...International expansion is very appealing to a lot of businesses as there is a lot of potential to gain profit and explore untapped markets. For most businesses, expanding/moving into new markets is not an easy transition, especially international markets, as Oreos did. The differences that Kraft will have to face would most likely come from these five factors: cultural, social, political, economical and legal differences. When expanding into an international market, one of the very first things businesses will have to consider is the legal difference; different countries have different laws regarding the setting up of the business, how the business operates, marketing laws and much more. Of course, most businesses expand into new markets in hopes of succeeding thus they would need to consider their chances of being successful and a lot of that comes from the economics for the most part though also politics. The economic factor in this case would affect the pricing of the product; as did the prices of oreos in china → Kraft reduced the prices of Oreos and hence the packaging size as well. This leads us on to the next point; cultural difference. Following the example of Oreos expansion to China, Oreos had to reduce the size of packages sold in China, not only to reduce the price but also people in China generally have a smaller appetite than Americans. A lot of the things in America are supersized due to the fact that they generally are bigger, hence when Kraft brought Oreos...
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...In the book War and Change in World Politics, Robert Gilpin presents a rationalist and realistic argument for international relations. The argument is that an international system is created because actors create social, political and economical structures to advance their interests. The structure reflects the interests of those who are most dominant in the system. The structure will inevitably change due to many reasons that are provided throughout the book. Robert Gilpin succeeds in providing support for his main argument by applying his theories to many examples in history. His reasoning in supporting his argument were clear, concise and easy to follow, which made the book a pleasurable read. The book starts out by providing four assumptions, which divides the book into 4 sections. In each section Gilpin provides examples that are heavily rational and applicable. This division made the book easy to follow and helped readers to understand how each assumption supported the argument. Each assumption was used to support the main argument of the book. The first assumption that was used is “An international system is stable if no state believes it profitable to attempt to change the system.” (Gilpin, page 11). Gilpins approach to support this assumption is of a realist approach. Gilpin starts out by supporting his argument through deductive reasoning. These reasons are carried out in an informative manner that can be easily supported by historical events and examples. As he...
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...European multinationals in Africa - Why have Chinese companies found the emerging markets of Africa less risky and a more attractive proposition than western multinationals? - MSc BD7 Ping SUI Introduction: As an important global player and the main drive for economical growth, China’s massive investment in Africa has drawn the world’s attention. People can see European multinationals everywhere in Africa in the 80s, while now Chinese companies seem to take over the leading role. For example, in Angola, China helped to build the Angola Benguela railway, which is the longest railway Angola has had so far; in Nigeria, Chinese Telecom companies “Huawei” has a dominating presence both in fixed and wireless services by taking more than 90% of the market share. Not only can you find commodities made in China everywhere, but Chinese companies now build the infrastructures in many African countries too. On the contrary, the presence of European multinationals is not as strong as the Chinese ones: the amount of the funds flowing from Europe to Africa has decreased from 70% to 17% since the 70s; Western Europe’s share of overall international trade with Africa has decreased from 51% to 28%, while China has taken the place and become the biggest trading partner Africa has by surpassing America in 2009. Why are European MNCs less and less preset in Africa? What are the difficulties they have encountered? Do Chinese companies have same barriers? Why do the Chinese companies...
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...issues addressed, methods and a design of collecting information, how data collection has been managed and implemented, analyzed and lastly communicates the results and findings and their implications with Literature and evidence. | Table of Contents Background 2 Literature Review 2 Overview of the Marketing Research Procedure 2 Stages of Marketing Research Procedure 2 Stage 1: Purpose of Market Research 2 Stage 2: Research Objective 3 Stage 3: Estimation of value of research 4 Stage 4: Research Design 4 Exploratory research 4 Data Analysis 4 Questionnaire, Sampling and Sampling size designing 4 Stage 5: Data Collection 6 Stage 6: Data Analysis 6 Stage 7: Result and Presentation 7 Marketing Research Process of Tesco goes to China Analysis 7 Background 7 Stage 1 Research Purpose 7 References 8 Background The reason behind choosing the Market research is because as stated by Philip Kotler (2007), it defines the first step of economic process. And it links to the consumers, public to marketer, customers and lets you identify, define and analyse marketing opportunities and issues pertinent to the marketing. The process of market research renders researcher scope to evaluate process, generate, refine and define marketing current actions. It helps to monitor market performances, and also enables a clear picture of understanding the marketing process. It is noted that market research differs from company to company and significance of market research is that it helps...
