International Business Management

BBA (B) 8th

PUNJAB UNIVERSITY GUJRANWALA CAMPUS

SUBMITTED TO:

MR. REHAN AHMED

SUBMITTED BY:

Mamoona Riaz (BB15313)

Kiran Shazadi (BB15307)

Country:

United States of America

Product:

Curtain
 Dedication

At first dedicating this work to Almighty

ALLAH
Without his mercy and sympathy, we were not able to accomplish this work. We
also dedicate this work to our

Parents
Because their Prays made us able to achieve this task. Which are entire source of
motivation and seeking goals. They support us in every walk of life and always
encourage us to work hard. We also want to dedicate this to our honorable and
respectable

Teachers
Because they always guided us towards right path of success. Special thanks fly
straight to my teachers. Words are really inadequate to express how much grateful
we are the untiring help and encouragement they provided.
 Acknowledgement

We are thankful to my most respected teacher

“Mr. Rehan Ahmed”

Who gave us opportunity to work on this May Allah bless him with health &
happiness………Ameen!!!
 M\k Designer

We are here to help you to turn your dreams in to reality

Vision

To achieve customer satisfaction by providing nothing but the most fitting according to their
desires

Mission

To manufacture peerless product of best quality that give our client a competitive advantage
through admirable product and value, so we can give our customer a number of reasons to be
loyal.

Company and its operations

The name of our company is organized by two members ‘Mamoona’ and ‘Kiran’ with a belief
to achieve our goal. We are making different types of curtain these are

 Box Crimp
 Rod Pocket
 Pinch Crimp
Curtain rod is the important tool in it

Reasons to be globalization
 For variety of reasons we go for international operations
 We want to recognize our business world wide
 We want to build a good word of mouth
 By providing a good quality fabric we want to achieve the trust of people
 Increase the wealth of shareholder
 We can prolong the life cycle of our product

Country we chose

The selected country is United States of America

Why we chose this country

As America is a super power country if we do our business in this country we get many more
opportunities to explore ourselves

Economic analysis

Major indicators of economy

2017
Population (million) 326
GDP per capita (USD) 59501
Economic growth (GDP annual variation in %) 2.3
Fiscal budget (% of GDP) -3.4
Inflation rate (CPI annual variation in %) 2.1

https://www.focus-economics.com/countries/united-states

Economy system in United States

There is a mixed economic system. It is the world leader free market economy

Trade policy

Tax

In USA Corporate rate tax last year is 21.00. Sales tax rate is 0.00.

https://tradingeconomics.com/united-states/corporate-tax-rate

Anti-Dumping law

They keep their markets open for imports but for unfair trade done by foreign business or govt.
they act aggressively

(antidumping law)

Local content requirements

This LCRs helps govt. to achieve short term objectives and it helps the domestic industry
Trading bloc

USA and Pakistan have a bilateral tax treaty force since 1959

Level of Economic Integration

Bilateral relationship

Related industry

Textile industry and thread making industry for curtain rod plastic and steel is required. So
somehow these industries also interlink.

Political factor analysis

1. Macro analysis
a) Government type
Constitutional based federal republic

b) Judicial system
Supreme Court is the highest court. This court may hear argument between two states under the
constitution laws of United States

(judicial system)

c) USA corruption rank

Out of 177 USA ranks 19th

2. Micro political analysis

a) Taxes
In USA Corporate rate tax last year is 21.00. Sales tax rate is 0.00.
 b) Industry Regulation
Certificate of safety and usability such as National Standard for Safety of Corded Window
Covering 2012, are required. ISO 9000 Quality must be satisfied and obtained

(industry regulation)

c) Local laws and customs

In supermarket swimming costume is not allowed.

In churches and mosques and other holy places rules are strictly followed

Be aware while talking about local culture and traditions

(local laws and customs)

Political risk

a. Corruption rank
It ranks 22 out of 175 countries. And average 17.88 from 1995 to 2018.

(corruption ranks)

b. Counterfeit
Counterfeit bills is less than 0.01% in America

c. Freezing asset moment

Any American have right to move assets freely.

d. Expropriation risk
Expropriation risk exits in United States. In 2018 it was 1

Political Strategies
Defensive Strategy

We can overcome the corruption through this strategy from different sectors.
Proactive Strategy

Through this strategy we overcome the other political risks

Technology Analysis:

Technology Home country Host country Barriers Strategies

factors Pakistan USA
Technology Resources are The best Yes huge It will take time
Infrastructure limited and our infrastructure difference occur to cover the gap
needs are more USA has. between these
than resource two countries
Employee Skill labor in People of USA Educational gap We have to give
Expertise Pakistan is high are well arises education to
educated and Pakistanis for
they are skilled better results
Customer In 2018 literacy People of Lack of Through better
Awareness rate of Pakistan America give technology as way of
is 58% which is value to their compare to USA technology we
low so for new local products overcome this
business it take and focus on gap
efforts to put quality. Through
business in seminars and
market campaigns we
get attraction of
people

CULTURAL PROFILE:
1. CULTURAL ELEMENTS
CULTURAL HOME HOST CULTURAL CULTURAL
ELEMENTS COUNTRY COUNTRY(USA) BARRIERS STRATEGIES
(PAK)
1:TYPE OF Federal Federal No No
GOVERNMENT government government and
president is the
head of
government
2:RELIGION Islam Christianity Yes Hire host
 country locals

3:SOCAIL Religious, Based on wealth, Yes If needed we

STRUCTURE ethnic, and income, education, will hire
status lines occupation employee
Biradri system is according to host
also followed in country
Pakistan (social
structure )
4:ECONOMIC Mixed economy Mixed economy Moderate Get training in
IDEALOGY govt. and privately host country
owned business
both plays
important role
(ideology of usa )
5:LANGUAGE Urdu English Yes Hire translator

