Premium Essay

Market Entry Proposal

In: Business and Management

Submitted By vivmoney
Words 1480
Pages 6
The cultural and social environment in China is as hard to generalize as that is in the United States. For the most part, many people portray the image of China as a centralized socialist country, ruled by the Communist party, and is heavily influenced by the deeply rooted Confucianism culture. However, many scholars such as Karl Gerth have also noticed that, with thirty years of foreign engagement, “although China remains a nominally socialist country, consumerism is now deeply entrenched in all areas of Chinese life.” China’s economics environment goes nearly hand in hand with its culture and political policies. There’s no question that Chinese culture shapes and explains many of the impacts of the rapidly expanding Chinese consumerism. Today’s China is much more globalized than it was ever before. One example is today, when travelers from all over the world visit China, they find very little barriers in their visiting, and feel so at home in cities such as Beijing and Shanghai. This is because, in an essential sense, the global standards are already merged into Chinese economy, and implemented well in the most economically developed countries.
One of the key cultural traits of China, which ties closely with the economic practices, is the prevalence of guanxi, or “social ties” – an informal Chinese practice of handling conflict and interaction with the state. This cultural characteristic came from the tradition of Chinese avoiding formal legal procedures in courts to settle conflict, by leaning towards informal mechanisms of dispute resolution such as personal relations, mediation through third parties, or ideally, avoidance of conflict by following local norms of behavior and managing personal relations (guanxi). Also, because Chinese culture has not esteemed formal legal practices, guanxi has greatly affected the behavior of foreign investors and undermines

Similar Documents

Premium Essay

Thomas Money Service Business Proposal

...called Future Growth Inc. This merger, although was a risky move was a proven success for The company as they became a competitive company in forestry and construction industry with an advantage in the market. For over 67 years, the company has seen continual growth and financial success. Because of the current economic conditions this past year the company is experiencing significant losses in their stock values and as a result the company has to layoff some employees. Massive flooding, forest fires, animal activist protesters in addition to the economic crisis are all reasons why the company is experiencing a 30% loss in sales from the previous year. Based on the loss in sales and other rivals in the equipment manufacturing industry that can offer substitutions Thomas Money Service Inc. has requested an analysis of the situation to determine the way ahead on how he can turn the company around and re-establish his status in the industry. The intent of this proposal is to provide a recommendation on how the company can increase revenue, achieve ultimate production levels, determine how fixed and variable costs can be adjusted to maximize profits, suggest a mix of pricing and non-pricing strategies, and create barriers to entry into the market if possible. This proposal will also look into ways on how the company can increase product differentiation, and if there is other means to minimize the cost for the product. Increasing Revenue Based on the data from Thomas Money...

Words: 1420 - Pages: 6

Premium Essay

Peer Review

...Business Proposal ECO/561 July 18, 2013 Business Proposal A business proposal gives a perspective buyer an intended and scale offering from the seller. In addition, a business proposal has to establish a reasonable interest in growth not only for the company or business, but also with the transferring interest in the clientele and consumers. This will provide the company a detailed analysis of economic and financial benefits and costs, which are used to maintain cash flows. According to McConnell, Brue, and Flynn (2009), “costs exist because resources are scarce, are productive, and have alternative uses.” Therefore, this gives companies and businesses the opportunity to improve or limit the existing services and goods. As a result, this business proposal is providing the information on Thomas Money Service Inc. and Future Growth Inc. (FGI) (University of Phoenix, 2013). Thomas Money Service Inc. is a finance company established in 1940, which provides business loans, commercial real estate loans, and business acquisition financing loans (University of Phoenix, 2013). In 1946, FGI branched off from Thomas Money Service Inc. to inquire into equipment financing (University of Phoenix, 2013). Therefore, Thomas Money Service Inc. developed an economic system, which gives the factors of production and methods used to motivate, coordinate, and direct economic activity (McConnell, Brue, & Flynn, 2009). As a result, Thomas Money Service Inc. has survived a strong company...

