Industry analysis template powerpoint

Industry Analysis

Transcript: Threats 15th largest economy in the world Traditional metals for manufacturing (Steel, aluminum, brass) Trend toward plastics More durable and adaptable Rely on low global fuel prices for manufacturing Bioplastics Derived from biomass such as vegetable oil or corn starch instead of petroleum Contract Law & Enforcement 1.01 Trillion GDP (Republic of Korea) Joint-Ventures in General Preference of local control of JV operations with foreign entities Management control should be evaluated on three levels: shareholder equity representation on the board of directors active management (representative director and subordinate management) Korean board meetings require the physical presence of all JV members as well as a quorum of the directors. International Business Practicum Consulting Presentation Government Incentives World Data Bank, 2009 Annual revenue of more than $1 trillion Fragmented Industry Hundreds of niches Major products include: Plastic bags & bottles, plastic film and sheets, plastic pipe & foams, rubber hoses & tires Injection and compression molding are the principal methods of plastic processing There are both natural and synthetic rubbers Demand closely linked to the US economy Supply to OEMs, component parts Raw Material Price Fluctuations Produced with oil and natural gas Higher world oil prices make plastics more expensive Shortened Product Life Cycle The life of a new product from concept to market has decreased from years to months Quick and accurate turnaround on customer orders is critical for plastic companies to stay competitive Environmental Concerns OSHA regulations to protect workers Increased disposal regulations U.S.'s 7th largest trading partner Often acts as a 3PL, competing on performance Chemical manufacturing industry 10,000 U.S. companies $700 billion dollars domestically $4 trillion Taxation of Foreign Corporations Taxes only on income derived from within Korea No taxes on the liquidation income of a foreign corporation Same taxes and laws as a domestic company KORUS protection from double taxation Tax Base Calculated based upon yearly income - deductions for deficits & non-taxable income No restrictions on earning remittance Yearly documentation required Industry Analysis Grants or Subsidies to Foreign Investors Special industrial complexes to ease the opening of businesses Conditions of use (either): High-technology business Percentage of foreign ownership above 30% Incentives include: Exemption from or a discount on lease charges Financial subsidies for the development of industrial technology Industrial base fund support Tax Incentives Benefits of Foreign Investment Zones (FIZs) Exempted from corporate and income taxes for the first 5 years 50 percent reduction for 2 years thereafter Environmental Regulations Employment Laws Population48,754,657 (July 2011) Weaknesses Increasingly aggressive on combating pollution Ministry of the Environment Ratified United Nations Framework Convention on Climate Change in November 2002 Committed to cut greenhouse gas emissions between 2009-2013 Target to cut emissions by 30% by 2020 Corporate incentives for re-engineering processes to reduce greenhouse gas emission Loans at subsidized interest rates Technical assistance Exemptions from government inspections and reporting requirements Source: Doing Business Overall Conclusion Relationship with A-sung Long-term relationship with potential Korean JV Current contract with HP Currently exporting to Israel Urethane- the material of choice Extraordinary physical and mechanical properties Flexibility, and easily customizable Longer part life fewer replacements, reduced labor costs, less equipment downtime Superior Quality in Manufacturing Dr. Chang's proprietary knowledge Company patents Manufacturers are often located close to the OEM "We will push plans to give special treatment to foreigners coming again to work in the country so small and medium-sized companies can use skilled foreign manpower," Labor Minister Lee Cha-pel Source: U.S. Department of State Plastics are an easy substitute Replace traditional metal component parts High-temperature, high-performance Increasing demand in: Packaging and container market Construction industry Medical supplies Asia Electronics market New ways to utilize plastics over silicones Bioplastics Derived from biomass such as vegetable oil Potential to address environmental concerns Increased response and support of IP right through KORUS Supported protection and commercialization of IP Strengthened global cooperation to protect and support foreign IP companies Rogue Employee Laws Covenant not to compete Bonded employees Korean Intellectual Property Office (KIPO) Supports Korean patents through a formal registration process High investment in capital equipment Equipment for specialization is expensive Average firm is 65.3% leveraged with small firms 82.8% leveraged Specialized production Patents limit competition for specialized products High quality

Industry Analysis Template Powerpoint

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