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A Guide to Preparing an International Business Plan

By: FITT Team

An international business plan acts as a framework that identifies goals and objectives, specific target markets and clients, resources required and strategies to be developed in pursuit of international business opportunities. The plan allows for the monitoring of progress via metrics against which success and failure can be measured. A comprehensive international business plan will be comprised of a number of integrated strategies related to business functions, including communications, sales and marketing, finance and production.

What Is an International Business Plan?

An international business plan is a valuable management tool that describes who a business is, what it plans to achieve and how it plans to overcome risks and provide anticipated returns. It can be used for a wide variety of purposes, such as to:

• Set goals and objectives for the organization’s performance.
• Provide a basis for evaluating and controlling the organization’s performance.
• Communicate an organization’s message to managers and staff, outside directors, suppliers, lenders and potential investors.
• Help the planner identify the cash needs of the business.
• Provide benchmarks against which to compare the progress and performance of the business over time.

A comprehensive and detailed plan forces the planner to look at an organization’s operations and re-evaluate the assumptions on which the business was founded. In doing so, strengths and weaknesses can be identified.

Although highly dependent on the individual business case, on average it takes a three-year commitment to establish a successful presence in a foreign market. This process may require tremendous human, technical and financial resources during the developmental period.

The Planning Process

An international business plan is subject to repeated adjustment and revision to keep it current with the changing circumstances of the organization. The plan is a feedback mechanism through which new information is continually incorporated into the organization’s operations. Planning always precedes action. Therefore, planning must be thought of as a continuous cycle. The analytical tools presented here are not intended to be used just once. If they are to be useful, they should be used repeatedly as part of a process of improvement and incremental adjustment.

Plan Preparation Guidelines

These 7 guidelines will help in preparing a comprehensive international business plan:

• Clearly define the objectives for producing the plan : Who is going to read the plan, and what will they need to do? These objectives can help you decide how much emphasis to put on various sections.
• Allocate sufficient time and resources to thoroughly research the plan : A plan is only as good as the research that went into producing it.
• Show drafts of the plan to others : It can be very useful to obtain feedback from others, both inside and outside the business.
• Create an original plan that is done specifically for each business case : A common mistake entrepreneurs make is to borrow heavily from a sample plan and simply change the names and some of the numbers. There are two big problems with this approach. First , the emphasis placed on various sections of the plan must reflect what is important to the particular business in question. Second , a good plan should flow like a story, with the sections working together to demonstrate why the business will succeed. Plans that borrow too heavily from other plans tend to be disjointed, with some sections contradicting others and various key issues left unaddressed.
• Outline the key points in each section before the writing starts : These points must then be reviewed to ensure the sections are consistent with each other, there is little duplication and all key issues have been addressed.
• Ensure financial projections are believable : For many readers, the financial section is the most important part of the plan because it identifies the financing needs and shows the profit potential of the business. In addition, a good financial plan will give the reader confidence that the author really understands the business.
• Consider writing the executive summary as the last step in the process: It is usually easier to provide a concise overview after the detailed content has been created.

If you’re having trouble getting started with your business plan, try writing like it’s a series of tweets—one for every section of your business plan. To get your point across, 140 characters is all you need.

Forcing yourself to boil each section of your business plan down to one main point is an exercise in decision making and strategy all in itself. When you’re done, you’ll have everything you need to take your next step, whether that’s practicing your pitch to potential investors or a business partner, or sitting down to expand each tweet into a full section of a more traditional business plan.

Core Content

The international business plan is the culmination of all of the work done to determine the appropriate venture for the organization’s growth. As part of the feasibility process, the organization will have determined its own internal readiness, conducted comprehensive target market research and carefully analyzed any relevant risks.

At this point, the organization can take all of this information and analysis and formally document the plan for moving forward. There are many different models and examples of how to put together a formal business plan, rather than one correct way.

The right format will depend on the organization, the venture being pursued and who will be accessing the business plan and for what purpose. However, there are some basic guidelines to follow.

One of the reasons business plans are developed is to convince investors and/or bankers to invest in the venture.

Increasingly, they are looking for a business plan to include two sections: one relating to online strategy (in terms of e-marketing, social media and ROI) and the second relating to corporate social responsibility (including quality, health, safety and environment policies).

The inclusion of these topics gives more credibility to the company by demonstrating its commitment to the community and to employees’ well-being.

Telling a Story 

One trend in business planning is to use a narrative structure in the document, rather than traditional technical writing techniques. Storytelling techniques are increasingly being used throughout the business world to create personal and organizational brands, deliver marketing messages and develop persuasive plans.

Stories make presentations better. Stories make ideas stick. Stories help us persuade. Savvy leaders tell stories to inspire us, motivate us. That’s why so many politicians tell stories in their speeches. They realize that “what you say” is often moot compared to “how you say it.

Instead of using bulleted points and cold, technical language, organizations employ a “beginning, middle and end” narrative style. This engages the audience by establishing the context, describing the conflict or obstacles and arriving at a successful resolution.

The Executive Summary

Usually the last step of preparing the international business plan is to develop the executive summary, a short overview of what the plan proposes to accomplish. For some purposes, a one-page business plan can also be useful.

There is not a great deal of difference between an executive summary and a one-page business plan. The most significant distinction is the one-page plan must completely fit on one page in a readable font, while an executive summary may spread over two or three pages.

One-Page Business Plan

There is a trend towards the one-page business plan, especially if the plan is to be presented to potential partners for their consideration. Audiences for the one-page plan will be looking for a “quick hit”: a clear and concise description of what the opportunity is and how it is being pursued.

For example, a one-page business plan might include the following topics, as described in Noah Parson’s article “How to Write a One-Page Business Plan” on the website Bplans :

• Customer problem/opportunity
• Your solution/approach
• Business model (how you make money)
• Target market (who is the customer and how many are there)
• Competitive advantage
• Management team
• Financial summary
• Funding required

The one-page plan (or the executive summary, if used in place of the one-page plan) may provide the first impression the audience has of the business. This is the most important document generated out of the business planning process, and significant effort and care should be taken in its creation.

There are many websites the provide blank samples of one-page business plans, including Bplans , the GoForth Institute and Startup.com.

A Note on Strategic Plans

A strategic plan covers many of the same points as a business plan. However, a strategic plan sets out the detailed action plan to be followed to achieve the objectives of the international business plan.

It must outline specific activities, their due dates and who is responsible for each activity. It is a project plan with a critical path. A strategic plan ensures any venture is carried out in a coordinated, informed and systematic way.

A key consideration in action planning is how quickly to enter the market, which is driven by the chosen market entry strategy. If market entry is done too quickly, the potential for costly mistakes increases. However, if it is completed too slowly, opportunities may be missed and competitors will have more time to react.

The Planning Cycle

Attaching the word “cycle” to planning implies that it happens more than once. International business plans need to be reviewed periodically because new information that has an impact on both planning and operations is continually coming in.

All plans, including international business plans and strategic plans, need to be reviewed every time there is a major event impacting the business, such as civil unrest, a currency fluctuation or the presence of a new competitor.

About the author

Author: FITT Team

The Forum for International Trade Training (FITT) is the standards, certification and training body dedicated to providing international business training, resources and professional certification to individuals and businesses. Created by business for business, FITT’s international business training solutions are the standard of excellence for global trade professionals around the world. View all posts by FITT Team

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What Is a Global Expansion Strategy & How to Create One

If your business is interested in embracing globalization, developing a global expansion strategy is vital to your success.

Global expansion is undoubtedly one of the best ways to tap into international markets, acquire world-class experts, and set your company up for long-term success. But without a solid strategy, global expansion is near-impossible and can result in delays, extra costs, and wasted resources.

This guide will give you a clear understanding of what a global expansion strategy is and how your business can formulate its own plan successfully. You’ll learn the best practices for planning market expansion step by step, from the consideration phase to launch.

Why You Need a Global Expansion Strategy

Having a considered business expansion strategy in place will help you to:

• Expand into the right markets at the right time
• Use time and money efficiently
• Mitigate risk and stay compliant with local regulations
• Build a competition-crushing team
• Scale your business faster
• Increase profitability

What Is a Global Expansion Strategy?

A global expansion strategy is a formal business plan that outlines how a company intends to expand its operations into foreign countries and markets, while mitigating risks and enhancing revenue growth. To be successful, it should include clear timelines and budgets, thorough research, realistic goals, and dedicated talent.

Your strategies for international expansion should give clear structure and guidance to those in charge of executing it, thus making it a crucial part of your overall global expansion process.

How to Create a Successful Global Expansion Strategy

Creating a robust global expansion strategy is a big task; it requires enough time, dedication, and resources. But it’s not an impossible feat, and when done right, your global expansion plan will make scaling your business far easier and more successful in the long run.

To help you hit the ground running, we’ve broken down the global expansion strategy process into six simple steps.

1. Set Company Goals to Guide Your International Expansion Strategies

Before you jump into a global business expansion, you first need to set clear company goals. This will give you and your teams direction and purpose for the short, mid, and long term, driving the business forward sustainably.

Setting company-wide goals will help you to understand where global expansion fits into your company vision and which goals it can help you achieve. It’ll also help you prioritize certain aspects of global expansion, set aside an appropriate budget, and give you a clearer timeframe for when you need to achieve each step in the expansion process.

When setting goals, consider what the main aim(s) of your global expansion should be. For example, your global expansion plans may be led by factors such as:

• Widening your talent pool to build a diverse team and source niche skills
• Expanding your business into lucrative new markets
• Proving economic stability for your business by diversifying markets
• Saving money by moving operations abroad
• Building a globally recognized brand or improving your existing reputation

Each of these potential drivers for global expansion will result in very different goals that you would need to set and plan.

To help you set achievable company goals, there are many frameworks you can use, such as OKRs (Objectives & Key Results) or WIGs (Widely Important Goals). But whichever framework you use, your goals should be S.M.A.R.T.:

2. Do Thorough Market Research

Once you’ve set company goals and understand where global expansion fits into them, you need to carry out thorough research into the markets you wish to enter. This will help you identify opportunities and obstacles before you start spending money to execute your expansion strategy.

When done well, market research can help you maximize profitability, decrease risk, and reassure stakeholders and investors that your global expansion plans are substantiated.

