executive MBA subject 10
Strategy and Business Models for Emerging Markets
Year 1, term D. 6.0 ECTS, about 150 hours, 7 parts. Part 1 is free.
task, condition, standard
What you will be able to do
Task, condition and standard
Task
Design an entry and business model for one product in one emerging market.
Condition
Given market data, income levels and information on local partners.
Standard
The model addresses institutional gaps, fits customer incomes, and has a risk plan with triggers.
Who it is for: Managers building or entering businesses in fast-growing, less developed markets.
how this subject works
Free entry, voice and your learning style
Part 1 is free to try. Read it, listen to it and answer it before you decide. Join the programme, or this subject on its own, to open the other parts.
- Listen. Every part has a Listen button that reads it aloud.
- Speak or type. Answer each part by talking (press Speak) or by typing. Your answers stay on this device only.
- Learn your way. Every part has a See, Hear, Do and Read-and-write route. Not sure which suits you? Take the eight-question learning-style check.
7 parts
The parts, with worked examples
Part 1 The emerging-market landscape 21 hUnderstand: describe
Emerging markets grow fast but are uneven: big cities and rural areas, formal and informal trade, rising incomes and many low-income buyers.
- Growth and volatility go together
- Informal trade can be a large share
- Averages hide big differences between regions
Worked example: Worked-example figures, in your currency. Market grows 7% a year. In 10 years it roughly doubles: 1.07 to the power 10 is about 1.97.
Activity: Describe one emerging market with three facts and one surprise.
Standard: Facts are sourced and the surprise is explained.
Learn your way
- See. Sketch "the emerging-market landscape" as a picture: boxes, arrows and the key number.
- Hear. Press Listen, or explain the worked example aloud to someone.
- Do. Do the activity with your own work or a practice case.
- Read and write. Write the idea in three lines in your own words below.
Your answer. Describe one emerging market with three facts and one surprise.
Part 2 Institutional voids 21 hAnalyse: identify
Many services that firms take for granted, such as credit checks, reliable delivery or trusted ratings, may be missing. These gaps add cost but also create opportunity.
- Gaps in finance, logistics, information and law
- Fill the gap yourself, partner, or design around it
- A gap you fill can become a business
Worked example: Worked-example figures, in your currency. No credit checks exist, so 15% of credit sales go unpaid. Building a simple scoring tool cuts losses to 6%, saving 9% of credit sales.
Activity: List three institutional gaps in a market and choose a response to each.
Standard: Three real gaps and one realistic response for each.
Learn your way
- See. Sketch "institutional voids" as a picture: boxes, arrows and the key number.
- Hear. Press Listen, or explain the worked example aloud to someone.
- Do. Do the activity with your own work or a practice case.
- Read and write. Write the idea in three lines in your own words below.
Your answer. List three institutional gaps in a market and choose a response to each.
Part 3 Business models for low-income markets 21 hCreate: design
Low-income customers buy, but in small amounts and with tight cash. Models that work use small packs, pay-as-you-go and shared assets.
- Small unit sizes
- Pay per use or in instalments
- Low-cost distribution through local agents
Worked example: Worked-example figures, in your currency. A 300 solar lamp is too much at once. At 10 a week for 34 weeks the customer pays 340; the extra 40 covers credit cost, and sales triple.
Activity: Redesign a product for buyers who earn 10 a day.
Standard: Price per use fits the income and the firm still covers its costs.
Learn your way
- See. Sketch "business models for low-income markets" as a picture: boxes, arrows and the key number.
- Hear. Press Listen, or explain the worked example aloud to someone.
- Do. Do the activity with your own work or a practice case.
- Read and write. Write the idea in three lines in your own words below.
Your answer. Redesign a product for buyers who earn 10 a day.
Part 4 Market entry strategies 21 hEvaluate: choose
Choose between exporting, licensing, joint venture or a fully owned unit by weighing control, cost, speed and risk.
- Exporting: low cost, low control
- Joint venture: shared risk and local knowledge
- Owned unit: full control, highest cost
Worked example: Worked-example figures, in your currency. Export: setup 0.5m, profit 0.3m a year. Joint venture: setup 2m (your half 1m), your share of profit 0.6m a year. Payback: export 1.7 years, joint venture 1.7 years; the venture gives more profit and local knowledge.
Activity: Compare three entry routes for your product with payback and control.
Standard: Paybacks correct and the choice states the trade-off.
Learn your way
- See. Sketch "market entry strategies" as a picture: boxes, arrows and the key number.
- Hear. Press Listen, or explain the worked example aloud to someone.
- Do. Do the activity with your own work or a practice case.
- Read and write. Write the idea in three lines in your own words below.
Your answer. Compare three entry routes for your product with payback and control.
Part 5 Partnerships and local champions 21 hAnalyse: assess partners
Local partners bring networks and know-how. Strong local competitors know the market well and can be partners or threats.
- Check partner goals, resources and reputation
- Agree exit terms at the start
- Watch local champions closely
Worked example: Worked-example figures, in your currency. Three partners scored on fit (40%), resources (30%) and reputation (30%): partner B scores 8, 7, 9: 3.2 + 2.1 + 2.7 = 8.0 out of 10, the highest.
Activity: Score three possible partners with weighted criteria.
Standard: Weights add to 100% and scores are correct.
Learn your way
- See. Sketch "partnerships and local champions" as a picture: boxes, arrows and the key number.
- Hear. Press Listen, or explain the worked example aloud to someone.
- Do. Do the activity with your own work or a practice case.
- Read and write. Write the idea in three lines in your own words below.
Your answer. Score three possible partners with weighted criteria.