Words: 1288 - Pages: 6

Premium Essay

Hoan My Hospital's Expansion Plan in Cambodia

...Commerce Program Assignment Cover Page Subject Code: BUSM3311 Subject Name: INTERNATIONAL MANAGEMENT Location & Campus (SGS or HN) RMIT SGS Campus where you study: Title of Assignment: Report Proposal File(s) Submitted: BUSM3311_G4_A1_s3192820_PhanThu yChau Student names: Phan Thuỵ Châu Student Numbers: s3192820 Lecturer and Group number: Mr. Dung Huynh Group 4 Assignment due date: 5pm 23rd March 2012 Date of Submission: 22nd March 2012 Late Submission Approval: NI Number of pages including this one: 12 pages Word Count: 1099 (Main Content) BUSM3311 – International Management [REPORT PROPOSAL] Table of Contents A. Objective.............................................................................................................................................................3 B. Potential Market Analysis ........................................................................................................................4 C. Business Model ...............................................................................................................................................5 1. Foreign Acquisition: ...................................................................................................................................5 2. Going alone: Greenfield Entry:...............................................................................................................6 D. Environmental Issue ............................................................

Words: 1833 - Pages: 8

Premium Essay

Churva Eck

...Zhang Xingquan, Guo Jun, Xiao Jie, Zhang Yingying, Kong Lingxiang 2006 World Economics, Faculty of Business Hubei University Jun 12th 2008 This report details analyzing the market situation and marketing mix of Swatch. Possible marketing strategies, and benefits and risks, are explored. Finally, the type "C" Swatch should price under $30, and an exclusive distributorship should be adopted, are concluded. Furthermore, to enlarge Swatch's global market share and to achieve the economies of scale are recommended. The Swatch project was made by ETA, which produced a full range of watch movements and was known as the creator of ultra-thin movements used in expensive watches. This new watch would come in a variety of colored plastic cases and bracelets with an analog face, and ETA had designed an entire production process for Swatch. As the market share of Swiss watches shrunk sharply in the global market, ETA had faced a more and more difficult circumstance. The Swatch project under the code name “Popularius” aimed at rediscovering what the market wanted and then to supply and gain it. While problems were how to gain the potential market and how to adopt different marketing strategies to distribute and promote the new watch. The Swatch project concerned the investigation of Swatch’s potential markets and the feasibility of different marketing mix of Swatch watches and watch movements. The marketing mix of one company generally refers to product, price, promotion and place, which...

Words: 1928 - Pages: 8

Premium Essay

Thomas Money Services Inc. Powerpoint

...Thomas Gentry Thomas Money Service Inc. and FGI Finance Business Proposal Economics/561 Instructor William Kutza May 27, 2013 Business Proposal for Thomas Money Service Inc. The proposal recommendations to analyze the situation at Thomas Money Services Inc. and FGI Finance attributes and introduction a plan to improve existing goods and services. The recommendation suggests applications for increasing revenue, maximizing profits, achieving ideal production levels, determining fixed and variable costs, and identifying methods to reduce the costs. The business proposal will establish that it is in the best interest for both clients and consumers. The current economy has been declining which has driven Thomas Money Service Inc. to find other methods to stabilize their profits, reduce loss, and help to gain or maintain market share. Thomas Money Service Inc. has been hit by the slow economy and the decease in the homebuilding market. The business proposal model will help Thomas Money Services Inc. to put in place applications to increase revenue, profit maximization quantities and to establish a mix of pricing and non-price strategies with low marginal cost and revenue theories. These applications will offset the negative impact of the decease in the homebuilding market. The business proposal presents methods to overcoming barriers to entry in to the market, how to increase product differentiation, how to input applications that will show potential cost savings...

