Paper Topic:
Buisness analysis
BUSINESS ANALYSIS 2008 Executive Summary Deciding a target market for international expansion is a risky step which must be supported by sufficient research and analysis . There are three important questions to be answered regarding an international expansion , when , where ' and how . These questions represent the research activities and analysis that needed to be performed prior to making the internationalization step In this , we assume that the when ' question has a given answer which is now or as soon as possible . The questions that required answers are where ' and how
. In to answer the where ' question , we need to first identify alternatives of target markets and then identify the benefits and risks associated with entering each of the potential target markets
The associated benefits and risks can be categorized into the following category : political risks , economic risks , legal risks , culture and education , and fiscal and currency risks . The research discovered that Bangladesh has a high political risk due to its unstable political system , where a military-backed regime has the most powerful economic force
Despite the recent positive growth , Bangladesh also has a high economic risk due to its high population growth and low per-capita income Bangladesh also has little if any guarantee over intellectual property rights which is not preferable for business . Only 35 of Bangladesh people are well educated and they are also accustomed to agriculture economic culture with little vision of improvement . The weak fiscal regulation and considerable currency fluctuation adds to Bangladesh negative points of analysis
Croatia on the other hand , has a slightly better political condition but the scarce legal aid and weak property assurance are also strong negative indication for investors . Croatian economy is building , but high-tech infrastructure is still scarce and Croatian fiscal potential is still largely unrealized due to the weak implementation of fiscal laws . Malaysia displayed the best potential for business investments The country has a stable political system which is supportive toward foreign investment . Its macroeconomic indicators also displayed the best value among the three target markets . Legal and property rights are sufficiently maintained and the educational culture is close to those of the fully developed nations like US
The country also has strong trade relationship with the US government and committed to work together with the US government in tackling security issues . My analysis indicated that MNE should choose Malaysia as its first target market . Due to its supportive environment toward business , MNE could experiments whether to produce mass-produced lamps or customized ones . The stable political and business environment in Malaysia can also sustain more aggressive market-entry strategy like joint ventures or establishing production facilities in Malaysia
Business Analysis
Introduction (Stages of Entering Foreign Market
Internationalization or entering foreign markets is complicated but not necessarily an overwhelming process . There are systematic models designed to assist corporate managers in making the best and most profitable decisions for their organizations . Most of these models contain three vital questions to be answered in relation to entering a foreign market . The first question...
Not the Essay You're looking for? Get a custom essay (only for $12.99)
