The document discusses the importance of understanding cultural differences in international business, emphasizing that cultural norms can significantly influence teamwork, communication, and management practices across various countries. It also outlines different modes of entry for companies looking to expand internationally, such as exporting, licensing, strategic alliances, and direct investment, each with its own advantages and challenges. Additionally, the concept of first-mover advantage is examined, arguing that being first in a market is not always beneficial and can sometimes lead to disadvantages.

1. 1
MBA 670 Capsim: Strategic Decision Making
Project 5 - Creating an International Business Plan
Learning Topics
2

2. MBA 670: Strategic Decision Making
Project 5 Learning Topics
1 Assess the Characteristics of MediCorp's Potential Customers
in
the Selected Country
International Cultural Differences
Communications, teamwork, organizational hierarchy, and
positive attitudes toward management roles
are essential in any organization. These are crucial in
international business, as problems are often
exacerbated by subtle cross-cultural differences. When defining
roles in multinational teams whose
members have diverse attitudes and expectations about
organizational hierarchy, these cultural
differences can present a challenge.
Culture is a system of values and norms that is shared among a
group of people. The ways people
interact socially, their mutual expectations, and the values they
share all have consequences for doing
business and managing across cross-cultural boundaries.
How a country's cultural differences relate to international
business can be seen in the following
examples:
• In Japan, social hierarchy and respect for seniority are highly
valued and are reflected at the
workplace. Those in senior management positions command
respect and expect a formality and

3. deference from junior team members.
• In Scandinavian countries, societal equality is emphasized.
Workplaces therefore tend to have a
comparatively flat organizational hierarchy. In turn, this
organization can result in relatively
informal communication and an emphasis on cooperation across
the organization.
• The way to address colleagues and business partners varies in
different countries. While
Americans and Canadians tend to use first names, in Asian
countries such as South Korea,
China, and Singapore, colleagues tend to use the formal
address, Mr. or Ms. So do Germans and
many Europeans.
• The concept of punctuality also differs between cultures.
Where an American may arrive at a
meeting a few minutes early, an Indian or Mexican colleague
may arrive well after the scheduled
start time and still be considered on time.
• Attitudes to work also differ. While some may consider
working long hours a sign of commitment,
others may view it as an encroachment on their personal time
and a sacrifice of essential family
time.
• Greeting customs are highly culture- and situation-specific. In
the United States and Canada, a
simple handshake while looking a person in the eye is the norm.
In Japan, bowing is the
traditional greeting—the deeper the bow, the greater the respect
shown. In India, you put hands
together as in prayer and say "namaste." In Arab countries, men

4. might hug and kiss each other
(but not a woman) on the cheek.
• In Latin America and the Middle East, the acceptable physical
distance needed to respect
someone's personal space is much shorter than what most
Europeans and Americans feel
comfortable with.
• Different cultures have different meaning for identical words.
The Swedish vacuum cleaner
manufacturer Electrolux introduced a print advertisement with
the tagline "Nothing sucks like an
Electrolux." While the ad was successful in Britain, it was a
disaster in the US market.
3
Several scholar-practitioners have studied cultural differences
and their influence on international
business. At the end of the 1970s, the Dutch social psychologist
Dr. Geert Hofstede published an
internationally recognized standard for understanding cultural
differences. Hofstede studied IBM
employees in more than 50 countries. Initially, he identified
four dimensions that could distinguish one
culture from another. Later, he added fifth and sixth
dimensions, in cooperation with Dr. Michael H. Bond
and Dr. Michael Minkov.

5. 1. The six dimensions of national culture are as follows:
2. power distance index (high vs. low)
3. individualism vs. collectivism
4. masculinity vs. femininity
5. uncertainty avoidance index (high vs. low)
6. long- vs. short-term orientation (also known as pragmatic vs.
normative)
7. indulgence vs. restraint
Hofstede demonstrated that there are national and regional
cultural groups that influence the behavior of
societies and organizations. The table below describes these
dimensions of country cultures and their
implications for international business.
Dimensions of National Culture and Implications on
International Business
Country cultural
dimension Characteristics Implications
Power
distance
index—High
Degree of inequality
between people with
and without power

6. Centralized organizations
More complex hierarchies
Large gaps in compensation, authority, and respect
Power
distance
index—Low
Power is shared and
widely dispersed in
organizations
Decentralized authority
Fewer layers of management
Supervisors and employees are considered almost
as equals
Individualism vs.
collectivism—High
Preference for a
loosely knit social
framework in which
individuals are
expected to take care
of only themselves
and their immediate
family
High value on people's time, need for privacy and
freedom

7. Expectation of individual rewards for hard work
Individualism vs.
collectivism—Low
Loyalty to the group
to which they belong
People take
responsibility for one
another's well-being
Work for intrinsic rewards
Maintaining harmony among group members
overrides other moral issues
Saying no can cause loss of face, unless it's
intended to be polite
Masculinity vs.
femininity—High
Preference for
achievement,
heroism,
assertiveness, and
material rewards for
success.
Organizations are more competitive and hierarchical
Strong egos— feelings of pride and importance are
attributed to status