Here are just some of the questions you should answer before entering a new market:

• Is there a demand for your product or service?
• What is the total addressable market (TAM)?
• What’s the socio-political and cultural landscape like? Is it ready for a product like yours?
• Who are your competitors and can your product or service offer something new?
• How will the local laws and regulations affect your expansion plans? Can you overcome these barriers?
• Will you need to invest in localization to make your product or service successful in the new market?
• What kinds of talent are readily available in the target country? For example, does the country produce high-quality academics, leaders in a specific industry, or an abundance of tech talent?

There are many tools you can use to help make researching target markets easier, such as country-specific databases like the OECD . Once completed, you should have a better idea of which markets to prioritize in your global expansion strategy.

While the end goal may be to expand into dozens of countries across all continents, it’s best to stick with a select few high-priority, low-risk markets to begin with. You could start by expanding into Europe or another strategic area, for example.

This expansion method will allow you to test out your international expansion strategy and make any necessary adjustments before investing more money and resources.

3. Evaluate the Different Types of Global Expansion Strategies Available & Choose Wisely

There are many methods to expanding business globally, but what works for one company may not work for yours. Use your market research, company goals, and budget to determine which international expansion strategy is right for your company. The main types of expansion strategies are:

• Exporting goods or services
• Licensing & franchising
• Forming strategic partnerships
• Acquiring or merging with foreign businesses
• Setting up wholly owned subsidiaries abroad (also known as Greenfield Venture )

Each market expansion strategy has pros and cons. For example, licensing is fairly inexpensive and allows your business to expand rapidly, but it can lead to a loss of control over quality, messaging, and reputation.

On the other hand, Greenfield Venture allows your business to remain in full control of operations, but it’s an expensive and complex process from start to finish.

Which Option Should You Use to Expand Internationally?

Choosing the right business expansion strategy depends on your timescale, budget, and goals. Global expansion isn’t just for big corporations anymore, but the size of the company will likely determine the type of expansion strategy you use.

For enterprise companies with an expansive budget and plenty of resources, acquisition or Greenfield Venture may be the most attractive option, for example.

However, for start-ups and SMEs with a lower budget, partnerships, licensing, and exportation may be more cost-effective methods of global expansion that allow you to get your foot in the door.

At Omnipresent, for example, we use a mixture of owned entities and strategic partnerships to carry out our own global expansion strategy. Our two main reasons for expanding internationally are:

      1. To hire the best talent available around the globe       2. To build a network of entities and local expertise to be able to offer the very best service to            our clients.

To achieve these goals, we’ve adopted a thorough and multi-faceted approach to global expansion. Here’s a brief overview of what we do:

• Conduct research on local regulations all over the globe
• Analyze client demand and growth patterns
• Research the complexity of setting up and acquiring the proper licenses to be fully compliant
• Evaluate internal expertise to determine which markets we should prioritize and how aggressive we should be
• Set up local entities in viable markets
• Partner with trusted local service providers to harness their expertise and resources
• Build a world-class team by remote hiring from across the globe using our own product and EOR solution

4. Hire the Best Local Talent

Hiring local talent can make global expansion simpler and more cost-effective, especially if the target market is very different culturally and linguistically from your existing markets. Having staff on the ground helps you to:

• Tap into local expert talent
• Gain first-hand knowledge of the market and local culture
• Benefit from local language skills
• Save money by not having to travel as much or relocate existing staff
• Gain trust in the local market by building on existing relationships
• Leverage existing business contacts and networks

If you’re worried about the costs of hiring a lot of new talent, don’t! You don’t need to hire a fully fledged team in each new market to reap the rewards. Think strategically:

• Do you want customer support staff available in the local time zone?
• Do you need sales representatives who can speak the local lingo?
• Would you benefit from project managers who have strong existing relationships with local service providers?

Every business has different needs, so evaluate what local talent would benefit your global expansion strategy the most.

How to Hire Local Talent

Hiring remote employees abroad may seem daunting. After all, setting up a local entity in each new market can be time-consuming and requires a sound knowledge of local regulations for compliance. You may be tempted to hire independent contractors instead, but that can be risky, too .

The simplest solution is to partner with an Employer of Record (EOR) service, like Omnipresent, which employs staff on your behalf and handles all the associated administration for you. Using an EOR is faster and less risky than employing international talent directly, and it’ll make the global expansion process much smoother as a result.

5. Select Local Partners Carefully

Even with employees based in your target market, you’ll likely need to work with local partners in some capacity. For example, you may need third-party logistics partners, legal advisors, or marketing & PR agencies to execute your international expansion strategy successfully.

But before signing any contracts, be sure to do your due diligence. Here’s what to look for in a reliable global expansion company partner:

• An impressive portfolio of existing clients mirroring your own business
• Positive references from those clients
• A competitive quote for their services
• Timely and considerate customer support

You may even consider implementing a trial period with your chosen partners to assess how well they work with your business before committing to a long-term relationship.

6. Launch Your Product or Service in New Market & Continually Monitor

Now’s the time to launch your product in the new market and get your message out to your target audience! First impressions matter, so use a range of relevant marketing channels to create a stir, including localized advertising campaigns, dedicated social media accounts, local media coverage, and special events.

Once launched, you should continually monitor progress and adapt your strategy as appropriate. By seeking regular feedback from local customers, you’ll have a better understanding of the target market and what you need to improve to meet their specific needs.

Assessing the success of your initial global expansion strategies will help guide any subsequent market expansion plans you may have. That way, your business can continue to grow sustainably and you can enjoy the many benefits of globalization while mitigating risk as much as possible.

How Omnipresent Takes the Hassle out of Global Expansion

As a fully remote and international team with clients based around the world, we understand the complexities of taking business operations global. That’s why we help companies like yours save time, money, and headspace by making international employment simple.

Our global employment services allow you to focus on developing an internationally renowned product, service, and team by:

• Setting up local entities, so you don’t have to
• Drawing up compliant employment contracts
• Enrolling employees into global payroll
• Managing employee benefits
• Handling the onboarding and offboarding process
• Providing HR support in over 160 countries and territories

Whether you’re at the consideration phase or if you’re ready to go, learn how we can help with your global expansion strategy by booking a free consultation with our team. ‍

Uriel has been working in the tech space for the past six years; first as a Tech-Regulation Lawyer and a Venture Capital Investor in Tel Aviv, then in Berlin as VP of Business Development in an AI startup. Most recently, he joined Omnipresent as Head of International Expansion. Having gained degrees in Law, Business Management, and Accounting, Uri is passionate about the interaction between technology and business, and loves learning about how different cultures approach it.

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Craft Your International Business Plan: A How-To Guide

Are you ready to take your business across borders? International expansion is a great way for businesses to grow and succeed in new markets. But before you dive into an international market, there are specific steps you need to consider: crafting a strategic plan. Whether it’s determining the competitive landscape of a target country or understanding local customs and regulations, an effective international business plan can lay the foundation for long-term success while also providing guidance on how best to allocate resources and manage risks. But where should one begin? Let’s dive into it!

Analyze Potential Markets

In today’s global market, expanding your business into new markets can open up a world of opportunities for ecommerce revenue growth. To get ecommerce revenue from new markets , the first step is to analyze potential markets. This involves conducting market research to identify which countries or regions hold the greatest potential for your business. You can start by looking at demographic data, economic trends, and consumer behavior in different parts of the world.

Of course, you should also delve into the market-specific data. Analyzing the competitive landscape and potential barriers to entry is sure to determine which markets are most viable for your business. Additionally, understanding cultural differences and local customs can give you insight into how your product or service may be received in a new market. Businesses can now expand their reach and increase their revenue streams in ways they never thought possible.

Set Clear Goals and Objectives

Once you have identified potential markets, it’s time to set clear goals and objectives for your international expansion. These goals should align with your overall business strategy and take into account the resources needed to enter a new market successfully.

Do you want to increase brand awareness, generate more revenue, or establish partnerships in a particular region? Or maybe you want to expand into a new market to diversify your customer base and reduce risk. Whatever the reason may be, setting clear and measurable goals can guide your decision-making process and ensure that your international business plan is aligned with your long-term vision.

Develop A Robust Strategy

With potential markets and goals in mind, you need to develop a robust strategy for entering the international market. But how do you know which strategy will work best for your business?

Direct Exporting

Direct exporting involves selling your products or services directly into the international market. This approach can be a low-cost way to test the waters and gain valuable information about overseas markets without the commitment of setting up a physical presence. However, it does require careful planning and research. Consider your product’s suitability for the market, the logistics of shipping and delivery, legal and regulatory requirements, and how you’ll handle customer service.

Licensing and Franchising

If you prefer a more hands-off approach, licensing and franchising can be viable options. Licensing involves granting another company the rights to use your intellectual property, such as trademarks or patents, in exchange for royalties or fees. Franchising is similar but typically involves a more comprehensive arrangement where the franchisee follows your established business model and brand guidelines.

Joint Ventures and Strategic Alliances

Collaborating with a local business through joint ventures or strategic alliances can also be an effective way to enter a new market. This approach allows you to benefit from the other company’s expertise and established networks while sharing the risks and costs associated with entering a new market.

Mergers and Acquisitions

For businesses looking to make a big splash in the international market, mergers and acquisitions can provide a quick way to gain market share, access new technologies or products, and expand your customer base. These transactions require significant financial resources and due diligence to ensure compatibility and avoid potential risks.

Identify The Resources You Need

No matter which strategy you choose, entering the international market requires a significant investment of time, money, and resources. It’s essential to identify what you need to make your international expansion a success.

Consider the staffing and expertise needed to manage operations in a different country. Will you need to hire local employees? If so, do you understand labor laws and cultural norms for managing a workforce in that country? Will you need to partner with local vendors or suppliers? How will you handle language barriers and cultural differences? It’s also crucial to assess your financial resources and determine how much capital you’ll need for market research, legal expenses, marketing efforts, and other related costs. Secure funding or explore financing options early on to avoid delays in your expansion plans.

