Global Business Plan, Hallmark Greeting Cards in Spain Assignment

Global Business Plan, Hallmark Greeting Cards in Spain - Assignment Example Spain’s two main cities, Madrid and Barcelona have a good number of shopping malls in the towns and their outskirts. These shopping malls are popular among the majority of tourists visiting Spain. This potential new market presents Hallmark with risks like currency fluctuations, infrastructure, and another market risk. The company has analyzed Spain’s political-legal environment and come up with a global company structure to accommodate it. An international promotion strategy can give the company advantage over its potential competitors (Grover, 2007). The competition mainly consists of two companies, Stockwell Greetings, and International Greetings. Hallmark looks to utilize its brand’s strong presence in other European countries and its experience in global markets to have an advantage over the competitors. Industrial technology and chemical products are Spain’s top exports (Quora.com, 2014). The company has assessed the economic environment and forecasted the potential start-up costs involved. Start-up costs include takeovers and Foreign Direct Investment (FDI). Financing is to be done internally through grants (Quora.com, 2014). The market size for greeting cards in Spain is relatively large. It is that over 7 billion greeting cards are purchased every year. Total revenue generated from greeting card sales are said to be over 7.5 billion. 90% of Spanish households buy greeting cards every year. An average household purchases 30 greeting cards annually. Women account for a significant percentage of greeting card purchases. Women purchase over 80% percent of the total sales while Spanish men only buy greeting cards on special events (Grover, 2007). Greeting cards appeal mainly depends on a proper understanding of the customers’ culture. Translation errors brought up by direct translation have a significant