8. 4
Dimensions of National Culture and Implications on
International Business
Country cultural
dimension Characteristics Implications
Masculinity vs.
femininity—Low
Preference for
cooperation,
modesty, caring for
the weak, and quality
of life
Organizations are more consensus-oriented
Workplace flexibility and work-life balance important
Uncertainty
avoidance index—
High
Rigid codes of belief
and behavior,
intolerant of
unorthodox behavior
and ideas
Attempt to make life
as predictable and
controllable as

9. possible
Many societal conventions
Allowed to show anger or emotions
High-energy society
People feel that they are in control of their lives
Uncertainty
avoidance index—
Low
Relaxed attitude in
which practice counts
more than principles
More open or
inclusive
Less sense of urgency
Titles are less important
Respect those who can cope under all
circumstances
Long- vs. short-term
orientation—High
Value persistence,
perseverance, and
being able to adapt.
More thrifty

10. Thrift and education seen as positive values
More willing to compromise
Virtues and obligations are emphasized
Long- vs. short-term
orientation—Low
Value tradition,
current social
hierarchy, and
fulfilling social
obligations
Care more about
immediate
gratification than
long-term fulfillment
Strong convictions
Values and rights are emphasized
Less willing to compromise, as this would be viewed
as weakness
Indulgence vs.
restraint—High
Encourage relatively
free gratification of
people's own drives
and emotions
Optimistic

11. Importance of freedom of speech
Debate and dialogue in meetings or decision making
Emphasize flexible working and work-life balance
Indulgence vs.
restraint—Low
More emphasis on
suppressing
gratification and more
regulation of people's
conduct and behavior
Stricter social norms
Pessimistic
Controlled and rigid behavior
Express negativity about the world only during
informal meetings
Clearly, every country culture distinguishes itself by the way it
conducts its interpersonal relationships and
its attitudes toward time and environment. Hofstede's
framework, outlined above, is widely used.
However, there are others. Parson (1951) views five
orientations covering the ways human beings deal
with each other:
• universalism vs. particularism

12. 5
• individualism vs. communitarianism
• neutral vs.emotional
• specific vs. diffuse
• achievement vs. ascription
Gannon (2004) describes country cultures through the use of a
cultural metaphor. A cultural metaphor is
"any major phenomenon, activity, or institution with which its
members closely identify cognitively and/or
emotionally." This framework uses a four-stage model of cross-
cultural understanding using process and
goal orientation and degree of emotional expressiveness. The
cultural metaphors from 30 countries
studied by Gannon include the following:
• American football
• German symphony
• French wine
• the Brazilian samba
• the Japanese garden
• the Indian Dance of Shiva
• the Mexican fiesta

13. • Russian ballet
The differences in country cultures imply that for managers in
international business there is a need to
develop cross-cultural literacy and an understanding that there
is a connection between culture and
national competitive advantage. There is also a connection
between culture and ethics in decision
making.
An awareness of the cultural background of your customers and
business partners in a new country is an
important aspect of international business, as it will help you
clearly convey your message and adapt to
new business settings.
References
Gannon, M. J. (2004). Understanding global cultures:
Metaphorical journeys through 28 nations, cluster of
nations and continents. Thousand Oaks, CA: Sage Publications.
Hofstede, G., Hofstede, G.J., & Minkov, M. (2010). Cultures
and organizations: Software of the mind. New
York, NY: McGraw Hill.
Parsons. T. (1951). The Social System. New York, NY: Free
Press.
2 Develop a Marketing Strategy

14. Modes of Entry
What is the best way to enter a new market? Should a company
first establish an export base or license
its products to gain experience in a newly targeted country or
region? Or does the potential associated
with first-mover status justify a bolder move, such as entering
an alliance, making an acquisition, or even
starting a new subsidiary? Many companies move from
exporting to licensing to a higher investment
strategy, in effect treating these choices as a learning curve.
Each has distinct advantages and
disadvantages.
6
Exporting is the marketing and direct sale of domestically
produced goods in another country. Exporting is
a traditional and well-established method of reaching foreign
markets. Since it does not require that the
goods be produced in the target country, no investment in
foreign production facilities is required. Most of
the costs associated with exporting take the form of marketing
expenses.
While relatively low risk, exporting entails substantial costs and
limited control. Exporters typically have
little control over the marketing and distribution of their
products, face high transportation charges and
possible tariffs, and must pay distributors for a variety of
services. Further, exporting does not give a
company firsthand experience in staking out a competitive
position abroad, and it makes it difficult to