Consider Different Countries or Regions

As businesses expand globally, you must first understand the unique culture, customs, and laws of different countries or regions to effectively reach and connect with their target audience. For example, did you know that in Japan, it’s considered impolite to loudly slurp noodles? Or that in China, the color red symbolizes good luck and happiness? Or that in Germany, punctuality is highly valued?

When you consider the cultural nuances and preferences of your target market, you can tailor your marketing strategies, product offerings, and overall business approach to resonate with local consumers. This can go a long way in building trust and brand loyalty in the global marketplace.

Decide How You Will Marke Yourself Abroad

Now that you have a clear understanding of your target market and their cultural preferences, it’s time to decide how you will promote and market your business abroad. This can include tactics such as translating your website and marketing materials into the local language, partnering with local influencers or businesses, and utilizing social media platforms popular in that region.

Even consider any legal or regulatory requirements for advertising and marketing in the target market. In certain countries, there may be restrictions on certain types of advertising or requirements for labeling and packaging. Other countries may have specific rules for online advertising and data collection.

Venturing into the international arena can be a game-changer for your business, opening up new avenues of growth and diversification. The journey, however, is paved with its unique set of challenges and complexities.

A strategically crafted international business plan acts as the compass guiding you toward success. It entails rigorous market analysis, clear goal-setting, robust strategic development, resource identification, cultural understanding, and effective marketing. Such a plan ensures that your business meets the needs and expectations of your new customers, stands tall amidst global competition, and reaps the rewards of global expansion. Get ready to embrace an exciting journey filled with opportunities, learning, and growth. Now that you have a step-by-step guide in hand, the world is truly your oyster!

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How To Scale Your Business Internationally

Since more than 95% of global consumers live outside of the U.S. , reaching new customers transnationally can help you expand your business market, profits, and revenue. Following are five tips on how to scale a startup business or established business globally.

1. Create a Service or Product that Meets a Need in Global Markets

Many of the world’s largest international companies are based in the U.S. Digital connectivity as a means to expand into new global territories has become more common. There are many considerations when you plan to scale a startup business or an established business globally. 

Evolving technology is one way to help scale or establish an overseas business easier when you’re selling a product or service.  Every country’s population has its own economic structure, lifestyle, and culture. If there’s no need for your product or service in a new area, you’re likely to lose time and money attempting to conduct business there.

Develop an international business plan

Any business plan needs a sound strategy that identifies a need for a product or service and explains how it will meet that demand. Developing a strategy can help you protect your resources and ensure expansion makes sense. It’s important to consider how a new area’s competition, cultural attitudes, and regulations could affect your product or service’s likelihood of success.

2. Research International Regulations

Every country in which you want to expand will have varying laws on everything from employment to marketing claims, and data privacy to taxes. 

You’ll want to operate legally and protect your business resources to avoid costly mistakes that can affect your budget and reputation. It’s wise to work with legal experts from the country in which you want to expand to ensure you’re following all rules and regulations.

Research assistance programs

In your research, you may discover government programs that could assist your business expansion. For example, there might be incentives for opening an office in a different country. Knowing this, could help inform your expansion strategy.

3. Hire Local Employees in the Region

Hire local employees in the area in which you are planning to expand has some advantages. Having local employees can:

• Help ensure that you avoid cultural and language issues in omnichannel marketing and other company representations, such as your website.
• Demonstrate that your company is invested in the area’s people and community. That can improve sentiment for your business and help spread the word about your company, which, in turn, can help you win more customers.
• Help your company relate better to local customers. Customer-facing employees, such as customer support and sales teams, can help achieve this by speaking to customers in their native language. It also helps increase the diversity of your workforce. Plus, workers in other countries can also learn about other cultures through international teamwork.
• Make your company more attractive to talented job candidates who are interested in working internationally or attending international events, such as business summits.

4. Explore Ways to Attract Local Customers

Market research can help you understand your target audience in each new area. You need to ensure your business proposition stays consistent in international markets, and you need to meet prospective customers where they are. For example, determine and target customers in the area that spend time on a particular social network. 

International marketing and sales teams can also benefit from local input to ensure customer experience strategies will work in that market. For example, learn whether an acceptable word or phrase in one language may be offensive in another. This effort includes:

• Accepting local forms of currency
• Offering culturally respectable messaging and communication in locals’ native language
• Marketing on customers’ preferred channels
• Providing customer support from local workers

5. Enable a Strong Company Culture

Weave your vision throughout corporate communications and global branches. All employees should be unified by the same mission, even when business strategies differ locally.

When your employees work across various time zones, ensure that collaboration and your company’s culture remains strong. 

Use technology and tools in daily operations that facilitate asynchronous collaboration. These could include social platforms like Discord, video conferencing and chat platforms like Microsoft Teams, and cloud-based project management solutions like Workfront.

Support team bonding

Support international team bonding by bringing teams together when possible. This might be through an annual in-person summit or virtual gatherings that can accommodate multiple offices. Publicize successes of international departments. This signals to all employees and teams the global impact your company is making. As your business strategy evolves, solicit input from your global teams to help everyone get involved and feel valued.

Learn More About Ensuring Global Business Success

International expansion can be an exciting time for a company. It can help you gain more customers, bolster international local economies, and provide other benefits to the world.

If you are involved in an international business, or you’re interested in global scaling, the Managing in the Global Digital Economy course from Wharton Online can help you succeed. 

This course:

• Covers the growth of the digital economy through various digital platforms, 
• Details how the network effect can unfold at global levels
• Explains the risks of international expansion
• How to develop a successful digital strategy

Learn more and enroll her e .

The Wharton School is accredited by the International Association for Continuing Education and Training (IACET) and is authorized to issue the IACET CEU.

International Business Plan Template

What is an International Business Plan?

An international business plan outlines the goals and objectives of a business that is looking to expand into international markets. It is a comprehensive document that outlines the strategy and tactics of a business that is looking to enter into the global marketplace. The international business plan is a critical component of the overall business plan and should be developed in concert with other elements of a business’s overall strategy.

What's included in this International Business Plan template?

• 3 focus areas
• 6 objectives

Each focus area has its own objectives, projects, and KPIs to ensure that the strategy is comprehensive and effective.

Who is the International Business Plan template for?

The International Business Plan template is designed for organizations of all sizes and industries who are looking to expand their operations and business into other countries. The template provides a comprehensive framework for businesses to establish effective international business relationships, utilize digital platforms, and recruit qualified international talent. It is a powerful tool that can help businesses develop and grow their international presence.

1. Define clear examples of your focus areas

When creating an international business plan, it is important to define the focus areas that will be addressed. Focus areas are the broad topics that the plan will address, and should be tailored to the specific needs of the business. Examples of focus areas could include establishing effective international business relationships, utilizing digital platforms, and recruiting qualified international talent.

2. Think about the objectives that could fall under that focus area

Objectives are the specific goals that the business wants to achieve within each focus area. Objectives should be tailored to the business’s specific needs and should be achievable and measurable. Examples of objectives could include building an international network, developing international partnerships, creating an online presence, and strengthening online connections.

3. Set measurable targets (KPIs) to tackle the objective

KPIs, or Key Performance Indicators, are measurable targets that help to quantify the success of a project or objective. KPIs should be tailored to the specific objectives of the business and should include an initial measure, a target measure, and a unit of measure. Examples of KPIs could include increasing the number of international advisory board members, increasing the number of website visits, and increasing the number of international hires.

4. Implement related projects to achieve the KPIs

Projects are the specific actions that the business will take to achieve each objective. Projects should be tailored to the specific objectives of the business and should be achievable and measurable. Examples of projects could include creating an international advisory board, establishing strategic alliances, developing an international website, and expanding social media presence.

5. Utilize Cascade Strategy Execution Platform to see faster results from your strategy

Cascade is a powerful strategy execution platform that helps businesses quickly and effectively develop and execute their international business plans. Cascade provides businesses with the tools and insights they need to stay organized and ensure their plans are executed accurately and efficiently. With Cascade, businesses can stay on track and achieve their goals faster than ever before.

Guide to creating and executing a global strategy

Since 2003, Forbes has published the Global 2000, a list that ranks the largest public companies worldwide by the following four metrics: sales, profits, assets and market value.  Studying this ranking  and its associated company profiles, like which corporation is No. 1 this year, who’s new to the list, or which companies have dropped off, are a great way to start designing a successful multinational corporation.   

The top 100 companies cover a wide range of sectors, including oil and gas, technology, banking and finance, automotive, telecommunications, pharmaceuticals, mining and food and beverage.  The 2,000 companies in on the 2022 list come from 58 countries, but nearly three-fourths are based in  just 10 countries . The U.S. and China remain the countries with the most listed companies, followed by Japan, South Korea, Canada and the United Kingdom. 

All of these 2,000 companies  global businesses with facilities, suppliers, employees and other assets in at least one country other than their home country. Large multinational companies (MNC) have several advantages over other companies, most of which come with just being big. Labor concerns, supply issues and regulatory problems are all easier to deal with if a company has bases in more than one country.

Affordable and reliable communication technology may be the most important factor that makes it easier for companies to operate in other countries is Consider Walmart with its 5,100 stores and 550,000 staffers in 23 countries outside the U.S. Walmart also sources its products from more than 100 different countries. 

Face-to-face communication is as important for sensitive discussions or avoiding cultural faux pas in a multinational corporation as it is in a small local business. Ensuring employees and customers understand a corporation’s global strategy and their roles in its execution takes an extremely fine-tuned level of focus and understanding from the top down.

Short story about the long history of global business

Global business refers to international trade, whereas a global business is a company doing business across the world. The exchange of goods over great distances goes back a very long time. 

Anthropologists have identified long-distance trading in Europe in the Stone Age. Maritime trade, or business across the seas, dates back before Greek civilization. These would not be defined as “global” trade, but they had the same goals – to reach beyond homelands and across the world to find new markets and resources. 

The British East India Company, established in 1600, and the Dutch East India Company, begun in 1602, were the two earliest global companies. As government-chartered organizations, they were part-business, part-government. Their goals were two-fold; to accumulate capital, often by using natural resources and labor in the new locations, and establish colonial empires. 

At the end of the 19th century, another type of global business emerged, and the multinational corporation (MNC) was born.  

The first MNCs in the modern world were also searching for natural resources, locations where production was directly linked to the land. Many of today’s mining and agricultural companies date back more than 100 years and still rank among the world’s largest global companies. 

