In: Operations Management
(TEXT)
Assume you are the owner of a very large soybean farm in Argentina, a country located in South-Eastern South America. Soybean is a commodity which is traded globally. 70% of all soybeans are used as chicken and pig feed. It has been widely recognised as a very efficient source of protein and energy.
Another use for soybeans is splitting (or crushing) it up into soybean meal and soybean oil – 80% becomes the meal and 20% the oil. Much soybeans are grown in South America (~31% of world total in Brazil, ~18% in Argentina), and demand for the soybean, soybean meal and soybean oil is growing very fast in Asia (especially China).
One day, you received an unexpected and peculiar call from Zambia (a landlocked nation in Africa). The person over the line identified himself as a procurement officer of Livingstone International. He spoke fluent Spanish and asked if you can sell him two shipments of unprocessed soybeans. His request is large enough to clear out 80% of your annual harvest. The issue is you have never sold on the international front as you have always sold your harvest to the domestic merchants.
Question: What do you need to research about Zambia and Livingstone International in order to assess this new business opportunity for your soybean farm? What is your follow up action pertaining to the business offer from Livingstone International? [Hint: Please separate your research materials and your reflection/opinion in your answers in different paragraphs. You must indicate your final recommendation in the end. For this question, it is expected to be around 2 – 4 pages.]
Answer:-
Prior to signing any arrangement with Livingstone International, I'll without a doubt need to direct my own assessment and research in two classes:
1. As for Zambia
2. With Respect to Livingstone International
Presently, how about we see what we should center upon before proceeding to finalize this business opportunity.
1. Research and Assessment about Zambia
A. Current Political Regime:
Here, I should gather information on underneath potential inquiries…
- We have to initially think about the current, political system in Zambia. The amount they are open about doing business with international players?
- How much steadiness is there in Zambian government? Is there any ingoing political disturbance in the nation?
- If current government is favoring international trade with South American nations uncommonly Argentina?
- In conceivable mayhem against the current government, is the main resistance have any protests towards dealing with Argentina business players?
These are some conceivable assessment questions, for which we ought to have information ahead of time to have conclusion on the off chance that we can work together during current political circumstance.
B. Zambian Trade Policies
Here we have to concentrate on the conceivable trade relaxations and trade hindrances set up by Zambian Government. How about we see what our research should center here…
- Is Zambian Trade Policy liberal towards international trade?
- Is there any existing trade boundary which may stop us dealing with Livingstone International?
- Are there any odds where Zambian government is looking to force any trade boundary on international import?
- Is Soybean as a trade thing permitted to be imported in the Zambia?
Presently, how about we center around our future trading accomplice, Livingstone International.
2. Assessment With Respect to Livingstone International
A. Authenticity of Livingstone International as Business Unit
Here are some potential regions which we should think about organization before we participate in business dealing… .
- Who are its authors/advertisers? Is it true that they are known as individuals of right moral character in Zambian business showcase?
- Is Livingstone International a legitimate enlisted substance in Zambia?
- Is this organization involved in any illicit business or trade?
- Was this organization involved in any illicit businesses previously?
B. Financial Health and Track Record
- How is Livingstone International doing as far as capital accessibility?
- Is it ready to get out its duty in time looking at its past business dealings?
- Has it defaulted any of past installment with some other organization?
- what number financial debates would they say they are dealing with different business players?
Conclusion from above assessment/research:
Considering with answers of above potential inquiries from both the regions for example Zambia just as about Livingstone International, in the event that we see that all the appropriate responses are coming as positive ones or according to our desires, at that point we can continue towards finalizing manage Livingstone International for our Soybean trade.
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