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Publication Date: August 25, 2021
DOI:10.14738/abr.98.10785. Wood, V. R. (2021). Linking Public Institutions of Higher Education (Business Schools), State Trade Agencies and Private Enterprise:
A Model and Method for Scaling Global Trade. Archives of Business Research, 9(8). 263-274.
Services for Science and Education – United Kingdom
Linking Public Institutions of Higher Education (Business
Schools), State Trade Agencies and Private Enterprise: A Model
and Method for Scaling Global Trade
Van R. Wood (Ph.D.)
Philip Morris Endowed Chair in International Business
Director-VCU Center for International Business Advancement(CIBA)
Professor of Marketing
Virginia Commonwealth University
School of Business - Snead Hall
ABSTRACT
In 2015, the Governor of the Commonwealth of Virginia, Mr. Terry McAuliffe,
accepted the advice of companies that were located in Virginia who said they could
use state support to export their goods and services. From this discussion, a the
Virginia International Trade Alliance (VITAL) was created to help those companies
expand and succeed in the international marketplace (see -
https://augustafreepress.com/governor-mcauliffe-announces-creation-of- virginia-international-trade-alliance/ ) This initiative is now managed by Virginia’s
Department of Commerce (through its economic development agency, known as the
Virginia Economic Development Partnership - VCDP). Over the last 5 years, in
partnership with Virginia private businesses, the state’s Chamber of Commerce, and
Virginia’s public institutions of higher education, the program has created public- private partnerships that benefit – 1) large, medium and small companies (with
strategic access to global markets), 2) public universities (particularly participating
business schools that are educating the next generation of savvy international
business managers), and 3) Virginia itself (with more tax revenues realized from
enhance international trade, more jobs related to such trade, and more awareness
of the Virginia “brand” around the world, as traded goods and services from Virginia
become better known and appreciated). In short, meaningful and well thought out
public-private partnerships have led to “win-win” realities for all involved. Virginia
Commonwealth University School of Business (VCU-SB) has participated in this
program (along with 9 other public Virginia universities) since the inception of
VITAL, and to-date the VCU-SB has undertaken over 25 graduate business student
VITAL projects (see - https://business.vcu.edu/centers-institutes-and-labs/center- for-international-business-advancement/ ). Each project has focused on analyzing
and selecting international markets for private Virginia companies, and advising
them with respect to marketing strategies in promising global markets. This has all
taken place, while also educating VCU-SB’s participating graduate students on the
nuances of global market analysis, and strategies and management practices
related to global business success. This conceptual paper represents an overview of
how VITAL projects are selected, researched and completed. The paper provides
series of figures to highlight the theory, practice and necessary steps related to
VITAL’s success. The paper concludes with a call for other states and other countries
to create their own form of VITAL (in general, labeled Vibrant International Trade
Alliances) and to extend the underlying partnerships that this model represents to
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like-minded entities around the world. The overall objective is to develop a global
network of public/private linkages to scale global trade even further. We begin with
a brief discussion of the motivating force for the VITAL model, namely
“globalization.”
GLOBALIZATION – THE FORCE BEHIND VITAL
To provide the context for the focus of this paper, a brief look at “globalization,” including what
it is and what it means is useful. Modern globalization has been described as a “ force” that has
ignited global connectivity among nations, societies, cultures and trade at a level rarely seen in
human history. For business, particularly private, for-profit business, this force and its effects
has been and continues to be substantial (Friedman 1999, 2005; National Geographic
December 2019, Wood, et. al., 2019). And despite the setbacks driven by the Coronavirus
pandemic, which, by some estimates, has negatively impact global economic growth by 2.4%
during 2020, a growing consensus is that a recovery (albeit with altered economic
opportunities and challenges) will commence once the spread of the disease is brought under
control (https://medicalnewstoday.com ; Soergel 2020)
Between 1989 and late 2019, the world’s GDP (Gross Domestic Product), driven considerably
by global trade, rose from approximately $21 trillion to approximately $92 trillion, with the
emerging markets of China, India and Brazil joining the developed markets of the USA, Japan,
Germany, United Kingdom, France, Italy and Canada in the top 10 countries by GDP worldwide
(International Monetary Fund: World Economic Outlook 2019). The private enterprises that
caught the wave of this force benefited greatly (Wood, et.al., 2017; Wood, Franzak and Pitta
2019).