In fact, Exxon Mobil Corp., No. 15 on Forbes 2000,  was founded by John D. Rockefeller in 1882. 

International strategies: Multiple structure options 

International business organizations face choices regarding resource allocation, the balance of authority between the central office and business units and the degree to which products and services are customized to accommodate the tastes and preferences of local markets. 

Every country is different, and so are the cultures, expectations and needs of the people who live there. What might work in one country could be a huge failure in another. Yet some companies are so large and their products and services so pervasive that they can succeed even if they make very few, if any, adjustments in a new country.   

Usually, an MNC is a very large company possessing subsidiaries in several countries, and its organization, production and sales strategies are conceived on a global scale. M any companies choose entirely different methods and structures for their international expansion. Multinational corporations choose from these three basic strategies: 

• International strategy : This is u sually the first type of international expansion for a business, focusing on imports and exports and maintaining a head office or offices in their home country. This is a common model for companies selling food or wine, or other products with regional appeal. An example of this strategy is Moet & Chandon, which sells champagne around the world, growing every grape in France.
•   Multi-domestic strategy :    Rather than using one global brand, multidomestic strategy creates many smaller, country-specific brands tailored to local tastes, its customers and local environment.  The Swiss-owned candy company Nestle owns more than 2,000 companies including Gerber, Purina, Perrier, Lean Cuisine and Toll House. Nestle sells in over 186 countries, where each carries a selection of brands designed to match the local market.
• Global strategy : A firm using this strategy may make some  minor modifications to products and services in various markets. Still, the objective is to gain economies of scale by offering the same products or services in each market. Microsoft, for example, offers the same software programs around the world but adjusts the programs to match local languages. KFC, Coke and Apple sell the same products with consistent branding in overseas markets.
• Transnational strategy:  When employing a transnational strategy, the goal is to combine elements of global and multi-domestic strategies, to balance the goal of efficiency and adjusting to meet the needs of local markets. Firms using a transnational approach make some concessions for local tastes. For example, you can buy wine in addition to fast food at McDonald’s in France. 

Developing an international business strategy

It’s time to expand your business. You’ve already got some feelers in international waters but aren’t entirely sure how to set things up.  Global markets offer opportunities for new markets, expanded brand recognition or potential partnerships.

Before a company gets too far into a new market, it is important to step back and answer some questions that will help determine what type of business strategy makes the most sense at this stage. Here are  eight steps  articulated by Global Expansion, an international employment firm:

• Research your market Seek out multiple sources of information, trying to make local contacts. And don’t neglect researching the local regulatory environment.   
• Decide on what you’re bringing to the market Be clear about what you are selling and how your products fit into the local market.  
• Set your goals Set specific goals about market share, sales numbers, cost-efficiency and customer growth. Develop sales goals for multiple years.  
• Make a note of any competition Research local competition to further understand potential markets.  
• Develop the finer points of your strategy Think hard about who you’ll hire, how your business can navigate financial regulations and what an overseas market means for marketing.  
• Evaluate your infrastructure Audit your current business capabilities. Examine the team needed to carry out expansion.  
• Create a system for distribution Explore your options for franchising, licensing and regulatory requirements.  
• Consider a partner or consultant Explore putting a management team together on the ground to help expand your operation.

Executing your international business strategy

Recognize that your global business strategy will be a living document. Initial plans and goals that take shape through focused due diligence are subject to change once you set up shop across international boundaries. Remember to be flexible. 

As you move into new markets, keep these goals and visions in mind:

• Partner with someone who understands the laws and regulations in your new market.
• Explore pros and cons internally and make sure you have stakeholder buy-in.
• Get to know your international customers; learn how you have a competitive advantage.
• Become familiar and comfortable with the new culture.
• Prepare a solid global marketing plan to support international growth and strategic goals.

Learning customs, culture, values 

“International” is a term that is so broad and unspecific that it can be near meaningless in establishing a growth strategy.

Business strategist Lowell Aplebaum recommends that entrepreneurs take a specific approach to creating a global strategy. It’s important to take the time to break down the regions, countries or communities that are in closest alignment to the offered service or product. Aplebaum, CEO of Vista Cova, suggests taking the time to determine how you will be able to fill a unique need in the new locale. “From there, a global growth strategy can be stepped and piloted with intent,” Aplebaum says.  

When expanding into international markets, it is important for entrepreneurs to understand the cultural differences in those markets and adapt their business plans accordingly. A business that is successful in the United States, for instance, might not be successful in Nairobi because the cultural norms in those countries are very different.

Cross-cultural environments require business leaders to understand diverse cultural, political and business customs.  Perhaps the most important thing to keep in mind while your business moves into new markets is culture, what we at  Thunderbird call a Global Mindset . 

Whether you’re an international executive or a student, developing a Global Mindset will help you thrive in global enterprises and beyond. At Thunderbird, leadership development is a fundamental aspect of our curriculum, and we help students and executives become better leaders. Here are a few of our programs geared toward future and current leaders: 

• Master of Global Management 
• Online Master of Applied Leadership and Management
• Executive Education programs

Related insights

Can executives earn global management degrees in a year?

Global leadership and management knowledge: leverage its value

Transformational leadership for aspiring global leaders

Global Negotiator

International contracts & documents ready to use.

International Business Plan (A Practical Guide for Companies and Professionals) - Ebook Format

Table of contents, description, plan de internacionalización, international business plan pdf.

What Are the Components of a Global Business Plan?

• Small Business
• Business Planning & Strategy
• Elements of Business Plans
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How to Create a Business Plan & Where Should the Executive Summary Be Located?

How to write a business plan template for a cable channel, how to internationally outsource manufacturing.

• How to Write a Business Plan Outline
• How to Write a Business Description

Global business plans resemble local and regional business plans in format. Global business plans differ from other business plans by serving as a company's communications vehicle for its global operations. Components of a global business plan, which differ from other focus on global customers, global pricing and currency issues, and international market legal factors, to name a few distinctions listed by Allegro Invest. The University of Houston Small Business Development Center offers workshops and seminars on all aspects of small business development, including creating business plans (See References).

Executive Summary Component

An executive summary describes the owner's goals and targets. An executive summary includes components, including but not limited to, a business overview, which describes the company, the projected market and the intended product or service. Include financial results, such as capital growth and profits, advises Allegro Invest. Provide any investment requirements for business operations. In an example offered by the website, BPlansWest, Pacific Marketing opens its Executive Summary, "West Pacific Marketing Consultants aims to provide marketing services to targeted business environments in Indonesia, Asia, and the west Pacific region."

Market Description

A market description for a global business reflects an in-depth international market study and offers analysis of the study findings. Key factors in a market description for an international company include "market size, share positioning of products, and competition, explains Allegro Invest. Allegro Invest advises entrepreneurs and executives to energetically research their targeted international market (See References).

Operations And Management Component

An Operations and Management Plan discusses operation factors. Operations components include, but are not limited to supply, production, marketing and distribution. This section will distinguish itself from a non-global business plan. You will discuss your research into the complexities of the global markets you are targeting, including how you plan to supply your product or service in targeted countries. If you plan to produce your product overseas, explain that dynamic here. Explain how you plan to market to the countries you will initially introduce your company. Include your management plan with strategies for global growth and successful attainment of international goals. For example, if you plan to start in one country and grow over time into other regions, discuss that plan.

Organizational Structure

The section of your global business plan on organizational structure describes your management model. Detail your organization's hierarchy of personnel, Allegro Invests advises. Potential investors want to know that their investments go to qualified executives and management. The people at the helm of your company must be savvy in your kind of business at an international level. Provide each person's credentials.

• University of Houston Small Business Development Center: Workshops and Seminars
• BPlans: Global Marketing Business Plan

Alyson Paige has a master's degree in canon law and began writing professionally in 1998. Her articles specialize in culture, business and home and garden, among many other topics.

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• 1 How to Implement a Global Business Plan
• 2 Essential Elements of an International Marketing Plan
• 3 Define a Business Plan
• 4 Define Global Business Plan

A complete guide to global business expansion strategy

Everything you need to know to develop your own international business expansion strategy.

Overseas expansion can seem a farfetched dream to most, while even those considering the process may be daunted by its complexity. Yet, though expansion can be time-consuming and involved, it need not be exclusively the domain of giant corporations like McDonald’s, Google, Apple, or IKEA.

With a comprehensive and carefully-composed global business expansion strategy, even start-ups and SMEs can expand their operations into new, potentially lucrative markets.

This article provides a broad, overarching guide to international business expansion: what it is, how it can be beneficial as well as challenging, when to consider it, how to build a solid global business expansion strategy, and how partnering with an Employer of Record may drive the success of your overseas venture.

Why go global? A look at the benefits and challenges of international expansion

An important part of considering global expansion for your business is being aware of both the pros and cons, and balancing these carefully. For whilst there are many potential benefits to expanding overseas, there are a number of challenges you may first have to overcome, and the nature of your expansion will be informed by whether or not the pros outweigh the cons.

Potential pros of global business expansion

• Increasing global sales and expanding client lists by tapping into new and lucrative markets; including the potential to reset the lifecycle of older products and services.
• Maintaining a competitive edge in an increasingly globalized world by positioning yourself and your brand as a leader in untapped markets.
• Widen your available talent pool to include employees and contractors operating all around the world, with expertise in new and expanding areas.
• Increasing cost savings through relocation and access to new, more affordable markets.
• Securing the financial future of your company by diversifying your revenue streams and the markets you operate in - essentially building greater business resilience.
• You must comply with all applicable labour and tax laws and regulations in the countries and regions you intend to expand into. This can be complex and costly, especially if you fail to comply.
• The culture, languages, and politics of different countries can vary dramatically, and should be researched thoroughly prior to expansion otherwise your offering may be met with confusion, apathy, or hostility.
• Local competitors who are already long-established in your new target market may have an advantage over you, owing to their local, innate understanding of that market.
• Managing remote and international teams requires a reframing of your managerial practices and office culture to be best effective; for example, you must consider how you will work effectively across multiple different time zones.
• It can be prohibitively costly to expand overseas, depending on the global business expansion strategy you choose to develop, especially when expansion is conducted independently.

