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Case study - Import BACHELOR OF COMMERCE IBS690 – International Business SEMESTER 1, 2019 Assessment 2 40% of FINAL GRADE To be submitted latest Friday 17 May 2019, 11:55pm Lecturer: Raz Zulfiqar Telephone: 03 539 5039 Office: K206 E-mail:
[email protected] K-Block, Alton Street, Nelson Applied Business mailto:
[email protected] IBS690 International Business – Semester One, 2019 – Assignment 2 Page 2 of 7 CASE STUDY (Total of 100 marks) Please read, understand and follow these instructions carefully before starting your assignment. This case study is about the process of importing a product from an overseas country into New Zealand. “Imagine that you are the Import/Export manager of a SME based in Nelson,NZ. Your CEO requests a brief report about the process of importing a specific product.” You can choose your own product but it will need to be imported in a commercial quantity i.e. a minimum of one shipping container or air freight equivalent. You have a choice between the following three countries (i.e. your case analysis must be about importing the chosen product from only one of these countries; make sure the product can be sourced from the selected country): 1. Japan, 2. Chile, or 3. France. For this assignment you are requested to develop a comprehensive plan (in the form of a written report) to import the chosen product into New Zealand. Your plan must be practically achievable, and your case analysis will be focused on real issues as identified and researched. If you use an on-line trading platform such as for example Alibaba.com describe in detail which parts of the import process you can do via the platform and which parts you will need to organise alternatively. Assume you will make payment in New Zealand dollar via your local bank in New Zealand. To be successful in your case analysis as a minimum you need to provide the following information: A. Risks of importing the product from Japan/Chile/France into New Zealand, broken– down in the following categories: I. Country risks II. Cross-cultural risks III. Commercial risks IV. Financial risks Analyse if and how you are going to manage the identified risks. Note: risks must be specific to the chosen product and country – generic risks as mentioned in the text book will not give you marks. Total marks: 15. B. Analyse and describe what potential trade barriers may be applicable in this case such as tariffs, quota, import/export licenses, (governmental) red-tape, custom formalities, and etcetera. You need to show evidence of practical research in both Japan/Chile/France and New Zealand (e.g. list of information sources and people spoken with). Total marks: 15. IBS690 International Business – Semester One, 2019 – Assignment 2 Page 3 of 7 C. Analyse and describe how you will organise transport from factory to destination (Nelson) including but not limited to: I. Ways of transport. II. Logistic provider(s) to be used and their services offered. III. Insurance of goods (type of insurance and cover). IV. Documents involved. Again, marks will only be given for case-specific information and for showing evidence of sources. Focus your research on electronic processing of transactions and e-documents where applicable. Total marks: 20. D. Analyse and describe what payment arrangements you will make with your supplier (exclude full upfront payment), with whom you will organise payment, how the payment process will work and what documents will be required. Specifically include in your answer how you will manage currency exchange risks during the expected time between ordering and delivery in New Zealand. Again, marks will only be given for case-specific information and for showing evidence of sources. Emphasis your analysis on ways of electronic processing of payment transactions, e.g. electronic-LOC. Total marks: 20. E. Finally, based on above give a brief description of the main points you wish to negotiate with the supplier and include in an agreement. Set-out how you will contact the supplier and what negotiation process you envisage (include any anticipated cross-cultural issues). Furthermore, describe what assistance will you require from whom (governmental and commercial organisations)? Assume that the size of the order makes it worthwhile to visit the export country and meet the selected supplier. Total marks: 20. You are requested to present the outcome of your case analysis in a readable report of between 8 – 10 pages maximum (excluding appendixes with tables and list of sources used). “Remember that this is a business report for your CEO who hasn’t got time to read 30 pages” Total marks for readability, structure and presentation of the report: 10. No market research for the product is required; assume there is a proven market in New Zealand. Good Luck! IBS690 International Business – Semester One, 2019 – Assignment 2 Page 4 of 7 OTHER INFORMATION Your mark for this Case study is weighted as 40% of overall mark for this course. Your case analysis should be submitted latest Sunday 17 May 2019 before 11:55 pm (please upload via the appropriate drop box on the Course Moodle website). Assignments will only be accepted if handed in on or before the due date unless there are special circumstances that are discussed with the course co-ordinator prior to the due date. Please refer to the Course Outline for details. IBS690 International Business – Semester One, 2019 – Assignment 2 Page 5 of 7 MARKING SCHEDULE A. Risks of importing the product from Japan/Chile/France into New Zealand, broken –down in the following categories: Total marks: 15. I. Country risks 4 marks given for correctly and completely identifying at least 4 country risks specific to either Japan/Chile/France and explaining how these will be managed and if not managed, why. Partial marks for correct but incomplete description. II. Cross-cultural risks 4 marks given for correctly and completely identifying at least 4 cross- cultural risks specific to either Japan/Chile/France. Cultural issues need to identified from a New Zealand perspective and explained how these will be managed and if not managed, why. Partial marks for correct but incomplete description. III. Commercial risks 4 marks given for correctly and completely identifying at least 4 commercial risks specific to importing the chosen product from the selected country into New Zealand and explaining how these will be managed and if not managed, why. Partial marks for correct but incomplete description. IV. Financial risks 3 marks given for correct and completely identifying at least 3 financial risks specific to I Japan/Chile/France and explaining how these will be managed and if not managed, why. Partial marks for correct but incomplete description. Note: no marks for only describing generic risks as mentioned in the text book. B. Analyse and describe what potential trade barriers may be applicable in this case such as tariffs, quota, import/export licenses, (governmental) red-tape, custom formalities, and etcetera. You need to show evidence of practical research in both New Zealand and Japan/Chile/France (e.g. list of information sources and people spoken with). Total marks: 15. i. 4 marks for correctly mentioning at least 8 potential trade barriers that could be applicable to importing the chosen product from the selected country into New Zealand. ii. 8 marks for a complete discussion of each of the fore mentioned trade barriers including assessing its importance and how to manage it. IBS690 International Business – Semester One, 2019 – Assignment 2 Page 6 of 7 iii. 3 marks for a list of resources and/or persons interviewed. C. Analyse and describe how you will organise transport from factory to destination (assume Nelson) including but not limited to: Total marks: 20. I. Ways of transport. 6 marks for correctly and completely identifying available ways of transport including showing research evidence: mention geographical break-down of trip, available transport (e.g. shipping, railway, trucking), possible intermediate storage, customs handling, and etcetera. Partial marks for correct but incomplete description. II. Logistic provider(s) to be used and their services offered. 6 marks for correctly and completely identifying (real) logistic providers (one or multiple) and extensively describing their range of services to be used in this case. Full marks only if evidence of research can be shown. Partial marks for correct but incomplete description. III. Insurance of goods. 5 marks for correctly and completely identifying what types of insurance are required during transport of the selected goods. Discuss suggested insurance cover per insurance. Full marks only if evidence of research can be shown. Partial marks for correct but incomplete description. IV. Documents involved. 3 marks for providing a complete list of applicable list of specific documents that are required for successfully handle the processes as described under I. to III. Partial marks for incomplete list. D. Analyse and describe what payment arrangements you will make with your supplier (other than full upfront payment), with whom you will organise payment, how the payment process will work and what documents will be required. Specifically include in your answer how you will manage currency exchange risks during the expected time between ordering and delivery in New Zealand. Total marks: 20. 4 marks for correctly and completely identifying possible payment options and for motivating what payment option is selected in this case. Partial marks for incomplete list