Question description

 

 

Market Selection and Foreign Entry-Mode

 

ASSIGNMENT INSTRUCTIONS

For your final SLP, pretend that an American corporation hired you to write a report giving a recommendation on whether or not they should enter the country that you have been researching for your Modules 1-3 SLPs. You have already done a lot of research on many of the cultural, financial, legal, and political aspects of doing business in your country which you can use as part of your overall recommendation. However, you also need to consider other factors such as the potential size of the market that your country has to offer. No matter how strong a country’s legal or political system, if your country has very few consumers that it will not be a wise decision to enter your country.

One resource to use for your report is Michigan State University’s Market Potential Index (http://globaledge.msu.edu/mpi/2014). This index focuses mostly on various aspects of the size or growth of the consumer market in each country which should provide some valuable information to use in making your recommendation. But don’t rely just on this index. Do some additional research on factors that you think make your country an attractive or unattractive market for an American company and use some of Venkateswaran’s (2012) guidelines on country evaluation as part of your paper.

When you have finished your research, write a two to three page paper with the following information:

1. What are the positive aspects of your country that would make it an attractive market for an American corporation? Consider all of the main factors that you researched regarding your country for Modules 1-3 plus additional research for Module 4 on market potential.
2. What are the negative aspects of your country that would make it an attractive market for an American corporation? Consider all of the main factors that you researched regarding your country for Modules 1-3 plus additional research for Module 4 on market potential.
3. Overall what is your recommendation for the American company that hired you to write this report? Do the positives outweigh the negatives? Or vice versa? Explain your reasoning.

SLP ASSIGNMENT EXPECTATIONS

• Answer the assignment questions directly.
• Stay focused on the precise assignment questions; don't go off on tangents or devote a lot of space to summarizing background materials.
• Make sure to use reliable and credible sources as your references. Articles published in established newspapers or business journals/magazines are preferred. If you find articles on the Internet, make sure they are from a credible source.
• Reference your sources of information with both a bibliography and in-text citations. See the Student Guide to Writing a High-Quality Academic Paper, including pages 13 and 14 on in-text citations. Another resource is the “Writing Style Guide,” which is found under “My Resources” in the TLC Portal.

Here is my last paper, this will help with this assignment

 

BUS 401 SLP 3
21 May 2016






 



Doing any business is a work of great deal, especially when it comes to worldwide business entities' dependence upon the political environment of the country and how much politics influence the business. The political influence is usually exerted upon business entities through day to day political changes and enactment of laws directly affecting business activities. Now whether the political or legal system is conducive to doing business depends on the rules and regulations followed in the country. The country Pakistan has been among countries of serious political and legal concerns hindering the business growth in the country and is struggling much harder for sustaining the business environment and fighting against corruption as well for maintaining business in the country. The government of Pakistan is a Parliamentary Federal Republic type of Government (country studies (n.d))
Political System
The political system of the country is the most important driver of the business in the country. For instance nationalization or privatization of the industry determines the control of government over the business environment. Privatization of Pakistan International Airlines (PIA), Pakistan Steel Mills (PSM) along with Pakistan Transmission and Dispatch Company (PTDC) have changed the business environment for the airlines, steel industry and telecommunication entirely (Dr. Pervez Tahir (2014)). Lack of political stability in the country gives rise to many issues adversely affecting the business environment; many government projects are thrown away uncompleted due to change of government and political instability in the country. This current political situation also has reduced the level of Foreign Direct Investment (FDI) in the country. Transportation infrastructure i.e. roads, streets ways of transporting goods from one place to another being very poor reduces the business activity within the country and condemns new business initiatives. All the political issues as a whole reflect the economic strength of the country. The economic environment affects the business performance resulting in a gradual decrease in business activity in the country eventually leading to unconducive business in the country.
Legal System
Every country has its own rules and regulation that must be upheld superior to any other conflict. These written rules when combine forms the legal system of the country. In Pakistan legal system is well established and many laws enacted contingent to business activity. These include Employment laws, Tax laws, Competition laws, Data protection and others laws directly related to the business activity (Practical law (n.d)). In Pakistan, these laws are regulated to ensure the safeguarding of rights of everyone related to a business activity whether he is an employee or employer. These regulations on one hand makes Pakistan's environment conducive to doing business, on the other hand, put serious responsibilities on the entrepreneurs to fulfill all the legal requirements. In Pakistan, practices such as red tapism and the long awaited departmental procedures are big barriers in doing business. Licenses, NICs, gas, electricity and water connections cannot be achieved easily. These barriers reflect the regulatory loopholes in the system and should be ameliorated to promote the business in Pakistan.
Corruption
Corruption is a plague that destroys everything come in its way. A system how well established might be could never perform as required in case of ongoing corruption. Businesses effected a lot due to this unethical conduct such as bribery and other wrong doings become a necessary part of doing business. In Pakistan the level of corruption is very high, even the political and lawmaking institutions are not saved from it. Corruption causes business inefficiency along with weakened development and ineffective use of scarce resources by promoting crime and illegal or unethical ways of doing business (Linda Ray (n.d)).
Pakistan's legal and political environment has its ups and downs, but in order to maintain a good business environment, political stability and stronghold of legislation are an essential part of progress. Corruption grows where loopholes existed and flourish when not addressed and tormented. So, Pakistan must consider eradication of such activities that prevent healthy business environment to prosper.












References
[Dr. Pervez Tahir (2014)] : Economic and Social Consequences of Privatization in Pakistan, (web) retrieved from : http://library.fes.de/pdf-files/bueros/pakistan/11150.pdf
[Country Studies (n.d)] : Government Structure sourced : US Library of Congress, (web) retrieved from : http://countrystudies.us/pakistan/65.htm
[Practical Law (n.d)] : Doing business in Pakistan, (web) retrieved from : http://uk.practicallaw.com/1-504-4890
[Linda Ray (n.d)] : The Effects Of Corruption on Business : Chron , (web) retrieved from :  http://smallbusiness.chron.com/effects-corruption-business-52808.html

 

Market Selection and Foreign Entry-Mode

REQUIRED MATERIAL

The first step to entering a foreign market is to decide which country to enter.  The following chapter will give you a solid overview of the process of selecting a potential country to enter:

Venkateswaran, N. (2012). Chapter 8. Country evaluation and selection. International Business Management. New Age International. Daryaganj, IND. [Ebrary]

After you’ve chosen which country you want to enter, you then need to decide how to enter the country.  The following two readings will give you an overview of several foreign entry-mode strategies and benefits and risks of each strategy:

Jeyarathmm, M. (2008). Chapter 12: Strategy in a global environment. Strategic Management. Himalaya Publishing House. Mumbai, IND, pp. 165-169. [Ebrary. Note: you don’t have to read the whole chapter – just the last five pages]

Rajagopal (2009). Chapter 6: Modes of entry in a global marketplace. Globalization Thrust : Driving Nations Competitive. Nova Science Publishers, Inc., New York, NY, USA. [Ebrary]