Реферат: 5 Year Plan Essay Research Paper Table
?Political/Legal – Canada is a young country, but it has a legal system rich in tradition. Under Canada?s federal system of government, the authority to make laws is divided between the Parliament of Canada and the provincial legislatures. Common law, which is used in all provinces except Quebec, is based on principles that were developed in medieval England. Canada is also governed by the rules of international law, whether based on custom or on treaty. The Canadian Dollar is a fully convertible currency, and exchange rates are determined by supply and demand conditions in the exchange market. There are no exchange control requirements imposed on export receipts, capital receipts, or payments by residents or non-residents. Prices for most goods and services are established by the market. The most important exceptions are government services, services provided by regulated public service monopolies, most medical services, and supply-managed and other agricultural products (including wheat, eggs, poultry and dairy products). The principal sources of federal tax revenue are corporate and personal income taxes and the Goods and Services Tax (GST), a multi-stage seven percent value-added tax on consumption. The personal and corporate income tax burden, combining federal and provincial taxes and surcharges, is significantly higher than in the U.S.
?U.S.-CANADA Relations – The bilateral relationship between the United States and Canada is perhaps the closest and most extensive in the world. It is reflected in the staggering volume of trade — over $1 billion a day — and people — over 200 million a year — crossing the U.S.-Canadian border. Canada has an affluent, advanced industrial economy that closely resembles that of the United States in its per capita output, market-orientation, and pattern of production. Growth in Canada’s export sector should continue to be fueled by ongoing strength in the U.S. economy and Canada’s low dollar. Global disinflationary pressures have more than offset the negative impact of the low Canadian dollar on import prices and consumer price inflation. Consequently, Canada’s inflation rate is at the lower end of the Bank of Canada’s one-to-three percent target band. Total two-way merchandise trade between the United States and Canada was US$334 billion in 1998 (Statistics Canada reports the total as C$505 billion). When services and investment income are included, total two-way trade was approximately US$365 billion, or US$1 billion per day in 1998. (Statistics Canada reports the number at C$619 billion.) Regardless of which set of statistics are looked at, it is important to realize the magnitude of the bilateral U.S.-Canada trading relationship. Canada is the largest single-country export market for the United States. In addition, total two-way merchandise trade between the United States and Canada is larger than total U.S. merchandise trade with the entire European Union, or total U.S. merchandise trade with Japan.
2. Expansion Strategy for the Future Five Years
Star Appliances, Inc has entered the Canadian market in 1980. In the next five years, Star Appliances, Inc will keep exporting products to Canada. By the end of year 2004, Star Appliances, Inc expects an increasing in sales in Canada market by 15%. By establishing a manufacturing in Mexico in 2002, the labor cost and freight cost and overhead will be reduced. The cost of goods sold will be reduced by 10%.
1. External Environment
?Political / Legal – With NAFTA’s entry into force on January 1, 1994, Mexico lowered its tariffs on U.S.- and Canadian-origin goods. Mexican tariffs on U.S. goods are between five and 20 percent ad valorem, with the highest Mexican tariffs on agricultural products and finished motor vehicles. Under NAFTA, tariffs on U.S. goods will be phased out over a maximum period of ten years, varying by type of good. Sixty percent of U.S. goods now enter Mexico duty-free. The North American Free Trade Agreement (NAFTA) continues to be a key factor in boosting Mexican exports and raising the overall level of economic activity.
?Global – The Mexican market is big: U.S. exports reached US$ sixty-seven billion for 1996. It is also young: 50% of the population is under twenty-five years old. Mexican consumers like American products. They recognize most U.S. brand names and associate our products with quality and value. The leading sectors for U.S. exporters are heavily weighted toward intermediate goods and large infrastructure projects. Among the leading sectors are: Electrical Power Generation Systems, Electronic Components, Telecommunications Equipment and Services, Automotive Parts and Service Equipment, Pollution Control Equipment, Building Products, Management Consulting Services, and Mining Equipment.
2. Industry Analysis
Analysis of major competitors
Washer and Dryers
Kenmore – Kenmore has almost 7,000 sales agents in Europe and the United States. It sells products to 106 nations and regions. With ambitions to become a ?famous global brand like Japan?s Matsu*censored*a,? It also sells clothes washers to Japan and Mexico. Having chalked up 1996 sales of $747 million, Kenmore is some distance behind other global appliance brands. Part of its growth will come from foreign operations. A Mexican plant makes refrigerators and washers. A Philippine factory is to begin production this year.
