I.

LEARNING PRODUCT/EVIDENCE TO EVALUATE:

“CASE OF SUCCESSFUL EXPORT”

II. DESIGNATION:

Group (Maximum 2 members)

III. DESCRIPTION:

This case has been prepared with the purpose of determining the level of achievement
for the specific and generic competencies of the International Business career.

Today, a series of business and investment opportunities are presented to Peru by

Peruvian entrepreneurs who seek a balance between profitability and sustainability,
without also leaving aside aspects valued by the international market such as
sustainability and Social Responsibility. In the case proposed below, a company with
an annual turnover of USD 2,109,589 last year, has decided to choose to enter new
international markets, for this the company's commercial manager has proposed 3
new clients AMS (Spain) , Capexo (France), and AWE (USA).

Currently the company markets 3 products such as avocado, mango, and grapes.
Based on the statistics of previous years, it can be said that the product that has the
largest market share is the Mango and the Avocado, however, the avocado has shown
a growth rate of 5% more than the mango, on the other hand. On the other hand,
grapes can be said to have a growth rate 10% higher than avocados, however, their
market share is lower than mangoes. The company markets these products in a
complete cycle that takes 12 months, with a month of rest. If the company decides to
dedicate itself only to a single type of product, then it must offset the billing amount of
the other two.

The commercial manager's concern is that he must carry out a macro analysis of the
environment of these clients, to then classify them and see which of them would be
the most profitable. For this reason, it has considered analyzing 3 indicators for 2019
at the country level: a social one (population), an economic one (GDP-per capita), a
financial one (Expenditure % of GDP).

The company currently maintains a commercial policy of selling white label, the
marketing channel that has been used is export through wholesale importers who do
not charge a commission, but rather request a direct volume discount between 5% and
7%, through brokers that charge a sales commission on the final price in the
destination country.

TO. Order data per customer:

a. AMS-EUROPEAM: 6 containers of avocado, 2 in the month of May, 2 in June, 2
in July. Each container must be 5,280 4kg boxes, Controlled Atmosphere
containers destined for the port of Algeciras-Spain. Fob price per box. The
client also wants to be told what the CIF price would be, taking into account
the following criteria for choosing international transport: a) better
refrigeration technology, b) better transit time, c) lower cost. Consider
insurance of 3% of the Fob Value. B/L printing at origin. 3 ethylene filters per
cont. 1 additional capacity in the Port.

b. CAPEXO SA: 20 containers of mango; 5 in January, 4 in February, 4 in March, 2

in April, 2 in November, 3 in December. Each container must contain 5544 4kg
boxes, in 40'HC refrigerated containers destined for Rotterdam-Holland. And
additionally a shipment of 50 pallets (4,800 boxes) of aerial mangoes in 6kg
boxes in the month of March to Brussels. For the aerial handle, the client
wants 20 pallets to be sent with “Finestro” boxes – 12 gauge, labels on boxes
and handles – and 30 pallets of “Exotic” boxes – 10 gauge, labels only on
handles. Calculate CIF PRICE per box for sea and air mango. B/L printing at
origin. 2 ethylene filters per cont. 2 additional capacity in the Terminal.

c. AWE SUM ORGANICS: 3 containers of Fresh Red Globe grapes, 1 container in

August, 2 containers in September. Each container must be 2280 boxes of 8.2
kg. B/L printing at origin. 3 ethylene filters per container. The company wants
the cargo on DDP terms at its warehouse in MIAMI.

b. Calculate international unit prices, according to the Incoterm requested for each
client, taking into account the following:

a. Profit should be calculated using the cap pricing technique. That is, Price =
Costs + Utility or Profit. The Profit must be calculated based on the average of
the active interest rates of the banking sector: TCEA BCP: 28%, TCEA
INTERBANK: 26%, TCEA SCOTIABANK: 20%, TCEA BANBIF: 25%, TCEA
MIBANCO: 18%. Remember that, after finding the average annual rate, you
must find the monthly rate and then find the rate for the months of each
product (mango 6 months, avocado 3 months, grapes 2 months)

b. Total fixed costs will be assigned according to participation by number of

months of the total campaign. The month that is free must be assumed by the
product that has the highest volume of units sold:

PRODUCT MONT STAKE

HS
 MANGO 6 =6/12= 50%
AVOCADO 3 =3/12= 25%
GRAPE 2 =2/12= 16.67%
FREE 1 =1/12= 8.33%
TOTAL 12 100%

c. Operating expenses will be 5%, and taxes will be 2.5%. In all 3 cases they will
be applied before calculating the FOB cost. Example:

d. To calculate international prices, an adjustment factor of 2% will be added for

the variation in the international exchange rate. This percentage will be
applied to the Cost of each Incoterm that is requested, (2% Fob Cost, 2% Cif
Cost, 2% Ddp Cost). It will then be added as part of the profit.

e. Administrative expenses (FIXED COSTS) are made up of gross salary + 13% of

the pension system + 9% of ESSALUD insurance + 2 additional salaries; one in
July and another in December.

