BA 563 Research Submission Part 2

For the second research assignment, you are to choose a topic that will be the subject of your case study term project and present some initial data/observations on the topic for your country choice.

The purpose of this assignment is to get you to focus on how business in a foreign country environment may impact or be impacted by the issues and challenges contained in your topic.  It is important to try to identify a dilemma or challenge that will require the reader to choose among a set of options in resolving or mitigating the issue.

This assignment will be the launching point for researching and identifying the facts needed in developing your case study. 

The steps to complete this assignment are as follows:

1. Finalize your choice of a foreign country setting for your case study project.
2. Identify a topic that has relevance or importance for the country you choose.
3. Specify a single or small number of challenges, opportunities or dilemmas that are presented by your topic/country choice.
4. Do basic research to determine the extent of the challenges, opportunities or dilemmas and whether there are possible solutions already identified.
5. Identify a specific COMPANY that is or may be involved in the issue.  This company will be the subject of your case study along with the country.

Your submission should include a discussion of why you chose the country and topic combination. You should indicate specific information about the country that led you to that choice.  Provide data or examples to back up your conclusion that a dilemma, opportunity or challenge exists relative to that topic.  You may identify a real-life situation involving the county, issue and company or a hypothetical.

Here are very brief examples to illustrate what is needed:

(CHALLENGE) Population Services International must identify the best way to market its birth control production Bangladesh in order to have an impact on high birth rates that negatively impact economic growth in the country.  They must do so in a way that recognizes and responds to COUNTRY ENVIRONMENTAL DIFFERENCES (PESTEL analysis) which make marketing the product in Bangladesh very different than in the US or Europe (See Population Services International case study).

(OPPORTUNITY) Growing incomes that have resulted from the benefits of Globalization in China has led to the increase in local tourism activity in the country.  AirBNB has the opportunity to expand its market to China but must do so in a way that minimizes POLITICAL RISKS in the country environment (See AirBNB student case study).

(DILEMMA) Consumers in Germany are demanding more environmentally friendly packaging of processed food items over concern for ENVIRONMENTAL SUSTAINABILITY.  The government has responded by requiring companies to produce 100% recyclable packaging for all products sold in Germany by 2030, above the 75% limit currently set by the European Union.  Proctor and Gamble Corporation is faced with intensifying its sustainability efforts to meet this requirement but must do so in a way that does not impair profitability. (Hypothetical based on a real requirement)

Your write up for this assignment should be a minimum of two double-spaced pages.  Think about having at least one paragraph that describes and explains the information contained in the five steps.

You should review all of the material in the Case Study Resources folder on Blackboard before beginning this assignment.  You are strongly encouraged to choose and begin researching one of the topics listed in my Powerpoint outline.  If you would like to address a different topic, you should let me know with as much information as possible, what the topic is and how you plan to address it.

As always, you should provide references and a citations list at the end of your submission identifying the sources of your factual information.

Research Paper 2 Exemplar

Agriculture is considered a staple in all we have and consume in today’s society.  From food consumption to the clothes that are worn by people, agriculture has its stamp on society’s way of life.  With the importance of agriculture and how of an importance it is within the world, the country chosen for the research submission is Peru.  Located in South America, this country was chosen because of its agricultural background and climate.   Peru is home to various crops used for exporting to other counties.  These crops include sugarcane, coffee, cotton, potatoes, rice, wheat, cocoa, brazil nuts, corn, and over 120 domesticated plants (New-AG, 2018).  The potato is considered Peru’s top crop.  Peru is known as the world’s most genetic center for producing potatoes, with more than 3,000 varieties being produced (Encyclopedia, 2018).   With agriculture being a vital component of Peru’s economy, it is essential that Peru is kept up-to-speed with new technological, agricultural trends that are happening throughout the world. 

