The two halves of exporting potential
The task
- AS91385 asks you to investigate the exporting potential of a New Zealand business in a market, with consultation — internally assessed, 3 credits.
- The work has four parts, in the standard's own words:
- plan an investigation — state the process you will follow
- consult — domestically at Achieved, internationally at Merit
- provide evidence of an investigation
- explain, then fully explain, then evaluate exporting potential
The definition that catches people
- Exporting potential is defined by the standard as both:
- the export potential of the product in the offshore market — will it sell there?
- the export readiness of the New Zealand business — is this business in a position to export?
- Both halves are required. An investigation that proves there is demand in Japan for the product, but never examines whether the business could actually supply it, has answered half the question and cannot meet the standard.
- The two halves fail in different ways, and both are common:
- a product with real demand, from a business with no capacity, no capital and no compliance systems
- a business that is completely export-ready, with a product nobody in that market wants
The grade ladder
| Grade | Consultation | Exporting potential |
|---|---|---|
| Achieved | Consult domestically | Explain exporting potential |
| Merit | Consult internationally | Fully explain exporting potential |
| Excellence | — | Evaluate exporting potential: comprehensively explore the risks and opportunities |
- The consultation requirement is a hard gate at Merit. You must consult internationally — someone offshore, in or with knowledge of the target market. Plan for that early, because it takes time to arrange and depends on people replying.
- Excellence adds evaluating: comprehensively exploring the risks and opportunities of exporting for that business in relation to that market, and integrating business knowledge and business concepts to fully support the explanations.
Choosing the business and the market
- The business. A real New Zealand business, connected to your life and community, that plausibly has export potential. It can be small — most New Zealand exporters are. What matters is that you can get information about it: its owner or manager should be willing to talk to you.
- The market. One offshore market, named specifically — Australia, Japan, Singapore, California — not "Asia" or "overseas". Everything in the investigation is specific to a market: the rules, the competitors, the culture, the freight, the tariffs.
- Choose the market on evidence, not on preference. Reasonable starting criteria:
- Demand — is anyone there buying this kind of product?
- Access — is there a trade agreement, and what are the tariffs and import rules?
- Distance and freight — can the product get there in a state worth selling?
- Competition — who is already selling something similar, and at what price?
- Fit — does the business have any existing contact, ability or reason to be in that market?
- Say why you chose that market over the alternatives. That comparison is easy evidence of investigation, and it sets up the evaluation.
Planning the investigation
- Planning an investigation is a named requirement: state the process to be followed, in reference to the business and the market.
- A plan that satisfies it:
- the business and the market, and why each was chosen
- the questions the investigation will answer, grouped under readiness and potential
- the sources — who will be consulted domestically, who internationally, and what published material will be used
- the methods — interview, email, survey, desk research, agency contact
- the timeline, with the international consultation started early
- how the evidence will be recorded