15. customize products and services to local tastes and preferences.
Licensing essentially permits a company in the target country to
use the property of the licensor. Such
property, such as trademarks, patents, and production
techniques, is usually intangible. The licensee
pays a fee in exchange for the rights to use the intangible
property and possibly for technical assistance.
Because little investment on the part of the licensor is required,
licensing can provide a very large return
on investment. However, because the licensee produces and
markets the product, potential returns from
manufacturing and marketing activities may be lost. Thus,
licensing reduces cost and involves limited risk.
However, it does not mitigate the substantial disadvantages
associated with operating from a distance. As
a rule, licensing strategies inhibit control and produce only
moderate returns.
Strategic alliances and joint ventures have become increasingly
popular in recent years. They allow
companies to share the risks and resources required to enter
international markets. And although returns
also may have to be shared, these arrangements give companies
a degree of flexibility not afforded by
going it alone through direct investment.
There are several motivations for companies to consider a
partnership as they expand globally, including
facilitating market entry, risk and reward sharing, technology
sharing, joint product development, and
conforming to government regulations. Other benefits include
political connections and distribution
channel access that may depend on relationships.

16. Such alliances often are favorable when (1) the partners'
strategic goals converge while their competitive
goals diverge; (2) the partners' size, market power, and
resources are small compared to the industry
leaders; and (3) partners are able to learn from one another
while limiting access to their own proprietary
skills.
The key issues to consider in a joint venture are ownership,
control, length of agreement, pricing,
technology transfer, local firm capabilities and resources, and
government intentions. Potential problems
include (1) conflict over asymmetric new investments, (2)
mistrust over proprietary knowledge, (3)
performance ambiguity, that is, how to "split the pie," (4) lack
of parent firm support, (5) cultural clashes,
and (6) if, how, and when to terminate the relationship.
Ultimately, most companies will aim at building their own
presence through company-owned facilities in
important international markets. Acquisitions and greenfield
start-ups represent this ultimate commitment.
Acquisition is faster, but starting a new, wholly owned
subsidiary might be the preferred option if no
suitable acquisition candidates can be found.
Also known as foreign direct investment (FDI), acquisitions and
greenfield start-ups involve the direct
ownership of facilities in the target country and, therefore, the
transfer of resources including capital,
technology, and personnel. Direct ownership provides a high
degree of control in the operations and the
ability to better know the consumers and competitive
environment. However, it requires a high level of
resources and a high degree of commitment.

17. Coca-Cola and Illycaffé
In March 2008, the Coca-Cola company and Illycaffé Spa
finalized a joint venture and launched a
premium ready-to-drink espresso-based coffee beverage. The
joint venture, Ilko Coffee International, was
created to bring three ready-to-drink coffee products—caffè, an
Italian chilled espresso-based coffee;
cappuccino, an intense espresso, blended with milk and dark
cacao; and latte macchiato, a smooth
espresso, swirled with milk—to consumers in 10 European
countries. The products will be available in
stylish, premium cans (150 milliliters for caffè and 200
milliliters for the milk variants). All three offerings
will be available in 10 European Coca-Cola Hellenic markets,
including Austria, Croatia, Greece, and
Ukraine. Additional countries in Europe, Asia, North America,
Eurasia, and the Pacific were slated for
expansion at a later date.
7
The Coca-Cola Company is the world's largest beverage
company. Along with Coca-Cola, recognized as
the world's most valuable brand, the company markets four of
the world's top five nonalcoholic sparkling
brands, including Diet Coke, Fanta, Sprite, and a wide range of
other beverages, including diet and light
beverages, waters, juices and juice drinks, teas, coffees, and
energy and sports drinks. Through the
world's largest beverage distribution system, consumers in more
than 200 countries enjoy the company's
beverages at a rate of 1.5 billion servings each day.

18. Based in Trieste, Italy, Illycaffé produces and markets a unique
blend of espresso coffee under a single
brand leader in quality. Over 6 million cups of Illy espresso
coffee are enjoyed every day. Illy is sold in
over 140 countries around the world and is available in more
than 50,000 of the best restaurants and
coffee bars. Illy buys green coffee directly from the growers of
the highest quality Arabica through
partnerships based on the mutual creation of value. The Trieste-
based company fosters long-term
collaborations with the world's best coffee growers—in Brazil,
Central America, India, and Africa—
providing know-how and technology and offering above-market
prices.
Entry Strategies: Timing
In addition to selecting the right mode of entry, the timing of
entry is critical. Just as many companies
have overestimated market potential abroad and underestimated
the time and effort needed to create a
real market presence, so have they justified their overseas'
expansion on the grounds of an urgent need
to participate in the market early. Arguing that there existed a
limited window of opportunity in which to
act, which would reward only those players bold enough to
move early, many companies made sizable
commitments to foreign markets even though their own
financial projections showed they would not be
profitable for years to come. This dogmatic belief in the concept
of a first-mover advantage (sometimes
referred to as pioneer advantage) became one of the most widely
established theories of business. It
holds that the first entrant in a new market enjoys a unique
advantage that later competitors cannot