Globalization has become the “super-story” of our time. With this has come the willingness of
organizations of all sorts (for profit, not-for-profit, MNCs, SMEs, NGOs, etc.), to venture into the
far reaches of the planet to explore markets, secure supply chain alternatives, and benefit from
and also aid those markets said to be at the broad “bottom of the population pyramid” - those
which would not have been considered viable markets in the past (Pralahad 2004; The
Economist 2010; Wood 2018). Clearly, global trade is and will continue to be a driver of
development and wealth creation around the world. For many observers, it is apparent that all
companies, states and institutions of higher education should be exploring how they can
become a bigger part of the globalization phenomena and actively benefit from it potential
bounty (Wood and Gillpatrick 2015). Enter the Vibrant International Trade Alliance (VITAL)
model. To further elaborate, the following discussion and corresponding set of figures is
presented to explain a process that may lead to enhanced global trade guided by the VITAL
model.
VITAL - A Model for Scaling Global Trade Through Government Supported Agencies,
Public Universities and Participating Private Enterprise
Most governments (be they at the federal, state or county level), offer some support in one form
or another to business organizations wishing to explore and possibly enter international
markets (Whipple and Frankel, 2001). Many of these offers of support represent services from
poorly funded agencies that themselves might not have the backgrounds or the personnel to
truly make an impact on private business success in the international arena (Moen and Servais,
2002). However, most if not all countries and states do support public institutions of higher
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Wood, V. R. (2021). Linking Public Institutions of Higher Education (Business Schools), State Trade Agencies and Private Enterprise: A Model and
Method for Scaling Global Trade. Archives of Business Research, 9(8). 263-274.
URL: http://dx.doi.org/10.14738/abr.98.10785
education where a wealth of knowledge and a thirst for opportunity to apply such knowledge
exists. Linking 1) government agencies with international trade responsibilities, 2) public
institutions of higher education and 3) private business has proven to be a valuable mechanism
for global trade enhancement (https://augustafreepress.com/governor-mcauliffe-announces- creation-of-virginia-international-trade-alliance/ ).
Figure # 1 details the VITAL model (Vibrant International Trade Alliance) as first presented by
Wood, et.al. (2019). In short, the VITAL model represents a research and professional alliance
created to bring state supported trade agencies together with state supported public
institutions of higher education for purposes of private business growth in the globalized
business world. As shown, and as elaborated earlier in the literature, the model theorizes a
series of antecedents, and moderators to arrive at international success for government
agencies charged with enhancing international trade and investment (GAITIs), public
institutions of higher education (PIHEs) and private enterprises (PIs). It also posits that
participating university students, by participating in at VITAL research undertaking, gain the
needed knowhow to become confident future international business managers. Finally, the
model theorizes that the sum of these parts also results in enhances international brands of all
participants (private enterprises, public institutions of higher education and states as a whole).
How are such alliances created?
Memorandum of Understanding (MOUs) Between Government Agencies Responsible for
International Trade (GAITI) and Public Institutions Higher Education (PIHE)
Once a Vibrate International Trade Alliance (VITAL) is authorized by a sanctioned state
authority (again see the VITAL model shown in Figure #1), the next step is the creation of a
Memorandum of Understanding (MOU) that formally links a government agency charged with
enhancing international trade and investments (GAITI) and a public institution of higher
education (PIHE) charged with educating the next generation of globally competitive business
leaders. Figure # 2 depicts an example of MOU that may be utilized by any authorized state
agency wanting to create a VITAL project with an approved university. As shown, the MOU lays
out the responsibilities and rewards for participating universities and other details
surrounding the agreement. As the process continues, next question becomes - what procedure
guide the actual approval and scope of research of a VITAL project?
Guidelines for Qualifying and Selecting Participating Private Enterprises (PE) to be the
Focus of VITAL Research Projects
Figure # 3 lists the requirements that private companies (known as ‘clients”) must meet in
order to be considered for a VITAL project. As shown, four requirements are to be met in this
regard, including – 1) the client’s current readiness to export, 2) the client’s length of time in
business, 3) the level of the client’s current sales, and 4) the number of current employees
working for the client. These requirements are meant to ensure that all participating clients
have the necessary background and track record to more fully realize the trade potential that
student researchers will be recommending. Clearly, additional requirements can be added to
this list as required by participants.
