Assignment 1: Theory presentation in pairs – 20 % of your grade. Deadline 15.9 for presentations during weeks 38, 39 and 40. Deadline 30.9 for presentations during weeks 41, 42 and 43. The pairs can choose among the following groups of topics.
16.9.2019 Competences needed in International Trade
16.9.2019 Documents and Contracts used in International Trade
23.9.2019 Export and import regulations
23.9.2019 Export of services
23.9.2019 Incoterms
24.9.2019 International Trade - pros and cons
24.9.2019 Payment methods in International Trade
30.9.2019 Responsible supply chain
30.9.2019 Risks in International Trade
30.9.2019 Role of analytics in International Sales
7.10.2019 Role of CSR in International Trade
7.10.2019 Role of digitalisation and AI in International Trade
7.10.2019 Role of geopolitics in International Trade
8.10.2019 Role of logistics in International Trade
8.10.2019 Role of online "trading platforms" (e.g. commodity markets, auctions and exchange places) in International Trade
14.10.2019 SMEs and International trade
14.10.2019 Supplier selection
21.10.2019 Transportation modes and routes
21.10.2019 Trends in International Trade
21.10.2019 Use of outsourcing and 3PL in International Trade
You may freely choose the “form” of your presentation - powerpoint, prezi etc. The length of the presentation should be max 30 minutes including the Kahoot or other chosen method for activating/measuring the gained knowledge of your fellow students. Then there is 15 minutes time for discussion and feedback.
The assessment is based on the following:
1) Content coverage
2) Presentation skills
3) Richness of sources
4) Explanation of concepts
5) Concrete examples/cases
6) Kahoot/other measuring
a. Others feedback 50-teacher 50
NB! If you are absent from more than one session (2-3 presentations) you need to write a 3 pages report (per missed presentation) of the presentation topic(s) you miss out on. If not, one missed presentation will lower the grade given in this pair theory assignment by ½ grade. Deadline: 25.10.2019.
Assignment 2: Logistics – individual application and analysis assignment – 10 % of your grade. Deadline: 22.9.2019.
ABC Ltd uses a reorder system in order to manage the raw material purchases. Define the optimal values for raw material inventory when having the following numbers for the chosen product:
- Price of the product 55 € / pc
- Order costs 1 750 € / order
- Demand 325 000 pcs / a
- Inventory costs 15 %
- Lead time 15 days
- Safety stock 2000 pcs
- Standard deviation in demand 100 pcs/ day
1. Calculate:
a) Economic Order Quantity
b) Economic Order Interval
c) Total costs
d) Reorder point
e) Orders / year
f) Inventory turnover
g) Throughput time
h) Service level
2. Explain:
1) Why is it important to know about the above-mentioned KPIs and the formulas related to optimal values in the area of procurement?
2) What conclusions can be drawn from your calculations. Please write shortly from the perspective of a purchasing manager what you would say to the CEO of ABC Ltd regarding your product.
3. Perform the ABC-analysis and answer the questions.
In addition you have been assigned to clean the inventory, i.e. you should remove unprofitable products. You have heard about ABC-analysis and decide to use it here in order to get support for your decisions. You use the following criteria:
· ABC-analysis based on profitability
· A 20 %, B 30 %, C 45 %, D 5 %
Below a list of the products. Which can be removed? What else do you need to take into consideration? You can’t fully rely on this type of analysis, or? Is there something the ABC-analysis doesn’t take into account that you should consider?