TABLE N° 1
CONCEPTO AÑO 2015 SNP/AFP (13%) seguro (9%) 2 sueldos Total anual
Gerente S/. 84,000.00
Jefe de Logi s ti ca S/. 42,000.00
Jefe de Exporta ci ones S/. 42,000.00
Jefe de Pl a nta S/. 42,000.00
As i s tente Admi ni s tra ti va S/. 18,000.00
a s i s tente de pl a nta S/. 18,000.00
Conta dora S/. 18,000.00
Vi gi l a nte Hua ra l S/. 11,400.00
CONCEPTO enero
Vi gi l a ntes Ta mbogra nde S/. 11,400.00
Combus ti bl e y Lubri ca ntes S/. 500.00
Tota l S/. 286,800.00
Impres i ones y fotocopi a s S/. 52.00
Pea jes y/o Es ta ci ona mi ento S/. 50.00
Protes to de l etra s S/. 30.00
f. Sales expenses (FIXED
Servi ci o de Al qui l eres S/. 600.00
COSTS) affect the total of the
Repues tos y Acces ori os S/. 100.00
company, Ga s tos de Ferreteri a S/. 50.00
that is, they are
expenses Hos peda je S/. 120.00
that encompass all
the Ga s tos de movi l i da d S/. 200.00 activities and
services Uti l es de ofi ci na y es cri tori o S/. 60.00 of the company
Seguros de Vehi cul os S/. 1,100.00 throughout the year.
Expenses Ga s tos de Tel efoni a S/. 500.00 are constant in all
months, Servi ci o Agua S/. 60.00 only in the month of
October Servi ci o Luz S/. 30.00 are costs reduced by
50% and Vi a jes S/. 1,500.00 travel is not
Publ i ci da d y Publ i ca ci ones S/. 180.00 considered. All costs
include Encomi enda s y envi os S/. 30.00 VAT.
Ta rjeta s tel efoni ca s -reca rga s S/. 40.00
Uti l es de l i mpi eza Y a s eo S/. 20.00
Ga s tos de Ofi ci na S/. 50.00
Ga s tos nota ri a l es Y Regi s tra l esS/. 60.00
Agua de Mes a S/. 10.00
Ga s tos fa rma ci a S/. 20.00
Tota l ga s to venta s
g. The depreciation of assets (FIXED COSTS) is according to the following table:

Valor
DEPRECIACION DE BIENES % anual Año 2015 D. Anual
Residual
2016
Mitsubishi L200 20 $ 36,000.00 $ 7,200.00 $ 28,800.00
montacarga CAT-850 10 $ 15,000.00 $ 1,500.00 $ 13,500.00
Laptop Toshiba i7 25 $ 1,416.00 $ 354.00 $ 1,062.00
TOTAL $ 52,416.00 $ 9,054.00 $ 43,362.00

h. The working capital required to start the campaign is $60,000 dollars, which
will be financed through a loan to Interbank with a CAGR of 20% for a period
of 36 months. The total payment of the monthly fee plus expenses and
commissions must be considered as an additional FIXED COST.
Préstamo -60,000.00
Periodo 3 años
TEA 0.19 DESCRIPCION 2015
Meses 36 Intereses
Moneda Dólares USA Amortizacion
TEM 0.015833333 G. financieros
Pago $ 2,199.36
Gastos +comisiones
TEA 0.01
TEM 0.000833333

