CASE STUDY (Total of 100 marks)

This case study is about the process of importing a product from an emerging country into New Zealand.

You can choose your own product but it will need to be imported in a commercial quantity i.e. a minimum of one shipping container or air freight equivalent.

You have a choice between the following three countries (i.e. your case analysis must be about importing the chosen product from only one of these countries; make sure the product can be sourced from the country selected):

1. China,
2. India, or
3. Myanmar

For this assignment you are requested to develop a comprehensive plan (in the form of a written report) to import the chosen product into New Zealand. Your plan must be practically achievable and your case analysis will be focused on real issues as identified and researched. If you use an on-line trading platform such as for example Alibaba.com describe in detail which parts of the import process you can do via the platform and which parts you will need to organise alternatively.

Assume you will make payment in the currency of the import country (consider alternative payment options for Myanmar) via your local bank in New Zealand.

To be successful in your case analysis as a minimum you need to provide the following information:

A.Risks of importing the product from China/India/Myanmar into New Zealand, broken–down in the following categories:
I.Country risks
II.Cross-cultural risks
III.Commercial risks
IV.Financial risks

Analyse if and how you are going to manage the identified risks.

Note: risks must be specific to the chosen product and country – generic risks as mentioned in the text book will not give you marks.

Total marks: 15.

B.Analyse and describe what potential trade barriers may be applicable in this case such as tariffs, quota, import/export licenses, (governmental) red-tape, custom formalities, and etcetera. You need to show evidence of practical research in both China/India/Myanmar and New Zealand (e.g. list of information sources and people spoken with).

Total marks: 15.

C.Analyse and describe how you will organise transport from factory to destination (assume Nelson) including but not limited to: I. Ways of transport.
II.Logistic provider(s) to be used and their services offered.
III.Insurance of goods (type of insurance and cover).
IV.Documents involved.
Again, marks will only be given for case-specific information and for showing evidence of sources.

Total marks: 20.

D.Analyse and describe what payment arrangements you will make with your supplier (other than full upfront payment), with whom you will organise payment, how the payment process will work and what documents will be required. Specifically include in your answer how you will manage currency exchange risks during the expected time between ordering and delivery in New Zealand.
Again, marks will only be given for case-specific information and for showing evidence of sources.

Total marks: 20.

E.Finally, based on above give a brief description of the main points you wish to negotiate with the supplier and to include in an agreement. Set-out how you will contact the supplier and what negotiation process you envisage (include cross cultural aspects). What assistance will you require from whom? Assume the size of the order makes it worthwhile to visit the export country.

Total marks: 20.

You are requested to present the outcome of your case analysis in a readable report of between 8 – 12 pages (excluding appendixes with tables and list of sources used).

Total marks for readability, structure and presentation of the report: 10.

No market research for the product is required; assume there is a proven market in New Zealand.