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Global Business Project Plan
Module 01: Planning the Global Enterprise <ul><li>ETL is a small California-based company that  produced Oxygenics showerh...
Module 1: Planning the Global Enterprise <ul><li>Potential Target Market: </li></ul><ul><li>  Dubai </li></ul>
Module 01: Planning the Global Enterprise <ul><li>Dubai – Business Opportunity Factors: </li></ul><ul><li>Desert region, s...
Module 02: Analyzing International Competitors <ul><li>Competitors with low-flow technology: </li></ul><ul><li>Grohe (Germ...
<ul><li>Dubai’s Geographical factors: </li></ul><ul><ul><li>Desert </li></ul></ul><ul><ul><li>Natural inlet (Dubai Creek) ...
<ul><li>Module 03: Assessing the Economic -Geographic Environment </li></ul><ul><li>Dubai’s Economic Conditions: </li></ul...
<ul><li>Demographic Statistics </li></ul><ul><ul><li>Population (75% Male) </li></ul></ul><ul><ul><li>Median age (27 years...
<ul><li>Government & Politics </li></ul><ul><li>Formal Trade Barriers </li></ul><ul><ul><li>Foreign exchange controls </li...
<ul><li>ETL’s strategic objectives include goals related to: </li></ul><ul><ul><li>Product offerings </li></ul></ul><ul><u...
<ul><li>ETL will operate as a centralized organization headquartered in California  </li></ul><ul><ul><li>Disadvantages ca...
<ul><li>Module 07: Financing Sources for Global Operations </li></ul><ul><li>1.  Economic Environment </li></ul><ul><ul><l...
<ul><li>Module 07: Financing Sources for Global Operations </li></ul><ul><li>2.  Start-Up Cost </li></ul><ul><li>$700,000....
<ul><li>Module 08:  Global Management Information System </li></ul><ul><li>Reports  </li></ul><ul><li>Sales forecasts </li...
<ul><li>Staffing: ETL will employ: </li></ul><ul><li>Training and Development: ETL will provide the necessary training so ...
<ul><li>Performance Appraisal: ETL recognizes the difficulty in evaluating expatriate employees and will follow these guid...
<ul><li>Module 10: Managing International Business Activities </li></ul><ul><li>1.  Economic and Financial Risks </li></ul...
<ul><li>Module 10: Managing International Business Activities </li></ul><ul><li>3.  Political and Legal Risks </li></ul><u...
<ul><li>Product Concept: The patented Oxygenic technology offers customer the best showering experience of their lives </l...
<ul><li>Branding and Packaging: ETL’s goal is for the Oxygenic’s name to be the most recognized name in shower heads throu...
<ul><li>Module 12: Global Distribution Strategy </li></ul><ul><li>Infrastructure Analysis – Ocean and air freight from Chi...
<ul><li>Build relationship and marketing opportunities with Dubai Government's Department of Tourism & Commerce Marketing ...
<ul><li>Dubai promotes itself as “The Desert’s Most Exciting City” </li></ul><ul><li>2.  Dubai is one of the fastest growi...
Module 14: Cost, Demand and Competitor Analysis <ul><li>Estimated production costs and other business expenses that will a...