n° Saldo Amortización intereses cuota gastos + comisiones

Total Cuota Fecha
0 60,000.00
1 58,800.64 1,199.36 950.00 2,199.36 50.00 2,249.36 31-01-15
2 57,532.29 1,268.35 931.01 2,199.36 50.00 2,249.36 02-03-15
3 56,243.85 1,288.43 910.93 2,199.36 50.00 2,249.36 01-04-15
4 54,935.02 1,308.83 890.53 2,199.36 50.00 2,249.36 01-05-15
5 53,605.46 1,329.56 869.80 2,199.36 50.00 2,249.36 31-05-15
6 52,254.86 1,350.61 848.75 2,199.36 50.00 2,249.36 30-06-15
7 50,882.86 1,371.99 827.37 2,199.36 50.00 2,249.36 30-07-15
8 49,489.15 1,393.72 805.65 2,199.36 50.00 2,249.36 29-08-15
9 48,073.36 1,415.78 783.58 2,199.36 50.00 2,249.36 28-09-15
10 46,635.17 1,438.20 761.16 2,199.36 50.00 2,249.36 28-10-15
11 45,174.19 1,460.97 738.39 2,199.36 50.00 2,249.36 27-11-15
12 43,690.09 1,484.10 715.26 2,199.36 50.00 2,249.36 27-12-15
13 42,182.49 1,507.60 691.76 2,199.36 50.00 2,249.36 26-01-16
14 40,651.02 1,531.47 667.89 2,199.36 50.00 2,249.36 25-02-16
15 39,095.30 1,555.72 643.64 2,199.36 50.00 2,249.36 26-03-16
16 37,514.95 1,580.35 619.01 2,199.36 50.00 2,249.36 25-04-16
17 35,909.57 1,605.37 593.99 2,199.36 50.00 2,249.36 25-05-16
18 34,278.78 1,630.79 568.57 2,199.36 50.00 2,249.36 24-06-16
19 32,622.16 1,656.61 542.75 2,199.36 50.00 2,249.36 24-07-16
20 30,939.32 1,682.84 516.52 2,199.36 50.00 2,249.36 23-08-16
21 29,229.83 1,709.49 489.87 2,199.36 50.00 2,249.36 22-09-16
22 27,493.28 1,736.56 462.81 2,199.36 50.00 2,249.36 22-10-16
23 25,729.22 1,764.05 435.31 2,199.36 50.00 2,249.36 21-11-16
24 23,937.24 1,791.98 407.38 2,199.36 50.00 2,249.36 21-12-16
25 22,116.89 1,820.35 379.01 2,199.36 50.00 2,249.36 20-01-17
26 20,267.71 1,849.18 350.18 2,199.36 50.00 2,249.36 19-02-17
27 18,389.26 1,878.46 320.91 2,199.36 50.00 2,249.36 21-03-17
28 16,481.06 1,908.20 291.16 2,199.36 50.00 2,249.36 20-04-17
29 14,542.65 1,938.41 260.95 2,199.36 50.00 2,249.36 20-05-17
30 12,573.54 1,969.10 230.26 2,199.36 50.00 2,249.36 19-06-17
31 10,573.26 2,000.28 199.08 2,199.36 50.00 2,249.36 19-07-17
32 8,541.31 2,031.95 167.41 2,199.36 50.00 2,249.36 18-08-17
33 6,477.19 2,064.12 135.24 2,199.36 50.00 2,249.36 17-09-17
34 4,380.38 2,096.81 102.56 2,199.36 50.00 2,249.36 17-10-17
35 2,250.38 2,130.01 69.36 2,199.36 50.00 2,249.36 16-11-17
36 86.65 2,163.73 35.63 2,199.36 50.00 2,249.36 16-12-17
59,913.35 19,213.65 79,177.00 1,800.00 80,977.00

i. RAW MATERIAL COSTS:

i. Mango: S/ 1.20 (nuevos soles) per kilo for air and S/ 1.00 x kilo for
maritime mango. The loss of the fruit is 10%.
ii. Avocado: S/ 3.50 (nuevos soles) per kilo. The loss of the fruit is 10%.
iii. Grape: S/ 2.10 (nuevos soles) per kilo. The loss of the fruit is 10%.
j. HARVEST COSTS:
i. Mango: S/ 0.12 (nuevos soles) per kilo for air and S/ 0.10 x kilo for
maritime mango.
ii. Avocado: S/ 0.60 (nuevos soles) per kilo.
iii. Grape: S/ 0.50 (nuevos soles) per kilo.

k. FREIGHT TO THE PLANT:

i. Mango and avocado: S/ 2.00 + IGV 18 kg Jaba
ii. Grape: S/ 1.10+IGV 10 kg Jaba

l. FREIGHT TO AIRPORT:
i. Handle: S/ 2.50+igv per box.

m. SENASA:
i. Cutting protocol: Mango, avocado, grape: S/. 5.30 (nuevos soles) x
TON.
ii. Phytosanitary certificate: Mango, avocado: S/. 43.20 (nuevos soles)
per container or shipment.

n. MAQUILA:
i. Handle: $1.25+IGV box for air and $0.60+IGV box. Both include cold
and stowage service.
ii. Avocado: $0.70+IGV per box. They include cold and stowage service.
iii. Grape: $0.60+IGV per box. They include cold and stowage service.