Words: 1780 - Pages: 8

Premium Essay

Business Proposal

...Business Proposal ECO/561 June 24, 2013 Daniel Rowe Business Proposal Will Bury’s is an entrepreneur seeking to engineer digital and audible books with realistic voices. He understands the copyright limitations and technological concerns ahead in the future. This business proposal with discus methods to increase Will Bury’s revenue, profit-maximizing quantity, marginal cost and marginal revenue, mixture of pricing structures, determine his business fixed and variable costs, product differentiation and techniques to minimize production cost. The elasticity of demand and market structure of the company is review in this proposal. The knowledge and comprehension of the topics mention above will aid Will Bury with the success of his business Will Bury predict to enter the market soon with his invention. Recently he manufactured new technology which converts printed conventional books to digital and audible books. This idea is patent due to the competition market. Audible book currently exists in the form of CDs. Due to this market rivalry Mr. Bury understands he is entering into a monopolistic competition. A monopolistic competition market is characterized by a large quantity of merchants manufacturing dissimilar products (McConnell, Brue, & Flynn, 2009). Entering into a monopolistic market is a difficult task which takes commitment and dedication. Mr. Bury will have to understand the barriers of entry into this market. Barriers to entry are elements that prohibit companies...

Words: 1298 - Pages: 6

Premium Essay

Scope of Work

...foreign country as the host market for a product / company. You are required to document the selected country’s culture which may be relevant to the product you select. Then, you will need to develop a marketing plan for its introduction or expansion in the host country. You will have to write the plan as a proposal by a Global Marketing Consultant to solicit a business. There is no definite outline and / or framework for the presentation, the essence will be ← Creativity of your idea(s) ← Focus of your plan(s) ← Differentiation of your strategy(ies) ← Attention-arresting presentation If deemed necessary, you can refer to the suggested scope of work for case presentation as follows: Each group should make use of the business theories, models and strategies learned so far (e.g. i. Hofstede Cultural Dimensions, ii. SRC, iii. different types of centrisms, iv. Porter’s 5 forces, v. SWOT analysis, vi. PEST(LE) analysis, vii. the notions of “serendipity”, “ubiquitous” & “synergy”, viii. different modes of entry ix. growth matrix, x. consolidation matrix & strategies, xi. internal & external criteria for global entry and so on) to cover the following suggested scope of work for the presentation: 1. the target product (the benefits, values, vanity and needs, etc) 2. the target markets and the goals (PEST(LE) & Cultural analyses, etc) 3. the mode of entry (the options and the final...

Words: 943 - Pages: 4

Free Essay

Business Proposal Paper

...Business Proposal Paper Lucionda Garnett ECON/561 October 22, 2014 Mr. David Grier Introduction In today’s society, it is imperative that businesses adopt an efficient and effective strategy, in order to stay ahead in this persistently fluctuating professional world. Every business should have an approach that will align with the shifting economy to sustain or even gain more business. The result of an ineffective approach may result in the loss of customers, profits, and consequently the demise of the business as well. In this paper the author will attempt to write a business proposal, with specifics about Verizon Wireless network, which is vital in this technological savvy industry. In this business proposal, the author will identify the market structure for Verizon Wireless network, identify elasticity of the product, and discuss how pricing will relate to the Network as a whole. The author will also discuss how changes in the quantity supplied as a result of pricing decisions affect marginal cost and marginal revenue, suggest some nonpricing strategies that Verizon will use to increase barriers to entry, and how the changes in operations may alter the mix of fixed and variable costs. And finally, the author will go in depth about the current...

Words: 2125 - Pages: 9

Premium Essay

American School Counselor Association (2014). Mindsets and Behaviors for Student Success: K-12 College- and Career-Readiness Standards for Every Student. Alexandria, Va: Author

