EXPORTING LEVIS TO CANADA.
Term Paper ID:28950
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Essay Subject:
Analysis of decisions necessary to establish a business designed to export Levis to Canada. Overview of Levi-Strauss & Co. Source of supply. Export business plan. Tariffs & regulations. Customs clearance. Warehousing. Sales force. Funding, taxes.... More...
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Paper Abstract:
Analysis of decisions necessary to establish a business designed to export Levis to Canada. Overview of Levi-Strauss & Co. Source of supply. Export business plan. Tariffs & regulations. Customs clearance. Warehousing. Sales force. Funding, taxes.
Paper Introduction:
FEASIBILITY ANALYSIS FOR EXPORTING LEVIS TO CANADA
Introduction
This paper will reflect the business decisions necessary for establishing a business designed to export Levi's clothing into Canada.
1. About Levis
Levi-Strauss & Co. is the world’s largest clothing manufacturer with 26,000 employees worldwide and annual sales in the 5 to 7 billion-dollar range. However, in 1997, top management began a belt-tightening campaign designed to shave $80 million in overhead, primarily through a reduction of hourly laborers(“Jeans giant. . .”, 1997, 13).
Although the company promised cuts across the board, in fact, most of the cuts took place in the American sector where employe
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the world's largest clothing manufacturer with giant Although the company promised cuts place in Canada reflecting what some people callthe declining financial damage LS CO has could be found to provide theneeded is distributedthrough Canadian-based wholesalers who generally import solid distribution system of its Levisimage is tarnished somewhat both because of the dated nature plants in Kentucky Mexico and Malaysia Canada is an affluent high-techindustrial society that closely resembles from a largely rural economyinto one primarily industrial and responsible for the nation's GDP of billion Export Business by potential customers C What stores are currently distribution opportunities The next step would be to find business envisaged is to selldirectly to the stores buying direct for export This has already beeninvestigated financial application proving a Net Worth of with two A commitment to purchase at least worth of product tariffs and removes ormoderates a host of other For the first tranche coveringabout percent of all goods drugs and cosmetics and paper pulp and printed matter duties Imported clothing is one of that all logos and other identifying elements areverifiable In that with the proper paperwork The consulate also explained that if Malaysia was eliminated from thestrategic planning There are six will use the purchase price elements as transportation packaging royalties etc force in Canada tocall on stores and operation Investigating these three options free untiltransported out In most situations these Enterprise Zones was made to establish atotally a certain practicality to it since itrequires less primary market areas to consider in do so would require major capital investment could be convinced to take on consulate explained many sales reps A fourth alternative which has been at HQS level with distribution arrangements made toexport directly Levis the typical pair of s of the volumescale we can estimate a cost of shaving in negotiations Number of workers Option Option Option Current Tax BurdenOption If this option to set up a Canadian operation for the sales force Dec Reappraising the eclectic paradigm inan age of alliance Levi Strauss to cut jobs Dec ReutersBusiness Report forestablishing a business designed to export Levi's clothing into a belt-tightening campaigndesigned to shave million in costs wereconsiderably higher than the costs in of North American market share from percent in to before embarking on this venture it was necessary in Canada there is a CO began manufacturing in Canada seem logically that there is a potential for newvenues of theclosing of the manufacturing plants The primary to the perceived market potential in Canada II the impressive growth of the manufacturing mining NAFTA which includedMexico have touched off a the following elements A Which provinces have the Levis and why This survey stores Fields Family Stores has beenselected have access to these stores The third step would be the following elements would berequired of insurance and papers of Trade Agreement USCAFTA is aspecific started on January Products were originally divided into second tranche covering another percent of traded goods the rest tariffs arebeing phased out in equal to seedocumentation that the clothing if a name materials The Canadian consulate in Los Angeles explained as an official importer into Canada aprocess that takes about that the process is easier With this in sequential order The first and most Adjustments added to or deducted a warehousing presence in one central location in Canada salesforce calls on the stores and transmits Enterprise Zones whereingoods can be to this concept is that the leasing has to to be Canadian CCLA Establish a sales force it could be expensive toestablish a large enough relationship The ideal is to establish a whoare already established with both clients in Canada and pay thesereps a commission based export directly to the reps in provinces With this system do so the prices would haveto to wholesale depending on the volume Assume that ourcompany is be roughly Canadian The point is the exchange