Once these requirements are established an “application” and “scope of work” document is then
submitted by the public institutions of higher education representative (typically a university
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business professor). Figures # 4 and # 5 represent examples of a VITAL “application” and
“scope of work” documents utilized by the Virginia Economic Development Partnership (VEDP)
and participating Virginia universities to arrive at an approved VITAL “client.” Figure # 4
focuses on general information on potential VITAL clients, and asks for such companies current
involvement with international trade. As shown, the Vital Scope of Research Form (Figure # 5),
focuses on identifying the participating university, primary contact there-in, participating
students and professors, the project’s expected completion date and again, participating
company information. It also calls for the identification of research tools (databases) and
research methods (secondary and primary) to be incorporated into the project. Finally,
signatures of participating authorities (from the university, private company and state agency)
are secured.
Following a companies’ approval as a VITAL “client,” that actual global market research is
undertaken, again typically guided by a professor overseeing a team of graduate business
students. A key consideration at this stage of the process is - what initial guidelines should be
provided to ensure the research undertaken is properly focused and results in useable insights
and recommendations?
Initial Guidelines for Researching Promising Global Market for a VITAL Approval
“Client.”
Figure # 6 depicts a general set of initial instructions provide to the student research team
responsible for finding promising international markets for an approved client. Such
instructions aid each student research team in fully understanding their client’s focus and
competitiveness and why their assigned client might be successful in specific world markets.
Each team must fully grasp their client’s value proposition, their strength and weaknesses and
the global business environment that potentially bodes well (or presents challenges) for their
client in the global business arena.
Once a student team’s understanding of a “client’s focus and competitiveness” is grasped, the
next step in the process becomes – how does the research team arrive at the most promising
international markets and its related recommendations for moving forward? The answer starts
with the use of world-class data-bases.
Data-Bases for VITAL Research – Where is the information?
Figure #7 shows some of the world-class data-bases available at Virginia Commonwealth
University (VCU) utilized by student researchers focusing on global markets of promise for an
approved VITAL client. These data-bases are becoming more common at research focused
universities and can often be shared with partnership universities around the world. A wealth
of information is contained in these sources of information, and any international business
student should not consider him or herself fully educated without being exposed to them and
having an opportunities to use them in a “real world” application such as a VITAL project.
Information contained in such data-bases, including an international market’s history,
economic and political conditions, in-depth country reports, specific industry analysis,
competitor analysis and statistical links and other indicators of global business potential, to
name but a few is invaluable to VITAL type-research being undertaken for by the student team.
The insights coming from these and other data-bases directly effects the ultimate final report -
written and presented - to the client.
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Wood, V. R. (2021). Linking Public Institutions of Higher Education (Business Schools), State Trade Agencies and Private Enterprise: A Model and
Method for Scaling Global Trade. Archives of Business Research, 9(8). 263-274.
URL: http://dx.doi.org/10.14738/abr.98.10785
Once the full scope and breadth of a VITAL study has been concluded the next important issue
in this process is - what might the report to any given client and the conclusions of such a report
look like? Figures # 8 and # 9 are provided as a general global trade report template and visual
depiction of final recommendations of international markets of promise. The figures are offered
as examples for any student research teams focusing on any client seeking insights into
international markets of promise.
GLOBAL TRADE REPORT TEMPLATE
Figure #8 depicts a typical table of contents that a given VITAL report might look like. While
variance on this content structure will be used, depending on the research objectives and client
of focus, the final report of all past VITAL studies overseen by the author has more or less
followed this structure. Advice given to participating student team, based on this structure
include – a) the “executive summary” must be compelling and thus enhance the client’s desire
to read the full report, b) the “introduction” must show the full scope and purpose on the
research with which the student team has been charged, c) the” company overview” must
convey that the team full understands the clients reason for being, its value proposition and
why the client is particularly suited for international success, d) the “SWOT analysis” (strengths,
weaknesses, opportunities and threats) builds on the company overview and details the full
array of positive and negative realities facing the client as it contemplates international market
expansion, e) the methodologies for “determining and ranking promising international
markets” and for “determining and ranking promising strategic alliances” detail the models,
processes, methods and dimensions used by the team to arrive at both the recommended
international markets and the recommend international partners that represent the ultimate
core value of the research undertaken, f) the “analysis results” represents the research
recommendations and contains a compelling synopsis of why these recommendations will
result in international business success for the client, g) “international marketing plan going
forward” presents the clients with next-step options in its global business journey (here the
controllable variable – produce, place, price and promotion options are details for each
recommended international market), h) the “final recommendations and future research”
sections of the team report presents a focused overview of the research and recommendations
as a whole and suggests addition areas where further information of value might be needed,
and finally i) a full set of “appendices” (tables, graphs, etc.) derived from the team research and
all “references” used in the research are provided.