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...cosmetics industry in China, we should first review macroeconomical factors influensing Chinese economy most. Chinese economy quite so associated with some “sweeping statements” like “China will be next economic superpower; its economy is still government run; foreigners don’t make money there; relationships count, so a partner is needed. But they are hyperbolic, misleading, out-of-date, or just not true”(Woetzel J.R. (July 2004) A guide to doing business in China. P.) So, what the situation is really about in China and what cultural and economical differences has Chinese business environment in comparison with French? At first, I French and Chinese societies have totally different basis. If we look back to sociology, we remember, that all societies can be divided on two main categories: High-context(China) and Low-context(France). In high-context society words may not mean what they really mean. For example “yes” may not be “yes” at all, opposite to low-context society where “yes” always means “yes” and “no” always means “no”. It results in a need for deeper understanding the position of the people you’ll have to work with and sphere you’ll have to work in, because in high-context society it is easy to miss the cue, if you haven’t obtained enough information about the problem. Secondly, one of key chinese cultural concepts is “Guanxi”, which literally translates to relationship. It may draw us to an assumption that having partner may be really important in China, but McKinsey consultants...
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...Background There was a huge evolution in container ships industry in past 50 years. In 1960s decade was the start of the shipping companies’ competition for building the biggest container ship. Companies like Maersk Line and Hapag Lloyd introduced their first vessels constructed for carrying containers. Apart from the running cost dramatically reduced by using bigger container ship and it is also contributed to environment which is one of the hot topics in recent world. ”When you get bigger ships, you can more efficiently carry more cargo, so the carbon footprint you get per tonne of cargo is smaller.” Unni Einemo, Sustainable Shipping Today’s biggest cruise ship in the world was launched since 2013, is the Triple E class vessel Maersk McKinney Moler owned by Maersk, Denmark. As you can noticed in below figure, there was a huge increase of the container ships’ capacity since 1960s from 1000 TEU to 18,000 TEU and the term “Panamax” stands for the size limits for ships traveling through the Panama Canal. Formally, these limits and requirements are published by the Panama Canal Authority (ACP), titled "Vessel Requirements". These requirements also describe topics like exceptional dry seasonal limits, propulsion, communications, and detailed ship design. [pic][pic] The Canal History The earliest mention of a canal across the Isthmus of Panama dates to 1534, when Charles V, Holy Roman Emperor and King of Spain, ordered a survey for a route through the Americas that would...
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...“Turkish Airlines experiences rapid expansion”. This is the title of an article appeared on November 14, 2013 in the Financial Times. In the decade 2003-2013 the company expanded enormously, from 65 to 233 aircrafts, the passenger numbers have more than quadrupled and the number of international destinations grew surprisingly from 76 to 199. (See Exhibit 1) At present, Turkish Airlines appears to be one of the most extensive airline companies with 106 connected countries (the last was added in April 2014). It was also acclaimed as the best European company in the last four years consecutively at the Skytrax World Airline Awards, being the third most profitable carrier after Ryanair and Easyjet. The expansion continues: with the project of the third Istanbul’s international airport and the announcements of new destinations to countries like Mexico, Philippines and South Sudan. (See Exhibit 2) How a small Turkish state-owned company became so huge and successful? What are the main challenges it had to face and how did it tackle them? What are the main actual and future issues for a company that is expanding quickly and widely? We will try to give an answer to these questions in the paper: starting from an essential and short presentation of Turkish Airlines historical evolution, making a synthetic overview of its main strategies and analyzing the past and the future challenges in developing countries such as India. Turkish Airline historical steps towards internationalization...