19. overcome (i.e., that the competitive advantage so obtained is
structural and therefore sustainable).
Some companies have exemplified this concept. Procter &
Gamble (P&G), for example, has always
trailed rivals such as Unilever in certain large markets,
including India and some Latin American
countries, and the most obvious explanation is that its European
rivals were participating in these
countries long before P&G entered. Given that history, it is
understandable that P&G erred on the side of
urgency in reacting to the opening of large markets such as
Russia and China. For many other
companies, however, the concept of pioneer advantage was little
more than an article of faith and was
applied indiscriminately and with disastrous results to country-
market entry, to product-market entry, and,
in particular, to the new economy opportunities created by the
Internet.
The get-in-early philosophy of pioneer advantage remains
popular. And while there are clear examples of
its successful application—the advantages gained by European
companies from being early in colonial
markets provide some evidence of pioneer advantage—first-
mover advantage is overrated as a strategic
principle. In fact, in many instances, there are disadvantages to
being first. First, if there is no real first-
mover advantage, being first often results in poor business
performance, as the large number of
companies that rushed into Russia and China can attest to.
Second, pioneers may not always be able to
recoup their investment in marketing required to kick-start the
new market. When that happens, a fast
follower can benefit from the market development funded by the
pioneer and leapfrog into earlier

20. profitability. For a more detailed discussion, see Tellis &
Golder (2002).
This ability of later entrants to free-ride on the pioneer's market
development investment is the most
common source of first-mover disadvantage and suggests two
critical conditions necessary for real first-
mover advantage to exist. First, there must be a scarce resource
in the market that the first entrant can
acquire. Second, the first mover must be able to lock up that
scarce resource in such a way that it creates
a barrier to entry for potential competitors. A good example is
provided by markets in which it is
necessary for foreign firms to obtain a government permit or
license to sell their products. In such cases,
the license, and perhaps government approval, more generally,
may be a scarce resource that will not be
granted to all comers. The second condition is also necessary
for first-mover advantage to develop. Many
companies believed that brand preference created by being first
constituted a valid source of first-mover
advantage, only to find that, in most cases, consumers consider
the alternatives available at the time of
their first purchase, not which came first.
8
Starbucks’ Global Expansion

21. Starbucks' decision to expand abroad came after an extended
period of exclusive focus on the North
American market. From its founding in 1971, it grew to almost
700 stores by 1995, all within the United
States and Vancouver, Canada. It was not until the next decade
that Starbucks made its first entry into
other international markets. By 2006, Starbucks operated
approximately 11,000 stores—with 70 percent
in the United States and 30 percent in international markets—
and international revenue had grown to
almost 20 percent of Starbucks' total revenue. Starbucks offered
the same basic coffee menu
internationally as it did in the United States. However, the
range of food products and other items, such
as coffee mugs stocked, varied somewhat according to local
customs and tastes.
Along with many other companies that pursue global expansion,
Starbucks continually faces questions
about where and how to further increase its global presence.
Should the emphasis be on growth in
existing countries or on increasing the number of countries in
which it has a presence? How important is
the fact that international markets so far have proven less
profitable than US and Canadian markets?
Starbucks in Japan
Interestingly, Starbucks' first move outside the United States
and Canada was a joint venture in Japan. At
the time, Japan had the second-largest economy in the world
and was consistently among the top five
coffee importers.
The decision to use a joint venture to enter Japan followed
intense internal debate. Concerns among

22. senior executives centered on Starbucks' lack of local
knowledge, and questions were raised about the
company's ability to attract the local talent necessary to grow
the Japanese business quickly enough.
Starbucks was acutely aware that there were significant
differences between doing business in Japan
and in the United States and that it might not have enough
experience to be successful on its own.
Among other factors, operating costs were predicted to be
double those of North America, and Starbucks
would have to pay to ship coffee to Japan from its roasting
facility in Kent, Washington (near Seattle). In
addition, retail space in Tokyo was two to three times as
expensive as in Seattle. Just finding rental space
in such a populous city might prove to be a tremendous
challenge. Starbucks concluded it needed to form
an alliance with a local group that had experience with complex
operations and real estate.
Starbucks executives worried that a licensing deal would not be
the right solution. Specifically, they were
concerned about a possible loss of control and insufficient
knowledge transfer to learn from the
experience. A joint venture was thought to be a better answer,
and, after a long search, Starbucks
approached Sazaby, Inc., operators of upscale retail and
restaurant chains, whose president had
approached Starbucks years earlier about the potential of
opening Starbucks stores in Japan. Similarity in
values, culture, and community development goals between
Starbucks and Sazaby were important
considerations in concluding the 50-50 deal. The two companies
were equally represented on the board
of directors of the newly created Starbucks Coffee Japan.
Starbucks was the sole decision-making power