Figure 9 depicts perhaps the most compelling figure (located in the report appendices) that
should be prominently displayed and elaborated upon in the competed research and final
presentation. It represents a parsimonious visualization of how the most promising
international market compare to each other, and which of these markets are the top contenders
for further consideration and possible entry by the client. This figure is based on complex set
of variables (e.g., market potential, political considerations, legal dimensions, economic,
infrastructure actualities, cultural considerations, etc.), measures of those valuable and
modeling considerations that together allow the research team to arrive at each international
markets relative standing on “country attractiveness” and “competitive strengths” dimensions.
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CONCLUSION – SCALING THE VITAL MODEL WITH INTERNATIONAL PARTNERS
The Vibrant International Trade Alliance Model (VITAL) represents a proven means by which
international trade can be scaled up through the partnering of institutions of higher education
(particularly business schools within those institutions), state trade agencies and private
enterprise. As elaborated in this paper, if properly developed and fully supported by all
involved, VITAL can result in “win-win” scenarios for each of the key stakeholders (higher
education and participating students, states in general and private enterprise). This paper has
attempted to more fully detail the necessary consideration and steps involved in the creation
of successful VITAL partnership than previously discussed in the literature.
The next step in the evolution of this model is the formation of Global Vibrant International
Trade Alliances (G-VITALs), involving the partnering of public institutions of higher education,
government sponsored trade agencies and private enterprise in and between representatives
around the world (e.g., the U.S., Latin America, Africa, Asia, Europe, etc.). By leveraging a
broader array of such potential partners into an even great network of relevant, collaborating
alliances the scale and benefits of global trade can only be further realized.
References
Friedman, Thomas L. (1999). The Lexis and the Olive Tree. Farrar, Straus and Girous, New York, New York.
Friedman, T. L. (2005). The world is flat: A brief history of the twenty-first century. New York: Farrar, Straus and
Giroux.
https://augustafreepress.com/governor-mcauliffe-announces-creation-of-virginia-international-trade-alliance/
https://business.vcu.edu/centers-institutes-and-labs/center-for-international-business-advancement/
https://medicalnewstoday.com
International Monetary Fund (2019), World Economic Outlook (April),
https://www.imf.org/en/Publications/WEO/Issues/2019/10/01/world-economic-outlook-october-2019
Moen, O. and P. Servais. (2002). “Born Global or Gradual Global? Examining the Export Behavior of Small and
Medium –Sized Enterprises,” Journal of International Marketing, 10 (3), 49-72.
National Geographic December 2019 – “Effects of Economic Globalization,
https://www.nationalgeographic.org/article/effects-economic-globalization/9th-grade/
Prahalad, C.K. (2004) The Fortune at the Bottom of the Pyramid: Eradicating Poverty through Profits (Upper
Saddle River, NJ: Wharton School Publishing).
Soergel, Andrew (2020), “Pandemic Raise Worries Over Global Trade’s Future,” U.S. News and World Report,
(April 10), https://www.usnews.com/news/best-countries/articles/2020-04-10/coronavirus-outbreak-throws- future-of-global-trade-into-question.
The Economist (April 24, 2010), "The guru of the bottom of the pyramid",
https://www.economist.com/business/2010/04/22/the-guru-of-the-bottom-of-the-pyramid.
Whipple, Judith M. and Robert Frankel (2001), “Strategic Alliance Success Factors.” Journal of Supply Chain
Management,” 36, (3), (Summer), 21- 28.
