Final Proposal

TO: Deborah K. Baird & Maria Vera
FROM: James Bentley
DATE: April 25, 2011
SUBJECT: Proposal to complete a market analysis on the classic automobile environment in Uruguay as well as a business plan to exploit said market.

STATEMENT OF THESIS AND PROJECT SUMMARY

This project will examine the classic automobile market in Uruguay in the form of a thorough market analysis with the purpose of determining the potential profitability of establishing an import and/or export business in relation with the U.S. classic automobile market. An initial business plan will be developed to address the concerns, questions and logistics that go into running a business of this magnitude.
In order to conduct the market analysis I will be examining resources from a variety of government departments including the Department of Transport, Department of Commerce, and the embassies of both countries. I will also be researching U.S. automakers production and exportation history in order to not only be proficient in my knowledge of the products I am dealing with but to understand the types and amounts of U.S. made vehicles that may be found in Uruguay.
I will also be analyzing the classic automobile market here in the United States in order to determine supply and demand in both nations. This will aid my business planning by allowing me to focus on specific brands, models, years, features, importing and/or exporting.
The business plan will be a result of the market analysis findings. The purpose of this project as stated previously is to conduct a market analysis of the classic automobile market of Uruguay to determine if a viable import/export business can be established, however in the event that the market analysis reveals that this is not in my best interest, the business plan will serve the purpose of laying the groundwork for a future business dealing with an alternate product or location in Latin America where a profitable import/export business can be established. While the specifics of the business plan will be different, much of the content will aid me in my career goals of working in international business specifically in Latin America.
The business plan outline will contain an executive summary, organizational plan, marketing plan, financial plan, and all pertinent supporting documents. These sections address issues such as management, legal, customs, financing, as well as providing strategy, and a wide array of analysis methods.

REVIEW OF LITERATURE

My interest in this project stems from the time that I have spent living in both Argentina and Uruguay. Because of this my personal experience is an important and invaluable source for this project. I will also depend on a variety of individuals who have spent time or currently live in Uruguay. My initial research has centered on literature dealing with starting an import/export business such as “Export Import. Everything you and your company need to know to compete in world markets”, in which the author covers a wide variety of issues dealing with customs, government regulations, terms of sale, shipping and documentation. It also provides sample forms, letters for contacting potential clients, culture and language considerations, and many resources and links. The author gives a “magic formula for successful importing” which will be very important in my business plan. The formula includes “know that you can sell the product at a profit…know that you can conform to all applicable laws and regulations without exception…have enough definite buyers for goods to at least break even” (27).
Another source that has been useful is “Start your own Import/Export business” which is targeted for individuals like myself attempting to start their own small import/export business. The author states “Since foreign trade is a field that is good for all countries, and all countries have a great deal at stake, there is an unusually rich array of resources for help in almost any situation” (182). This advice has led me to seek out these specific sources when encountering specific problems.
I have consulted a book called “Doing business in Uruguay” to understand the specific business environment that I will be dealing with there. Although this source does not focus directly with imports and exports, it provides details about how I should set up the Uruguayan side of my business. According to the author, “In general terms, government policy favors the reduction and eventual abolition of trade barriers” (13), “the government regards the development of the free market as a means of improving efficiency”, and “the industrial climate is based on the principle of free enterprise. Bureaucratic procedures have been reduced drastically in certain areas, such as foreign trade” (10). These statements have confirmed my previous knowledge that Uruguay is a positive country to deal with specifically when it comes to imports and exports and running a business.
Because of the nature of my project and the need for up-to-date information some of my most useful sources are government websites. One of particular importance is the customs and border patrol website. They are the government entity that regulates imports to the US. Most of the forms, fees, regulations and essential information can be found on this site as well as links to other resources for the government. Resources from this site have helped me narrow down the specific product that I would like to import based on regulations. The site states “As a general rule, motor vehicles less than 25 years old must comply with all applicable Federal Motor Vehicle Safety Standards (FMVSS) in order to be imported permanently into the United States.” And “The following passenger cars, light-duty trucks, heavy-duty engines and motorcycles are subject to federal emission standards: Gasoline-fueled cars and light-duty trucks originally manufactured after December 31, 1967 and diesel-fueled cars originally manufactured after December 31, 1974”. This information has led me to focus on classic vehicles in order to avoid these difficult regulations.
My main source for writing the business plan is “Anatomy of a Business Plan: The Step-by-Step Guide to Building a business and Securing Your Company’s Future” by Linda Pinson. According to Linda, “The business that fails to plan, plans to fail” (2). I am following this source as a guideline on how to outline my business plan and how to do the research to obtain the necessary information. It as well as other sources will also be useful in guiding my market analysis.
Others source which are not mentioned here will serve to obtain information about specific topics such as vehicle values, historical information, government laws and regulations, and business resources.