23. in matters relating to brand, product line advertising, and
corporate communications, while decisions
regarding real-estate operational issues and human resources
were handled by Sazaby. Despite strong
local competition, the venture was successful from the start. By
fiscal year 2000, Starbucks Coffee Japan
became profitable more than two years ahead of schedule.
Starbucks in the United Kingdom
Unlike its expansion into Asia and later, the Middle East,
Starbucks chose to enter the United Kingdom
through acquisition rather than partnerships. Speed was a major
factor in Starbucks' decision to enter the
fast-growing UK market by acquisition. In addition, the culture,
language, legal environment, management
practices, and labor economics in the United Kingdom were
considered sufficiently similar to those that
Starbucks' management already knew. This meant that a wholly
owned UK subsidiary could be
successfully established from the outset. In May 1998,
Starbucks acquired the Seattle Coffee Company,
which had had a presence in the United Kingdom for some time.
This fast-growing chain was modeled on
its own style of operations and, at the time of the purchase, had
56 retail units. The Seattle Coffee
Company was an attractive acquisition target because of its
focus—relatively small market capitalization
and established retail units. By 2005, Starbucks had 469 stores
in the United Kingdom, which made it the
third-largest country, after the United States and Japan, to serve
Starbucks coffee.
Starbucks' globalization history shows that while it was a first
mover in the United States, it was forced to
push harder in international markets to compete with existing

24. players. In Japan, Starbucks was initially a
huge success and became profitable two years earlier than
anticipated. However, just two years after
Starbucks Japan had become profitable, the company announced
a loss of $3.9 million in Japan, its
9
second largest market at the time, reflecting a major increase in
local competition. Additional international
challenges were a result of Starbucks' chosen entry mode.
Although joint ventures provided Starbucks
with local knowledge about the market and a low-risk entry into
unproven territory, joint ventures did not
always reap the rewards that the partners had anticipated. One
key factor was that it was often difficult for
Starbucks to control the costs in a joint venture, resulting in
lower profitability.
Licensing in China
In a number of developing markets, including China, Starbucks
chose to enter into minority share
licensing agreements with high-quality, experienced local
partners in order to minimize market-entry risks.
Under these agreements, the local partners absorbed the capital
costs (real estate, store construction) of
bringing the Starbucks brand abroad. These steps eliminated the
need for substantial general and
administrative expenses by Starbucks and enabled it to establish
a presence in foreign markets much
more quickly than it would have if it had to invest its own
capital and absorb start-up losses.

25. Risk was also a major consideration when Starbucks looked to
enter China. While offering high-volume
opportunities in an untapped coffee market, the prevailing
culture and politics in China potentially posed
significant problems. In April 2000, Beijing city authorities
ordered Kentucky Fried Chicken to close its
Another major concern with starting operations in China was
recruiting the right staff. Uniformity of
customer experience and coffee quality was the key driver
behind the Starbucks brand. Failure to recruit
the staff to ensure these key criteria not only would mean
failure for the Chinese retail outlets but also
could harm the company's image globally.
Although these factors made licensing an attractive entry model,
with growing experience in the Chinese
market, Starbucks is steadily reducing its reliance on the
licensing model and switching to its core
company-operated business model to increase control and reap
greater rewards.
Starbucks' globalization history shows that while it was a first
mover in the United States, it was forced to
push harder in international markets to compete with existing
players. In Japan, Starbucks was initially a
huge success and became profitable two years earlier than
anticipated. However, just two years after
Starbucks Japan had become profitable, the company announced
a loss of $3.9 million in Japan, its
second largest market at the time, reflecting a major increase in
local competition. Additional international
challenges were a result of Starbucks' chosen entry mode.
Although joint ventures provided Starbucks
with local knowledge about the market and a low-risk entry into

26. unproven territory, joint ventures did not
always reap the rewards that the partners had anticipated. One
key factor was that it was often difficult for
Starbucks to control the costs in a joint venture, resulting in
lower profitability.
Glossary
exporting The marketing and direct sale of domestically
produced goods in another country
fast follower A firm that uses the benefits from prior market
development by a pioneering firm
to achieve profitability more quickly
foreign direct A firm's direct ownership of facilities in a target
country market
investment (FDI)
greenfield start-ups Wholly-owned subsidiaries created by firms
to …
1
MBA 670: Strategic Decision Making
Project 5: Creating an International Business Plan
Start Here
Before you begin Project 5, take two minutes to watch this