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Oxygenics Dubai Middle East Venture

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Business Presentation - Dubai Market Entry Venture

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  • Transcript of "Oxygenics Dubai Middle East Venture"

    1. 1. Global Business Project Plan
    2. 2. Module 01: Planning the Global Enterprise <ul><li>ETL is a small California-based company that produced Oxygenics showerheads for 20 years </li></ul><ul><li>Today, Oxygenics is a leading line of eco-friendly showerheads on the US market </li></ul><ul><li>Oxygenics showerheads save water and energy </li></ul><ul><li>Products are innovative, commercial-grade quality, beautifully designed and have a lifetime warranty </li></ul>
    3. 3. Module 1: Planning the Global Enterprise <ul><li>Potential Target Market: </li></ul><ul><li> Dubai </li></ul>
    4. 4. Module 01: Planning the Global Enterprise <ul><li>Dubai – Business Opportunity Factors: </li></ul><ul><li>Desert region, scarce water </li></ul><ul><li>Government restrictions on water use by 2008 </li></ul><ul><li>Diversified economy – from trade and oil to tourism and services </li></ul><ul><li>One of the fastest growing cities in the world </li></ul><ul><li>Property and construction boom </li></ul><ul><li>Highly developed infrastructure </li></ul><ul><li>Favorable conditions for FDI </li></ul><ul><li>Stable political and legal environment </li></ul>
    5. 5. Module 02: Analyzing International Competitors <ul><li>Competitors with low-flow technology: </li></ul><ul><li>Grohe (German) – 3 dealers in Dubai </li></ul><ul><li>Delta (U.S.) – Dealer in Dubai </li></ul><ul><li>Smaller Chinese/Australian manufacturers </li></ul><ul><li>Other potential competition: </li></ul><ul><li>Moen </li></ul><ul><li>Kohler </li></ul><ul><li>American Standard </li></ul><ul><li>Evolve – eco-friendly showerheads </li></ul>
    6. 6. <ul><li>Dubai’s Geographical factors: </li></ul><ul><ul><li>Desert </li></ul></ul><ul><ul><li>Natural inlet (Dubai Creek) </li></ul></ul><ul><ul><li>Port City (India) </li></ul></ul><ul><ul><li>Hot & humid climate </li></ul></ul><ul><li>Major Industries: </li></ul><ul><ul><li>Pearl exports </li></ul></ul><ul><ul><li>Oil </li></ul></ul><ul><ul><li>Tourism </li></ul></ul><ul><ul><li>Service industries (IT & Finance) </li></ul></ul>Module 03: Assessing the Economic – Geographic Environment
    7. 7. <ul><li>Module 03: Assessing the Economic -Geographic Environment </li></ul><ul><li>Dubai’s Economic Conditions: </li></ul><ul><ul><li>Gross Domestic Product (GDP $46 Billion US Dollars) </li></ul></ul><ul><ul><li>Currency (Dhirham) </li></ul></ul><ul><ul><li>Third-largest export & re-export center </li></ul></ul><ul><li>Physical Infrastructure </li></ul><ul><ul><li>Toll Systems </li></ul></ul><ul><ul><li>Transportation </li></ul></ul><ul><ul><li>- Water </li></ul></ul><ul><ul><li>*Air </li></ul></ul><ul><ul><li>*Land </li></ul></ul>
    8. 8. <ul><li>Demographic Statistics </li></ul><ul><ul><li>Population (75% Male) </li></ul></ul><ul><ul><li>Median age (27 years) </li></ul></ul><ul><li>Cultural Analysis </li></ul><ul><ul><li>Culture/Language (Arabic) </li></ul></ul><ul><ul><li>Religion (Islam) </li></ul></ul><ul><ul><li>Attire </li></ul></ul><ul><li>Social Institutions </li></ul><ul><ul><li>Education </li></ul></ul><ul><ul><li>Healthcare </li></ul></ul><ul><li>Informal trade barriers </li></ul><ul><ul><li>Business relationships (built on personal and mutual trust) </li></ul></ul>Module 04: Assessing the Social-Cultural Environment
    9. 9. <ul><li>Government & Politics </li></ul><ul><li>Formal Trade Barriers </li></ul><ul><ul><li>Foreign exchange controls </li></ul></ul><ul><ul><li>Taxes & Ownership rules </li></ul></ul><ul><li>Cost advantages for setting up your business in Dubai </li></ul><ul><ul><li>Competitive energy, real estate, financing cost </li></ul></ul><ul><ul><li>Competitive labor costs – labor force is multi-lingual and skilled </li></ul></ul><ul><li>Intellectual Property </li></ul><ul><ul><li>World Intellectual Property Rights Day </li></ul></ul><ul><ul><li>Intellectual Property section at Dubai customs (created June 30, 2005) </li></ul></ul>Module 05: Assessing the Political - Legal Environment