...Document Abstract This document is a proposal to develop a Continuing Care Retirement Community – a kind of senior housing retirement living center – on one (1) contiguous parcel of land located in a northeastern suburb of Houston, Texas by BGG Development, LLC – a Texas Limited Liability Company engaged in the development, capitalization, marketing and operations of senior housing facilities in Texas. BGG Development, LLC’s management has assessed the initial opportunity and believes the total development budget for the initial phase of this project will be approximately $54.1 million, but the project is expected to have three (3) phased stages developed over a 3-year period (if all operations are met with material success). Should BGG Development, LLC be successful in executing its business model, the expected result will be a near-term net profit pool of approximately $6.2 million and BGG Development, LLC will be seeking to acquire approximately $1.2 million in pre-construction phase capital financing to address this business opportunity. To these ends, the company is providing this proposal for the purposes of entertaining discussions with qualified institutions, businesses and accredited investors regarding the potential investment preferences. This document is not an offer to sell securities of any kind, nor does it constitute a guarantee or warranty as to future performance of any kind. This Document is For Discussion Purposes Only. Northeast Houston Senior Housing...

Words: 5397 - Pages: 22

Premium Essay

Ikea Proposal

...| | |Entry Proposal for IKEA | |International market entry to Puerto Rico | | | |International Retailing | |Tuesday 12th March 2013 | | | |Zoe Cole | |Aoife Hughes | |Tinuola Omoyele | | | | | Contents Terms of Reference / Executive Summary 2 Introduction 3 Main Body / Findings 4 References 10 Terms of Reference / Executive Summary In this report, we propose IKEA expand its international market into San Juan, Puerto Rico, South America as mode of entry. The purpose of this report is to make a case for the expansion of IKEA into a new market. The reason we chose Puerto Rico is because the research has already been completed for such a move, and only narrowly missed out to the Dominican Republic as a new destination...

Words: 1857 - Pages: 8

Premium Essay

Business Proposal

...Business proposal Economics - ECO/561 Business proposal This assignment will center around introducing a new product in an existing line of business and focus on how to develop the good to increase the revenue. I would be also touching upon the concepts of the elasticity of demand, market structure as well as profit maximization techniques which would be useful to further this good and also the barriers to entry. Pricing strategies and product differentiation will be the other important topics which will be discussed as well. I am choosing the shampoo company Pantene, founded in 1947, who was inspired by the ingredient panthenol, Pantene and was originally owned by Swiss drug company Hoffman-LaRoche.It made its debut as a premium hair care line across Europe, replete with glass bottles and prestige scents and then crossed over to the US. Pantene has just come up with the latest Custom Hair solutions which I will be focusing on. Elasticity of Demand Simply put, the demand for Pantene shampoo is highly elastic for the main reason that today there are so many substitutes available and so many other companies launching their shampoo products on a daily basis. Market Structure The market structure for the shampoo market is that of Monopolistic Competition. This is when a large number of sellers produce a product or service that is perceived by consumers as being different from that of a competitor but is actually quite similar. This perception of...

Words: 812 - Pages: 4

Premium Essay

Business Proposal

...Business Proposal Tina Davis ECO/561 Economics Draft Business Proposal In an effort to serve the CVS Pharmacy’s consumer base better, the need to offer a wider variety of prescription medication selections and options system-wide. In this proposal, assumptions about the elasticity of demand and the market structure for these medications and expanded services will be included. Additionally, how the expansion will increase revenues will be explained. Further, a rationale for determining the profit-maximizing quantity will be provided. Decisions will be made by using the concepts of marginal costs and marginal revenue to maximize profit. A mix of pricing and non-pricing strategies will be suggested. This proposal will also explore options of creating or increasing barriers to entry. Further, increased product differentiation will be discussed. Finally, other way to minimize costs will be explored. Market Structure and Elasticity of Demand CVS retail pharmacies operate in a monopolistic competition market structure. According to Investopedia (2012), the monopolistic competition is, “A type of competition within an industry where: 1. Firms produce similar yet not perfectly substitutable products. 2. Firms can enter the industry if the profits are attractive. 3. Firms are profit maximizers. 4. Firms have some market power, which means none are price takers. Firms in a monopolistic competition sell goods that have either actual or perceived non-price differences...

