Business Plan

  

Submit the business plan proposal for starting a business in your chosen country(China) . Your plan should be logically derived from the country analysis (I have attached .docx file ) using the format below: Executive Summary including the purpose of the report, the opportunity you are proposing (where the opportunity is defined as starting a business in a country outside of the United States) and recommendations.Business Model Proposal (derived logically from the country analysis) with details of the proposal (business model, how you are going to make money, value proposition of your product offering, quantitative and qualitative benefits of the project, entry mode, trade barriers, financing decisions, etc.).SWOT Analysis based on your country analysis and the business you are planning to start.Strategic Plan with a 3-5 year sequential implementation plan.Projected 10-Year Cash Flow Analysis including investment and Return on Investment (ROI) target with cash flows brought back to present dollars. Use a discount rate of 10%. Also pick at least 1 parameter (e.g., volume, price, etc.) and show a sensitivity analysis.Issues, Risks, Contingency Plans and Metrics Identify and describe what issues and associated business risks may arise from starting this business in your chosen country. Briefly describe contingency plans to address these. Also include what metrics should be assessed to understand whether the business is achieving plan and how often they should be assessed. This plan will be in a Word document. The document should be no more than 10 pages. The paper does not have to be in APA format. But it must follow APA guidelines for spacing, font, font size and reference formatting and citations. The title page, reference pages and charts/graphs/tables pages are not included (counted) in the 10-page count. Be sure to use the concepts and learnings from this course as you develop your proposal and write your report. Also, please prepare this report as if it will be given to your CEO or a Venture Capitalist for consideration. Good grammar, no misspellings, and logical flow are all very important! FAQ’s: How do I estimate sales? Answer: Use market estimates, market growth rates and assume your market share for each year. How do I do 10-year discounted cash flows and ROI? Answer: See this website for guidance: https://www.business-case-analysis.com/return-on-investment.html What is a Value Proposition? A PowerPoint Slide for Value Proposition is attached. What is a SWOT analysis? A PowerPoint Slide for SWOT analysis is attached.
country_analysis.docx

value_proposition_and_swot_analysis.pptx

business_plan_proposal_rubric.docx

executive_summary_guidance_document.docx

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CHINA BUSINESS EVALUATION
1
China Business Evaluation
Background of China
China was for many years ruled by the Qing dynasty, which placed power in a minority
group. For this reason, civil unrest and rebellions were common, with citizens aiming to change
the governance or political system through revolutions. One key activist was Sun Yat –Sen, a
Republican with the support of Chinese including those overseas and the military. Sun’s
movement was based on three fundamental ideologies: democracy, nationalism, and the
livelihood of the people. The democracy principle sought the election of a leader by the majority;
nationalism focused on removal of any form of foreign control, and livelihood principle sought
the assistance of the ordinary people through natural resources regulation. However, during the
revolutions, many lives were lost, but the Republic of China was eventually formed in 1912,
putting an end to the Imperial rule. The establishment was later followed by other revolutions
fronted by the communist on one side and nationalists on the other. During the World War 1,
China joined America, France, and Japan against the German front, with the goal of securing
financing for its armies. After the War, various conflicting interests on the control of some areas
between Japan and China saw the signing of various treaties and the establishment of the
People’s Republic of China.
Since then, various economic, social, and political developments have been instituted to
grow the economy. For example, land reforms have been done to transfer land ownership to the
majority. The People Republic of China continued gaining diplomatic recognition globally at the
expense of the Republic of China as the political transition set in. Moreover, a series of elections
have given the state various national and sub-national leaders.
