercapitalized
financing sector. This, in turn, creates an inefficiency in the public area of business
and results in a loss in the same.

10INTERNATIONAL BUSINESS PLAN FINAL REPORT ON CHEVROLET
 The underdeveloped automotive sector of Bangladesh and the slow growth in the
same.
 The political issue of the Rohingya Refugee crisis has profoundly impacted the
economic condition of Bangladesh, and the same can adversely affect the revenue
generation of Chevrolet.
 Bangladesh has high records of risk of natural calamities like flood and severe
landslides that affect the country as a whole.
 Bangladesh is till date highly dependent on other foreign countries and projects to
assist it with loans. This significantly affects the structure of the balance of payment
of the concerned nation.
Analysing the above specified strategic issues Chevrolet needs to face to expand its
business entity in Bangladesh, the study tends to state that Chevrolet needs to implement an
effective and efficient entry mode plan to sustain itself in Bangladesh. The same is explained
as below.
Entry Mode Strategy
Based on the market structure of Bangladesh, Chevrolet, in order to enter the market
of the concerned country, needs to follow some entry strategies to start up their business to
gain revenue. As examined with the help of the study, there lies an opportunity to enter the
market through various strategies termed as direct exporting of the products, direct importing
of the products, licensing with the country, franchising its brand, partnership firms, joint
venture business, purchasing the underdeveloped companies or acquisition with local car
manufacturers of Bangladesh. As examined by the report, the best mode of entering the
business market of Bangladesh for Chevrolet is the strategy of acquisition of the same with
other local car company. The reason behind the same is explained below.

11INTERNATIONAL BUSINESS PLAN FINAL REPORT ON CHEVROLET
Acquisition and Merging with local car manufacturers
As implied by Hill, Jones & Schilling, (2014), acquisition of a business plan is a
process where one developed company buys the shares of another company in order to
control the operation and function of the later. The merger can take place only in a situation
that the company interested in purchasing the ownership of the targeted organisation buys at
least 50% of the shares of the same. The company concerned in this particular report is
Chevrolet. In this connection, Chevrolet has to acquire the stock and assets of a local targeted
company of Bangladesh in the car manufacturing industry that is underdeveloped. Thereafter,
Chevrolet has to amend necessary decisions concerning the new merger. This acquisition will
also allow Chevrolet to take the decisions regarding the changes without the prior approval of
the previous stakeholders of the targeted company because of the condition that the
purchasing company buys 50% or more share of the focused company. Acquisition of another
company is beneficial in the case that it will allow Chevrolet to earn the maximum amount of
market share of the targeted company and therefore expand its business in the new territory
of Bangladesh, developing the local car manufacturer and thereafter increasing the revenue as
well as the profit scale for themselves. Thus, the acquisition will help Chevrolet to enter the
market of Bangladesh. Chevrolet in this connection needs to comply with the legal rules and
orders of the Bangladesh government system in order to set up their business proceedings
legally.
Chevrolet needs to analyse the market condition and the potentialities of the company
they are to purchase the shares of and expand their business. The study analyses that
Chevrolet can sum up with the Hi-Tech company industries that excels in providing superior
quality of electronics and automotive products to the market of Bangladesh. Hi-Tech
industries have successfully grabbed the local market of Bangladesh and recently have known
to expand their business in other global sectors. Therefore, by utilising the core strategies and