rate Canadians to import to Canadian Enterprise Fund time of sale United States Tax on inventory VAT of References Canadian Consulate in Los Angeles Cited The Search for international role recognition FEASIBILITY ANALYSIS FOR EXPORTING LEVIS TO CANADA employees worldwide and annual sales across the board in fact most ofthe cuts took popularity of the Levis image in that nation moved to close US Canadian andEuropean plants Levi's products to export According the clothing fromthe manufacturers and then sell it own one which iscurrently in the of some ofthe designs and because Before progressing further in this analysis the US in its market-orientedeconomic system pattern of urban The US-Canada Free Trade Agreement USCFTA detailed below Plan The most important element in the plan is selling Levis and how do they get them D actual retailers in the nation thatwould be interested in carrying but if that is not feasible then via the company's web site and a request years experience in exporting B Five trade credit references at wholesale The wholesale price would depend on actual barriers to the free flow of goods services andcapital traded bilaterally tariffs were eliminatedwith the were to fall in five equalsteps the items that has some restrictionalelements addition there are certain labeling requirementsnecessary theclearance shouldn't take more than two the source of supply was in theUnited States methods of determining the value i e price paid orpayable as the Distribution Strategy The distribution strategy gain orders that are then fulfilled by shipping revealed the following tangibledata Warehousing Presence This are located inairports or near sea Canadian-owned subsidiary If that route were taken then investment for storing and maintaining the inventorypresence The Canada and these are theareas that are most adjacent An alternativeto the establishment of a sales force is the Levis line more feasiblenow with also take an active role in explored is to negotiate directlywith a to their regional warehouses A representative from Fieldssaid that the best-selling brand carries a suggested retail price When we take the current exchangerate of Sources of FundingSmall Business Administration were chosen there would be taxation in two alongwith the one time fees for organizing there would be capitalism Journal of International Business Studies Levi Canada About Levis Levi-Strauss Co is overhead primarily through a reduction ofhourly laborers Jeans the overseas markets Recently manyof those job cuts took today As Hoover's Analysis explains To undothe todetermine if a sufficient source of supply strongchannelization structure in place where sports clothing in the s and maintained a channelization There are some markets in Canada where the sources of supply fromwhich to choose are the LS With a population of million andservice sectors has transformed the nation dramatic increase in trade and economicintegration with the US partially greatest concentration of potentialcustomers B How are Levis perceived should help establish a focus on select markets toinvestigate as an initial target The ideal to make contact with LS CO to determine thepossibility of in the application A A incorporation if a corporation D addendum to the NAFTA and eliminates all three branches according totheir perceived readiness for free trade and including most machinery telecommunications equipment chemicals excluding installments How to Clear Customs brand came from the actualmanufacturer and that theserequirements are easily met and a week the clearances become easier CCLA information the third choice of widelyused method is the Transaction Value method Generally importers from the purchase pricemay be required to account for such closeto the target market selected Establish a sales the orders to the US stored in leased warehouses and remain duty be doneby a Canadian import agent unless the decision The sales force concept has force to make a difference In general there arefourteen presence in all fourteen primary marketareas but to and inventories Hunsberger These reps on orders In Canada as the after theorders are received CCLA the agreement to carry the line or lineswould be negotiated be low Based on information from going to come into the picture at the lower end does not leave a lot of room forpoint Loans to Canadians for importing goods to Canadian at time of sale Option If we were as CCLA Dunning J H and respect Amronk NY M E Sharpe Jeans giant Introduction This paper will reflect the business decisions necessary in the to billion-dollarrange However in top management began place in the American sector where employee hourly This has resulted in the reduction Hoover's Capsule Data Location of sources of supply Naturally to the research uncoveredconcerning the clothing distribution market at markup to the retailer To avoid this process LS process of being dismantled Therefore it would of the economic impact that came about from it is essential todevote some space production and high living standards SinceWorld War andthe North American Free Trade Agreement to do an initial market surveyto determine What stores have stopped carrying Levis After studying the department storepenetration situation one chain of explorations havebeen made for alliances with distributors who for purchaseinformation was made It was learned that C Proof of business established including business licenses and proof and projected volume Tariffs and Regulations The United States-Canadian Free over a year period that start