As a follow up to your introduction to BRICS, view these updates on the countries: The BRICs at Eight Beyond The BRICS Next, examine each of the BRICS to determine their projected economic growth,...

As a follow up to your introduction to BRICS, view these updates on the countries:

The BRICs at Eight

Beyond The BRICS

Next, examine each of the BRICS to determine their projected economic growth, country business environment, risk and readiness for e-business. Note: The hyperlinks that follow should take you to EIU database results for the country, however as for the Industry Outlook you should check to see if more current results are available, such as forecasts to 2017.

Click on the each of the countries and look up: 1. Five Year Economic Forecast to 2016, 2. Country Risk Rating, and 3. Business Environment Rating. Then go to Telecoms and Technology in… , review the categories, and find their Digital Economy rating (formerly known as the e-Business Readiness rating). Dig deeper by reading other EIU news stories about the political, economic, financial, business and regulatory environments in each country.

Also, take note of the Personal Disposable Income (PDI) available in each country as an indicator of market size. (you will find the PDI in the 5 Year Economic Forecast) PDI is defined as the income households receive from firms, plus transfer payments received from the government, minus direct taxes paid to the government. It is the income that households have available for spending or saving.

Post the resultant ratings for each country in a summary table comparing the country ratings for risk, business environment (opportunity) and Digital Economy. Include a brief summary of the main country conditions that contribute to the ratings. Also create a table comparing the Gross Domestic Product (GDP), the Personal Disposable Income (PDI), Exports (in U.S. $), and Imports (in U.S. $), comparing the calculated growth rates for each item between 2012 and 2016.

Discuss the following business strategy questions.

How would you tradeoff the degree of country risk versus the business environment ratings, taking into consideration the market size as expressed by the PDI in 2016?

How would you tradeoff the degree of country risk versus the business environment ratings, taking into consideration the market growth as expressed by the PDI in 2016 versus 2012?

As a result of answering the above two questions, how would you prioritize the BRICS countries in terms of developing a global business strategy? Be explicit and objective about how you made you conclusion, ideally in a Decision Matrix. An example of a Decision Matrix can be foundhere.

http://www.business-analysis-made-easy.com/Example-Of-A-Decision-Matrix.html

To summarize the Team Project work so far:

• In Week 2 you selected an industry and company.

• In Week 3 you assessed and compared the BRICS countries, using factors like the economy, technology, the business environment, and country risk.

For Week 4, the task is to first use the EIU information to discuss how your selected industry from Week 2 is doing in each of the BRICS countries. To do that, start by clicking on the Industry World Outlook you accessed during Week 2 (links to these Industry World Outlooks are also reproduced below). NOTE: DO NOT limit your industry research toonly
EIU information. Also do a general research scan to find other sources and data that will help you better understand the industry. Several past teams selected interesting industries, then tried to focus on EIU data and make it "fit" their needs (which it didn't). Be resourceful and creative.

EIU Global Automotive Industry World Outlook

EIU Global Consumer Goods Industry World Outlook

EIU Global Energy Industry World Outlook

EIU Global Financial Services Industry World Outlook

EIU Global Healthcare Industry World Outlook

EIU Global Telecoms and Technology Industry World Outlook

Based on your research, answer the following questions for the industry you have selected.

• What is the comparative market size of the industry in each of the BRICS countries by 2016 (or 2017 if available)? (Hint: Use something like the number of passenger car registrations to size the automobile industry, other metrics for other industries) How does your assessment of the country market sizes impact your decision on prioritizing the countries?

• What is the comparative growth, both in absolute terms and in percentage terms from 2012 to 2016 (or 2017 if available) for the industry you have selected in each of the BRICS countries? Similarly, how might that impact your decision on prioritizing the countries in your global business strategy?

• Who are some of the key company players (both multinational and local) in your selected industry in each of the BRICS countries? What is your assessment of how competitive the industry is in each country? How will that impact your decision on prioritizing the countries?

• Based on the above analyses, which of the BRICS countries are you proposing for entry by your company? Provide reasons for your decision based upon your research, readings from this or past semesters, or other sources. As you did for the prior week, ideally structure your analysis as a Decision Matrix.

First submit the draft of your Week 4 work to Turnitin for review. If you wish, you can also resubmit an edited/corrected version for review. You should use the Turnitin assignments. Need to answer the questions highlighted in YELLOW