27. course touchpoint video.
Scenario
You continue to provide promising global strategy advice for
MediCorp, Inc. The company has been so pleased
with your contributions to their strategic planning and
development that they would like you to assist with a new
endeavor. Leveraging their strength in manufacturing genetic
testing devices, MediCorp now wants to diversify
their offerings and expand within the field of medical diagnostic
devices. This is a large field that extends to a
myriad of products, such as thermometers and blood sugar
monitors, which are commonly used in the home, as
well as MRI and X-ray machines, which are used in clinical
settings. MediCorp has asked you to identify a
medical diagnostics device that the company can use as a
vehicle for expanding into China or Germany.
Choose either China or Germany as a location for MediCorp’s
expansion and create an international business
plan that guides the company’s operations in that country and
grows MediCorp’s business within the selected
device’s NAICS industry subsector. You will need to employ
the lessons from your simulation to develop a
strategy that examines MediCorp’s potential customers,
business operations, financial projections, and
implementation metrics. As this client’s business grows,
Maryland Creative

28. Solution
s CEO, Jillian Best,
emphasizes that it is critical for you to provide clear and
concise analysis in your reports to MediCorp. She
remarks, “Success with these reports could mean big things for
MCS as well as for each of you. Let’s finish
strong.”
Transcript
MBA 670 Touchpoint Video Transcript
Speaker: Subash Bijlani, Collegiate Professor, Business &
Management Programs, The Graduate
School, UMUC
I hope you are enjoying your experience in the capstone course
thus far. It is our goal to expose you
to the demands business leaders face on a daily basis. Strong
collaboration and communication,

29. integrity, and strategies based on analysis guide successful
companies.
As you draw near to the conclusion of your MBA journey and
approach graduation, consider the
value of what you have attained. You have taken into
consideration the effects globalization and the
digital marketplace, while successfully navigated business
challenges; considering ethical, legal, and
practical implications, producing portfolio-ready deliverables,
and expanding your knowledge of
business. I hope you will take away greater confidence in your
professional and career pursuits as
you conclude the capstone.
This program was designed by business leaders for emerging
business leaders. Our learners are
shaping the marketplace and pushing the boundaries of business
innovation and expansion.
Be excited about the completion of your MBA; it is well earned,
and will prove its value throughout
your career. We celebrate with you in this time of success and
look forward to seeing you at
graduation.

30. 2
Introduction
Building on your Capsim simulation and your analyses of
MediCorp, Inc. in the global and local markets, you will
now craft an international business plan that calls on you to
devise a marketing strategy, develop financial
projections, and create a strategy implementation plan for the
company to market a new product in China or
Germany. estimate the investment required to relocate one or
more activities from MediCorp’s value chain in the
United States to your selected country, China or Germany.
You will have two weeks to develop your international business
plan.
To get started, Click Step 1: Assess the Characteristics of
MediCorp’s Potential Customers in the Selected
Country.

31. Step 1: Assess the Characteristics of MediCorp's Potential
Customers in the Selected Country
When you have assessed the characteristics of MediCorp's
potential customers in either China or Germany,
continue to the next step, where you will continue to work on
your marketing plan by accounting for MediCorp’s
value chain, distribution channels, modes of entry, and digital
strategy.
You will incorporate your recommendations from Step 1 and
Step 2 into a six- to seven-page marketing strategy
that will be submitted for feedback at the end of Week 9.
Step 2: Develop a Marketing Strategy
INBOX: 1 New Message
Subject: Marketing Plan
From: Jillian Best, CEO, MCS
To: You

32. Hi,
Let us continue crafting an international business plan for China
or Germany by developing
a marketing plan.
First, select either China or Germany as a new market for
MediCorp to expand into, and decide on a
medical diagnostic device that MediCorp can use to drive
expansion. To help with your analysis of
the industry, you will need to identify the NAICS code for the
industry subsector to which your
selected device belongs. Then, begin to develop a six- to seven-
page marketing strategy for
MediCorp.
As you begin your marketing strategy for MediCorp, first
analyze the characteristics of the company’s
potential customers in the new market and address the
international cultural differences.
I’ll send additional instructions shortly about how to analyze
MediCorp’s own characteristics and how
those characteristics will influence this marketing strategy.

33. Thanks for your hard work!
Jillian
https://leocontent.umuc.edu/content/umuc/tgs/mba/mba670/2195
/delta/learning-topic-list/marketing-plan.html?ou=440018
https://sites.umuc.edu/library/libhow/businessresearch-
naics.cfm
https://leocontent.umuc.edu/content/umuc/tgs/mba/mba670/2201
/learning-topic-list/international-cultural-
differences.html?ou=474190
3
By the end of Week 9, submit your six- to seven-page marketing
strategy to the dropbox located in the final step
of this project. (This submission is optional, but useful if you
would like feedback.) Your marketing strategy
should include all components outlined in Step 1 and Step 2.
Then, continue to the next step, where you will consider the
client’s financial projections and the accounting

34. standards in the selected country.
Step 3: Make Financial Projections in the Selected Country
As you continue to work on your international business plan
prepare market share estimates for MediCorp’s
product(s) in the selected country and revenue forecasts for the
next three years.
This analysis will form a portion of your final international
business plan. In the next step, you’ll examine
another element of the business plan, strategy implementation.
Step 4: Prepare Strategy Implementation Plan
The next step is to specify the major factors to be tracked for
strategy implementation using the four perspectives
of the balanced scorecard: the learning and growth perspective,
business process perspective, customer
perspective, and financial perspective.
Next, you will combine your marketing strategy and your
financial, governance, and implementation analysis into

