Fb Conference Heuristic Thinking On Market Entry Strategy

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Food for thoughts, those who are either entrepreneurs or senior management of global companies might need this prior their actions in entering an emerging market

Food for thoughts, those who are either entrepreneurs or senior management of global companies might need this prior their actions in entering an emerging market

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  • 1. DECISION TOOLS A Heuristic Thinking on Emerging Market Entry Strategy Doan Huu Duc FB ‘97
  • 2. AGENDA
    • What is it all about?
    • How does it work?
    • Decision trees?
    • Why should we care?
    • What can we take away?
  • 3. What is it?
    • Backgrounds
      • Emerging Maket volatility
      • Needs for methodological way to think through or best evaluate executives’ decisions
    • Decision tools
      • Descriptive function: process flow and critical paths
      • Prescriptive function: logical order for appropriate judgement or decision
      • Mathematical & spreadsheet form: Estimate risk, potential growth and tradeoff
  • 4. How does it work?
    • 1. Develop objective function
    • 2. Analyze resources and needs
    • 3. Estimate environmental paramenters
    • 4. Identify decision variables
  • 5. Develop objective function
      • Why would a company want to enter a new market?
      • Company task: Motivation and Obstruction
        • Internal motivation
          • Fulfill company culture and image
          • Get out of the loop
          • Cutting cost
        • External motivation
          • Fast growth rate and large market size
          • High local demand
          • Attractive investment law / gaps
          • Access low cost resources
          • Modern infrastructure
      • Do a company really know what they want?
  • 6. Estimate environmental paramenters
      • Where do you want to do business?
      • Company task: emerging market study
        • Dynamic environment / volatility /unstable
        • Imperfect, inedequate, lack of regulations
        • Estimate vs real market size
        • Lack of standard distribution system and channels
        • Limited infrastructure
        • Limited local expertise and skilled labors
        • Cheap labor might not last long
        • Policy and social uncertainty
      • Where can you do your business?
  • 7. Analyze resources and needs
      • What do you have?
      • Company task: commitment and capability review
        • Long term commitment
        • Flexible strategy to cope with changes
        • Distance b/w the company and the government
        • Best timing
        • Product modification
        • Technology leapfrog
        • Right partner
        • HR investment
      • What can you do?
  • 8. Identify decision variables
  • 9. Decision trees
    • Filters
    • Checklists
    • Decision trees
    • Scenarios
  • 10. Filters
  • 11. Checklists
  • 12. Decision tree
  • 13. Decision tree
  • 14. Decision tree
  • 15. Scenario planning VIETNAM SE ASIA STABLE ENVIRONMENT UNSTABLE ENVIRONMENT OPEN & REFORM SLUGGISH
  • 16. Why should we care?
    • As an entrepreneur
        • Self assessment and road map planning
        • Calculating Risk vs Opportunity
    • As an investor
        • Self assessment before invest
        • Self assessment while invest
    • As an administrator
        • Understanding a investor
        • Evaluating an investment proposal
    • As a profesional
        • Career selection
        • Strategy advice
  • 17. What can we take away?
    • With ambition to help an executive make the better decision as understanding why, where, when, and how to enter and sustain successfully in an emerging market, given her/his company’s particularly capability and dynamic environment, the decision tool consists of sets of quantitative and qualitative models, filters, and checklists to help observe and evaluate the common strategies and processes
  • 18. Q & A
  • 19. Thank you