International Experience Final Paper ______GBM 685: International Business
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CALIFORN IA STATE UN IVERSITY SAN MARCOS PROJECT SIGNATURE PAGE PROJECT SUBMITTED IN PARTIAL FUFI LLM ENT OF THE REQU IREMENTS FOR TH E DEGR EE MASTER OF BUSINESS ADMIN ISTRATION PROJECT TITLE : International Busi ness Final Paper AUTHOR : Jalen Fields th PRESENTATION DATE : August 8 , 2018 THE PROJECT HAS BEEN ACCEPTED BY THE COMMITTEE IN PARTIAL FUFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION. Name of Project Advisor: William Byun /JV IL-l-f A Project Advisor (Full Name) Signature Date ame of Second Reader: Mohammad Oskoorouchi /4 Project Second Reader (Fu ll Name) 7 Signature Date International Experience Final Paper _________________________________________________ GBM 685: International Business Prepared By: Jalen Fields 8/9/2018 Table of Contents Executive Summary ........................................................................................................................ 4 Introduction ..................................................................................................................................... 6 Economics ....................................................................................................................................... 7 Inflation ....................................................................................................................................... 7 Exports ........................................................................................................................................ 8 Imports ........................................................................................................................................ 8 Import Tariffs .............................................................................................................................. 8 Trade Barriers ............................................................................................................................. 8 Market Entry Strategy ................................................................................................................. 9 Market Challenges .................................................................................................................... 10 Financials ...................................................................................................................................... 11 Risk Assessment ....................................................................................................................... 12 Culture........................................................................................................................................... 13 Gender ....................................................................................................................................... 13 Religion ..................................................................................................................................... 13 Class .......................................................................................................................................... 13 Ethnicity .................................................................................................................................... 13 Black Model .............................................................................................................................. 14 Brake Model.............................................................................................................................. 14 Rosen Model ............................................................................................................................. 15 Keong Saik Bakery ....................................................................................................................... 17 Company Overview .................................................................................................................. 17 Recommendations ......................................................................................................................... 18 Focus on healthier desert options .............................................................................................. 18 Industry Overview .................................................................................................................... 18 Competitor Analysis ................................................................................................................. 19 Internal competition .................................................................................................................. 19 External Competition ................................................................................................................ 19 Singapore’s competitive landscape ........................................................................................... 20 Successful Strategies ................................................................................................................. 21 Market Trends ........................................................................................................................... 21 SWOT Analysis ........................................................................................................................ 23 Industry Risk ............................................................................................................................. 23 Health and Wellness in Singapore ............................................................................................ 24 Catering Project ............................................................................................................................ 26 Competitor Catering Analysis................................................................................................... 26 Keong Saik Catering Packages ..................................................................................................... 26 Breads ....................................................................................................................................... 26 Singapore Vs United States .......................................................................................................... 28 Similarities ................................................................................................................................ 28 Differences ................................................................................................................................ 28 Conclusion .................................................................................................................................... 29 Appendix A ................................................................................................................................... 30 Appendix B ................................................................................................................................... 31 Appendix C ................................................................................................................................... 32 Appendix D ................................................................................................................................... 33 Appendix E ................................................................................................................................... 34 3 Executive Summary The purpose of this thesis is to implement the various skills and techniques learned while studying in the Master of Business Administration program taught at California State San Marcos. This report analyzes Singapore, and potential opportunities that exist within this country from a business perspective. The motivation of this report is to analyze how business is conducted internationally outside of the United States. To gain insight on Singapore’s business opportunities, I conducted research on the economic, financial, and cultural aspects of the country. I also spent two weeks in Singapore working with a small local bakery called “Keong Saik Bakery”. While there I analyzed the local bakery industry and worked on a project to help the bakery gain more market share and compete with larger competitors. The limitations of this report were time spent in the actual country. Due to the short time I was spent in the actual country, I was only able provide limited first-hand experience of the countries business culture. Singapore is currently ranked in second place on the ease of doing business scale. They are classified as a high-income economy. The country is in the developing stages but growing at a very fast rate. Singapore has been highly ranked as having the most open, least corrupt, and most pro-business economy in the world. Their consumer price inflation rose up to .6% in June 2018, this was an increase from .4% in May 2018. One of Singapore’s major strengths is in the development of high value-added sectors such as new technologies, finance, chemicals, and pharmaceuticals. One weakness of Singapore is that their economy is very dependent on exports. They are generally a free port and open economy, more than 99% of imports into the country enter duty-free. Singapore levies a 7% goods and services tax. Singapore has maintained a very liberal trading regime in the world, but the United States faces several trade barriers. The government of Singapore estimates that more than 4,200 U.S. firms, both large and small have established businesses in the country. Many U.S. exporters