o. CARDBOARD BOXES:
i. Handle: sea USD 0.60 +igv, air: USD1.50+ ifg
ii. Avocado: USD0.65+igv.
iii. Grape: $0.98+IGV per box.

p. TAGS:
i. Maritime mango: See quote file, the same as avocado or citrus. They
are all 10 gauge.
ii. Aerial handle: See quote files. “Finestro”, box cod: 24295, handle: cod:
24271. Choose more profitable. “Exotic” mango cod: 124226
iii. Avocado: See quote file. They are all 18 gauge.
iv. Grape: $0.90+IGV per box.

q. MALLITAS: Only for aerial handles. I suggest choosing the best quote. They
must justify their choice.
i. 12 gauge: 12.5 cm tights, white.
ii. Gauge 10: 15 cm leggings, pink color.
r. CERTIFICATE OF ORIGIN: Mango, avocado, grape.
i. ADEX: S/. 60.00+igv x container or shipment.
ii. Chamber of Commerce: S/. 50.00+igv x container or shipment.
iii. SNI: S/. 45.00+igv x container or shipment.

s. LOGISTICS OPERATION: Maerks has the same cost as Op. Log. that Hamburg
Sud
i. Handle: MOL USD 1,500 + VAT
ii. Avocado: Choose according to customer criteria
iii. Grape: HAMBURG SUD 1,600+igv
iv. Aerial: Kuehne-Nagel; $90+IGV, includes Customs and handling for
shipment of 5 pallets

t. WAREHOUSE-COLD:
i. Integral service. 0.032 + VAT per gross kilo
ii. The cargo will fly within 24 hours of arrival.

u. INTERNATIONAL SEA FREIGHT. They must justify their choice in avocado

freight.
i. Handle: MOL USD 5,500 RHC 40´
ii. Avocado: Choose according to customer criteria USD 7,800
iii. Grape: HAMBURG SUD 6,000 RHC 40´

v. PRINTING OF ORIGINAL B/L: (PART OF FOB COST)

i. Origin: S/180.00+igv x container.
ii. Destination: $55.00 euros.

w. INTERNATIONAL AIR FREIGHT:

i. LAN: $2.25 all in x kg. Minimum load 3000 kg. LIM/STG/BRU
ii. KLM: $2.45 all in x kg. Minimum load 1800 kg. LIM/BRU
iii. UNITED CHARGE: $2.15 all in x kg. Minimum load 2700 kg.
LIM/ATL/BRU

x. EXPENSES IN DESTINATION COUNTRY.

i. Desaduane: 1500 euros per container, includes taxes
ii. Stowage and unstowage: 500 euros per container
iii. Local transport destination country: 1800 euros per container
iv. Logistics expenses and distribution at destination: 300 euros per
container

y. SALES COMMISSION IN DESTINATION COUNTRY:

i. Handle: 10% of the ddp cost.
ii. Avocado: 12% of the ddp cost.
iii. Grape: 11% of the ddp cost.
C. QUESTIONS:

a. CE1: Who were the 5 main global buyers of the selected product in 2019 in
FOB values, and what are the data on the social, economic and financial
indicators of the country of the selected client.

b. CE2: In a BCG Matrix, place the company's 3 products according to their

growth rate and market share, and justify your answer if the company
should continue selling with a white label and if it should maintain its
relationship with the brokers.
i. BCG matrix:

HASS AVOCADO MANG KENT GRAPE RED GLOBE

ii. White brand:

YEAH NO

Because: Because:

iii. Brokers:

YEAH NO

Because: Because:

c. CE3: What is the International price for the selected product according to
the data provided in the case, and mention how much the VANF and TIRF
would be, considering the investment amount to be equivalent to 30% of
the value to be exported in the year:
i. Avocado: USD……….(container), USD…….. (box)
Sea handle: USD……….(container), USD…….. (box)
Air handle: USD……….(Pallet), USD…….. (box)
Grape: USD……….(Container), USD…….. (box)
ii. VANF:……………………………………..TIRF:………………………….

d. CE4: Prepare an export scheme for one of the products, the scheme must
reflect 3 line flows; Money, Merchandise, Information-documents. And it
 must also show the main actors involved: Sunat-Customs, importer,
exporter, carrier-freight agent, banks.
e. CE5: Identify in a Michael Porter Value Chain, the primary and secondary
activities of the company.

f. CE6: What is the added value that you identify in each of the products
offered by the company, through international certifications that
guarantee their quality.
i. Palta (Spain)
ii. Mango (France and Belgium)
iii. Grape (USA)

g. CE7: Mention 1 negotiation tactic that you would use with each client
(why), and mention 3 characteristics of the business protocol in said
countries.
i. Tactics
ii. Protocol