CHINA BUSINESS EVALUATION
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In terms of characteristics, the People’s Republic of China is a large, populous, and
diverse country found in the eastern part of Asia. It has a vast land area of 9.6 million square
kilometers, which ranks second to Russia in the world. The country is also biodiverse, with
globally recognized features such as Himalaya Mountains. The population stands at 1.3 billion as
per the national census conducted in 2010, with the eastern coastal side being the most densely
populated. Accordingly, the ever-growing population has triggered various birth control policies
such as the one-child policy, exemptions to one child, and the latest two-child policy in 2016. To
some extent, the community has always preferred boy child to girl child, which could be one of
the reasons for the more men than women. According to Pearson (2005), around 10% of the
China population lives below the established poverty line.
Cultural Analysis
In overall, Chinese culture is conservative (Pan & Zhang, 2004). Confucianism system
heavily influences the cultural practices in the Country (Koehn, 2001). According to the
doctrines of the social system, no sacred time exists beyond the life in an ordinary time. The
beliefs promote good behavior and practices on earth to give people a comfortable life. Other
than Confucianism, the Chinese government also continues to support ancient cultural practices
such as poetry and performing arts. For this reason, the country experiences great domestic and
international tourism. Chinese literature presents various conceptual issues from the action,
fiction, and little drama. Additionally, China has maintained given food menus since ancient
times that are prepared with certain skills level regarding heat and flavoring. For instance, the
country nowadays participates in Olympic Games, in which it has recently become one of the
leading nations in performance. Moreover, the country has 56 ethnic groups with differing
languages. The country experiences high urbanization growth rate as rural immigrants move to
CHINA BUSINESS EVALUATION
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cities for work. The country has a primary, junior, and senior secondary and post-secondary
educational set up. Primary and junior secondary are the compulsory levels and receives full
government funding, making education free. The country also provides vocational training to
students. Literacy levels are high. The level of Internet and mobile phone usage is high. China
health policies focus on preventive measures such as nutrition and physical exercise. Traditional
medicine is widely used in the country. China constitution provides for freedom of religion, even
though a government body oversees religious affairs. However, the growing population increases
pollution.
Political Analysis
Political freedom is limited in China, with communism being the dominant political
system. To some extent, this single-party system enables stability of the nation, which in turn
enhances economic growth and sustainability. Nevertheless, the Constitution recognizes the
rights of individuals and corporate entities albeit some state restrictions. The country has a
pyramidal system of government in which the President serves as the head of state and the Prime
Minister as the head of government. Also, various administrative divisions are in place and enjoy
some levels of political autonomy.
Legal Analysis
Domestically, different laws regulate foreign investment in the country (Pearson, 2005).
The regulations regard withdrawal of investment, payment of tax, security investment, property
law, money laundering, financial institution control, and commercial banks management of
overseas wealth. However, despite the increase in e-commerce, the country’s underdeveloped ecommerce regulatory framework poses various legal risks. Moreover, the right to property and
taxation are not properly structured, which poses risks to foreign investors to the country. Human
CHINA BUSINESS EVALUATION
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rights are not adequately protected in the country, with frequent cases of wrongful detention,
forced abortions and confessions, and torture. At an international level, China maintains
diplomatic relations with various countries and is one of the permanent members of the UN
Security Council. The peaceful co-existence principle guides China foreign policies.
Economic Analysis
The Chinese economy is one of the largest and fastest growing in the world regarding
nominal gross domestic product and purchasing power parity (Ambler, Witzel, & Zou, 2008).
The growth is largely attributed to the increase in both incoming and outgoing foreign direct
investment (FDI), increased export, enhanced savings, and availability of skilled labor. Also,
China trade agreements with Africa are on the rise.
China economic reforms were instituted alongside cultural reforms as the country tried to
become part of the global economy. Industrialization replaced inefficient agricultural practices,
land ownership became privatized, and enterprises owned by the state restructured or closed.
However, critical sectors such as energy producers continue to attract great state interest. The
economic growth is widely associated with low costs of labor, high production capacity, and
infrastructural development. Inefficient practices such as high and inappropriate energy usage,
however, derail the country’s development. E-commerce is widely gaining momentum. China
receives high FDIs and enjoys a vast market for its products. The nation has a high number of
leading companies regarding revenue and asset base. Moreover, the telecommunication,
transport, water, and sanitation infrastructure are well developed. Despite development in the
sectors, high population growth and urbanization are presenting challenges to the infrastructure.
