Dick's Sporting Good

France Business Proposal

Nicholas Odell

Toni Henderson

Hyong Yang

Daniel Phillips

Table of Contents

1 Executive Summary

2 Outline

3 Size of Market

4 Sociocultural Acceptance of Product

5 Legal/Bureaucratic Environment

6 Competition in Market

7 Economic and Political Climate for Foreign Business

8 Methods for Marketing and Distribution

9 Managerial and Labor Climate

10 Financial Viability

11 Citations

Executive Summary

Market Size

To remain competitive with an ever-expanding market, Dick's Sporting Good should expand into France. France is home to approximately 64.7 million people and is one of the most modern cities in Europe because of its buildings, subway system, and green areas. France is a leader in Western Europe because of its size, location, and large economy. France is already home to many American franchises; several direct competitors of Dick's Sporting Good, and remaining competitive with these chains would be beneficial to them.

Competition

As far as our research shows, expanding into France is likely to be a profitable decision for a few reasons. For example, With 16 million registered members of sports clubs and associations, 175,000 sporting associations and 60,000 sporting and physical activity establishments, sport represents a large industry for France. In addition, the current economic situation is among the most stable in Europe and with an unemployment rate of 10%, there will likely be workers to fill positions at the sporting store. Moreover, the political standing and lack of legal barriers in France is beneficial to foreign-run businesses.

Culture

When we open the first Dick's store in France, We need to understand French people and their culture. Their culture causes them to do business differently than US. Moreover, the culture binds them together, and we want to share that bond to earn their trust. The culture also cause people to have different standards and behavior and influences one's principles of life which impacts social life. We have examined their culture and applied lists of their cultural values that we need to know to avoid misunderstanding between two different cultures.

Management and Labor

Having quality employees is important because they impact the business success and growth of the company. We have examined France's labor situation to know if there are good number of local employees that we can work with. French education system is one of the highest in the world, and there are many skilled people. Their labor situation is similar to US, and finding quality labor groups of people won't be any problem. However, we need to send managements from US to France to train local employees. Once these employees understand the system, they can train the local employees.

Economy

France would be a huge step up for Dick's Sporting goods. After evaluating the economy in France, we would be missing out not to invest there. Yes, the economy like everywhere else is not the best but, there is still potential. The amount of people passing in France everyday is enormous. France is considered to be the heart of Europe. With this type of traffic our product will sell itself. But we will also be relying heavily on the employees to assist in selling our product. We need support from our French management and employees to pull off this international change. Yes is can be done. People see France as a huge vacation attraction; people enjoy leisure during a vacation. This is what will help our company grow and become profitable.

Marketing

Marketing and Distribution in France is important for sales. We need to ensure customers that our product is easy recognized and readily available. This is why are marketing methods must be above average. We must stand out from our competitors offering ease to those looking to purchase sporting equipment. With as many methods of transportation France has, our locations will be easily recognized as will our websites for easy access. Our Website will be user friendly offering a search for the closest store for easy access.

Legal Environment

France has a legal system that is similar to the United States. France's laws are lax when it comes to foreign investors and foreign companies. A major difference between France and the United States is the VAT tax, which taxes at each level that value is added to a product. Most other taxes and laws are similar to the U.S., so they will not require special training to follow. Legally France is favorable to businesses and not overly strict.

Financial Viability

France is an excellent choice to expand when it comes to finances. The profit margins in the sporting goods industry are around 30 % to 40% right now. France allows repatriation of capital with minimal paperwork or red tape. Remittance of profits and dividends has no restrictions and the government rarely uses any pricing controls.

Outline

Date: September 11, 2010

Project Title: Dick's Sporting Goods Expansion

Development Team Name: The Best Sporting team

Development Team Members

1. Nicholas Odell *

2. Toni Henderson

3. Hyong Yang

4. Daniel Phillips

(* Indicates team leader)

Background and Problem Definition:

Dick's idea of a retailer was rejected by his boss, but it didn't stop his dream of having being the best sporting retailer. In 1948, Dick started a small retail outlet with $300 his grandmother gave him. This small store became known as Dick's Sporting Goods today. There are 409 active