Kenmore has built a domestic reputation for quality through the use of borrowed foreign technology. It is now relying on in-house research, allocating 4% of projected income (equaling almost $50 million) in 1998 and aiming to spend 7-8% of income for research by the end of 2000. Kenmore is developing environmentally based technology which, Kenmore hopes it will be the ?green? appliance manufacturer. Kenmore also will be turning out new versions of products tailored to Mexico?s needs, such as a mini-washer that cleans a small load with little water. Another cornerstone of Kenmore?s operations is service. It has 2,500 sales and service outlets and a toll-free hotline, and promises delivery or repair of appliances within 24 hours.
Maytag – Founded in Mexico City in 1947, is nowadays the leading enterprise in appliance sales and production, as well as in motors and compressors. Maytag operates various plants, located in Mexico City and four other Latin American countries. Besides Maytag?s end products, they manufacture their own plastic components, presses, compressors, transmissions and motors.
For more than three decades, Maytag has refurbished its export industry, making it possible for their products to reach more than 40 countries in America, Europe and Asia.. With its rounded shapes and exclusive washing system, Maytag ´s automatic washers offer maximum cleaning without mistreating the fabric. Its basket, with 6,8 or 10 kilo capacity, is made with indestructible materials. They have also integrated multiple independent functions and an innovative ecological cycle that avoids unnecessary waste of water. All of this supported by a 5-year warranty.
General Electric – From electric appliances, to medical equipment, GE with its multiple divisions, has a great penetration in international markets, always reflecting its great innovative spirit. In 1987, with Latin America as a goal and then the rest of the world, General Electric has established a joint venture with Mabe to manufacture various GE appliances, like the Hotpoint line of washers and dryers. GE with a re-known international brand that is well established along with MABE, the first Mexican appliance manufacturer to be internationally sold shall be able to capture a great portion of the Mexican appliance industry.
Whirlpool – In Mexico, Whirlpool is dedicated to the manufacturing and selling of ranges, washer/dryers and refrigerators. With the final goal of making a concept. Oriented towards young couples, in 1992 the brand made substantial changes in its products? aesthetics. Two years later, Whirlpool focused its efforts as a full-line appliance brand that offers the best security for investment, with products that last longer for the best price. Under this slogan, a modern, safe, dynamic, friendly and enduring image is projected. The brand is recognized for maintaining a durable line of products, with basic features and the best price. Today, Whirlpool has a complete line of refrigerators of one and two doors, stoves, ranges, extractors and compact washers with one or two baskets, automatic and semiautomatic. All of these products are certified under international quality norms
Vacuum Cleaners
In Mexico, there is not a single manufacturer of vacuum cleaners. The reason is that in Mexico there is that a small, but growing number of the total population that is beginning to modernize their homes by purchasing tile, hardwood and carpeting for their floors. Most of the Vacuum cleaners in the market are imported from the United States, Japan and Korea.
3. Expansion Strategy for the Future Five Years
Star Appliances, Inc is going to directly invest in Mexico in 2002. We are going to set up one factory in Mexico to be our first foreign production plant. Even though this type of investment is the costliest of all the modes of into Mexico, Star Appliances will have enough financial support and enough human resources for this manufacturing facility. Since our products have entered Mexico in 1985, star Appliances, Inc has built up a good reputation in terms of product quality and service packages. Our increasing market share in Mexico has demonstrated that Mexico will be one of our long-term markets.
Labor costs, freight costs, etc. will be greatly reduced due to a much cheaper Mexican labor force, if Star Appliances, Inc sets up a manufacturing facility in Mexico.
Growth Forecasts for
Years 2000, 2001, 2002, 2003, 2004
Please see attached charts.
?Projected Total Domestic And Foreign Sales
?Projected Sales By Country
Implementation
?Contact the Commercial Service of the U.S. Embassy for seeking an agent or distributor in Hungary through its Agent/Distributor Service (ADS) or Gold Key program. Further information can be obtained by contacting Department of Commerce District Offices in major cities in the United States or the Commercial Service in Budapest.
?Need for a local attorney/accountant. As a standard practice, legal counsel should be retained when engaging in business in Hungary. All legal work in Hungary must be conducted by an attorney accredited to work as a lawyer in Hungary. Many contracts require notarization as well. Several leading U.S. law firms maintain representational offices in Hungary and provide a wide range of services for their clients. An experienced accounting firm should be consulted as well.