35. a final report.
Step 5: Complete Your Final Business Plan
Inbox: 1 New Message
Subject: Marketing Strategy
From: Jillian Best, CEO, MCS
To: You
Now that we know more about MediCorp’s potential customers,
we need to examine some key
attributes of the company to adequately prepare it for
international expansion.
Include the following components in your marketing strategy:
• selection of new product for MediCorp to introduce in the
selected country
• MediCorp's main competitors in the medical diagnostics

36. devices industry in the selected country
• market and segment growth over the next three years
• Where does MediCorp add value as a way of gaining a
competitive edge?
• the legal business entity to market the products in the country
(review Modes of Entry for help)
• impact of the country’s legal, ethical, and cultural standards
on MediCorp’s operations in the
country (review Governance and Accountability for more
information)
Jillian
http://ezproxy.umuc.edu/login?url=http://search.ebscohost.com.
ezproxy.umuc.edu/login.aspx?direct=true&db=ers&AN=100259
212&site=eds-live&scope=site
https://leocontent.umuc.edu/content/umuc/tgs/mba/mba670/2201
/learning-topic-list/modes-of-entry.html?ou=474190
https://leocontent.umuc.edu/content/umuc/tgs/mba/mba670/2201

37. /learning-topic-list/governance-and-
accountability.html?ou=474190
4
Your final international business plan should include key
findings from your marketing strategy (Steps 1–2)
and financial projections and strategy implementation (Steps 3–
4). It should also include an executive
summary.
Submit your final business plan to the dropbox located in the
final step of this project. Then proceed to the
next step.
Step 6: Complete Skills Gap Analysis
As you push through your final report deliverables, you are
contacted by your MCS leadership coach, Rebecca
Sterling.

38. INBOX: 1 New Message
Subject: Final Business Plan
From: Jillian Best, CEO, MCS
To: You
It’s been a pleasure working with you on this project. I’m
looking forward to seeing the final
deliverables.
The international business plan should be 10–12 pages,
excluding cover page, executive
summary, reference list, and appendices. Any tables, graphs,
and figures should be included as
appendices. Your plan should have one-inch margins and be
double spaced in 12-point Times
New Roman font. In-text citations and references should abide
by APA format. The plan should
be organized using headings and subheadings to improve its
readability.
Your final international business plan should include the
components outlined in the international

39. business plan template.
Congrats!
Jillian
INBOX: 1 New Message
Subject: Skills Gap Analysis
From: Rebecca Sterling, Life & Leadership Coach
To: You
I hope you are well,
I’m reaching out to let you know that MCS’ Human Resources
department is conducting a post -
project self-evaluation of your skills. Using the same skills gap
analysis file that you completed in
Week 1, please self-evaluate your own project-related
knowledge and skills accounting for you
growth during your tenure within our organization.
The skills gap analysis will help you identify the skill areas you
have enhanced by completing

40. your recent assignments and will reflect any changes in the way
you see the importance of those
skills to your career success.
Thank you for your attention to this request. Looking forward to
hearing of your progress. I’m
sure you’ll be surprised by your how far you’ve come.
Sincerely,
Becca
http://polaris.umuc.edu/ewc/web/exec_summary.html
http://polaris.umuc.edu/ewc/web/exec_summary.html
https://leocontent.umuc.edu/content/umuc/tgs/mba/mba670/2195
/delta/course-resource-list/project-5-final-report-template-
.html?ou=440018
https://leocontent.umuc.edu/content/umuc/tgs/mba/mba670/2195
/delta/course-resource-list/project-5-final-report-template-
.html?ou=440018
5

41. Select the Project 5 worksheet in the bottom left of the skills
gap analysis file you used in Project 1. After
completing your self-evaluation, take the time to deeply assess
your progress by writing a 400- to 500-word
reflection that describes two to three gaps you worked to reduce
over the past 10 weeks and discusses whether
and how much you improved. Also think back on the learning
activities you pursued to help you develop course
competencies.
By the end of Week 10, submit your final skills gap analysis to
the submission dropbox located in the final step of
this project.
Step 7: Complete Leadership Development Plan
Take note of the recommended delivery dates and file-naming
protocols in the following table:
Submit your leadership development plan to the dropbox located
in the final step of this project. Satisfactory
completion of both the skills gap analysis and leadership
development plan are required to pass this project.