The problems include water shortages, pollution, and contamination. China investment in
research and development is high, which has enabled adoption of technological advancement in
CHINA BUSINESS EVALUATION
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new products development, new production systems, and distribution mechanisms. China’s rapid
economic, military, and population growth, supported by its growing international influence,
continues to spur the country to superpower status. However, some of the common risks include
increasing labor costs, high pricing of property, and increased inflation. Furthermore, the
increased economic activities such as industrialization have led to environmental issues such as
pollution.
Country Attractiveness
The country’s economic and cultural factors present beneficial aspects of investment in
the country, such as availability of elements of production including labor and market. The stable
government ensures sustainable economic growth. However, various costs are incurred because
of risks such as pollution. Legislative risks such as inefficient judicial system limit the
attractiveness of the market, as well.
Summary and Recommendations
Based on the analysis, China is an attractive business place due to its economic growth,
improved legislation, growing population, and favorable climatic conditions. Unlike the old
government regimes that were opposed to foreigners’ entry into the country, the current
government supports cross-border business engagements. The big population presents a big
market for business products. The population also ensures constant labor supply at a
considerably low cost. Considering the economic level of China and its growth prospects, the
infrastructure is continuously improving, making transport easier and less costly. The high-level
investment in research and development enables technological advancement, further promoting
trade. The presence of a formal government also helps improve the business atmosphere.
CHINA BUSINESS EVALUATION
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However, various risks are likely to be encountered such as low level of legal protection and
unstable e-commerce.
Based on the analysis, starting a waste management business in the country seems a
viable business opportunity. The decision is informed by the high levels of pollution from
increased industrialization and settlement in the urban. The growing population also stands to
add on to the pollution challenges. Moreover, due to the government support for environmental
protection initiatives, the business will not conflict with public policy and the country legislation.
The advancing technology will enable efficient and effective approaches to waste management
and conversion to valuable products such as fertilizers. The high population together with the
broad export market supported by e-commerce would ensure survival of the business.
CHINA BUSINESS EVALUATION
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References
Ambler, T., Witzel, M., Xi, C., & Zou, D. (2008). Doing business in China. New York, NY:
Routledge.
Koehn, D. (2001). Confucian trustworthiness and the practice of business in China. Business
Ethics Quarterly, 11(3), 415-429.
Pan, F., & Zhang, Z. (2004). Cross-cultural challenges when doing business in China. Singapore
Management Review, 26(1), 81.
Pearson, M. M. (2005). The business of governing business in China: Institutions and norms of
the emerging regulatory state. World Politics, 57(2), 296-322.
Value Proposition
7-1
SWOT
7-2
Business Plan Proposal Rubric
This is the rubric I use to grade your Business Plan Proposal Assignment.
Levels of Achievement
Criteria
Unsatisfactory
Emerging
Satisfactory
Proficient
Distinguished
Executive
Summary
0 to 7 points
No Executive
Summary.
8 to 9 points
Weak Executive
Summary.
10 to 11 points
Executive Summary
covers some key points
in sufficient detail with
some mention of
investment required and
payback.
12 to 13 points
Executive Summary covers
key points and includes
investment required,
payback but
recommendation is vague or
non-existent.
14 to 15 points
Executive Summary clearly
covers key points and includes
investment required, payback
and recommendations
demonstrating clear and
motivational insight.
Business
Model
Proposed
0 to 12 points
Not present or
demonstrates little
understanding of
business model
concepts.
13 to 14 points
Attempted describing
how the business will
operate and make
money providing some
detail but model lacks
clarity and business
logic.
15 to 16 points
Sufficient detail given as
to how the business will
operate and make money
but model lacks clarity
and business logic.