PRELIMINARY OUTLINE

I. Introduction and presentation of thesis

II. Classic automobile Market analysis of Uruguay and the United States
A. Uruguayan Market
1. Market research
2. Target market
B. United States Market
1. Market research
2. Target market
C. Analysis and conclusion

II. Business plan
A. Executive Summary
B. Organizational Plan
1. Summary description of business
2. Product description
3. Administrative plan
C. Marketing Plan
1. Summary of market analysis
2. Marketing strategy
3. Implementation of marketing strategy
D. Financial Plan
1. Summary of financial needs
2. Break-even analysis
E. Supporting documentation

IV. Conclusion

SCHEDULE FOR COMPLETION
Tas Completed by

Market Research (Uruguay) 5/21/2011
Market Research (USA) 6/4/2011
Market Analysis 6/18/2011
Business Plan Research 7/9/2011
Business Plan 7/16/2011
First Draft 7/30/2011
Second Draft 8/6/2011
Final Draft 8/13/211(assuming this is when the project is due)






WORKS CITED

Zodl, Joseph A. Export, Import; Everything you and your company need to know to compete in world markets. Cincinnati, Ohio: Betterway Books, 2002: 27

National Business Library. Start Your Own Import/ Export Business. San Diego, California: Pheiffer & Company, 1994: 182

Waterhouse, Price. Doing business in Uruguay. Montevideo, Uruguay: Price Waterhouse World Firm Services BV, 1995: 10-13

http://www.cbp.gov/

http://epa.gov/

Pinson, Linda. Anatomy of a Business Plan: the step-by-step guide to building your business and securing your company’s future. Tustin, California: Out Of Your Mind…And Into The MarketPlace, 2008: 12





BIBLIOGRAPHY

Armstrong, Gary and Kotler, Philip. Marketing, an introduction. Upper Saddle River, New Jersey: Pearson Education, Inc, 2009
This is my Marketing textbook from my business marketing class a year ago. I thought this book would be useful because an important part of my project is to successfully market and move my products once I have them here. I really liked this textbook and it will help me find my customers and represent my products correctly.

Beall, Anne E. Strategic Market Research. Bloomington, Indiana: iUniverse Star, 2010

Ernst & Young. Doing business in Chile. Santiago, Chile: Ernst and Young International, 1995

National Business Library. Start Your Own Import/ Export Business. San Diego, California: Pheiffer & Company, 1994
I got this book from the UVU library and while a little outdated is a good source because it provides the basic information to get started and targets the newbie like myself. It also is targeted to those who have no prior experience or even a college degree. It covers product selection, start up costs, legal and tax considerations, and common pitfalls. I am interested in this book because it explains the different roles that I could focus on.

Pinson, Linda. Anatomy of a Business Plan: the step-by-step guide to building your business and securing your company’s future. Tustin, California: Out Of Your Mind…And Into The MarketPlace, 2008


Waterhouse, Price. Doing business in Uruguay. Montevideo, Uruguay: Price Waterhouse World Firm Services BV, 1995
I got this from the UVU library. It gives specific information about doing business in Uruguay and includes local laws, history, business environment and taxation. This will be important since getting information about foreign countries is difficult.


Waterhouse, Price. Doing business in Paraguay. Asuncion, Paraguay: Price Waterhouse World Firm Services BV, 1996
I got this from the UVU library. It gives specific information about doing business in Paraguay and includes local laws, history, business environment and taxation. This will be important since getting information about foreign countries is difficult.


Waterhouse, Price. Doing business in Argentina. Buenos Aires, Argentina: Price Waterhouse World Firm Services BV, 1995
I got this from the UVU library. It gives specific information about doing business in Argentina and includes local laws, history, business environment and taxation. This will be important since getting information about foreign countries is difficult.

Wilson, Hugo. The Encyclopedia of the Motorcycle. New york, New York: Dorling Kindersley Publishing Inc., 1995

Zodl, Joseph A. Export, Import; Everything you and your company need to know to compete in world markets. Cincinnati, Ohio: Betterway Books, 2002
I got this from the UVU library. Although this book targets established businesses it gives practical solutions and examples that are useful. It has sample forms, letters for contacting potential clients, culture and language considerations, and many resources and links.



