write your own concept paper FOR your team company, which includes business model, home country, and host country. A sample can be found on Canvas. Students are required to write at least 600 words.
Here is our company’s information:
Our company is committed to producing all kinds of cars that use solar energy. Our vehicles do not use the limited resources of the earth, only use solar energy, a clean, renewable resource, which is not only environmentally friendly but also affordable for all consumers. We know that the amount of solar energy we can collect varies from place to place, so we will produce different solar cars based on these conditions to ensure that every country can use them.
MNE Team Concept
Title: MNE Concept
1. Name of Imaginary Company: FIX SMARTPHONE NOW
2. Business Model (How will you operate the company and be profiable?)
We focus on repairs of all major smartphone brands. We do not sell any products or accessories, only
smartphone repair services with a 24-hour turnaround time. We stock the most common repair parts
for each major brand. Our shops are small to keep rental costs down, but each contains state-of-art
smartphone diagnostics equipment and trained technicians. We strive to attract and serve walk-in
traffic. Each smartphone repair service is priced based on two components, a basic diagnostic charge
to determine what is wrong with the smartphone and second the cost of the repair.
3. Home Country and Background: (Background of the company in its home country, the U.S.)
We started FIX SMART PHONE NOW in a small repair shop in a San Jose, CA shopping center in
2008 when smartphones were reaching a strong period of growth and some customers were wanting to
repair their existing smartphones rather than upgrade to the next more expensive model. We found this
to be a growing market niche. The company experienced rapid growth in the larger Bay Area,
including Sacramento and expanded to Los Angeles and San Diego. Within 5 years we had repair
shops in all major cities in the U.S. with annual sales of over $30 million and healthy profits. This
level of financial success has given us the resources and experience to explore expansion of the
company by setting up operations in another country. Over the last 3 three years we have been
evaluating various countries for a Foreign Direct Investment, evaluating the benefits, costs, and risks
of each one.
4. Host Country and Rationale
We have decided on Turkey as our host country and plan to start our first FIX SMARTPHONE NOW
shop in Istanbul, the capital of Turkey with a population of over 15 million citizens. Here are our
reasons for selection of Turkey as our host country:
a) Imbedded in the ethic and culture of our company is respect for all people. This has been
ingrained in us from our beginning in Silicon Valley where over 42% of people are born in
another country. We feel very comfortable in adjusting to a countryâ€™s culture and its many
subcultures, in particular in Turkey that has a largely Islamic religion and culture.
b) Our costs for skilled technician labor and shop rental space will be significantly lower in
Turkey than in many other countries.
c) Many U.S. companies and those of other Western countries shy away from Islamic countries,
like Turkey for fear of not understanding the culture or being faced with anti-American
sentiments. We are confident we can adapt our business practices to the largely Islamic culture
in Turkey and thus have a first-mover advantage, if not an early mover advantage in the
rapidly growing smartphone repair market.
d) While Turkey is largely an Islamic country, it has many characteristics of Western Capitalism
and tends to welcome entrepreneurial enterprises.
e) Finally, Turkey has applied for membership in the European Union but has been denied entry
over human rights concerns. We believe that the odds are good that over the next several years
that Turkey will make the necessary reforms and be allowed entry into the European Union,
thus opening up a huge market for FIX SMARTPHONE NOW.
5. What the team intends to learn from its project.
None of the members of the team have ever lived in or visited Turkey. This project is an opportunity
for us to both learn about the rich heritage and culture of Turkey but also how to establish and operate
a U.S. company in an Islamic country whose culture straddles both the East and the West.