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...11 begins with the sui and tang empires which had ruled over parts of east Asia and china during the span of 581 bce to 755 bce. The sui empire was established after the fall of the Han in 581 bce and within the time period the area that was was previously known to be Han was broken into pieces . across that region that had been previously known to be Han territory had then became sui territory after the sui people had taken rule over China. As soon as the sui rulers had settled themselves within the empire the began to change and structure the empire and the first change they had made was renaming their capital changan. Yet ,the empire was governed and constituted in northern China ,along the yangzi river where most of the population...
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...contention with one another. For every civilization that triumphs, others must suffer. For a majority of human history the strongest nations were comprised into a group known as the West. The west is home to the ideologies of democracy, capitalism, and consumerism. The idea of democracy has been forced upon many nations in the world by the Western states. Democracy however has been shown to be a very easily manipulated system. Capitalism has shown the need for expansion and exploitation over Africa, Asia, and Latin America. The west has always been in contention with other nations, along with contending with each other. Competition between western nations has led to a technological race and an arms race, which is now more apparent than ever in the United States. With military might came the need to take over other nations and thus the ideas of imperialism, and nation aristocracy. Africa, Latin America, and Asia has suffered and continues to suffer a great deal because of the triumph of the west through exploitation, expansion, and wealth, all major goals of capitalism and imperialism. The West has retarded the development in all facets for many countries in Africa, Latin America, and Asia and thus led to the suffering of the world. One of the oldest ideologies from the west to the world is democracy. Democracy comes from the Greek words “demo” meaning people and “kratia” meaning rule, therefore rule of the people. Democracy is an egalitarian system of governance where all...
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...report that a French group of retail sector called Carrefour needs to use to expand his business in China before other foreign competitors expand in China. Carrefour is a French group of the retail sector founded in 1959 by Defforey Fournier. Currently, Carrefour is the second largest group in this sector in terms of revenue behind Wal-Mart and it is number 1 in Europe, South America (Chester, 2012) Carrefour is also present in Asia with around 371 hypermarkets and with 64 hypermarkets in other areas of the world in the form of local partnership and its aim is “to become the preferred retailer that is supportive throughout the world” in all of its formats (Carrefour Foundation Annual Report, 2010) China is an Asian country, with two states currently claim to have sovereignty: the People's Republic of China, which controls 99.6% of its territory and the Republic of China, which only controls Taiwan. It’s only in 2008, that the two governments united, have agreed for a more cooperative atmosphere (BBC Monitoring, 2014) Currently, China is the most populated country in the world with around a population of 1.33 billion. China has 20 cities with more than 5 million of people and 100 cities with over 1 million people. In the period of 2011 and 2015 China’s annual average GDP growth is predicted to be 9.5%. China is the largest growing GDP per capita in the world (Rodgers, 2012) China is a country with the world’s largest exports and the second largest imports of goods, since Chinese...
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...differentiated agendas. in 2010, Accor become a pure-player in the hotel business. Having demerged from its service business, Accor intends to its strengths to step up the implementation of its strategy and provide its growth: comprehensive brand portfolio suited to needs, unique know how as the world largest hotel operator, a leadership position in four continents and a business model with sound fundamental that withstood the economical crisis Since its separation from the service business, Accor SA had followed an ambitious expansions strategy, mainly focusing on emerging markets, the expansion has been concentrated in the three booming economies’ Asian countries: China, India and Indonesia with limited growth in Australia and Vietnam. Accor’s main focus was to boost and concentrate its level of activity in fast growing economies outside Europe. With the sale of some of the group’s related businesses such as Casino and Catering, and mostly with the sale and leaseback of the group’s owned hotel properties in Europe and North America, Accor found its funded its expansion into faster growth segments and regions. Accor felt that this approach to managing its existing portfolio and developing new hotels trough franchise agreements would allow it to grow rapidly and take advantage of the new markets in emerging economies. Another aspect of Accor’s strategy was its focus on sustainable initiatives. The group’s earth guest programme covers a range of activities from encouraging the procurement...
