Based on the surge in the growth of skiing, combined with a growing middle class, there are new opportunities for new ski destinations and, subsequently, resort developments in new markets. After the Sochi Olympics, investors were amazed at what could be accomplished with vision, and money. New resorts in new locations will mean contracts for the best suppliers. This will include providing new skis, bindings, boots and poles to new resorts for use in their ski rentals, which is very lucrative for the resorts. It has been only a year since you landed your dream job at Rocket Skis and Equipment ltd., based in Montreal. Rocket Ski’s reputation (and a high-level personal connection) has resulted in the company being granted a large, exclusive contract to supply gear for the newest resort being built in UNITED STATE Fantastic!

Rocket Skis will need to produce for shipment:

- 500 sets of 3 sizes of skis each - 170, 180 and 190 cm, worth about $400 Can. per pair
- 300 sets of 5 sizes of ski boots – sizes 8, 9, 10, 11 and 12, priced $300 Can. per pair
- 1500 sets of poles - $40 Can. per pair
- 1500 sets of bindings - $125 Can. per pair

But now, the Senior Management Team is trying to figure out how to get the products over there; they want to “provide what’s wanted, where it’s wanted, exactly when it’s wanted”. But they are not sure what is required to ship their valuable cargo from Montreal to the buyer’s resort. And then they noticed you at your new desk, recently hired to advise on supply chain management, especially logistics.

Details:
You have been asked to prepare a detailed logistics and shipping plan for the Rocket Ski Management team, which is to be submitted to the CEO, Harold Wilson. This detailed report must also include information on the country, addressing the following requirements as outlined below:

 Country Background:

Provide a description of the target country that you have been asked to investigate, and outline why it is an appropriate market for the selling of your company’s ski products. Consider factors within the country that will have an impact on the company’s ability to do business there.
 Economic Profile of the Country
 Business climate - business customs & practices
 Economic information – currency (stability), disposable income
 Transportation and telecommunications infrastructure

 Political, Legal & Cultural Impacts:

Outline the environmental factors that could influence the conduct of international business (only those relating directly to your product):
Characteristics should include:
 Political stability
 Religion & culture
 Language
 Legal system (as it applies to doing business in the country & intellectual property rights

 Regulatory Requirements:

This section should describe any regulatory factors that could influence your ability to export your product.
Characteristics should include:
 Effect of tariffs, customs procedures
 Import/export regulations
 Packaging/labelling regulations
 Permits, approvals &/or certifications required
 Health, safety, technical or environmental regulations
 Quality Assurance

 Logistics Rationale:

Address the shipping issues and look at the type of transportation to be used.
Address the physical requirements of the product (office or warehouse space in target country).
Consider:
 Shipping method (rail, road, ship, air) & terms.
 Packaging & labelling requirements.
 Outside resources (freight forwarders, customs brokers).
 Warehousing requirements.
 Draft/Completed Bill of Lading
 Draft/Completed Commercial Invoice
 Draft/Completed Pro Forma Invoice
 Packing List
 Certificate of Origin
 Completed B-13 Export Declaration

Extra Request:
As an extra ‘challenge’, it appears that the resort owner, an old ski chum of the CEO, is a bit short on cash due to cost overruns during construction. He also owns a large paint factory in the closest port to the ski hill, and has strongly suggested exchanging 95,000 gallons of paint in exchange for the skis and equipment. The paint cans would be transported at Rocket Ski’s expense to the Port of Montreal. The CEO figures he could get $18/gallon for the product, and thinks he could readily make a deal with Canadian Tire. The CEO bumps into you in the elevator on his way to lunch, and after you re-introduce yourself, he asks that you prepare a quick assessment of the issues of importing the paint cans, including business risk, as a separate memo.

Answer rating: 100% (QA)

ANSWER Country Background The target country is the United States which is an appropriate market for the selling of Rocket Skis products for several reasons The United States has a large and growing m... View the full answer