Economic assessment of select export operations using cost-effectiveness analysis : The case of the internationalization of a small Finnish enterprise
Gerona Ocumen, Dianne Claire (2017)
Gerona Ocumen, Dianne Claire
Yrkeshögskolan Arcada
2017
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2017052910720
https://urn.fi/URN:NBN:fi:amk-2017052910720
Tiivistelmä
Every investment decision is critical, and for a small enterprise such as Myontec, the importance of allocating its limited resources to the most cost-effective export operation mode is crucial for the business to thrive. The aim of this thesis is to present a method based on cost-effectiveness analysis (CEA) for evaluating the performance of three different export operation modes—indirect export, direct–agent and direct–distributor—available to Myontec’s market entry to Sweden. The method is based on the calculation of CEA, adapted for assessment of export operations, which relates the relevant export costs of each export mode to a non-monetary outcome, i.e. export sales volume. This study was guided by the following research questions: (1) how can cost-effectiveness analysis (CEA) be
utilized as an analysis tool to measure export performance?; (2) what are the different costs associated with exporting and which cost categories are relevant for Myontec’s export operations to Sweden?; and (3) which export operation mode
(indirect export, direct–agent or direct–distributor) could generate a predetermined export sales volume (15 MBody Pro packages) for Myontec at least cost? The case study presented effectively illustrated a methodical process in which cost-effectiveness analysis (CEA) was utilized as a tool to assess export performance, at the same time identified and categorized respective export costs based on the collected data. It was concluded with a straightforward answer to the final research question that indirect export operations is the most cost-effective mode for Myontec to enter the Swedish market, assuming all three alternatives are able to produce the same outcomes. While the objective was to provide a practical recommendation, it is important to note that the results generated in the analysis are exclusively based on the data provided by Myontec, which are largely estimates. The theoretical foundations of this thesis were based on the Uppsala model of process theory and network approach and the cost types (CBA and CEA).
utilized as an analysis tool to measure export performance?; (2) what are the different costs associated with exporting and which cost categories are relevant for Myontec’s export operations to Sweden?; and (3) which export operation mode
(indirect export, direct–agent or direct–distributor) could generate a predetermined export sales volume (15 MBody Pro packages) for Myontec at least cost? The case study presented effectively illustrated a methodical process in which cost-effectiveness analysis (CEA) was utilized as a tool to assess export performance, at the same time identified and categorized respective export costs based on the collected data. It was concluded with a straightforward answer to the final research question that indirect export operations is the most cost-effective mode for Myontec to enter the Swedish market, assuming all three alternatives are able to produce the same outcomes. While the objective was to provide a practical recommendation, it is important to note that the results generated in the analysis are exclusively based on the data provided by Myontec, which are largely estimates. The theoretical foundations of this thesis were based on the Uppsala model of process theory and network approach and the cost types (CBA and CEA).