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International product
policy: development and
implementation
Done by:
Hnatenko O.O.
Scientific supervisor: Kuzminov S.V.,
Doctor of Economics, Associate Professor
Plan
Section 1. Theoretical aspects of commodity policy
on the overseas markets
Section 2. Analysis of international commodity
policy of the company.
Section 3. Implementation of the company’s
commercial policy on the international market.
The purpose of the diploma research:
developing a comprehensive strategy to enter the international market for sole
proprietorship Hnatenko. There has been done research of the methods of
strategic planning and finding the most effective way to enter the foreign market.
The object of the investigation:
Sole proprietorship Hnatenko
The subject of the investigation
search for ways of improving the implementation mechanism of formation of
commodity policy while entering the international market with a more detailed
study of the main components of the company’s international commodity policy
and determination of their role in international business operations of the
enterprise
The topicality of the problem
The way of doing business on the international markets
requires application of new methods of foreign trade which will
ensure effective management.
When a company enters a foreign market, it faces many
challenges:
•development of an effective strategic program,
•selection of a method of entering the foreign market,
•search for a foreign partner for cooperation;
•consideration of risks arising in foreign trade activity.
These problems are the most acute.
Sole proprietorship Hnatenko that is engaged
in the production of building and finishing
materials has been actively working on the
Ukrainian market in the sphere of building
materials since 1997.
While doing research there has been conducted SWOT-analysis of the enterprise
which has defined that sole proprietorship Hnatenko has had enough forces and
prospects for overcoming the state of the prolonged crisis and normalization of the
production and financial situation.
Strengths:
1. A wide range of products.
2. Highly qualified
production staff.
3. Strong relationships with
suppliers
Weaknesses:
1. A low level of staff
motivation.
2. Absence of innovation.
Opportunities:
1. Growing opportunities for
advertising and marketing
management.
2. Expansion of the market
through the provision of
additional services.
Threats:
1. The unstable political
situation in the country and
imperfect laws which are
often variable.
2. Emergence of new
competitors in the market.
The promotion policy is an element of the
strategy of entering the overseas market.
sole proprietorship Hnatenko has large
difficulties in preparation and realization
of its publicity and informative strategy.
Standardization is a method which allows
saving money on the advertising
campaign.
To advertise the products it will be effective to
participate in holding specialized exhibitions
and tenders in Ukraine and beyond its borders.
The best variant can be an internet-shop which
is aimed at overseas markets. Nowadays almost
everyone uses the internet resources, especially
abroad.
Budget item
Total cost
Short description
Organizational costs
$700 - $900
the cost of opening a bank account,
making the minimum start-up capital,
establishing a "bank-client" electronic
system
Purchase of office furniture
Purchase
of
computers
$700
and
office $4500
tables, chairs, kitchen stuff
workplace, multifunctional devices, fax
equipment for the workplace
Installation of network and hardware $300
setup
Purchase of a specialized server for the over $1300
online store and placing it at the provider
Development of a website of the online $3000
development of the directory where the
store
prices are quoted and there is a
(showcase
and
administrative
interface)
possibility to place an order
Short-term advertising of our store
over $500 per month
Total
$11 100
Budget item
Total cost
The subscription fee for telephone lines and Internet access
$40 - $60
The subscription fee for placing the store on the site of the server $150
provider
Wages of personnel
$2400
Office expenses
$200
Total
$2810
If the enterprise follows such calculations, then to achieve profitability
and get net income of $1000 per month the internet shop needs to get a monthly
income which is almost twice as much as the net one, and consequently is about
$4000 taking into account taxes.
It is also necessary to calculate the payback period of the online store.
The first deposit will be $14 000 and for a year the shop will bring net income of
about $12000 if the calculations are faithful. Consequently, $14 000 / $12000 =
1.16. In other words, the shop must cover its cost approximately after 1 year and 2
months.
Activity of sole proprietorship Hnatenko is directed on the
production of custom-made raw materials and building materials.
Therefore, emphasis is made on organization of exhibitions and
promotional purposes in the above mentioned countries.
Due to the promotional activities information about raw
materials of Sole proprietorship Hnatenko will be available for potential
buyers.