    10. 10. <ul><li>ETL’s strategic objectives include goals related to: </li></ul><ul><ul><li>Product offerings </li></ul></ul><ul><ul><li>Target market and customer benefits </li></ul></ul><ul><ul><li>Financial offerings </li></ul></ul><ul><ul><li>Employee retention </li></ul></ul><ul><ul><li>Environmental contributions </li></ul></ul><ul><li>ETL will open a representative office in the Jebel Ali Free Zone </li></ul><ul><li>ETL will import showerheads manufactured in China </li></ul>Module 06: Select Global Company Structure
    11. 11. <ul><li>ETL will operate as a centralized organization headquartered in California </li></ul><ul><ul><li>Disadvantages can be overcome due to simplicity of Dubai operations </li></ul></ul><ul><ul><li>Centralized organizations offer many advantages </li></ul></ul><ul><li>Possible strategic alliances in Dubai </li></ul><ul><ul><li>Environment Agency Abu Dhabi – local government </li></ul></ul><ul><ul><li>Leading architects/Interior designers </li></ul></ul><ul><ul><li>Developers </li></ul></ul><ul><ul><li>Water saving consultants </li></ul></ul><ul><ul><li>Local retailers/distributors </li></ul></ul>Module 06: Select Global Company Structure
    12. 12. <ul><li>Module 07: Financing Sources for Global Operations </li></ul><ul><li>1. Economic Environment </li></ul><ul><ul><li>Highly developed infrastructure and communication systems </li></ul></ul><ul><ul><li>No income and corporate tax </li></ul></ul><ul><ul><li>US$ 1 = DH 3.675 </li></ul></ul>
    13. 13. <ul><li>Module 07: Financing Sources for Global Operations </li></ul><ul><li>2. Start-Up Cost </li></ul><ul><li>$700,000.00 </li></ul><ul><li>3. Financing Sources </li></ul><ul><li>Domestic Financing </li></ul><ul><li>20% Down plus Collateral </li></ul>
    14. 14. <ul><li>Module 08: Global Management Information System </li></ul><ul><li>Reports </li></ul><ul><li>Sales forecasts </li></ul><ul><li>inventory reports & shipping information </li></ul><ul><li>commodity cost data </li></ul><ul><li>industry trends </li></ul><ul><li>“ best prospects” lists </li></ul><ul><li>Information Sources </li></ul><ul><li>Internal sales staff & export management company </li></ul><ul><li>Manufacturing operations </li></ul><ul><li>commodity indexes </li></ul><ul><li>trade magazines </li></ul><ul><li>U.S. Department of Commerce </li></ul><ul><li>Information Technology Management </li></ul><ul><li>Plexus Supply Chain Management & Order Fulfillment software </li></ul><ul><li>EDI (Electronic Data Interchange) </li></ul>
    15. 15. <ul><li>Staffing: ETL will employ: </li></ul><ul><li>Training and Development: ETL will provide the necessary training so the employee do his job with a thorough understanding corporate processes, culture, and mission </li></ul><ul><ul><li>Host country nationals to become integral part of company culture </li></ul></ul><ul><ul><li>Prior to assignment, managers will spend time in Dubai to build cross-cultural sensitivity and experiences </li></ul></ul>Module 09: Identifying Human Resources for Global Business Activities
    16. 16. <ul><li>Performance Appraisal: ETL recognizes the difficulty in evaluating expatriate employees and will follow these guidelines to improve performance appraisal consistency </li></ul><ul><ul><li>On-site manager will appraise all on-site employees </li></ul></ul><ul><ul><li>On-site manager will be trained in the appraisal process to avoid bias </li></ul></ul><ul><li>Compensation </li></ul><ul><ul><li>Balance sheet approach – equalizes purchasing power across countries so employees can enjoy the same standard of living as they enjoyed at home – plus premium for overseas assignment </li></ul></ul><ul><ul><ul><li>Base Salary – will be paid in U.S. currency </li></ul></ul></ul><ul><ul><ul><li>Foreign Service Premium </li></ul></ul></ul><ul><ul><ul><li>Allowances </li></ul></ul></ul><ul><ul><ul><li>Taxation </li></ul></ul></ul>Module 09: Identifying Human Resources for Global Business Activities