Challenges of global business expansion

Defining global business expansion.

Global business expansion looks different for each individual business. What it means and what it requires will change depending on the industry you’re in, the reasons for your expansion, and how you hope to enter the new market.

Having said that, we can generalise. Global business expansion – also known as international expansion, foreign expansion, or overseas expansion – is a business growth strategy used to enter new markets in other countries. It can include the movement of business operations, resources, workforces, products, and services.

Successful expansion requires the tailoring of a global business expansion strategy unique to the enterprise’s industry, offering, and goals.

How to know when your business is ready to expand overseas

Not every business needs to expand overseas, nor will every business naturally come to a definable point at which international expansion is the logical next step. Knowing when your business is ready to expand often depends on whether you have the time and resources to develop a watertight strategy.

If global expansion is something you want to see in your business’ future, then we’d suggest you begin planning today. The more prior preparation you can inject into a global business expansion strategy, the more evident it will be when the time comes for your enterprise to take that leap.

How small businesses can also expand internationally

Traditionally, international expansion has been the realm of large corporations with deeper pockets than most start-ups and SMEs can ever hope for. Thankfully, however, in our present era of expansive and accessible globalisation, the opportunities for smaller businesses to expand overseas do exist.

The key to global business expansion for small and smaller businesses is, of course, to minimise the costs involved . The most straightforward means of reducing expansion costs is to partner with a global business expansion solutions provider , whose expertise and existing international presence can reduce the risks you face and mitigate the need for costly foreign subsidiaries.

Developing your global expansion strategy

Every individual expansion requires its own tailor-made international business expansion strategy. Developing such a strategy should take time, care, and consideration. What follows is a broad overview of the 10 components we believe are key to an effective expansion strategy. For a more involved and detailed discussion of these 10 steps, read our post on how to avoid the pitfalls of global expansion .

10 key steps to a comprehensive international business expansion strategy

• Set your goals: It is crucial you know why you want to expand overseas. A clear set of goals will help you keep your strategy on track throughout the expansion process.
• Research: Acquire a firm understanding of the market you’re aiming to enter, including the competitors there, and the culture which frames it.
• Choose an expansion model: You can expand into new markets via a range of expansion models , including exportation, licensing, franchising, partnerships and joint ventures, mergers and acquisitions, and greenfield investments. Knowing which will work best for you is crucial.
• Consider building overseas infrastructure: International expansion is best supported by the establishment of local infrastructure on the ground. This infrastructure can comprise a foreign office or subsidiary, a remote workforce of employees and/or freelancers , or a network of third-party local partners.
• Reconsider branding in an international context: A different audience will likely respond quite differently to your branding, compared to the home audience it was developed for. Consider how best to rework your branding in an international context.
• Tailor your offering to the new market: Similarly to your branding, your offering – whether products or services, B2C or B2B – should be reevaluated with the target international demographic in mind.
• Equip your teams to work internationally: Working effectively across time, cultural, and linguistic barriers is not easy. Adapt your management style to consider the potential benefits of asynchronous work and strategic human resource management .
• Budget: Draft a budget which considers all the various costs of international expansion , and which can be consistently guided by KPIs established during your ‘goal-setting’ phase.
• Risk assessment: Understand the risks specific to your particular international expansion plans, and determine how best to mitigate these whilst ensuring 100% compliance with all relevant labour and tax laws.
• Partner with an expert in global business expansions: Refocus your own role in international expansion to those elements most important to you and your business, whilst reducing stress, costs, and ensuring compliance, by utilising the expertise of Mauve Group .

How to choose which international business expansion methods will suit your business best

The expansion model you choose – exportation, licensing, franchising, etc. – will very much depend on the goals you set for your expansion. Each model has a different set of requirements, challenges, and potential benefits.

For example, consider that fast-food chain McDonald’s’ success rests on the franchising model: approximately 93% of all McDonald’s restaurants worldwide are “owned and operated by independent local business owners.” For Netflix, on the other hand, partnership deals with local mobile operators and TV providers were key to its successful expansion into around 190 countries across the globe.

Seek the advice of professionals when determining which model might work best for you.

When to establish a foreign subsidiary

Establishing a foreign subsidiary is arguably one of the most involved international business expansion methods. A foreign subsidiary is a separate legal entity based on the ground in the overseas country, and majority owned or controlled by your company whilst remaining responsible for its own taxes and assets.

Establishing a foreign subsidiary gives you a stable and potentially impactful foothold in the target country, but equally carries with it high costs, a great number of compliance hoops to jump through, and many additional managerial considerations.

Oftentimes, establishing foreign subsidiaries may not be cost-effective nor practicable to the smaller enterprise seeking to expand overseas. In such instances, the business owner may wish instead to leverage the existing international presence of an Employer of Record .

Go global with Mauve

It is our hope that having read our complete guide to global business expansion strategy, you feel better equipped to begin your own journey toward international expansion.

Many of the risks and costs associated with business expansion can be mitigated with the help of a trusted partner like Mauve, whose extensive experience in overseas expansion can aid start-ups, SMEs, and larger enterprises with compliant international hiring of employees and contractors , visa and immigration support , global payroll , and expansion strategising .

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MBA 541 - Global Business Plan Project Resource Guide

• Phase One: Choosing a Company and Global Business Opportunity
• Phase Two: Planning the Global Enterprise
• Phase Three: Organizing Global Business Activities
• Phase Four: Implementing the Global Marketing Plan

Resource Guide Overview

Every organization conducts research to plan and implement a business idea. This resource guide is designed to help you find the resources necessary to build the foundation for an international business plan. These steps offer flexibility for many settings related to global business enterprises. The guide may be used for planning global expansion of an existing product or service or may be used to research a new foreign business opportunity. Each phase and section in this guide contains a research component or goal that will help you build your Global Business Plan for MBA 541.

The final result of your global plan may be in one of the following formats:

• a written report with supplementary tables and visuals
• an oral presentation with visuals
• a summary in a poster format or other visual display (website, video, newsletter)

For more information about this project, please refer to your online course shell. Please direct any questions about assignment expectations or requirements to your instructor. Any questions about resources or research tips presented in this guide can be directed towards Ask a Librarian.

Note about research

Keep in mind that you may not explicitly find the information for every component listed in this guide. Rather, be prepared to create data by extrapolating, inferring, estimating, and making judgments based on related and relevant information. Lastly, while research starters and recommend resources have been included under each section, many of the resources and reports can be applied across multiple steps. Be flexible with how you use and apply the information you find throughout the research process.

• Next: Phase One: Choosing a Company and Global Business Opportunity >>
• Last Updated: Jan 26, 2024 3:01 PM

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Global Marketing Business Plan

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West Pacific Marketing

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

West Pacific Marketing Consultants aims to provide marketing services to targeted business environments in Indonesia, Asia, and the west Pacific region. This plan seeks to generate a significant increase in company sales and profits from the delivery of retainer consulting, project consulting, market research and industrial analysis, feasibility studies, and strategic analysis and reporting services, compared to the preceding year.

The highlights of this plan are the targeted gross margin and sales-revenue. The targeted gross margin and sales-revenue for each of the first five years of this plan are presented in the following chart and the tables presented later in this plan. These figures represent the key prospects available for West Pacific Marketing Consultants. These targets are attainable through a proactive approach to the candidacy of clients, teaming-up with technology providers, and partnering with reputable local and regional engineering suppliers and construction firms to reduce competition, improve pricing, and reduce risks.

This business plan has been created on the basis of five years of market research. Data conclude the size and growth of the market and geographical segments, customer needs, perception, and buying behavior trends have been on the upswing, and are expected to continue in this trend for the next five years. West Pacific Marketing Consultants feels that it is able to fill the hole in the marketing niche, and will benefit from operations beginning in January, Year 1.

Note: All figures within this plan are in the U.S. dollar, and reflect the currency exchange rate of $1 = Rp 7,200.

1.1 Objectives

West Pacific Marketing Consultants’ objectives are to make an equal and fair profit in the business-to-business (B2B) and business-to-consumer (B2C) marketing services industry. This goal is to be reached by attaining  the numbers presented in the Sales Forecast and Financial Plan topics.

1.2 Mission

West Pacific Marketing Consultants offers companies, government institutions, nongovernment organizations (NGO), and individuals reliable, high-quality, and cost-effective consulting services for various purposes. Our services include business development, market development, market intelligence, industrial sectors analysis, and channel development on a global scale, as well as sales assistance for global companies in the Indonesian market.

The situation in Indonesia is currently characterized by the facts that times are tough, investment appetites are low, industries are cutting costs, and budgets are being slashed. Fully aware of this situation, West Pacific Marketing Consultants, after completing a five year research study, has come to the conclusion that its potential clients would be interested in doing things in a smarter way, with good support of a reliable and efficient market intelligence. West Pacific Marketing Consultants believes that it can provide both solutions and value creations to its clients. Its senior executive consultants have been working with some reputable U.S.-based global companies for more than 14 years, and have extensive knowledge of Indonesian, Asian, and Pacific business environments. 

1.3 Keys to Success

The are two keys to success that West Pacific Marketing Consultants is focused on. These are broadlky characterized as Internal and External Factors, and are explained in more detail in the following two sections.

1.3.1 External (Business Environment) Factors

The Asia-Pacific Region is now living in an interesting era: the process of change from the “old economy” to the “global new economy” brings a tremendous development growth of e-commerce, mobility of capital, and liberalization to the region. Since the new global economy brings new economics, new market structures, new industry structures, and new company structures, the profile of customers has also changed. Customers have evolved from “solution demander” to “value demander,” and from “clients” to “business partners.”

West Pacific Marketing Consultants is proactively focused on establishing relationships with multiple digital contents, companies, government institutions, regional (provincial) government offices, NGOs, and individual customers as its prospective business partners.

1.3.2 Internal Factors

The company feels that it controls its own success through some basic internal factors. These are:

• Key management team . The right management team is integral, and must have a strong foundation in marketing, management, finance, and services development. The company is confident in its team.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

The founders of West Pacific Marketing Consultants are former marketers of large multinational engineering, procurement, and construction contracting services and, at the same time, are experienced market researchers in global markets. They founded West Pacific Global Trading Portal (SiliconOctopus.com), the parent company of West Pacific Marketing Consultants, to formalize the integrated B2B, B2C, and consumer-to-consumer services they offer.

