Question

1. What worked out well during the planning stage, negotiation stage and/ or the operational stage of their international venture?
2. What were the areas of improvement (things that didn’t work well) during the planning stage, negotiation stage and/ or the operational stage of their international venture?
3. Describe at least 5 risks associated with this international business, along with its classification (Commercial, political, currency risks, etc.), and what will the appropriate risk mitigation strategies for each of the risk identified. Justify your answer with proper explanation (explaining why you selected this risk and how it could be mitigated).
4. How would you have done things differently (or what aspects of the venture would you change now) if you were the primary decision maker in this case?

Answer 1

Answer

Planning stage of international venture - Following are the stages of planning which worked out well during planning stage

· Designing of idea

· Creating some prototype

· Service or product review

· Creating own business project

· Develop action plan and strategy for the products

Negotiation stage of international venture – Following are some negotiation stages which worked well during negotiating stage

· Preparation of product

· Information exchange about the product

· Bargaining of the product

· Conclusion related to the product

· Execute the product

Operational stage of international venture – Following are the

Some operational stages which worked well during operational stage of international venture

· Planning of production

· Control of production

· Improvement in production and operations

Area of improvement during planning stage -

· Poorly defining the goals and objectives should be avoided

· Deadlines should be realistic

· Select correct project management software

· See towards risk management also

· Try to avoid miscommunication between employees

Area of improvement during Negotiating stage –

· You must have information about the product don’t make assumptions

· Don’t be in hurry you should take time for thinking and taking decision

· Don’t take anything personally before negotiating keep information about the product with you

· You must not accept a bad deal

Area of improvement during operational stage –

· Production planning should be done by the experienced manager

· Control over the production is necessary

· And smooth flow of the product line is required for better operational stage of any products

· Operation should be done by taking care and precautions

Types of Risk - Following 5 main risks are there in international business

1. Commercial risk

2. Political risk

3. Currency risk

4. Country Risk

5. Cross culture risk

Commercial risk – Commercial risk can happen when we deal with international business, we can phase various problems related to the commercial risk for example risk of shipping, risk of payment failure, and interpretation of your agreement risk can also be possible in commercial risk

We can minimize the commercial risk by following ways

· Use forecasting techniques

· You must be aware about changing business environment

· Keep your eyes on world economy also

Political Risk – This risk is foremost risk and can be include in the first category of risk. It can cause by events like terrorism, heads of two or more nation and we can phase risk of losing money by unstable government also.

Mitigation of political risk can be done by following way

· Always insured your business

· Have an optional plan for your business

· Practice political savvy banking

· Take suggestion and advice from local people

Currency Risk – Currency risk is generally the risk arise because of exchange rate when we move from one country to another country in which our partner business is there so it will consider as a currency risk.

Mitigation of currency risk can be done by following way

· By investing in currency headed funds

· By investing in mutual funds

· We can also invest in exchange traded fund

Country Risk - Country risk is a risk that a foreign government has other financial commitments. They can charge more tax from us and their political and economic culture can also be as a risk for us.

Mitigation of country risk can be done by following way

· Mange your credit risk

· Be ensure towards your supply chain

· Protect your people

· Always do production planning and be ready with your operational plan

Cross culture risk – Cross culture risk is the risk that company face because of changing environment of client and other employees of the company for example their religion, caste, language etc cultural difference can also be termed as risk and employer should appreciate all cultural for the grown of business.

· Mitigation of cross culture risk can be done by following way

· By keeping friendly environment and effective communication

· Learn culture of your client

· You should promote appreciation of difference in culture

· Always try to do new things

If I was the decision maker at primarily then I did following things for the proper growth of my business

Proper planning in which all the facture must be included those who are not doing well work

Negotiation and its related all the work can be done by me more correctly and I well prepare my employee for the operational stage also.

I considered all the risk factor and by using techniques of their mitigation I took decision for my organization.