Exporting and Importing; Negotiating Global Markets. Amy Zuckerman and David Biederman
I got this book from the UVU library. This book is a good technical resource for my project because it goes into great depth about Customs procedures, all the costs associated with importing, and duty management and government forms. This book along with more up-to-date government websites will be an invaluable resource.
Start Your Own Import/ Export Business. National Business Library
I got this book from the UVU library and while a little outdated is a good source because it provides the basic information to get started and targets the newbie like myself. It also is targeted to those who have no prior experience or even a college degree. It covers product selection, start up costs, legal and tax considerations, and common pitfalls. I am interested in this book because it explains the different roles that I could focus on.
Export, Import; Everything you and your company need to know to compete in world markets. Joseph A. Zodl
I got this from the UVU library. Although this book targets established businesses it gives practical solutions and examples that are useful. It has sample forms, letters for contacting potential clients, culture and language considerations, and many resources and links.
Doing business in Uruguay. Price Waterhouse
I got this from the UVU library. It gives specific information about doing business in Uruguay and includes local laws, history, business environment and taxation. This will be important since getting information about foreign countries is difficult.
Doing business in Paraguay. Price Waterhouse
I got this from the UVU library. It gives specific information about doing business in Paraguay and includes local laws, history, business environment and taxation. This will be important since getting information about foreign countries is difficult.
Doing business in Argentina. Price Waterhouse
I got this from the UVU library. It gives specific information about doing business in Argentina and includes local laws, history, business environment and taxation. This will be important since getting information about foreign countries is difficult.
Doing business in Chile. Ernst & Young
I got this from the UVU library. It gives specific information about doing business in Chile and includes local laws, history, business environment and taxation. This will be important since getting information about foreign countries is difficult.
Marketing. Armstrong & Kotler
This is my Marketing textbook from my business marketing class a year ago. I thought this book would be useful because an important part of my project is to successfully market and move my products once I have them here. I really liked this textbook and it will help me find my customers and represent my products correctly.
The Encyclopedia of Classic Cars. Kevin Brazendale
This is a good reference guide so that I can get more familiar with classic and desired vehicles here in the US. It will be important that I can accurately identify vehicles and make sure that they are not replicas or not what the owners say they are.
The Encyclopedia of the Motorcycle. Hugo Wilson
Although I had not originally considered importing motorcycles I think it might be a good option considering their size, value and collectability. I need to do more research on the motorcycles that may be available in South America but I think this might be a good business opportunity.
D&B Export Guide: Uruguay. D&B
This is an e-document that has up-to-date information specific to exporting out of Uruguay. This document contains specific information that I will need to know about trade regulations, documentation, key contacts, and shipping. I also have the websites for other countries in South America however I am mainly focusing on Uruguay right now.
Import/Export for Dummies. John J. Capela
This is a good series of books that makes the topic more understandable. This covers a lot of the topics in the other books but in simple terms.
Websites:
http://www.cbp.gov/
This is the customs and border patrol website. They are the government entity that regulates imports to the US. Most of the forms and essential information can be found on this site as well as links to other resources for the government.
http://www.dot.gov/
This is the Department of Transportation website for the US. This site will help me know which vehicles I can import and how they can get through customs and be registered. They also set the rules for vehicle safety tests and regulations.
http://epa.gov/
This is the Environmental Protection Agency website. They regulate emission testing and controls over imported vehicles.
www.autorevival.com
This is a good resource with information about restoring vehicles. It also has good information about indentifying vehicles and parts. (Sometimes the best information about vehicles comes from blogs and personal experiences from others. I may or may not be doing my own restoration work but this website will be a good resource.
www.antiquecar.com
This is a site that has classifieds and vehicle values. This will help me determine the market value of each model and the trends in the market.
www.hemmings.com
This site is a well respected resource in the automotive community. It has classifieds, values, and links to buyers.
www.uruwashi.org
This is Uruguay’s embassy website here in the US. It has good resources for doing business in Uruguay and contacts. I also have the websites for other countries in South America however I am mainly focusing on Uruguay right now.
http://uruguay.visahq.com
This is the US embassy in Uruguay website. It has contact information and resources in Uruguay. I also have the websites for other countries in South America however I am mainly focusing on Uruguay right now.

www.buyusa.gov/uruguay/en/42.html
This is the department of commerce of Uruguay’s website. They help to promote US citizens in their efforts to engage in commerce in Uruguay. I also have the websites for other countries in South America however I am mainly focusing on Uruguay right now.