The parent company was founded by Jaka J. Legawa and his business partners from Chicago, Kansas City, and Singapore. This company was originally installed in a home office and moved into its new office space in January, last year. The subsidiary company, West Pacific Marketing Consultants, was founded in April, last year by these same investors.

2.1 Company Ownership

West Pacific Marketing Consultants was created as an Indonesian “Perseroan Terbatas” (PT) corporation based in Jakarta, namely “PT. Portal Bisnis Pasifik Barat,” owned by its principal investors and principal operators. It was created in April, last year

2.2 Company History

Between April and December of the previous year, West Pacific Marketing Consultants achieved excellent performance ratings. The sales revenue of $1.9 million, with a gross margin of $1.6 million, was 15% higher than the projected sales for that year.

From its recent growth until the time of this writing, West Pacific Marketing Consultants has costs and cash flow under control.

2.3 Company Locations and Facilities

The office is located in one of the strategic locations in the heart of the Indonesian business area, at Komplek Pertanian, in Jakarta.

West Pacific Marketing Consultants is an e-business-based market-development consulting firm specializing in the marketing of a comprehensive set of integrated professional services that provide our customers with high-quality consulting services for business development, market development, market intelligence, industrial sectors analysis, and channel development on a global scale, as well as sales assistance for global companies in the Indonesian market.

3.1 Service Description

West Pacific Marketing Consultants offers expertise in the services it provides. With much experience in this field, the company is able to sell and package its services in various ways that allow clients to choose their preferred benefit(s). These include:

• Strategic Analysis and Reports

3.2 Competitive Comparison

Within its niche, West Pacific Marketing Consultants does not have any competitors, but rather has “prospective business partners.” This is because the cmpany provides its clients with solutions as well as value creations. Its services have been sought out by companies ranging from high-level management firms to international market research companies. Companies choosing to do business development, channel development, and in-house market research, will seek West Pacific Marketing Consultants to deliver the following value creations:

Consulting/Market Researchers/Traders/Suppliers:

• Improved communication
• Access to new markets
• Broader products offering
• Lower cost of doing business
• New ways of adding value

Technology Providers/Manufacturers:

• Lower cost of sales
• Access to niche markets
• Better cost of identification

New business models (outsourcing alliances)

Individual Clients:

• Shopping convenience
• Immediate delivery
• More frequent updates
• Access to more products and services
• Better pricing

3.3 Sales Literature

The business began with a general corporate brochure establishing the positioning. This brochure was developed, and was included as part of last year’s start-up expenses.

Literature and mailings for the market forums will be very important.

3.4 Fulfillment

The key fulfillment and delivery will be provided by the principals of the business. The core value is professional expertise provided by a combination of experience, smart and hard work, discipline, improvements, and education (in that order).

West Pacific Marketing Consultants will turn to qualified professionals for freelance back-up in market research, presentation, and report development; these areas are ones that the company can afford to sub-contract without risking the core values provided to the clients.

3.5 Technology

West Pacific Marketing Consultants maintains the latest Windows and Macintosh capabilities including:

• Desktop publishing facilities for delivery of regular retainer reports, project output reports, marketing materials, and market research reports.

Market Analysis Summary how to do a market analysis for your business plan.">

West Pacific Marketing Consultants has a unique offering of services that appeals to a  large customer base. The company will concentrate on large corporations because they provide the maximum profit potential. The following sections outline key information regarding the target markets.

4.1 Market Segmentation

The groups of potential customers for West Pacific Marketing Consultants are, in order of importance:

• Individual Customers

4.2 Target Market Segment Strategy

As indicated by the previous chart and table, West Pacific Marketing Consultants must focus on large corporations, medium companies, small businesses, and individual customers in the global market; and in the Indonesian market, regional (provincial) government offices, NGOs, academics, and individual customers will be the core of profits.

4.3 Service Business Analysis

The following companies are major players in Indonesian market research consulting business:

• SOFRES FSA Jakarta (Taylor Nelson Sofres Group)

4.4 Competition and Buying Patterns

Recent analysis indicated that consultant costs (in US$/man-hour) in Indonesia have decreased by 12% since the economic turmoil of 1996. This analysis is based on the assumptions that the local senior consultants’ and senior engineers’ salaries have increased by 25% at the average exchange rate of US$1 = Rp 7,200. This is because the Indonesian skilled manpower market offers the lowest man-hour cost in the world, even with the estimated average increasing 20% per year.

To take advantage of this situation, West Pacific Marketing Consultants utilizes Indonesian resources for serving both global and regional markets.

Strategy and Implementation Summary

West Pacific Marketing Consultants will focus on six technographical market segments as follows:

• Individual customers . Influential people such as boards of directors, marketing managers, general managers, sales managers, and government officials.

5.1 Competitive Edge

West Pacific Marketing Consultants has close and effective relationships with its end-users, vendors (suppliers and sub-contractors), and even competitors. On several occasions, West Pacific Marketing Consultants has teamed-up with its end-user or supplier in a consortium partnership to perform projects.

West Pacific Marketing Consultants combines unparalleled quality with a cost-effective package to create a consulting service with many competitive advantages. The seasoned management is qualified for multiple services, such as: business development, market development, market intelligence, industrial sectors analysis, and channel development. We provide this range of services to anyone from a high-level marketing firm to a home-based business owner; clients can always count on quick, accurate services from the company.

5.2 Sales Strategy

West Pacific Marketing Consultants’ strategy focuses first on maintaining the identity of the high-end buyer who appreciates quality service, but is also very demanding regarding value creations. West Pacific Marketing Consultants has been able to find these customers using a combination of social and interactive email relationships.

Furthermore, as a part of its “individual sales strategy,” to ensure optimum client satisfaction, West Pacific Marketing Consultants customizes its services for each specific client. This approach is called “individual sales strategy” because customization permits clients to participate in producing exactly what they want.

Even when a business offers a standard service, it is not making a standard sales offer. The customer is able to choose a tailored offering mix of elements, such as optional services benefits, delivery conditions, training, financing alternatives, technical services options, sales assistance options, etc.

5.2.1 Sales Forecast

The sales forecast monthly summary is included in the appendix. The annual sales projections are included here in the following chart and table.

The sales forecast assumes that the yearly change in costs or prices will average 20%, which is a reasonable assumption based on the last few years.

West Pacific Marketing Consultants is expecting to increase sales modestly in 2001 and 2002, with sales growth accelerating in 2003-2005. It is the expectation that the company will double its starting sales within five years.

5.3 Milestones

The accompanying chart and table show specific milestones, with responsibilities assigned, dates, and budgets. West Pacific Marketing Consultants is focusing on a few key milestones that are to be accomplished.

Print adverstising will target newspapers and magazines, while Internet advertising will appear on both websites and search engines.

Participation in Indonesian business and trade exhibitions will be important as well.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The initial management team depends on the founders themselves, with little back-up. As it grows, West Pacific Marketing Consultants will establish a team that includes 17 employees who operate under a president and three vice-presidents.

The management philosophy is based on responsibility and mutual respect. People who work at West Pacific Marketing Consultants want to work at the company because it has an environment that encourages “C4A,” which is: Creativity, Concepts, Competencies, Connections, and Achievement. This C4A concept is our tool in performing the Shareholders Value Creation of West Pacific Marketing Consultants.

6.1 Personnel Plan

The team includes 17 employees, under a president and three vice-presidents.

The three main management divisions are Sales and Marketing, Operations, and Internal Business Management. The departments managed by the Sales and Marketing division are: marketing, sales, products and services, research and development, and public relations operations. The departments managed by the Internal Business Management division are: accounting, administration, and human resources development.

Note: The following table reflects the currency exchange rate of US$1 = Rp 7,2000

Financial Plan investor-ready personnel plan .">

The financial picture is quite encouraging. West Pacific Marketing Consultants does not foresee a debt situation.

The company does expect to be able to take some money out as dividends. The owners don’t take overly generous salaries, so some draw is appropriate.

7.1 Important Assumptions

The accompanying table lists West Pacific Marketing Consultants’ main assumptions for developing its financial projections. The most sensitive assumption is the collection days. West Pacific Marketing Consultants would like to improve collection days to take pressure off of its working capital.

7.2 Business Ratios

The following table presents significant business ratios for West Pacific Marketing Consultants. The last column, Industry Profiles, contains ratios based on the management consulting services industry, as defined by the Standard Industry Classification (SIC) Index code 8742.

7.3 Break-even Analysis

The following chart and table summarize the break-even analysis, including monthly units and sales break-even points.

7.4 Projected Profit and Loss

The detailed monthly pro-forma income statement for the first year is included in the appendix. The annual estimates are included here.

7.5 Projected Cash Flow

Cash flow projections are critical to West Pacific Marketing Consultants’ success. The monthly cash flow is shown in the illustration, with one bar representing the cash flow per month and the other representing the monthly balance. The annual cash flow figures are included below in the following chart and table. Detailed monthly numbers are included in the appendix.

7.6 Projected Balance Sheet

The following balance sheet shows healthy growth of net worth, and strong financial position. The monthly estimates are included in the appendix.

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5 International Business Examples to Learn From

• 29 Jun 2021

The term international business refers to any business that operates across international borders. At its most basic, it includes the sale of goods and services between countries.

Yet, other forms of international business do exist. For example, a business that produces components or products overseas but sells them domestically can be considered an international business, as can an organization that outsources services, such as customer service, to locations where labor expenses are cheaper.

For most organizations, decisions around building, producing, and selling products or services are informed by many factors. Cost is an important one because businesses that primarily operate in developed markets, like the United States and Europe, can often source cheaper labor abroad.

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Other factors play a role in decision-making, too. For example, an organization that makes a conscious effort to become more sustainable may produce its product as close as possible to the end user to reduce greenhouse gas emissions related to transportation, even if it might result in higher labor costs. Likewise, a business may take pride in sourcing local labor to create jobs and support the economy.