42. The next step provides recommended delivery dates and file-
naming protocols for Project 5 deliverables.
Step 8: Submit Your Work
By the end of Week 10, submit all Project 5 work to the
dropbox below. Take note of the recommended delivery
dates and file-naming protocols in the table:
Recommended Project Delivery
INBOX: 1 New Message
Subject: LDP
From: Rebecca Sterling, Life & Leadership Coach
To: You
Hi again,
Looking ahead, it is useful to continually reflect on your

43. leadership goals, the ground you have
covered to accomplish them, and the steps you still must take.
In a final measure to assist you with your career objectives,
please fill out the attached
leadership development plan (LDP) template. This document
captures your career goals and
skill development needs and asks you to consider your personal
impact on your organization’s
performance.
Thanks in advance for completing and submitting this LDP. I
believe it will be a useful tool for
you as you move forward with your career.
Sincerely,
Becca
Tip
The culmination of this project and your UMUC MBA capstone
is an important benchmark in
your career development. Transitions like this one are
opportune moments to update your
professional resume. Remember to keep your resume up to date

44. as you achieve other important
milestones throughout your career.
For help with resumes and cover letters, keep in mind that
University of Maryland University
College Career Services is an effective resource.
https://www.umuc.edu/current-students/career-services/job-and-
internship-search/resumes-and-cover-letters/index.cfm
https://www.umuc.edu/current-students/career-
services/index.cfm
https://www.umuc.edu/current-students/career-
services/index.cfm
6
Steps Submission
Week
Deliverable File-naming protocol
Steps
1–2

45. Week 9 Marketing strategy
lastname_firstname_Project5_Marketing_strategy.docx
Steps
1–5
Week 10 International
business plan
lastname_firstname_Project5_International_business_plan.docx
Step 6 Week 10 Final skills gap
analysis
lastname_firstname_Project5_SkillsGapAnalysis.docx
Step 7 Week 10 Leadership
development plan
lastname_firstname_Project5_LDP.docx
Check Your Evaluation Criteria
Before you submit your assignment, review the competencies

46. below, which your instructor will use to
evaluate your work. A good practice would be to use each
competency as a self-check to confirm you have
incorporated all of them in your work. To view the complete
grading rubric, click My Tools, select
Assignments from the drop-down menu, and then click the
project title
1.1: Organize document or presentation clearly in a manner that
promotes understanding and meets the
requirements of the assignment.
1.2: Develop coherent paragraphs or points so that each is
internally unified and so that each functions as
part of the whole document or presentation.
1.3: Provide sufficient, correctly cited support that substantiates
the writer's ideas.
1.6: Follow conventions of Standard Written English.
2.2: Locate and access sufficient information to investigate the
issue or problem.
2.3: Evaluate the information in a logical and organized manner
to determine its value and relevance to the
problem.
2.5: Develop well-reasoned ideas, conclusions or decisions,
checking them against relevant criteria and
benchmarks.

47. 3.1: Identify numerical or mathematical information that is
relevant in a problem or situation.
5.1: Develop constructive resolutions for ethical dilemmas
based on application of ethical theories, principles
and models.
5.3: Create, implement, and evaluate a personal leadership
development plan.
6.2: Evaluate strategic implications for domestic and
international markets of an organization's industry.
6.4: Develop and recommend strategies for an organization's
sustainable competitive advantage.
7.1: Analyze the legal forms of business organization and make
recommendations to support business
decisions.
7.4: Analyze the impact of international and foreign laws on US
organizations acting domestically and
abroad.
9.1: Design organizational structure, systems and processes that
support the strategic goals of the
organization.
10.1: Apply relevant microeconomics principles to support
strategic decisions for the organization.
10.3: Determine optimal financial decisions in pursuit of an
organization's goals.
10.4: Make strategic managerial decisions for obtaining capital

48. required for achieving organizational goals.
10.5: Develop operating forecasts and budgets and apply
managerial accounting techniques to support
strategic decisions.
13.2: Create and implement new initiative or enterprise.
13.3: Create and manage new enterprise.
12.3: Prepare marketing plan for a new product/service.
Project 5—Final Report Template
Memo: Please use this template
1. Title page
· states the client organization, selected country, the client's
product, type of legal structure, and the alliance partner
· date submitted
· your name
· course title, course and section number
· professor’s name
2. Table of contents
· page numbers for each major section
3. Executive summary
· summarizes the results of your analysis and how you arrived at
the recommendation
· belongs on a separate page from the introduction to the report

49. · Start your executive summary as follows: “Business Plan for
[selected client organization] to enter [selected country] $(size
of market in US Dollars) market for [product/service] through a
[type of legal structure] with [selected alliance partner].”
4. Introduction (first page of report body)
· states the purpose of the report
· explains what the report will do
· introduces the industry, country, and client's name
5. Marketing strategy
· market analysis
· characteristics of potential customers in the country
· use of web networks and social media for e-marketing
6. Governance and CSR
7. Financial projections
8. Strategy implementation
9. Conclusion
· Summary of the recommendations and rationale
10. Reference
· APA-style reference page
11. Appendices
· if needed