            The hypothetical issue that Peru is facing is that their production is inconsistent and thus causing a decline with their exporting.  Farmers do not have the tools and technology needed in order to harvest their products effectively. Not being able to harvest and supply their products in a timely manner, could have a negative impact on Peru’s exporting services and respective supply-chain processes with other countries.  Technology in agriculture, in recent years, has been rapidly changing the industry (Newman, 2018).  In order for Peru to compete and produce crops at an efficient and effective rate, Peru must provide their farmers and farming companies with technology that is up-to-date and easy to operate.  The product which is chosen for Peru to accomplish this is an automation technology called Smart-HP.

Product and Company        

Smart-HP is a technology that allows for machine tractors to run autonomously.  Created by an ag-technology company called SmartAG,  Smart-HP uses an advanced technological system that will allow farmers to control their tractors autonomously through wireless technology.  Farmers would only have to install the Smart AG kit that includes SmartHP (Automation kit for the tractors), SmartNX (hardware to connect/combine other machinery equipment to the cloud and SmartHP), AuotCart (Software application used to control the grain cart tractor) , and the AAVI (Overall farm, field and machinery, management for autonomous farming) in order to use the technology (SmartAG, 2018).  Founded by Colin Hurd, in Ames, Iowa, he believes the technology will be a problem solver for farmers worldwide.  “Smart Ag uses affordable technology that is on the market that is reliable and safe” (Bedord, 2018).  Using this technology will allow farmers and farming industries to the opportunity to be more efficient and more productive for their respective farm sites.  Farmers will be able to focus on other farm and production duties, instead of spending hours upon hours in a tractor.  This will result in an increase in productivity.  Using the ag technology also cuts out human elements that can cause a decrease in productivity including farmers getting tired or farmers not being able to tend to their farm because of other factors (illness, lack of manpower, etc.).

Challenge

A challenge that could occur is the technological disconnect and age gap between farmers and technology.  The average age of farmers in Peru, age between 45 and 54 years old (Ojeda, 2017).  Not only will age is an issue, but the level of education is a factor as well.  The age group of 24-35 years of age has higher education levels than those of the 45-54-year-olds (Ojeda, 2015).   In order for farmers to use this technology, they are required to know how to be technologically savvy since the application requires using the software in order to set up automation schedules, the GPS of the farm, and a control board.  

Another challenge that can occur is that since the technology is new, farmers and companies may not trust the technology just yet.  With many new products that are introduced to the respective markers, consumers will want to see how the product or service performs before deciding whether or not to purchase it. 

Opportunity

            The opportunity for this technology to be accepted by the country, farmers, and farming industries are assuring.  As stated earlier, agriculture and exporting is a vital component of Peru’s economy.  The exporting of agriculture products is the third largest economic sector for Peru (PeruInformation, 2018).  With agricultural exporting being a considerable factor with Peru’s economy, many farmers and farming industries will use this technology to achieve a more efficient process with their crops.  Companies will also be able to save cost since they are replacing human labor with automation. 

            Another opportunity for this technology to be accepted in Peru is the backing of governmental administration as it pertains to technological innovation.  Marto Velarde, who is the Vice Minister of Industry stated that the ministry and the Innovate Peru Program would partner together because in order to promote the technological and commercial development of the countries natural resources (Waddel, 2017).

Dilemma

A dilemma that will arise is the potential loss of jobs.  Installing the ag technology software means that human labor will be replaced with automation.  More companies will favor the business decision of saving cost that by choosing the option of automation technology performing the same functions over a human worker who is driving the factor; but more efficiently.   Losing jobs will cause Peru’s unemployment rate to increase.  The unemployment rate in Peru for 2018 is 6.71% and is expected to grow to 7% as the population increases (PESTAL Analysis, Peru).   With the expecting unemployment rate to rise, the government may be less accepting of a product that will contribute to their unemployment rate.

Conclusion

          The Smart AG technology will without-a-doubt allow for farmers to increase their farming efficiency and increase their exporting activities. The agriculture industry currently contributes to 7.3 percent of Peru’s GDP (Dudenhoefer, 2018). The hope is that with the installation of new and advanced technology, the new innovation will allow for the country’s GDP to increase within the incoming years.