Although international business can benefit the global economy, it also carries inherent risks. The fact that each country has its own government, regulations, inflation rates, and currency can complicate business models and must be weighed against the perceived benefits of operating internationally. Some of the most common challenges of international businesses include language and cultural barriers, currency exchange rates, and foreign politics and policies.

What Is a Successful International Business?

International businesses must have resilient, adaptable, communicative, and resourceful employees who know when to seize expansion opportunities. They need to have a deep understanding of international economics to anticipate how global markets will affect their bottom line and international marketing to effectively communicate their organization’s value to diverse audiences.

Are you interested in working with an international organization? Do you have plans and aspirations to take your business international? Here’s a look at five well-known international businesses that have successfully—and not so successfully—navigated the global market.

Examples of International Businesses

Apple Inc., founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in the 1970s, is now considered one of the most influential international companies. Headquartered in the United States, Apple designs, develops, and sells electronics, software, streaming, and online services worldwide.

Apple opened its first international location in Tokyo, Japan, in 2003 after saturating the American market. Under Jobs, Apple touted ease-of-use, innovative design, and customer loyalty with the marketing slogan, “ Think Different ,” and it continues to use visionary strategic marketing and a tight ecosystem to overcome competition and attract creative audiences around the globe.

Apple not only sells products internationally but has supply chains from 43 countries that ship supplies to China for final production and assembly. By keeping a tight-knit and strong relationship with suppliers, strategic inventory, and a focus on sustainability, Apple stands as one of the world’s most successful companies.

2. Financial Times

The Financial Times is a formerly British daily newspaper that’s now owned by the Japanese holding company Nikkei. The Financial Times’ mission is to deliver unbiased, informed investment and economic information to empower individuals and companies to make secure investment decisions.

The Financial Times had a rocky start trying to break into the international market. Andrew Gilchrist, former managing director of the Financial Times , describes his experience at the publication in the online course Global Business .

During his tenure, the Financial Times prioritized entering the international market in India. Despite a large English-speaking population and strong government support, domestic journalism was considered culturally and legally suspect. In fact, the Financial Times was eventually tied up in legal knots because the local newspaper barons were able to challenge every move through the courts.

Eventually, the Financial Times’ attempt to go international in India led to an economic slowdown and sluggish company growth.

3. McDonald’s

Two brothers, Maurice and Richard McDonald, converted their drive-through barbecue restaurant in San Bernardino, California, into a burger and milkshake restaurant—now known as McDonald’s—in 1948.

The McDonald brothers focused on creating a better business system geared toward self-service and efficient and repeatable processes that relied on heating lamps instead of waiters. This model, known as “ Speedee ,” led to lower costs, cheaper products, and faster growth. It became the epitome of “fast food.”

Soon after, Ray Croc took McDonald’s a step further by bringing in franchisees and suppliers, leading to the creation of restaurants across the United States. McDonald’s model continued to expand, and, in 1967, the company opened locations in Canada and Puerto Rico .

McDonald’s has been internationally successful, thanks in large part to the consistency its business model allows. The fact that a Big Mac tastes the same regardless of which country you order it in is a testament to the company’s long history. Today, there are 38,000 restaurants in more than 120 countries.

4. Coca-Cola

Coca-Cola was created by pharmacist John Pemberton in 1886 at a soda fountain in Atlanta, Georgia. It was used as a tonic for common ailments due, in part, to the addition of cocaine and caffeine derived from the kola nut, which was a major ingredient at the time. (This was later removed from the recipe in 1903.)

Although popular at its inception, Coca-Cola became the company it is today because of the marketing and business leadership of Asa Griggs Candler and future investors, who dramatically increased sales and expanded syrup factory production into Canada.

Eventually, an independent bottle company licensed the rights to Coca-Cola’s syrup production and distribution, streamlining production and generating massive profits. Coca-Cola later remarketed for Germany, China, and India, and it’s now sold everywhere except Cuba and North Korea .

Coca-Cola currently has over 900 bottling and manufacturing facilities worldwide , many of which are in North America, Asia, and Africa.

H-E-B is a popular American grocery company with more than 340 stores in Texas and northeast Mexico. It was founded by Florence Butt in 1905 and expanded into Mexico in 1997.

The primary driver of international expansion wasn’t a desire to capture greater market share, but rather, a desire to gain access to foreign produce markets in warmer climates, from which the company could source produce during its domestic suppliers’ off-season in the northeastern United States.

Craig Boyan, president of H-E-B, explains in Global Business that, upon becoming an international business, H-E-B bought blueberries from Chile and Peru to sell year-round. Despite it being expensive to ship blueberry crates to Texas, this enabled the company to continue meeting its customers’ needs. Since then, production has increased with demand, especially in Mexico, which has an ideal climate to produce blueberries year-round. H-E-B now sources blueberries mostly from Mexico, making them more available and affordable for customers.

What Do You Study in International Business?

Many businesses succeed by expanding their markets, production operations, and supply chains internationally. But doing so requires savvy business leadership bolstered by economic knowledge, an understanding of markets, and the ability to learn political and cultural trends.

Business professionals who have a successful career in international business need various skills and expertise . Acquiring these combined skills employers are looking for, along with international business experience, can lead to long-term career success. Some of these important skills include:

• Strong communication skills
• Emotional intelligence
• Cultural awareness
• Knowledge of finance and accounting
• Entrepreneurship skills
• Understanding of global economics

Why Study International Business?

Regardless of the role, professionals must stay current on all business practices. A global business education provides a wide range of opportunities to create and capture value for organizations. To bring this value to the workplace, individuals need to understand the economic, political, and social factors that drive change and how decisions affect global markets .

Strategists and entrepreneurs should learn about the broader macroeconomic and political landscape of their organizations to grow their business internationally and manage global teams. Professionals in heavily regulated industries can also use this knowledge to develop approaches and frameworks to navigate their complex industries.

If you’re considering joining a global business or thinking about ways to expand your organization internationally, completing an online Global Business course is an excellent way to quickly gain those skills.

Are you interested in breaking into a global market? Sharpen your knowledge of the international business world with our four-week online course Global Business , and explore our other business in society courses. Not sure which is right for you? Download our free course flowchart .

This article was updated on July 19, 2022. It was originally published on June 29, 2021.

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In France, the Future Is Arriving on a Barge

The Seine is becoming a test case for a European plan to cut carbon emissions by turning rivers into the new highways.

A barge filled with items for Franprix supermarkets in Paris made its way along the Seine, not far from the Eiffel Tower. Credit...

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By Liz Alderman

Photographs and Video by James Hill

Reported and photographed along the Seine, between Le Havre and Paris.

• March 26, 2024

As pale morning light flickered across the Seine, Capt. Freddy Badar steered his hulking river barge, Le Bosphore, past picturesque Normandy villages and snow-fringed woodlands, setting a course for Paris.

Onboard were containers packed with furniture, electronics and clothing loaded the night before from a cargo ship that had docked in Le Havre, the seaport in northern France. Had the cargo continued by road, 120 trucks would have clogged the highways. Using Le Bosphore and its crew of four prevented tons of carbon emissions from entering the atmosphere.

“The river is part of a wider solution for cleaner transport and the environment,” Captain Badar said, his eyes scanning other vessels carrying wares up and down the Seine. “But there’s much more that we could be doing.”

As the European Union steps up its battle against climate change, it needs to decarbonize freight transport , responsible for a quarter of global greenhouse gas emissions.

To get there, it is turning back to a centuries-old solution: its rivers. With 23,000 miles of waterways spanning the European Union, officials see a huge potential to help take trucks — the biggest source of freight emissions — off roads. The European Green Deal , the European Union’s decarbonization blueprint, would turn rivers into highways and double barge traffic by 2050.

There’s a lot of room for improvement. Today, rivers carry less than 2 percent of Europe’s freight. By comparison, around 6.5 million trucks crisscross Europe’s roads, accounting for 80 percent of freight transport. Rail accounts for around 5 percent.

If rivers are to handle more traffic, much of Europe’s decades-old waterway infrastructure, including ports and locks, will need upgrading. A warming planet adds to the challenge: Droughts in recent years have grounded some transport on the Rhine, and pose risks to the Seine.

While the Seine isn’t the most heavily trafficked river in Europe — that is the Rhine, which flows through Germany and the Netherlands — the ambition is to turn it into one of the main experimental hubs for the climate transition.

“We are working on a transformation to get businesses to massively shift their logistics routes,” said Stéphane Raison, the president of France’s main port operator, Haropa, which is investing over 1 billion euros (or $1.1 billion) in the Seine effort.

Turning Toward the River

Before leaving Le Havre for Paris, as a heavy snow fell in the dark, Le Bosphore’s crew packed containers tightly into the cargo hold, checking a manifest as a gantry crane swung overhead.

Le Bosphore, part of a 110-barge fleet run by Sogestran, France’s largest river transport company, will head to Gennevilliers, a port five miles outside Paris that is a distribution hub for the capital region’s 12 million consumers. The trip will take around 30 hours.

The Seine could carry many more barges like Le Bosphore, which is longer than a soccer field and saves 18,000 truck trips a year between Le Havre and Paris. The government hopes to draw four times as much freight to the river as the 20 million metric tons it handles now each year.

To achieve that, Haropa has been accelerating an expansion of Le Havre port, which sits at the mouth of the Seine, in a bid to attract ships from the larger ports of Rotterdam in the Netherlands or Antwerp, Belgium. Cargo deposited at those ports is then driven to France on trucks.

At its five other port terminals on the Seine, Haropa is adding electrical stations that allow ships to plug in while docked, rather than running engines.

While much of Europe’s barge fleet is still powered by diesel, a small but growing portion is being adapted for biofuels. Electric boats are coming onto the market. Hydrogen-powered prototype barges are also being developed.

Companies like Ikea and river transport start-ups are helping to propel the movement. They are developing carbon-free last-mile delivery services to appeal to consumers — and to get ahead of strict environmental rules that European cities are imposing to limit heavy, polluting vehicles.

A Chain of ‘Cleaner Transport’

Eight hours after sailing from Le Havre, Le Bosphore pulled into Rouen, a major stop for river cargo to and from Paris. Around 10 a.m. a fresh four-person crew, led by Captain Badar, boarded for a weeklong shift, and the trip toward Paris resumed.