17 to 18 points
Sufficient detail given and
clearly describes how the
business will operate and
make money.
19 to 20 points
Exceptionally detailed
description given with
exceptionally keen and creative
insight as to how the business
will operate and make money.
SWOT
Analysis
0 to 12 points
No SWOT
Analysis shown or
very little detail in
SWOT Analysis.
13 to 14 points
Rudimentary SWOT
Analysis
15 to 16 points
SWOT Analysis
contains some detail but
Strengths, Weaknesses,
Opportunities and
Threats are not focused
and aligned correctly.
17 to 18 points
SWOT Analysis shows
insight with sufficient detail
and covers major issues but
Strengths, Weaknesses,
Opportunities and Threats
are not focused and aligned
correctly.
19 to 20 points
SWOT Analysis demonstrates
insightful, analytical thought
insight with excellent detail
and covers major issues
Strengths, Weaknesses,
Opportunities and Threats are
correctly focused and aligned.
Strategic Plan
0 to 12 points
No plan given
13 to 14 points
Rudimentary elements
with little
understanding
demonstrated.
15 to 16 points
Some elements of a 3-5
year strategic plan are
shown demonstrating a
basic understanding
17 to 18 points
3-5 year plan given with
some detail of
implementation steps and
timelines.
19 to 20 points
3-5 year plan shown
demonstrating excellent insight
with detailed implementation
plan and timelines.
Levels of Achievement
Criteria
Unsatisfactory
Emerging
Satisfactory
Proficient
Distinguished
regarding
implementation.
Projected 10year cash flow
and ROI
0 to 7 points
No projected cash
flow analysis.
8 to 9 points
Projected cash flow is
incongruent with
strategic plan and
market. No start-up
costs. No ROI. No
sensitivity analysis.
10 to 11 points
Vague or incongruent
projected cash flow and
estimated start-up costs.
Attempted ROI and
sensitivity analysis.
12 to 13 points
Projected 10-year cash flow
relatively congruent with
strategic plan and market.
ROI calculated including
sensitivity analysis (1
input).
14 to 15 points
Presents detailed, realistic, and
appropriate 10-year cash flows
consistent with the strategic
plan. Shows supporting startup costs. ROI calculated with
sensitivity analysis (2 or more
inputs).
Issues, Risks,
Contingency
Plans and
Metrics
0 to 2 points
No issues, risks,
contingency plans
or metrics shown.
3 to 4 points
Vague issues and risks
shown and no
contingency plans or
metrics.
5 to 6 points
Demonstrates an overall
understanding of the
issues andrRisks with
some thought to
contingency plans and
metrics.
7 to 8 points
Shows clear understanding
of the issues and risks with
clear contingency plans
developed. Some thoughts
demonstrated on possible
metrics.
9 to 10 points
Shows an exceptionally clear
understanding of the issues and
risks with insightful, detailed
contingency plans and clear,
appropriate metrics.
Executive Summary
Consider Executive Summaries as the only section of your report that a busy Executive may read.
The Executive Summary for your paper should be no longer than one page (keep it shorter if at all
possible while still including the relevant information and the messages you wish to convey).
Generally, Executive Summaries contain (LeCourt):
1. A concise statement of what you have found or of the summary points you want to make
2. A specific recommendation for action
3. Justifications for why you are recommending such action
For a great description of what should be included in an Executive Summary and tips on how to write
one please visit this site:
http://writing.colostate.edu/guides/guide.cfm?guideid=76
For the Business Plan Proposal Assignment, you should summarize the purpose of the paper, the
opportunity you are presenting (accompanied with some critical points you want to make), your
recommendations, and your justifications / financial reasoning as to why your recommendations should
be accepted.
Reference
Donna LeCourt.. (1994 – 2012). Executive Summaries. Writing@CSU. Colorado State University. Available
at http://writing.colostate.edu/guides/guide.cfm?guideid=76
…
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