6:RELIGION Islam is Christian religion Yes Hire host

VALUES: followed by 99% is followed by country locals
of people 73.7%

Basic etiquette

 In small gathering if you arrive more than 10 minutes late than inform them in advance
 For large social gathering late arriving is acceptable
 Gifts are preferred to open in front of the giver
 Only on special occasion gifts are preferred to be given
 Taxi drivers, barber, hairdressers expect to have 2% tip from public

(cultural etiquette)
 HOFSTED’S CULTURAL
DIMENSIONS:
Hofstede’s cultural
dimensions
Individualism/Collectivism
Power distance
Uncertainty avoidance
Masculinity/Femininity
(hofstede insights, n.d.)
Organizational culture in USA
Guided missile culture is followed in American organizations. Task oriented people. They are
loyal to their profession
(org.culture )
Country (Pakistan)
Pakistan is considered as a
collectivistic society with a
very low score of 14.
The area to which the less
powerful members of
establishment within country
anticipate and accept that
power is not equally
distributed.
Pakistan has a high
preference for avoiding
uncertainty because in this
dimension it score is 70
In Pakistan masculinity is
dominant over femininity.
Country (USA)
America is the highest
scoring individualistic society
in the world.
We worth the American
foundation of “liberty and
justice for all” there is a less
score of power distance in
USA
Low uncertainty avoidance in
USA
Masculine culture is
dominated in America
regarding some values and its
score is 62.
Customer Profile Matrix (CPM)

Key success factors Competitor A Competitor B Our self

Weigh Ratin Avg. Weigh Ratin Ang. Weig Ratin Avg.

t g t g ht g
(%) (1-5) (%)
Maintain market 10% 2 0.2 15% 4 0.6 15% 3 0.45
shares
Pricing average 15% 4 0.6 10% 3 0.3 10% 2 0.2
strategy
Locations rich 10% 2 0.2 15% 2 0.3 10% 2 0.2
in target market
Customer 20% 5 1 25% 4 1 25% 5 1.25
satisfaction
Strong brand 20% 3 0.6 15% 5 0.75 20% 5 1
name
Multichannel 25% 3 0.75 10% 1 0.1 20% 4 0.8
distribution
Total 100% 3.35 3.05 3.9

Conclusion

CPM tells the position of our company where our company stands.2.5 is the below average
satiation so our company “M\K Designers” perform good rather than to our competitor

Customer profile on the basis of Socio-Culture Factor Analysis

Demographic Age group : young and adults

Gender : male and female

Buying & The buying behavior of Americans is quite different from other
consumption Patterns western markets like UK.
(socio culture)
Values, Norms They strongly believe in the concept of be independent
& beliefs Equality.
Literacy rate 99% literacy rate in USA
Human relationships
State of society & 59,937.9 per capita income in 2017
Per Capita Income (per capita)

Communication Barriers

Communication Home (PAK) Host (USA) Barrier Strategies

Factors
Language Urdu is a English is spoken Yes there is We will hire a
Barrier national by 82.9% people language barrier translator for
language operations
Perceptual As Islamic No restriction
Barrier country
Co. sitting is
restricted

Mostly they have the same society, because both societies spend more than income. The main
difference is of halal and haram items

( cultrual barrier )

Entry planned strategy

We use exporting strategy. Make curtains in our own country then sell them in USA
Operational strategies for USA
PLR

Local
responsiveness Pakistan USA Variations in
Variables Responses
Preference of Polyester Polyester voile Minimum
customer
For curtains
Infrastructure for Many material use Custom made product Minimum
curtain making silk cotton lace and of any size and fabric
for uniqueness they
patched together in
strips form
Distribution channels Online selling In stores Minimum
Whole seller to
retailer
Govt. demand for Pay custom duty Pay Custom duty No
curtain industry

As a result the PLR is of curtain industry is low. We don’t change our product and sell as sell in
Pakistan

PCR

Pressure of cost of reduction is high because there are many competitors of curtain industry in
USA so we use Global standardization strategy. We targeted globally and also focus
on quality. Because quality is important tool for your product

Staffing policy

Ethnocentric approach
We hire our employee in USA for business operations on the basis of skills. He should be speak
in English and have ability to handle operations easily. As he is the representator of M\K
Designer

International Marketing
Product

Our product is Curtain we sell same product in USA

Place

We start our business with USA

Channel length

Manufacturer to whole seller to retailer to customer

Channel quality management

For our product we will use some techniques and strategies to attract customers

Channel design

In channel design we use different marketing channels to convey the message of our company
through ads and pages on different sites

Promotion

Through TV, magazines and internet we target basically household women’s because most these
curtain work is done by the women in families. We also create strong social presence for getting
better results. Make Facebook ads for targeted audience

Pricing

In USA the price for Casual style Drapery is $99 and Pleated style price is $122. So with avg.
price of our product is 112

Concern of Host Country

Primary stakeholder
Customer, supplier, employees and owner these are the primary stakeholders of our company
they have a very close relation with company. Without raw material company can’t perform
activities and without customers company is nothing because no customer no sales, no sale no
profit. In this case company becomes deflator. So these stakeholders has a very significant role in
our company

Secondary stakeholder

Government, Media, NGOs and society these provide us the support that need to succeed. As
these have stake with company they have a goodwill about company and this with will be
beneficial for our company.

Where to go?
Communication problems

1. Language

Host

In USA English is spoken by majority of people

Home

Urdu is the national language

Barrier

There is a difference in language of both home and host country

Strategy

We will train our employees so they can with feeling hesitation speak English