Overview
• You are going to select a product or service (Shake Shack restaurant) that you are going to distribute/sell from your company to your target market in the selected country (France)
– Non-FDI (Franchising – Shake Shack has over 41 franchises worldwide)
– Your Company (Shake Shack): Available information/financials
– Source country: You choose (not necessarily company HQs
country) – (United States)
– Your product/service: Not currently in your chosen country
• 40-50 “Power Point” meaningful slides – Not photos – Text, graphs, exhibits – With Reference slide(s)
KEY SECTIONS Executive Summary
- One page (in beginning of presentation) - Summarizes what you’re going to present (example below)
• “Export widgets to Micronesia, • from India by plane, • through a local distributor, • focusing on middle class, • don’t have good widgets currently, • will capture 1% market share initially and eventually 50% • will break-even year 2 and earn 25% EBITDA year 5”
Country Analysis What makes this country (France) attractive? Unattractive?
Economy – History and projections – Demographics – History and projections – Ease in doing business
Why is country unattractive?
• - Financial risks – Economy – Currency – Etc.
• Institutional – Political – Legal – Social – Etc.
• Costs – Import restrictions, costs – Etc.
• Other
Addressing Country’s (France) Problems (What to do about country’s shortcomings?)
What makes target market segment attractive?
• Size, growth, etc. • Disposable income, etc. • Existing and projected expenditures on your product category • Other
What makes existing market for our product/service attractive?
• Size • Historical/Projected Trends • Who Buys • Competitive Environment-Who/market shares, etc. • Etc.
What is competitive environment?
• Who? • How Big? • Market share(s)
What unique benefits will our product provide?
• Lower costs • Better quality • Better for environment • Other
How will we sell to target market?
• Direct sales • Distributor • Collaborative: franchise, license, JV (We will launch as a FRANCHISE in
France – use Shake Shack’s other franchise locations as an example) • Other • NOTE: BE SPECIFIC!!!!!!!
How will we get product to target market segment?
• How? • From where to where? • Costs
– Transport – Tariffs/duties
• BE SPECIFIC!!!!!!!!!! (Possible Useful Analyses)
• 4Cs • SWOT • Etc.
What are our short and longer term strategies?
• Short – Years 1-2, -3 (or longer) – Geographic, product line, distribution, etc.
• Long – Later to end of year 5 – Geographic, product line, distribution, etc.
Financials years 1-5 • Years 1 through 5-PROJECTED • Basic P & L FOR YOUR PRODUCT/SERVICE IN THE SELECTED COUNTRY
– Revenue – COGS – GM – SG & A – EBITDA
• MAJOR COST REQUIREMENTS (if any) • ASSUMED MARKET SHARE/PENETRATION
– IMPORTANT--TO BE ABLE TO DEVELOP FINANCIALS NEED TO HAVE GOOD DATA ON MARKET SIZE
PLEASE INCLUDE GRAPHS & TABLES WHEN NEEDED – IT WILL LOOK BETTER