    17. 17. <ul><li>Module 10: Managing International Business Activities </li></ul><ul><li>1. Economic and Financial Risks </li></ul><ul><li>2. Social and Cultural Risks </li></ul><ul><ul><li>96 % Muslim </li></ul></ul><ul><ul><li>Weekend – Friday and Saturday </li></ul></ul><ul><ul><li>Maternity Leave – Paid Three to Nine Months </li></ul></ul><ul><ul><li>30 Days of Paid Vacation, plus Holidays and Sick Days </li></ul></ul>
    18. 18. <ul><li>Module 10: Managing International Business Activities </li></ul><ul><li>3. Political and Legal Risks </li></ul><ul><li>4. Risk Management Techniques </li></ul><ul><li>Representative Office with National Agent </li></ul><ul><li>Jabel Ali Free Zone </li></ul>
    19. 19. <ul><li>Product Concept: The patented Oxygenic technology offers customer the best showering experience of their lives </li></ul><ul><ul><li>Revolutionary designs </li></ul></ul><ul><ul><li>Innovative technology and above standard performance </li></ul></ul><ul><ul><li>Unparalleled savings </li></ul></ul><ul><ul><li>Unbeatable customer satisfaction </li></ul></ul><ul><li>Product Life Cycle: Dubai’s economic growth and environmental awareness will assure a long an prosperous product life cycle </li></ul><ul><ul><li>Economic growth </li></ul></ul><ul><ul><li>Environmental awareness </li></ul></ul><ul><ul><li>World class infrastructure </li></ul></ul>Module 11: Product and Market Planning
    20. 20. <ul><li>Branding and Packaging: ETL’s goal is for the Oxygenic’s name to be the most recognized name in shower heads throughout Dubai and the UAE region by obeying the Rules of “C” </li></ul><ul><ul><li>Customers first </li></ul></ul><ul><ul><li>Clear and concise </li></ul></ul><ul><ul><li>Communication </li></ul></ul><ul><ul><li>Creative thought </li></ul></ul><ul><ul><li>Congruence </li></ul></ul><ul><ul><li>Consistency </li></ul></ul>Module 11: Product and Market Planning
    21. 21. <ul><li>Module 12: Global Distribution Strategy </li></ul><ul><li>Infrastructure Analysis – Ocean and air freight from China, 9 th busiest port, advanced infrastructure and freight systems. </li></ul><ul><li>2. Distribution Barriers – Few barriers, Jebel Ali Free Zone, ‘warehousing & distribution base of the Middle East, coexistence of East meets West. </li></ul><ul><li>3. Distribution Channel – Nippon Express door-to-door service from China to Dubai, ocean & air freight, warehousing services. </li></ul>
    22. 22. <ul><li>Build relationship and marketing opportunities with Dubai Government's Department of Tourism & Commerce Marketing & Royal Family </li></ul><ul><li>Non-traditional advertising including hotel in-room digital signage, mobile advertising, and grass-roots promotion </li></ul><ul><li>Enlist Environment Agency Abu Dhabi and other regional agencies to promote Oxygenics showerhead solutions for energy, water consumption </li></ul><ul><li>Arabic language version of website, marketing material, digital billboards </li></ul>Module 13: Promotional Plan, Goals and Media Plan Fast Fact: As the human body  ages, levels of oxygen start to diminish in the skin, breaking down collagen and elastin. Oxygenics showerheads are designed to replenish oxygen with each shower and rejuvenate skin.
    23. 23. <ul><li>Dubai promotes itself as “The Desert’s Most Exciting City” </li></ul><ul><li>2. Dubai is one of the fastest growing cities in the world </li></ul><ul><li>3. Dubai’s hotel hospitality business is booming </li></ul><ul><li>4. Dubai’s natural water supply cannot keep up with urban demand </li></ul><ul><li>5. Water restrictions in the United Arab Emirates are on the rise </li></ul>Module 13: Business & Economic Environment Fast Fact: With Oxygenics, an average 300-room hotel will start to see investment paybacks within 3 months.
    24. 24. Module 14: Cost, Demand and Competitor Analysis <ul><li>Estimated production costs and other business expenses that will affect product pricing </li></ul><ul><li>The potential demand for this product, based on the current booming market and expected continued growth points toward a positive product trend </li></ul><ul><li>Competitor analysis shows that Australia, Taiwan and China companies are the main exporters of showerhead products to the Dubai region </li></ul>
    25. 25. THANK YOU
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