3) Please project total sales for the M-Box in United Kingdom over each of the coming three years incorporate these estimated retail price points in your projections:
• Base systems: $100
• Accessories:
o Extra Controllers: $30
o Online Access Kit: $50
o DVD Player Kit: $40
o Monthly rate for online multiplayer capability: $10/mo.
NOTE: Give projections in both U.S. dollars and the local currency based on current exchange rates (many free web-based currency converters are available).
4) Please discuss the operational concerns surrounding the introduction of the M-Box in United Kingdom . Identify and examine the practical issues, advantages, and disadvantages that may be associated with each of the following activities:
• Engaging in local sales efforts
• Undertaking local manufacturing operations
• Management by personnel from home or host nation
Conduct each of the following activities as part of your analysis:
• Visit an online travel agency (such as Expedia or Travelocity) and calculate the cost of a typical, three-night business trip to the capital city of United Kingdom . At a minimum, consider a round-trip airfare in coach class, a three-night hotel stay, a four-day rental car (if available), token gifts for local contacts, and entertainment expenses.
• Access a shipping Website (such as UPS or FedEx) and calculate the cost of sending a four-foot-square crate of M-Boxes weighing 100 pounds to the capital city of Price every available option, from the slowest to the quickest means of shipment.
5) Please consider the following list of entry modes for introducing the M-Box in " + globals.CountryName + ". For each viable option, identify its advantages and disadvantages. Recommend the most appropriate entry mode for the M-Box in United Kingdom at this time. Explain the reasons for your recommendation.
• Exporting
• Countertrade
• Turnkey project
• Management contract
• Licensing
• Franchising
• Contract manufacturing
• Joint venture
Sample Solution