3.29 international marketing | Marketing homework help

Section 2 – Assessment

The assessment example(s) below can be used by centres, or alternatively centres can develop their own assessment.

Assessment 1

Outcome covered 1 and 2

Assessment instructions

This is an open-book assessment your task is to prepare an extended response to each of the questions at the end of the case study (Huzhou Piano Co Ltd).

In preparing your response you should first read the case study, which provides background information about the organisation.

You are expected to show both your knowledge and understanding of the subject and be able to apply what you have learn to the case study.

Read the following case study carefully and answer the questions that follow.

Case study – Huzhou Piano Co Ltd

Huzhou Piano Company Ltd is a modern manufacturer, whose specialty is acoustic upright and grand pianos. The company was established in 2000 in Huzhou city, Zhejiang province, which is a centre for piano manufacturing and well-known as the piano town of China. With this advantaged location, the company has a read source of good quality piano materials and experienced workers.

The company has grown into a medium-sized piano manufacturer with annual production of over 4,000 upright pianos and over 300 grand pianos. It now has 130 employees.

As well as achieving both local and national Chinese quality certification, the company achieved International certification ISO 9001, and the production process strictly adheres to this international quality system.

The product range includes upright and grand pianos to meet the requirements of different users such as families, schools, bars, hotels and stages. Overall there are over 40 product types depending on model, colour and style of piano. Their products are sold through specialist music retailers and department stores, as well as direct to commercial organisations.

Huzhou Piano Company Ltd is well managed, with low overheads and operating costs. Unlike some of their competitors, it has only a modest advertising budget, which has allowed them to offer good value products at very competitive prices. The majority of their models are budget models which account for the largest segment of the market.

In the last 10 years, the company’s sales have grown substantially each year as a result of the rapidly growing popularity of plans in China. However in the past three years, sales growth has slowed. This is due to a number of factors, such as increased competition in the domestic market, a growing trend towards better quality imported pianos among higher income families; and increasing competition from digital pianos which are considerably cheaper than traditional pianos. It is expected that in the coming years the domestic market will get even more competitive and this will put greater pressure on profit margins.

Huzhou Piano Company Ltd has not actively promoted any of their piano range outside of China; however it has sold a small percentage of its piano production overseas – but only in response to direct enquiries. Their Chief Executive Officer believes that now is the right time to look at international markets as the US and European economies start to recover. He also believes that emerging markets, such as India and Brazil, could possibly follow the Chinese example and experience higher than average demand for pianos as their economies grow and living standards rise.

Explain and justify the reasons why Huzhou Piano Company Ltd is considering entering international markets.

2 Describe a minimum of two sources of information that Huzhou Piano Company

Ltd should access before deciding which international markets to enter.

3 (a) What are PESTEL factors and why are these important when considering opportunities and threats of entering international markets?

(b) Using three PESTEL factors, explain key opportunities and threats that Huzhou Piano Company Ltd should think about when considering entry into international markets.

Explain a process that Huzhou Piano Company Ltd could use to select which international markets) to enter.

5 Explain the different modes of international market entry available to Huzhou Piano Company Ltd, identifying the advantages and disadvantages of each method.

Explain which method of international market entry would be most appropriate for Huzhou Piano Company Ltd, clearly identifying the criteria you have used in making your choice.

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July 1, 2023

Case Study 1

Your clients, Jerry and Jenny, are 25 years old. They have come to you for assistance with planning for the cost their child’s education and their retirement. They would like to know if they are on track to reach these two goals. Below are the facts about the family.

· Jenny currently earns $150,000 and they expect to need $150,000 per year in today’s dollars in retirement. Jerry is a stay-at-home dad.

· Jenny plans to retire at age 67, and they expect to live until age 100.

· They also expect that Social Security will provide $40,000 of benefits in today’s dollars at age 67.

· Jenny has been saving $5,000 annually in her 401(k) plan.

· Their son, Jazz, was just born and is expected to go to college in 18 years.

· They want to save for Jazz’s college education, which they expect will cost $20,000 in today’s dollars per year and they are willing to fund 5 years of college.They want all funds needed for Jazz’s college education available the first year Jazz starts college.

· They were told that college costs are increasing at 7% per year, while general inflation is 3%.

· They currently have $100,000 saved in total and they are averaging a 10% rate of return and expect to continue to earn the same return over time.

1. Calculate the current cost of Jazz’s college education.

2. Calculate the capital needs of the couple at retirement and the current value (today’s value) of their retirement needs.

3. Provide the couple with a summary of their goals with the current total amount needed to reach their goals, showing how you arrived at the total.

4. Given their current resources, does the couple have sufficient resources to achieve their goals? Using calculations, show and explain your answer to the couple.

5. Using calculations and explanations provide the couple with three alternatives for meeting their goals.

6. In your own words, provide the couple with the advantages and disadvantages of two accounts and/or investment instruments that are used specifically to save for college education expenses. Which would you recommend and why?

Your completed Case Study must contain a minimum of 500 words and 2 citations in current APA format. Acceptable sources are personal finance journals, magazines, or newspapers.

Case Study 2

Your client, Steven, age 43, has come to you for assistance with retirement planning. He provides you with the following facts.

· He earns $80,000 annually.

· His wage replacement ratio has been determined to be 80%.

· He expects inflation will average 3% for his entire life expectancy.

· He expects to work until 68, and live until 90.

· He currently has $60,000 saved, and he is averaging a 9% rate of return and expects to continue to earn the same return over time.

· He has been saving $3,000 annually in his 401(k) plan.

· Additionally, Social Security Administration has notified him that his annual retirement benefit, in today’s dollars will be $26,000.

1. Using calculations, explain to Steven why it is realistic to use a wage replacement ratio of 80%.

2. Using the annuity method, calculate how much capital Steven will need to be able to retire at age 68.

3. Given his current resources, does he have sufficient resources to achieve his retirement goal? Using calculations, show and explain your answer to Steven.

4. Provide Steven with 3 alternatives for meeting his retirement goal. In doing so, use calculations to show the impact of each alternative.

Before hiring you as his financial planner, Steven was going to another planner. He mentions that the other planner calculated this retirement needs another way, so he asks you to calculate his retirement needs using other methods.

5. Using the capital preservation method, calculate how much capital Steven needs in order to retire at 68.

6. Using the purchasing power preservation method, calculate how much capital Steven needs in order to retire at 68.

7. In your own words, provide Steven with the advantages and disadvantages of each method and explain why the amounts calculated are different with the three methods.

8. In your own words, provide Steven with the advantages and disadvantages of 2 investment instruments that are used specifically to save for retirement. Which would you recommend and why?

Your completed Case Study must contain a minimum of 700 words and 2 citations in current APA format. Acceptable sources are personal finance journals, magazines, or newspapers.