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...years, there began to be an increase in competition throughout Indonesia, although none reaching the capacity of production that SPV was reaching each year. Lenzing and SPV began to view some long term potential problems as the years went on, with tariffs and trade barriers becoming an issue, as well as potential political problems in Indonesia possibly effecting the company in the future. Problem Statement In 1994, Lenzing AG, the world's largest rayon manufacturer, is deciding whether to expand production in South Pacific Viscose, its Indonesian subsidiary. Lenzing has viewed Indonesia as a booming market for rayon, and see’s a lot of potential for growth in international markets, but management still has some concerns about the expansion. First, in order for the plant to remain successful, Lenzing's primary customers, textile...
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...last 30 years. What are the implications of these shifts for international businesses based in Great Britain? North America? Hong Kong? The past 30 years have seen dramatic changes in the world economy. Where the power of world dominance had been shifted from one to another and also some countries which were at the bottom of the world economy have risen to be at the top. Where counties like U.S and Great Britain rose to the top in the initial phase and in the later phase faced greater challenges from developing countries like china, brazil etc which rose to 2nd and 7th largest economies from 8th and 16th respectively in 1970’s. As mentioned in (A World of Change -- Finance & Development, September 2014) Post war reconstruction helped many countries to become world leaders in economy as many companies expanded their capacity and became multinational. U.S which accounted of 1/3rd of the world’s output in this phase experienced its biggest expansion due to these big industries. Many European countries like Great Britain also experienced the same growth as United States. Due to the greater reforms in the world politically many of new independent countries emerged. Number of independent countries raisen from 139 in 1965 to 204 in 2014. These newly independent countries started participating in the world economy. According to the during the past decade these emerging economies account for 70 percent of the global growth whereas the advanced economies accounted only 17 percent...
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...POLITICAL AND LEGAL ENVIRONMENT Government Overall Since 1949, the People's Republic of China was established in the country by the communists who still govern it today by the Communist Party of China (PCC), whose monopoly on power is guaranteed by the Chinese constitution. The current president is Hu Jintao and Wen Jiabao is the prime minister. There are other political parties in the country, though mainly serve to endorse the policies adopted by the PCC. There are signs of political opening, with competitive elections in village and town levels, but these are slim. The Communist Party still maintains effective control over government nominations. Although the Constitution contains rights and individual guarantees, the People's Republic of China is considered one of the least free countries in terms of press freedom and censorship is common for expression of views and information related to the government. China is often criticized by NGOs and other governments due to serious violations of human rights, as in the case of arrests of political activists without trial, forced confessions, torture, mistreatment of prisoners and others. China was then characterized as a country governed by laws and authoritarian policies, communists and socialists. Censorship of political speech and information, including the Internet, is openly and routinely used to silence criticism of the government and the Chinese Communist Party. The government represses the demonstrations from organizations...
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...industry 3 External Environment Analysis 4 Business Strategy 6 Internationalization 6 Competitive landscape 8 Chery automobile - During the recession 9 Chery automobile - After recession 10 Exhibits 11 References: 15 Background of the company Chery Automobile Co. Ltd is a government owned automobile manufacturing company in China founded in the year 1997.The product portfolio of Chery consists of 15 models which includes minivans, passenger cars and SUVs including the QQ compact, the A5 sedan, and V5 crossover. It also offers full electric and hybrid models. The exports of Chery account to 25% of its total production and it is the largest passenger car exporter since 2003. Chery has manufacturing facilities in China and their assembly operations are in around 15 countries. It has factories in Ukraine, Egypt, Uruguay, Syria, China, Iran, Indonesia, Malaysia, Thailand, Brazil, Taiwan, Venezuela, and Vietnam. Apart from that, Chery also focuses on new product development and its R&D expenses accounts to 7 % of total revenue. Growth of the company Due to certain quality issues faced by the auto exports from China, expansion plans of Chery have been challenged. Chinese products were perceived as of low quality. Apart from that, there were logistical, servicing and duty issues as well for the imports to America. Chery felt that key partnerships offer resources and expertise to improve manufacturing quality. Even after lot of entry barriers, Chery Automobile recorded...
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