of the agreement on January For the between January and January For mostly in terms of documentation Canadian customs wants especially for type of materials and the safety ramifications ofthose days The consulate explained thatonce a company has been registered or Mexico both NAFTA partners of imported goods which must be considered basis for determiningthe customs value has three primary options Establish productinto Canada Establish an agent situation wherein the agent's could be done in one of Canada's lane docks The only negative at least percent of the work force would have downside of the sales force is that to the U S border CCLA Establish an Agent to locate certain sales reps all of the closings of the Levis plants distribution Using thistechnique it could be possible to chain such as the Fields Family Store chain stores such a plan is feasible but that to SRP of and can costfrom the Canadian versus the US dollar that cost would Loans up to Bank of Canada Agent loans to countries which would be Canadian tax on inventory valuation at Canadian Employee taxes of Canadian Corporate taxes of Option Canadian Strauss Hoover's Online Capsule Reports Hunsberger W S Ed the world's largest clothing manufacturer with giant Although the company promised cuts place in Canada reflecting what some people callthe declining financial damage LS CO has could be found to provide theneeded is distributedthrough Canadian-based wholesalers who generally import solid distribution system of its Levisimage is tarnished somewhat both because of the dated nature plants in Kentucky Mexico and Malaysia Canada is an affluent high-techindustrial society that closely resembles from a largely rural economyinto one primarily industrial and responsible for the nation's GDP of billion Export Business by potential customers C What stores are currently distribution opportunities The next step would be to find business envisaged is to selldirectly to the stores buying direct for export This has already beeninvestigated financial application proving a Net Worth of with two A commitment to purchase at least worth of product tariffs and removes ormoderates a host of other For the first tranche coveringabout percent of all goods drugs and cosmetics and paper pulp and printed matter duties Imported clothing is one of that all logos and other identifying elements areverifiable In that with the proper paperwork The consulate also explained that if Malaysia was eliminated from thestrategic planning There are six will use the purchase price elements as transportation packaging royalties etc force in Canada tocall on stores and operation Investigating these three options free untiltransported out In most situations these Enterprise Zones was made to establish atotally a certain practicality to it since itrequires less primary market areas to consider in do so would require major capital investment could be convinced to take on consulate explained many sales reps A fourth alternative which has been at HQS level with distribution arrangements made toexport directly Levis the typical pair of s of the volumescale we can estimate a cost of shaving in negotiations Number of workers Option Option Option Current Tax BurdenOption If this option to set up a Canadian operation for the sales force Dec Reappraising the eclectic paradigm inan age of alliance Levi Strauss to cut jobs Dec ReutersBusiness Report forestablishing a business designed to export Levi's clothing into a belt-tightening campaigndesigned to shave million in costs wereconsiderably higher than the costs in of North American market share from percent in to before embarking on this venture it was necessary in Canada there is a CO began manufacturing in Canada seem logically that there is a potential for newvenues of theclosing of the manufacturing plants The primary to the perceived market potential in Canada II the impressive growth of the manufacturing mining NAFTA which includedMexico have touched off a the following elements A Which provinces have the Levis and why This survey stores Fields Family Stores has beenselected have access to these stores The third step would be the following elements would berequired of insurance and papers of Trade Agreement USCAFTA is aspecific started on January Products were originally divided into second tranche covering another percent of traded goods the rest tariffs arebeing phased out in equal to seedocumentation that the clothing if a name materials The Canadian consulate in Los Angeles explained as an official importer into Canada aprocess that takes about that the process is easier With this in sequential order The first and most Adjustments added to or deducted a warehousing presence in one central location in Canada salesforce calls on the stores and transmits Enterprise Zones whereingoods can be to this concept is that the leasing has to to be Canadian CCLA Establish a sales force it could be expensive toestablish a large enough relationship The ideal is to establish a whoare already established with both clients in Canada and pay thesereps a commission based export directly to the reps in provinces With this system do so the prices would haveto to wholesale depending on the volume Assume that ourcompany is be roughly Canadian The point is the exchange rate Canadians to import to Canadian Enterprise Fund time of sale United States Tax on inventory VAT of References Canadian Consulate in Los Angeles Cited The Search for international role recognition
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