Product number Purchase price (/pcs) Sales price (/pcs) Sales (pcs/year)
101-001 135 € 138 € 3000
101-002 256 € 260 € 2530
101-003 478 € 495 € 100
101-004 172 € 190 € 550
101-005 894 € 928 € 300
101-006 743 € 745 € 3200
101-007 269 € 290 € 460
101-008 37 € 40 € 3000
101-009 683 € 690 € 1500
202-005 937 € 945 € 1200
202-006 1 500 € 1 502 € 670
202-007 2 643 € 2 650 € 850
202-008 3 982 € 3 990 € 950
202-009 2 653 € 2 680 € 450
202-010 984 € 1 000 € 320
202-011 3 100 € 3 110 € 1050
202-012 1 523 € 1 580 € 60
202-013 984 € 1 050 € 150
303-112 862 € 900 € 260
303-113 759 € 770 € 700
303-114 3 962 € 3 965 € 2750
303-115 745 € 765 € 270
303-116 5 280 € 5 300 € 150
303-117 4 573 € 4 585 € 700
303-118 2 444 € 2 555 € 105
303-119 1 525 € 1 537 € 650
303-120 2 674 € 2 690 € 500
303-121 1 672 € 1 720 € 260
303-122 1 839 € 1 900 € 130
303-123 7 345 € 7 800 € 20
Assignment 3: Exam – individual - 20 % of your grade. It will be an online Moodle exam (Open weeks 46-48 11.11-1.12) that consists of 2 parts:
- Part 1: 10 right/wrong questions, 10 questions linking statements to a larger concept & 10 questions where you choose the right concept from many alternatives for a given statement; right answer +1, wrong -0,5 no answer 0; 20 minutes time for this, five tries (the best counts). Altogether you can get 30 points from part 1
- Part 2: 2 essays (theory + application); 2 hours’ time; 2 tries (best counts). Altogether, you can get 15 points from part 2.
Assignment 4: International Trade assignment project – 40 % (market analysis part 40 % logistics analysis part 60 %) – checks 15.9 (market analysis part), 13.10 (logistics analysis part), semi-final report 15.11, final report 3.12, presentations 3.12 & 5.12 (for commissioners)
The aim for the export project is to present to the commissioner how the export arrangement of the products are taken care of in practice in order to secure a profitable and smooth process from the commission’s viewpoint taking into consideration culture and market-related issues as well.
The report is done during the whole semester (Autumn 2019). There are three compulsory consultations with the supervisor. One on the market analysis part 16 or 17.9, one on the logistics analysis part on 14 or 15.10 and one on the semi-final report during weeks 47 & 48 (18.11, 25.11 or 26.11).
Project description for international trade assignment subproject:
The joint MTG & RQD project consists of three parts: 1) Culture, 2) Market analysis and 3) Logistics analysis part. The Culture part (part 1) consists of issues one need to take into consideration when doing business with a foreign country. The focus is on cultural differences (Preferred style of Communication, Time Management, Decision making, Preferred Leadership styles, Preferred Social Frameworks, Work ethics etc.) and what this means in practice and is assessed only in the MTG (Mind the Gaps in International Business) module. This part is conducted during the classes or partly during the trips (P Group and NL Group) and guided by Antti.
The second part, Market Analysis, includes: SWOT analysis, PESTEL analysis, Competitor analysis, Market analysis (Market size (current and future), market trends, market growth rate, market profitability, industry cost structure, key success factors), Customer insights (interviews etc.) and Product, price and marketing communication adaptation needs. This part is assessed only in the (RQD) From Request for Quotation to Delivery module. This part is conducted during the classes or partly during the trip (only P Group) and guided by Katri.
In the Logistics analysis part (part 3), the students find the customs tariff for the product, checks for export and import regulations, suggest suitable transportation modes and route, price for the delivery (contact freight forwarding companies), suggest suitable Incoterms and payment terms + what it means in practice. They also clarify risks associated with the case and how to handle them, checks which are the required documents, agreements, and delivers other information that the company has asked for. The Logistics analysis part is assessed in the (RQD) From Request for Quotation to Delivery module. This part is conducted during the classes guided by Katri.
You will write two separate reports (dead line December 3) – one for the Culture part and one for market + logistics analysis parts. Both reports follow Haaga-Helia reporting guidelines and includes an abstract. The maximum length of the culture report is 10 pages (+ attachments) and for the market + logistics analysis report 20 pages (+ attachments). There should be an introduction part and a discussion/conclusions part with recommendations go or no go with justification. Please note, that the report should be realistic and possible to implement. The product should have potential on the market. It is also possible to conclude that there is no case for the export. If needed you can also export a trial order.
The groups (4-5 Students) has to summarize the main findings and present them using power point or prezi (December 3). The market and logistics analysis part will given December 3 and revised and commented versions are presented to the commissioners December 5. The culture part is only presented to the other students December 5. The length of the presentation should be max 20 min. for the market and logistics analysis and max. 10 minutes for the culture part.