Part 6 Scaling and managing risk 21 hEvaluate: plan
Scaling in volatile markets needs triggers: clear signals that tell you when to speed up, slow down or stop.
- Currency, policy and payment risks
- Set triggers before you start
- Grow in stages with checkpoints
Worked example: Worked-example figures, in your currency. Trigger: if the currency falls more than 15% in a quarter, raise local prices by half the fall and pause new hires. A 20% fall leads to a 10% price rise.
Activity: Write three risk triggers and the action each sets off.
Standard: Each trigger is measurable and the action is clear.
Learn your way
- See. Sketch "scaling and managing risk" as a picture: boxes, arrows and the key number.
- Hear. Press Listen, or explain the worked example aloud to someone.
- Do. Do the activity with your own work or a practice case.
- Read and write. Write the idea in three lines in your own words below.
Your answer. Write three risk triggers and the action each sets off.
Part 7 Team case presentations 21 hCreate: present
The final chapter asks your team to present the full entry and business model in ten slides and defend it under questions.
- Answer first
- Numbers on every key claim
- Name the biggest risk and your trigger for it
Worked example: Worked-example figures, in your currency. Slide 1: "Enter through a joint venture with partner B; payback 1.7 years; main risk currency, trigger at 15%."
Activity: Prepare and deliver a ten-slide team presentation.
Standard: Ten slides, all figures correct, questions answered with evidence.
Learn your way
- See. Sketch "team case presentations" as a picture: boxes, arrows and the key number.
- Hear. Press Listen, or explain the worked example aloud to someone.
- Do. Do the activity with your own work or a practice case.
- Read and write. Write the idea in three lines in your own words below.
Your answer. Prepare and deliver a ten-slide team presentation.
ten checks
Check yourself
Say or write your answer first, then read the model answer.
- Q1. A market grows 7% a year. About how long to double?
Model answer: About 10 years. (Covered in part 1: The emerging-market landscape.) - Q2. Name three kinds of institutional gap.
Model answer: Finance, logistics, information or law. (Covered in part 2: Institutional voids.) - Q3. Losses fall from 15% to 6%. Saving?
Model answer: 9% of credit sales. (Covered in part 2: Institutional voids.) - Q4. Name two business model ideas for low-income buyers.
Model answer: Small packs and pay-as-you-go. (Covered in part 3: Business models for low-income markets.) - Q5. 10 a week for 34 weeks totals?
Model answer: 340. (Covered in part 3: Business models for low-income markets.) - Q6. Which entry route gives the most control?
Model answer: A fully owned unit. (Covered in part 4: Market entry strategies.) - Q7. Setup 0.5m, profit 0.3m a year. Payback?
Model answer: About 1.7 years. (Covered in part 4: Market entry strategies.) - Q8. Scores 8, 7, 9 with weights 40/30/30. Total?
Model answer: 8.0. (Covered in part 5: Partnerships and local champions.) - Q9. Why agree exit terms at the start?
Model answer: Breaking up later without terms is costly. (Covered in part 5: Partnerships and local champions.) - Q10. Currency falls 20%. Price rise under the rule?
Model answer: 10%. (Covered in part 6: Scaling and managing risk.)
slides L1 to L7
The seven-level ladder, slide by slide
- Slide 1: L1 Emerging markets. Growth and unevenness. Speaker note: Say: put "emerging markets" in one sentence and give one example from work. Check: ask one learner to say it back in their own words. Mistake: moving on before the numbers are clear.
- Slide 2: L2 Gaps. Institutional voids. Speaker note: Say: put "gaps" in one sentence and give one example from work. Check: ask one learner to say it back in their own words. Mistake: moving on before the numbers are clear.
- Slide 3: L3 Customers. Low incomes, real demand. Speaker note: Say: put "customers" in one sentence and give one example from work. Check: ask one learner to say it back in their own words. Mistake: moving on before the numbers are clear.
- Slide 4: L4 Models. Small units, pay-as-you-go. Speaker note: Say: put "models" in one sentence and give one example from work. Check: ask one learner to say it back in their own words. Mistake: moving on before the numbers are clear.
- Slide 5: L5 Entry. Routes and paybacks. Speaker note: Say: put "entry" in one sentence and give one example from work. Check: ask one learner to say it back in their own words. Mistake: moving on before the numbers are clear.
- Slide 6: L6 Partners and risk. Scores and triggers. Speaker note: Say: put "partners and risk" in one sentence and give one example from work. Check: ask one learner to say it back in their own words. Mistake: moving on before the numbers are clear.
- Slide 7: L7 Leading entry. Present and defend a full plan. Speaker note: Say: put "leading entry" in one sentence and give one example from work. Check: ask one learner to say it back in their own words. Mistake: moving on before the numbers are clear.
how it is judged
Marking rubric
| Criterion | Not yet | Meets | Exceeds |
|---|---|---|---|
| Accuracy | Several figures or facts are wrong. | Main figures are correct and the working is shown. | Figures are correct and checked a second way. |
| Use of strategy and business models for emerging markets tools | Tools are named but not used. | The right tools are used for each step. | Tools are adapted to the case and their limits are stated. |
| Recommendation | No clear answer. | A clear answer backed by the analysis. | A clear answer that also says what would change it. |
| Communication | Hard to follow. | Answer first, clear and short. | Clear, short and persuasive under questions. |
jobs this leads to
Where this takes you
- Market entry manager. Plans entry into new countries.
- Business development lead. Finds partners and deals.
- Social enterprise founder. Builds models for low-income buyers.
language
Choose your language
This subject is in English first. Choose any language and the page is translated for you by machine, with the English kept as the official text.
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Keep going
Draft for review. Not live. Credit values are aligned with the European credit system for orientation only and are not an accreditation.