Purpose of Assignment  This week students will review and revise their Week 3 Research Analysis for Business Signature Assignment based on economic analysis and the feedback provided by their facilitator. Students will also expand their Week 3 analyses to evaluate the challenges of expanding their chosen company's production to a foreign market. About Your Signature Assignment This signature assignment is designed to align with specific program student learning outcome(s) in your program. Program Student Learning Outcomes are broad statements that describe what students should know and be able to do upon completion of their degree. The signature assignments might be graded with an automated rubric that allows the University to collect data that can be aggregated across a location or college/school and used for program improvements.  Assignment Steps  Resources: Tutorial help on Excel® and Word functions can be found on the Microsoft® Office website. There are also additional tutorials via the web offering support for Office products. Revise your Week 3 assignment, Research Analysis for Business, using the feedback provided by your facilitator. This Week 6 report should only include one conclusion, so you will need to rewrite the conclusion you included in your Week 3 assignment, Research Analysis for Business.  Select a foreign market in which to expand your chosen product. If you wish, you may use one of the countries your team analyzed in their Week 5 Comparative and Absolute Advantage Assignment. Prepare a minimum1,750-word report addressing the points listed below. The use of tables and/or charts to display economic data over the time period discussed is highly encouraged, you may submit any economic data in Microsoft® Excel® format in a separate file. You may use the U.S. Department of Labor's Bureau of Labor Statistics (BLS), U.S. Dept. of Commerce's Bureau of Economic Analysis (BEA), the Federal Reserve of St. Louis's FRED data, the CIA World Fact Book, World Bank data, and World Trade Organization, or other appropriate sources you might find on the Internet or in the University Library. The new sections of your report should: · Evaluate current global economic conditions and their effects on macroeconomic indicators in your selected country. Provide forecasts for population growth, gross domestic product (GDP) growth, GDP per capita growth, export growth, and sales growth. · Evaluate any competitors' existing production in the chosen country. · Assess sales forecasts in the selected country by using the Federal Reserve of St. Louis's FRED data, the CIA World Fact Book, World Bank data, World Trade Organization, or other appropriate sources you might find on the Internet or in the University Library. · Categorize the type of economy that exists in your selected country as closed, mixed, or market.  What is the difference between these types of economies and how might this affect your expansion? · Assess how your chosen country's curren ...

1. Purpose of Assignment
This week students will review and revise their Week 3
Research Analysis for Business Signature Assignment based on
economic analysis and the feedback provided by their
facilitator. Students will also expand their Week 3 analyses to
evaluate the challenges of expanding their chosen company's
production to a foreign market.
About Your Signature Assignment
This signature assignment is designed to align with specific
program student learning outcome(s) in your program. Program
Student Learning Outcomes are broad statements that describe
what students should know and be able to do upon completion
of their degree. The signature assignments might be graded with
an automated rubric that allows the University to collect data
that can be aggregated across a location or college/school and
used for program improvements.
Assignment Steps
Resources: Tutorial help on Excel® and Word functions can be
found on the Microsoft® Office website. There are also
additional tutorials via the web offering support for Office
products.
Revise your Week 3 assignment, Research Analysis for
Business, using the feedback provided by your facilitator. This
Week 6 report should only include one conclusion, so you will
need to rewrite the conclusion you included in your Week 3
assignment, Research Analysis for Business.
Select a foreign market in which to expand your chosen product.
If you wish, you may use one of the countries your team
analyzed in their Week 5 Comparative and Absolute Advantage
Assignment.
Prepare a minimum1,750-word report addressing the points
listed below. The use of tables and/or charts to display
economic data over the time period discussed is highly
encouraged, you may submit any economic data in Microsoft®

2. Excel® format in a separate file. You may use the U.S.
Department of Labor's Bureau of Labor Statistics (BLS), U.S.
Dept. of Commerce's Bureau of Economic Analysis (BEA), the
Federal Reserve of St. Louis's FRED data, the CIA World Fact
Book, World Bank data, and World Trade Organization, or other
appropriate sources you might find on the Internet or in the
University Library. The new sections of your report should:
· Evaluate current global economic conditions and their effects
on macroeconomic indicators in your selected country. Provide
forecasts for population growth, gross domestic product (GDP)
growth, GDP per capita growth, export growth, and sales
growth.
· Evaluate any competitors' existing production in the chosen
country.
· Assess sales forecasts in the selected country by using the
Federal Reserve of St. Louis's FRED data, the CIA World Fact
Book, World Bank data, World Trade Organization, or other
appropriate sources you might find on the Internet or in the
University Library.
· Categorize the type of economy that exists in your selected
country as closed, mixed, or market. What is the difference
between these types of economies and how might this affect
your expansion?
· Assess how your chosen country's current credit market
conditions, especially interest rates and the availability of
financing, affect demand for your product or service and your
planning or operating decision for your production in that
country.
· Analyze the role of the selected country's central bank on that
country's economy.
· Compare the availability, education, and job skills of the work
force in the selected country. Discuss any additional challenges
of international production, such as political stability,
availability of government financing or other incentives, threat
of capital controls, and exchange rate risks.
· Explain any additional supply chain challenges you anticipate