Wood, Van R. (2018), “Under-Served, Under-Nourished and Under- Employed: Understanding and Improving the
Lives of the World’s Poorer Three Billion People,” Journal of Economics and Public Finance, Vol. 4 No. 4. 340-351.
Wood, Van R., Whitney Harrison and Jesse Myrich (2017), “Attractiveness of Global Markets: A Case Study on
How Businesses’ Analyze and Select International Markets as Export Targets,” Globalization at a Crossroads, R.
Ajami and J. Goddard, 4th ed., (Routtledge) - Fall 2017.
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Method for Scaling Global Trade. Archives of Business Research, 9(8). 263-274.
URL: http://dx.doi.org/10.14738/abr.98.10785
Wood, Van R. and Tom Gillpatrick (2015), “U.S. University Partnerships with Big Emerging Markets: Creating
Student Opportunities and Future Global Business Managers in the Era of Globalization,” The Journal of Human
Resource and Human Learning, vol. 11, no 1 (June 2015), 35 – 42.
Wood, Van R., Frank Franzak and Dennis A. Pitta (2019), “ Fostering Global Entrepreneurship and Business
Development in Latin America Using Government, Public Universities and Private SME Partnerships: The
Vibrant International Trade Alliance (VITAL) Model,” Journal of Economics and Public Finance, vol. 5, no. 4., 473
– 489.
FIGURE # 1: A CONCEPTUAL MODEL OF VITALS (VIBRANT INTERNATIONAL TRADE
ALLIANCES)
bringing together - 1) expertise from government agencies charged with enhancing
international trade and investment (GAITI), 2) public institutions of higher education (PIHE)
charged with educating the next generation of globally competitive business leaders and 3)
private enterprise (PE) seeking real growth in the globalized business environment.
FIGURE # 2: MEMORANDUM OF UNDERSTANDING
This memorandum of understanding is made as of July 1, 20xx by and between UNIVERSITY
ABC, hereinafter referred to as “ABC”, and the STATE ECONOMIC DEVELOPMENT AUTHORITY,
hereinafter referred to as “SEDA”. WHEREAS, SEDA and University ABC desire to increase
international trade, which will lead to increased job creation and economic diversification in
the state, and educate the next generation of competent global trade managers-NOW,
THEREFORE, SEDA and University ABC agree as follows:
1. University ABC will identify and recruit companies to participate in the VITAL program.
Target companies will be those that have international business as a key corporate
strategy and can be prepared for future international sales.
2. To be accepted into the VITAL program, a company must complete a VITAL Application
and the VITAL Application must be approved by SEDA.
3. University ABC will provide companies with customized business plans and market
research to improve their international trade readiness and/or performance.
4. University ABC will submit a scope of work to SEDA for approval of each company
project.
5. University ABC will receive a stipend of $XYZ from SEDA for each of the companies that
participate in the VITAL program.
6. This Memorandum of Understanding can only be amended or modified by a writing
signed by both parties hereto.
7. This Memorandum of Understanding is effective through June 30, 20??.
WITNESS the following signatures and seals, all duly authorized, effective as of the date
first above written:
UNIVERSITY ABC By: __________________________ Name/Title: ________________________
STATE ECONOMIC DEVELOPMENT AUTHORITY By:______________
Name/Title: ____________
FIGURE # 3 - VITAL PROJECTS REQUIREMENTS OF PRIVATE COMPANIES
Four requirements are to be met by any private company under consideration as a VITAL
“client.”
1. The “client” must be already exporting, or expressed interest in selling their products or
services to international customers,
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2. The “client” must have been in business for 18 months or longer (registered with state
or local gov’t and have established websites),
3. The “client” must have annual sales of $50,000 (U.S.) or more, and
4. The “client” must have five or more direct, full-time employees (or contract employees).
FIGURE # 4 - VITAL APPLICATION FORM
Company Information
Company Name
Address 1 City, State, Zip
Code
Address 2 Website URL
Number of employees NAICS Code(s)
Number of employees in
Virginia
What % of sales are
international?
Phone Number
Has your company done market research to determine if its products/services
are exportable?
Yes No
Do your products/services require export licensing? Unknown Yes No
Please briefly describe your
company's products and/or
services.
Please list the countries in
which your company currently
has/is pursuing international
sales. Put N/A if none.