Words: 2058 - Pages: 9

Premium Essay

Business Proposal for Johnson and Johnson

...Business Proposal for Johnson and Johnson ECOX/561 October 7, 2013 Karen Yancey Business Proposal for Johnson and Johnson Johnson and Johnson is a multinational medical devices, pharmaceutical, and consumer packaged goods company founded in 1886 by three brothers: Robert Wood Johnson, James Wood Johnson, and Edward Mead Johnson (Johnson and Johnson , 2013). In this business proposal the focus will be on consumer packaged goods for Johnson and Johnson. A discussion of whether Johnson and Johnson is elastic or inelastic, and whether the company is a price taker or price setter. Also in the business proposal, a discussion of barriers to entry, how the company maximizes profits and how the company differentiates itself from other competitor and non-price strategies will be discussed. Market Structure Johnson and Johnson have three distinct segments: consumer packaged products, medical, and pharmaceutical. Johnson and Johnson market structure is oligopolistic. The segment of pharmaceutical is dominated by three major competitors such as Merck, Pfizer, and Novartis. Consumer packaged goods is dominated by Procter and Gamble and Novartis for health care goods such as oral B, pampers, and hair care. Baby products are dominated by Gerber Products and Nestle. Is John and Johnson Elastic or Inelastic Johnson and Johnson is an elastic company because it will be affected by changes in the market such as demand for its products and...

Words: 1122 - Pages: 5

Premium Essay

Eco 561 Week 4 Apple Iphone Business Proposal

...ECO 561 WEEK 4 APPLE IPHONE BUSINESS PROPOSAL A+ Graded Tutorial Available At: http://hwsoloutions.com/?product=eco-561-week-4-apple-iphone-business-proposal Visit Our website: http://hwsoloutions.com/ Product Description PRODUCT DESCRIPTION ECO 561 Week 4 Apple iPhone Business Proposal Apple iPhone Business Proposal Apple launched its first phone known as the iPhone in 2008; the phone is designed to target people who wanted and needed to communicate and store information. The phone is design to provide a wireless Internet connection, music, and talk into one. The features of this phone include a 3.5 touch screen without the aid of a keyboard, using more than one finger to control the phone, and shifting the screen to view in different modes. The market for the phone was small in 2008; but today the phone has taken over. In this paper I will present a business proposal for the iPhone addressing the market structure and the elasticity of demand for the phone. Market Structure The Apple smartphone is part of an Oligopoly market; an independent market and has its own behaviors strategies. According to McConnell, Brue, and Flynn (2009), “Oligopoly, in contrast, blends a large amount of monopoly power, a small amount of competition through entry, and considerable rivalry among industry firms” (p. 222). Because Apple’s smartphone industry and competition was small, it needs to take control of the market by differentiating the iPhone from others phone in its category...

Words: 412 - Pages: 2

Premium Essay

Mcdonald's Business Proposal

...McDonalds Business Proposal Paper Dorrina Martini ECO/561 February 3, 2012 David Francom McDonalds Business Proposal McDonalds has always been a company that shares in the happiness of a child. Recently after taking my own children to McDonalds, I have found that there is not a breakfast option for children. McDonalds should add a happy meal option to the breakfast menu. Current demands by consumers are to add a happy meal option allowing parents to purchase child sized portions of breakfast items. This option could help McDonalds to increase profits by attracting more consumers. Shareholder reports show a quarterly cash dividend per share increase of 15% and annual dividend of $2.80 per share. Comparable sales grew 5.6%. Cash by operations increased $808 million to $7.2 billion. Return to shareholders $6.0 billion (McDonald’s.com, 2012). Elasticity of demand and the market structure for the company’s good or service. * Profit-maximizing quantity is figured by determining the elasticity of the product. * By dividing the change in quantity sold by the corresponding change in price, you get a coefficient that tells you how elastic or inelastic your product is – with coefficients between zero and one being inelastic and coefficients greater than one being elastic. * The elasticity of this particular product is determined by the individual instead of the population. Considering this fact, fast food is considered an elastic good. An elastic good is more of...

Words: 1240 - Pages: 5