Barge traffic on the Seine has increased just 5 percent from a decade ago. While the government is trying to engineer an acceleration, “rivers have been neglected for too long,” said Captain Badar, the third generation of riverboat captains in his family. He is among a rare breed. Many riverboat captains in Europe are nearing retirement age, and there’s a shortage of qualified personnel, a problem that risks curbing the hoped-for growth in river traffic.

For centuries, Captain Badar noted, rivers were practically the only way to ferry goods through France: The ancient symbol of Paris is a boat. But waterways fell out of favor as trucks and trains dominated transport in the 20th century, especially after World War II, when highways and rail tracks expanded across the continent.

Governments support those industries “because they have powerful lobbies and unions,” Captain Badar said, navigating past a medieval castle built by Richard the Lionheart as the sun brightened the afternoon sky.

“Now we’re starting to talk about the environment, and it would be best to see the river as part of a wider chain of cleaner transport.”

France’s largest supermarket chain, Franprix, is ahead of the game. It has transported goods by barge for a decade to its 300 Parisian stores. Workers unload 42 containers each morning near the Eiffel Tower. That saves 3,600 truck trips a year on highways and has cut Franprix’s carbon emissions 20 percent, the company said.

Kitchen Cabinets and Coffee Beans

Le Bosphore pulled into Gennevilliers port the next morning before dawn, docking alongside other barges laden with wares for Parisian businesses. A crane unloaded three layers of containers from the hold, placing them on the pier, where forklifts stacked them to the side. Despite the voluminous cargo, Le Bosphore had consumed the fuel of only about four trucks on its entire trip.

Across the port, an experiment was underway to make the last mile of delivery more environmentally friendly: a hulking warehouse, set up in a 2022 deal between Haropa and Ikea, the Swedish furniture giant, to create a carbon-neutral way to deliver goods using the Seine.

Pallets packed with Ikea kitchen cabinets and couches, ordered online less than 48 hours earlier, were loaded onto a barge that would take them to central Paris. There, they would be put onto electric trucks and delivered to customers.

The process isn’t completely decarbonized — the barge to central Paris burns fuel, as do the trucks from Ikea’s factories in Poland and Romania — but the arrangement allowed Ikea to take the equivalent of 6,000 trucks off Paris streets last year, said Emilie Carpels, director of Ikea’s river project.

Other ventures are aiming to be more cutting edge.

Europe’s first hydrogen-fueled river barge, the Zulu, is expected to start operating in the spring. Designed by Sogestran, it can carry up to 320 metric tons, or the contents of around 15 trucks. “We are moving toward a future of increasingly clean transport,” said Florian Levarey, the project director.

For Fludis, a French start-up, that future is already at hand. Its president, Gilles Manuelle, founded the company around two boats that run on electric batteries, and a fleet of electric delivery bikes.

Around 7 on a recent morning, a dozen crew members loaded one of the small barges with boxes of coffee beans, copier paper, kitchen towels and other goods to be delivered to French bistros and businesses. As the boat sped silently past the Louvre for its first drop-off, workers onboard loaded their bikes with orders, and sped onto the streets as soon as the captain docked.

“We’re starting off small,” Mr. Manuelle said. “But it’s little solutions like this that can grow much bigger, and help play a role in reversing global warming.”

Back in Gennevilliers, the crew of Le Bosphore filled the now-empty hold with French goods for export: flour, lumber, luxury handbags and Champagne. By 2 p.m. it would begin a cruise back to Le Havre, where the crew would unload and then start all over again.

“I’ve known for a long time that the river was the most ecological means of transport,” Captain Badar said, easing back into the helm. “Now we need for policymakers to really make it happen,” he added. “The potential is huge.”

Liz Alderman is the chief European business correspondent, writing about economic, social and policy developments around Europe. More about Liz Alderman

James Hill is a photographer working on a regular basis for The Times since 1993. He is currently based in Paris. More about James Hill

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China's industrial push risks destabilizing the global economy and watering down green-energy exports, Janet Yellen warns

• US Treasury Secretary Janet Yellen warns that China's big industrial-production push could destabilize the global economy.
• China's growing clean energy industry has oversupplied markets with cheap solar panels and EVs, she said in prepared comments that will be delivered on Wednesday.
• "It is important to the president and me that American firms and workers can compete on a level playing field," Yellen said in speech text released by the Treasury.

China is flooding markets with a lot of cheap green energy products, and Treasury Secretary Janet Yellen is concerned about what it means for the global economy.

Yellen is set to speak at the Suniva solar cell factory in Norcross, Georgia on Wednesday, where she is expected to address concerns about China's export strategy.

"China's overcapacity distorts global prices and production patterns and hurts American firms and workers, as well as firms and workers around the world," a copy of Yellen's remarks reviewed by the New York Times said. "Challenges for individual firms can lead to concentrated supply chains, negatively impacting global economic resilience."

Related stories

After suffering a sweeping property crisis, China is jump-starting its trying to jumpstart its economy with a strong industrial push, incentivizing investment in the manufacturing sector. And that policy shift includes a focus on clean energy. A recent report from the New York Federal Reserve shows the country is seeing a notable redistribution of credit, with a swift rise in new "green loans."

Last year, China's ballooning clean energy industry contributed to 40% of the country's economic growth.

But that comes with consequences. Yellen's remarks warn that this is history repeating itself, like when China overinvested in steel and aluminum, which promoted economic growth in the country but forced the industry in the rest of the world to contract.

This trend has already been manifesting in markets like that for solar panels. Solar panel prices have plunged 50% because of a substantial oversupply. In Europe, a glut of Chinese imports have pushed one of their largest solar module production sites to close. According to the IEA, China is set to account for 85% of the expansion of solar-module manufacturing capacity by 2028. 

"It is important to the president and me that American firms and workers can compete on a level playing field," the excerpts reportedly said. "We have raised overcapacity in previous discussions with China, and I plan to make it a key issue in discussions during my next trip there."

Watch: Why China launched military drills during Nancy Pelosi's visit to Taiwan

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Transportation | City proposes key change to O’Hare airport…

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Transportation | city proposes key change to o’hare airport rebuild, after months of negotiations with airlines.

After months of negotiations with airlines over the massive, delayed rebuild of O’Hare International Airport, city officials are proposing a path forward with a key change.

In a letter to airlines this week, the city proposed changing the sequencing of construction on a new Global Terminal and nearby satellite concourses, opting to “accelerate the completion of the Global Terminal,” which is set to replace aging Terminal 2, city Chief Operating Officer John Roberson told the Tribune. Initially, the plan was to build two satellite concourses first, which would have added gate space for airlines to use while Terminal 2 was torn down and replaced with the Global Terminal.

A change in the order of construction had been sought by airlines during months of contentious negotiations with the city over the rebuild, as they sought to ensure the new terminal wasn’t threatened by future budget issues. O’Hare’s two main carriers, American and United, had pushed back against rising construction costs at the airport , a key piece of the city’s economy and a hub in the nation’s air system.

The airlines signed off on an $8.5 billion overhaul of the airport in 2018. The main feature of the rebuild was the soaring, 2.2 million-square-foot Global Terminal, designed by a team led by architect Jeanne Gang, which would more than double the space of the current Terminal 2 and add additional gates, and allow travelers to move more seamlessly between domestic and international flights.

But costs, largely financed by city bonds backed by airline fees, ballooned, and the project fell significantly behind schedule.

The city would not provide a copy of the letter sent to the airlines this week, but Roberson said that under the latest proposal, the full project agreed upon in 2018, including both satellite concourses, will be built.

“It also provides the airport with the capacity for growth so that we can be competitive with our other airport peers around the world,” he said. “And it is absolutely critical that we move forward with the implementation of this so that we can remain competitive and make sure that we are positioning O’Hare to be a key driver of our economic development process locally.”

In a joint statement, United and American airlines said they were still reviewing the proposal.

“The City has indicated that they are looking at all options to get an on-budget (terminal project) moving forward, one being sequencing the project to deliver the most impactful elements the quickest. The Global Terminal has always been the centerpiece of this program and the most critical piece needed to ensure Chicago maintains its status as a global hub,” the carriers said.

Ald. Matt O’Shea, 19th, chair of the City Council’s Aviation Committee, praised the revised phasing plan as “great news.”

“This is about airlines and government collaborating, looking out for airline passengers and modernizing,” he said. “We want to make sure we get this right. That we’re keeping this under budget, we’re avoiding cost overruns, but we’re also remaining competitive.”

When asked if any parts of the project could be not built if development goes over budget, O’Shea said the Department of Aviation has committed to building all major parts of the project within its budget.

“I think we move forward,” he said. “Everyone wanted a Cadillac fully loaded. And it’s not going to be that, but we’re going to modernize it, we’re going to allow for growth and we’re going to stay competitive.”

In an op-ed in the Tribune last month, U.S. Sen. Dick Durbin called for both satellite terminals to be built along with the Global Terminal, writing that the satellites made up the bulk of the new gate capacity and accusing the airlines of wanting to “build only the part of the project that benefits them and doesn’t increase competition.”

“This means putting off the construction of both satellite terminals to focus on the Global Terminal,” he wrote. “For a price tag still in the billions of dollars, O’Hare would gain two new gates in 10 years.”

Durbin sent a letter Friday to U.S. Secretary of Transportation Pete Buttigieg urging Buttigieg to convene a meeting with the city, airlines and state Congressional delegation on the project. In the letter, shared with media after news of the city’s new proposal broke, Durbin highlighted the importance of adding the second satellite terminal to create significant new gate capacity.

“All parties urgently need the expert mediation that only the U.S. Department of Transportation can provide to ensure a deal that is both fair and beneficial to local taxpayers and all passengers who fly through O’Hare,” Durbin wrote.

O’Hare ’s cost per enplaned passenger, a metric tracked by airlines, is already among the nation’s highest, and more than twice that of airports in Detroit and Minneapolis-St. Paul, which are significant bases for Delta, Bloomberg News has reported.

High costs at the airport are a consideration for airlines, and can make the airport less appealing as a hub. They are a key factor for O’Hare, traditionally a major hub for American and United, as its recovery from the pandemic lagged in recent months.

Tribune reporter Gregory Royal Pratt contributed.

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