Primary Point of Contact
Name Title
Email Phone
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Wood, V. R. (2021). Linking Public Institutions of Higher Education (Business Schools), State Trade Agencies and Private Enterprise: A Model and
Method for Scaling Global Trade. Archives of Business Research, 9(8). 263-274.
URL: http://dx.doi.org/10.14738/abr.98.10785
Submitted By
Name/Date Title/Signature
FIGURE # 5 - VITAL SCOPE OF RESEARCH FORM
University Information
Virginia University
Primary Contact at University Title
Email Phone Number
Team Members (Students, professors,
etc.)
Expected Completion Date
Company Information
Primary Contact at Company Title
Email Phone Number
Company Overview
Company background and
description of product or service
that is the focus of this research.
Figure # 5 - Vital Scope of Research Form (Continued)
Sources
Identify resources to be used to
conduct the research (e.g.
databases, interviews, etc.).
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Approved and accepted by: Approved and accepted by: Approved and
accepted by:
Name Name Name
Date Date Date
On behalf of: On behalf of: On behalf of:
(University) (Company) (VITAL)
FIGURE # 6 - INITIAL STUDENT GUIDELINES FOR VITAL RESEARCH PROJECT
Each student research team should fully answer the following questions before undertaking in- depth research for a “client.”
1. What is the “value proposition” of each of these companies (what needs are they
focusing upon, and/or what problems do their product(s) and/or service(s) address)?
And how might this value proposition be viewed in international markets?
2. What are the competitive strengths and weaknesses, opportunities and threats of each
of these companies (what company attributes and environmental realities that bode
well and poorly for these companies in the international market arena?)
3. Why do you, as a team, believe the time is ripe for these companies to consider entering
the international business arena (what global or regional trends bode well for the
potential success of these companies?)?
FIGURE # 7 – GLOBAL MARKET RESEARCH DATA BASES
A major key to fully educating future global business managers is a full emersion of world class
data-bases including the following:
Research Countries
• globalEDGE
A great place to "research nearly any international business question." From the International
Business Center at Michigan State University (IBC), it covers history, economy and political
conditions and more for over 200 countries.
• Business Source Complete
Search with the name of your country to find articles and country reports.
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Wood, V. R. (2021). Linking Public Institutions of Higher Education (Business Schools), State Trade Agencies and Private Enterprise: A Model and
Method for Scaling Global Trade. Archives of Business Research, 9(8). 263-274.
URL: http://dx.doi.org/10.14738/abr.98.10785
• EIU Country Reports
The EIU Country Reports examine and explain the important political and economic trends in a
country. Each of our Country Reports contain in-depth and ongoing analysis and forecasts of
political, policy and economic conditions in a country.
Research Global Markets
• Passport GMID
Provides statistics and analysis across industries, countries and consumers.
• BCC Research
Global market research reports focusing on science and technology sectors including
biotechnology, engineering, manufacturing, pharmaceuticals, safety and security, information
technology and food and beverage.
FIGURE # 7 – GLOBAL MARKET RESEARCH DATA BASES (CONTINUED)
Research Companies and Industries
• Uniworld Online
Information for multinational companies with headquarters in over 200 countries and 20,000
industries.
• IBISWorld
Reports for over 7000 U.S. industries. Also includes China and global industry reports.
• more...
Research Trade Statistics and Data
• International Trade Administration
Resources to help U.S. businesses compete in the global marketplace. Look under Data &
Analysis for the statistics link.
• World Bank - Data
Search or browse World Bank data including trade and economic indicators.
FIGURE # 8 - FINAL VITAL REPORTS: PRESENTATION AND RECOMMENDATIONS
After a full semester of student team research, a final presentation with recommendations is
made to the client with state agency representations present. Slide # 8 depicts what a typical
Report might contain.
VITAL Client Company International Expansion Final Report
Report Contents
Executive Summary
Introduction
Company Overview
SWOT Analysis
Methodology for Determining and Ranking Promising International Markets
Methodology for Determining and Ranking Promising Strategic Alliances (International Allies)
In Promising International Markets
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Analysis Results – Global Markets of Promise, Strategic Alliance Selection and Formation,
International Marketing Plan Going Forward
Final Recommendations and Future Research
Appendices
References
Figure # 9 International Markets of Promise – A Graphic Depiction