3. if attempting to make your product in your chosen country and
selling the product in other countries.
· Based on the data gathered and analysis performed for this
report write a conclusion in which you:
· Create business strategies, including price and non-price
strategies, based on your market structure to ensure the market
share and potential market expansions and explore global
opportunities for your business in a dynamic business
environment and provide recommendations.
· Develop a recommendation for how the firm can manage its
future production by synthesizing the macroeconomic and
microeconomic data presented.
· Propose how the firm's position within the market and among
its competitors will allow it to take your recommended action.
· Recommend strategies for the firm to sustain its success going
forward by evaluating the findings from demand trends, price
elasticity, current stage of the business cycle, and government.
· Recommend any comparative advantages your company will
have over competitors currently operating in that country, and
defend your position, either for or against, expanding your
company's production into your chosen country based on your
research.
Integrate with the Week 3 Individual Assignment, and
incorporate corrections and suggestions from the instructor's
feedback. The final report should be a minimum of 2,800
words.
Cite a minimum of three peer reviewed sources not including
the textbook.
Include all peer-reviewed references and government economic
data sources/references from Week 3.
Format your assignment consistent with APA guidelines.
Key figuresDeutsche Post AG - Interim Report as at 30 June
2017Selected key figuresH1 2016H1 2017+/- %Q2 2016Q2
2017+/- %Revenue€m28,06229,6965.814,19014,8134.4Profit

4. from operating activities
(EBIT)€m1,6251,7266.275284111.8Return on sales1%5.85.8-
5.35.7-EBIT after asset charge
(EAC)€m8569328.936644521.6Consolidated net profit for the
period2€m1,1801,2354.754160211.3Free cash flow€m-1,300-
4596.5-600385>100Net debt3€m2,2613,57558.1---Earnings per
share4€0.981.024.10.450.5011.1Number of
employees5508,036508,9280.2---1 EBIT/revenue.2 After
deduction of non-controlling interests.3 Prior-period amount as
at 31 December, for the calculation see page 6 of the Interim
Group Management Report.4 Basic earnings per share.5
Headcount at the end of the first half of the year, including
trainees; prior-period amount as at 31 December.
Key figures
Revenue (€m)
Time (FY)
Amount(€m)
Revenue (€m) for DHL
1
Research Analysis for Business – The Logistics Business
Environment In US
2
Research Analysis for Business – The Logistics Business
Environment In US
xxxxxxxx
ECO/561 Economics
Alan Lane-Murcia

5. February 05, 20181
In the US we have seen that the parcel delivery or logistics
business being an ever-running business all year round, this s
because sending of goods whether large or small, by companies
and households is increasing every day (Coyle, 2013). This
brings an opportunity that can very well be invested in by the
firm. A look at the business operating environment of this
venture reveals the following about transport and logistics.
We at DHL we are committed to serving our clients better and
better every day, we, therefore, look for solutions that work
regarding reducing the time of delivery of goods worldwide,
reduce damages and reduce costs to the consumer. To serve our
customers better, am
going to look at the trends in the market to see what has
resulted in the significant shifts and thus what can we do to that
extent.
The market structure and the competitors
Transport and logistics business has been mainly an oligopoly
affair
. This is because the large is too large and the players are very
few. The main players being the two giant whom DHL is
competing with that is UPS and FedEx who are both offering
discount fright
charges.
DHL has a market share of 28.64% according to Datanyze when
compared to her close competitors. UPS that has a market share
of 32.81%, FedEx which commands of the market of 14.66%
USPS with 23.68%, for Whiplash Fulfillment and Shippingeasy
they both have a market share of 0.08% ("Datanyze Universe-
DHL," 2017). Thus, the primary competitors are DHL, UPS,
USPS, Whiplash Fulfillment and Shippingeasy.

6. Barriers to entry
Logistics market is vast; however, entry is not a small issue.
This is because of the very many barriers to entry that have
resulted in the current oligopoly market structure.
They have a few of the voluminous list that comprises of factors
such as capital costs whereby it is costly to set up the offices,
buy the trucks and even hire manpower; the second barrier is
economies of scale whereby most of the competitors are unable
to compete with other firms whose production scale is
microscopic for example the case of for Whiplash Fulfillment
and Shippingeasy being too small to give DHL any considerable
competition (Coyle, 2013). A third is that legal barriers to entry
are a significant frustration, here the government grants patents,
copyrights as well as exclusive rights to companies selectively
. Forth is marketing barriers whereby gaining loyalty is pretty
hard, other restrictions are; take over and merger, vertical
integration as well as predatory pricing.
The impact of such barriers is that given that DHL has been in
existence for long and already has a preferably more significant
market share, there is no any promising competitor who is to get
in the market thus the market will remain good as it is now a bit
longer.
Current macroeconomic indicators
In a business such as this, it is critical to understand what the
indicators say about the market. For example, over the last three
years, the following items have shaped the business today in
various strengths.
i) Current stage of the business cycle

