BA (Hons) International Business Management, Oxford Brookes University
U51037 International Bussiness

Name: Wu Nga Yan
Student Number: 54056142
Word count:

1. Executive summary

2. Company overview

Strength of Disneyland‘s

Weakness of Disneyland‘s

1.1 Disneyland‘s Strength
-It is among the popular names in the world
-It has well established divisions Walt Disney Studio
-Entertainment, Disney-ABC Television Group, Disney Interactive
-Increasing trends in overall revenues and profits
-Disney holds US $ 62.497 billion of assets
-Popular characters
-High brand awareness among people
-The Walt Disney logo is famous
-Walt Disney was ranked 8th in Top 100 Global Brands

2.2 Disneyland’s Weakness
- High operating cost
-Frequent change in top management
-The $1.8 Billion Park has only 16 attractions
-Poor working conditions in factories that produce their merchandise
-Large investment’s with high risk involved
-Limited range of target audience mainly children, and mothers.

3.PESTEL analysis of South Korea

Political
Opportunity

With the Government Policy of Foreign Investment, it encourages overseas firms to invest in South Korea. For example the Foreign Investment Promotion Act such as the political include “If any foreign investment over US$ 20 million is made in such tourism businesses as tourist hotels, floating hotels and international convention facility”. Also, the area can be designated as a Foreign Investment Zone.
For the Foreign Currency Control, Which is include “controls in line with OECD benchmarks”,” invests under the terms of the Foreign Capital Promotion Act controls in line with OECD benchmarks, it permitted to remit a substantial portion of its profits, providing it submits an audited financial statement to its foreign exchange bank” and “Foreign companies not investing under the FCPA must repatriate funds through authorized foreign exchange banks after obtaining government approval”.

Threat
Uneasy relationship with North Korea
South Korea and North Korea have been divided since the end of World War II. Reunification has been a goal for both states, but they lie on opposite ends of the spectrum in terms of political ideology. North Korea is an isolated Communist state with a centralized economy while South Korea is a democracy with a rapidly growing high-tech industrialized economy. Provocative military actions and North Korea's efforts to build and acquire nuclear weapons are a cause for concern. Until today, the relations between the two countries continue to remain tense and North Korea continues to remain a major military(Southasiaanalysis.org, 2015)

Economic
Opportunity

GDP growth
The GDP of South Korea in 2013 is $1.305 trillion in U.S. The annual GDP growth from 2010 to 2014 is continue to rise. The income level of the population is high. (Data.worldbank.org, 2015) It shows that the economy of South Korea is good and the nation is moving forward. Also, the living standard in the region of South Korea is increasing and they have more purchasing power and consume power.

Low unemployment rate
The unemployment rate in South Korea is one of the lowest in the world, which is mainly due to labor market reforms. “The World Bank lists South Korea’s unemployment rate as less than 5%”.( Maxxor Blog,2012) According to the Appendix 3.1 the unemployment rate of South Korea is keeping low.

Social
Opportunity

Highly educated workforce

“The roots of South Korea’s success seem to lie in its highly educated workforce. In South Korea, gross enrolment rates for tertiary education are more than 100%” ( Maxxor Blog, 2012). according to Employment Outlook published by the OECD. Over 97% of the labor force in South Korea possesses either a college education or vocational training backgrounds. In addition, South Korea fundamentally has one of the highest literacy rates of 97.9% for the total population. It means that the country investing in education, it can increase the economic opportunity for the residents and it can strengthen the economics of the country.

High wages
South Korea has one of the highest wage levels in Asia. The minimum wage payable in South Korea is $3.84 per hour, According to the Appendix 3.2 the wages in South Korea is high. From 2008 to 2014, wages in South Korea is 2460239 KRW up to 3256321 KRW and it is the highest wages in South Korea. High wages have also enhanced the standard of living in the country which is higher thanany regional economy in Asia.

Threat

Lowest fertility rates

For the fertility rates, South Korea has a currently one of the lowest fertility rates in the world, leading only Hong Kong, Taiwan, Macau and Singapore.( Gandhi, L. ,2014) In the shorter term, South Korea’s current population of 50 million was forecast to drop to 40 million by 2056 and to 20 million by 2100. It draws attention to the country’s fertility rate of 1.19 children born per woman recorded in 2013, far below that which would be required to sustain the population. South Korea’s fertility rate threatened the existence of the nation. (The Independent, 2014)

Technological
Opportunity

Robust telecom sector
South Korea spends more than 3% of GDP on research and development. South Korea has world's highest broadband internet subscription rate, while the country’s 68% mobile-phone penetration rate is also one of the highest in the world. South Korea also introduced the world's first commercial wireless broadband(WiBro), satellite digital media broadcast (DMB), and telephonic-DMB services. South Korean mobile phone producers Samsung Electronics, LG Electronics and Pantech are among the world's largest mobile firms.

Rising R&D costs
Added to high wages and strict labor laws, the cost of maintaining an R&D center in South Korea is rising. This problem iscompounded by scientific personnel inemerging economies like China and India demanding much lower wages for thesame productivity. As a result, the R&D costs in South Korea have now become a worrying factor for many MNCs andwithout radical changes to the cost structure; the country is likely to be further disadvantaged.

Opportunity and Threat of Disneyland‘s
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4. Benefits and risks of set up park in South Korea
4.1 Member of APEC
4.2 Nature and analyst of International trade and FDI
4.3 Nature an analyst of International business
4.4 Force influence international business
4.5 Challenge of investing in Malaysia
5. Entry mode
6. Products and services
7. HRM plan
8. Marketing and Sales Plan