The document outlines a six-step process for selecting countries for global expansion: 1. Build a list of sub-factors from three overall factors: stand-alone appeal, synergy potential, and global strategic importance. 2. Allocate weights to each sub-factor and pinpoint countries to analyze. 3. Rate each country on each sub-factor and arrive at a total score by combining weights and ratings. 4. Determine country risk by adjusting the total score.

1. Global Strategy Country Selection ITAB University of Phoenix MBA Global Management Class 2000

2. Three sets of overall factors Stand alone appeal Selecting a country that feels right Synergy Potential of current & sister businesses in each country. Global Strategic Importance Tactical relevance of country, to that of the central business

3. Six steps for country selection Build a list of sub factors from the previous overall factors Allocate weights to each sub factor Pinpoint countries to analyze Rate each country & region on each sub factor

4. Six steps ……..continued 5. Arrive at total score by combining weights and ratings 6. Determine country risk by adjusting the total score

5. Ascertain the countries of interest Pick out all possible countries of interest including existing countries in which the business participates Determine the level of effort devoted to existing countries. This provides a good benchmark against the new countries

6. Ascertain the countries cont…. Should you include countries that are difficult to enter? Yes, if the potential is there and the country is globally strategic.

7. The sub factors & stand alone appeal Entry Barriers Political risk Currency Taxes Price levels Market size Growth

8. The sub factors cont….. Cost to enter and adapt Competition Other sub factors can be added to determine the stand alone appeal, with input provided from other sources.

9. Synergy of customers, competitors and innovation Is there a sharing of activities between other companies? Raw material production for upstream capacity? Final assembly and distribution capacity? (logistics) Closeness to other markets? Synergy is needed when there is no presence in a country

10. Strategic importance Home market of customers? Home market of competition? Is this a significant market for competitors? Is there key customer demand? Is this an area that generates industry innovation?

11. Weighing and rating each sub factor Assign weights to the 3 overall factors any way you best see fit e.g. 45, 20, 35 for appeal, synergy and strategic Split these into the respective sub factors Each country sub factor can be rated on a 0-10 scale. Use a benchmark country if available

12. Country Risk Adjust for country risk This would include risks such as political, expropriation, currency devaluation and although it has been included with other factors using a separate approach separates business and political factors thus leading to discounting expected returns

13. The ratings To be used as one means to help make the decision to enter the country Clears up misconceptions, pro or con Obtain in-country opinions if available

14. What is next? Logistics, site location (free trade zone), business partners, materials Financial analysis Marketing strategy Sales strategy Competition Pricing Business plan Insurance