7. Between the four phases of business cycles that include
expansion, peak, recession, and though we are currently at the
expansion stage. In 2007 to 2009, that is when we last
experienced resection
. In the current phase, there have been a few things that have
been realized that make it easy for companies to operate
efficiently which includes unemployment rates being less than
5%, slow rate of wage increment on personal income of about
2.4% and increased industrial production due to high consumer
buying power. Thus, the last three years have the US has been
under expansion phase of the business cycle.
ii) The unemployment rates
One of the most significant inputs into a company's business
operation is skilled labor, from the last three years; the US
unemployment rate has been substantially reducing according to
the US Bureau of labor statics. This has created a better
environment for the logistics business ("Consumer Price Index
Summary," 2017).
iii) Real gross domestic product (GDP)
The GDP according to statista has been ever-rising which makes
the logistics business environment favorable. In 2015, the GDP
was at $18120.7 billion, in 2016, it was at $18624.5, and in
2017, the GDP was at 19386.8 dollars which is a positive
indicator ("United States GDP 1990-2017 | Statistic", 2018).
Inflation as measured by the consumer price index (CPI)
With the base of 100 since 1982 with data obtained from the US
Inflation Calculator, the CPI has been relatively increasing
since 2015 to 2017. For example, in 2015, the CPI ranged
between 137.017 % and 138.638% thus an annual average of 1

8. 37.017% since 1982. That of 2016 based on the same terms gave
a range of 136.916% and 141.729% thus a yearly average of
140.007%, and for 2017, the values were between the range of
142.839% and 146.669% hence an annual average of 1 45.120%.
This to a great extent means that the power of consumer
purchase of most services is going to be low shortly if the
inflation rate is not controlled.
Federal funds rate
The Federal funds rate was rising between 2015 and 2017, i.e.,
form 0.11% in Jan 2015 to 1.30% in December 2017. This has
made it possible to control inflation and thus have a stable
economy.
Current rate for borrowing funds
The U.S prime rate has been continually rising since 2015,
whereby in December 2015 it was at 3.5%. In December 2016 it
was at 3.75% whereas in December 2017 it was highest at 4
.25%, this thus has since made it possible for commercial
borrowers to borrow precisely and enhance better market
characteristics ("the United States Prime Rate History," 2018).
Financial report
From the company's annual reports, the company made revenues
of €59230 million in 2015 and €57334 million in 2016. In 2017,
the available figures indicated that the company made revenues
worth €29696 million in its first half of the FY2017 whereby in
quarter two the vale reported was at €14813 which represented a
4.4% increase when compared to that of the same period in FY
2016.
This is presented in the graph below;

9. Thus, the company's data indicate that it is making profits of
which the pricing strategy employed should still be used as it is
likely to be the most recommended one based on the market
share and the existing competition.
The pricing strategy and recommendations
One of the major determinants of the price DHL would charge is
based on the geographical area, means of deliveries, the
available competitors and if the business is entering for the first
time. However, for the longest time, the company has used
software called Zilliant which takes into account relevant
customer, cost as well as the competitive information. This has
been effective; however, considering a pricing strategy like
skimming would help the company capture new customers in
new locations (Rushton & Walker, 2007). This is because, the
higher prices at the beginning would help achieve the high-end
customers, however, as the cost is gradually reduced and the
company becomes more common, then more customers are
bound to be brought on board as the initial customers remain
loyal and this will make the revenue growth.
Output decisions
One of the factors that affect the logistics business is costs of
production for this case, delivery of goods and parcels across
the world. DHL has some costs that it has to consider to make
well-informed decisions. They include labor, which is the
employees, marketing, technology, mode of delivery and
research and developments (Rushton & Walker, 2007).
The company has to mostly embark on marketing which may
include promotional discounts like free shipping on special
occasions for items that are light enough to its loyal customers
for example during the black Fridays to counter their major
competitors. Extensive market research into the needs of her

10. market would help establish a framework that would be aimed at
solving the problem of their day to day customers.
Thus, therefore, DHL is a global logistics company that is
destined to become a global market leader. It thus only requires
that it may go an extra mile to identify the special needs of her
customers through market research, offer better pricing
strategies like skimming and venture into more grass root level
marketing to have more customers subscribe to it. Better
technology in establishing best and reliable mode of delivery of
the goods is a requirement to see it increase its market share in
the long run.
References
Datanyze Universe-DHL. (2017). Datanyze.com. Retrieved 2
February 2018, from https://www.datanyze.com/market-
share/logistics/
Consumer Price Index Summary. (2017). Bureau of Labor
Statistics. Retrieved 2 February 2018, from
https://data.bls.gov/timeseries/LNS14000000
Coyle, J. J. (2013). Supply chain management: A logistics
perspective. Australia: South-Western Cengage Learning.
Rushton, A., & Walker, S. (2007). International logistics and
supply chain outsourcing: From local to global. London: Kogan
Page.
United States GDP 1990-2017 | Statistic. (2018). Statista.
Retrieved 2 February 2018, from
https://www.statista.com/statistics/188105/annual-gdp-of-the-
united-states-since-1990/
United States Prime Rate History. (2018). Fedprimerate.com.
Retrieved 2 February 2018, from
http://www.fedprimerate.com/wall_street_journal_prime_rate_hi
story.htm
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