My emphasis: Business Management & Spanish
The problem that I would like to write about: After spending five years in Argentina and Uruguay I realized that there were many business opportunities there. Over the years and through the course of my studies here at UVU I came up with the idea of starting a business that imports products from these countries to the US for resale.
This is one reason why I choose the Integrated Studies program so that I could develop a good background and knowledge in the two areas that would aid me in this goal. This senior thesis is the perfect opportunity for me to develop a good business plan and overcome many of the challenges that I will face as I set up an importation network. The project will address every aspect of the business and be a guide for me to launch it after graduation.
The Business Plan: My initial plan is to start out small with a limited number of products primarily in Uruguay and Argentina and later expand my product line in other countries as well.
Products: Some of the products that seem like good options from Uruguay and Argentina include automobiles (classics and non-US models), auto parts (engines, transmissions, etc.), specialty food items, and other random goods (leather, art, and cheap goods for resale).
Advantages: These products were selected for specific reasons but other overall advantages exist such as the value of the dollar vs. foreign currency. It is amazing what can be purchased with very little cash in South America. The poor economy and third world status of these nations also aids my buying power and keeps prices low. I am also benefiting the sellers.
Automobiles are a good option for exportation for many reasons. Many of the same models that we in the US consider classics, rare, or very valuable are prevalent throughout these countries. Thousands were exported from the US and many of them are still being driven on the street and can be purchased for very cheap because they do not have the same status there. Also there is a very small collector market there so the prices have not been driven up.
Engines are a great option because recently the prices of gasoline became very expensive and most car owners swapped out their engines for diesel engines. This means that there are thousands of discarded gasoline engines that can be purchased for extremely cheap. Most of these are the same models that are found in common vehicles in the US. Other auto parts could be purchased new or used as well.
Many major manufacturers sell vehicles in South America that are not sold in the US. Some of the models are variations of models that are sold here and some are highly coveted discontinued US models (such as the Toyota FJ40 Land Cruiser which was still being built in Brazil until 2001).
Specialty food products from many South American countries are a good option because they are not available at least here in Utah. Many food products are desired by immigrants from these countries as well as people who have lived in these countries (LDS missionaries).
Many opportunities exist to import smaller random items such as art, leather, clothing, etc. because of their cheap cost and/or quality.
Challenges: Many challenges exist in making this business successful and even possible. First and foremost is the physical distance between locations. Travel to South America is very expensive and will have to be kept at a minimum through the use of technology. Shipping is complicated and expensive if large items are being sent. Customs and other laws and regulations regarding imports will have to be addressed to determine which products will be viable options. Finding trustworthy contacts in South America who can locate products and manage their end of the business could be difficult. Obviously the language barrier is a challenge as well as is the initial funding of the business. I also need to create a plan for how to distribute products once here in the US.
Conclusion: This project will require intense research as well as the use of the knowledge that I have gained through my Integrated Studies degree. This is a topic I am interested in on many levels including, Spanish language/culture, running my own business, and my love for cars and food.
