Evaluation & Selection of Countries

The above mentioned countries are discussed in detailed and relevant trend is identified and on the basis of the trend analysis we selected three companies Ethiopia, Ghana & Cameroon are the most suitable countries for opening news branches in each of these countries and also are according to support the XYZ limited company major product line. 2014 of the factor are discussed in detailed and relevant trend is identified and on the basis of the trend analysis we selected three companies Ethiopia, Ghana & Cameroon are the most suitable countries for opening news branches in

Table of Contents
Executive Summary.....................................................................................................................................2
1. Introduction:........................................................................................................................................3
2. Methodology:......................................................................................................................................3
3. Evaluation & Selection of Countries:..................................................................................................3
3.1. Total Labor Force (In Millions):..................................................................................................4
3.2. Unemployment as a % of total labor force:..................................................................................5
3.3. Country Population (In Millions) & % of population with access to electricity:..........................8
3.4. Ease of doing business:..............................................................................................................10
3.5. Percentage GDP growth:............................................................................................................11
3.6. Corruption Perception Index:.....................................................................................................12
4. Conclusion:........................................................................................................................................14
5. References:........................................................................................................................................15
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Executive Summary
This research report is about XYZ limited that is an manufacturing company and their major product line
is manufacturing of electric motor bikes and special tyres. The company wants to open their three more
branches in three different African countries. For this purposes we evaluate and analyze five different
African countries on the basis of different financial and non-financial factors that affects the company
operations in that country by legal challenges, economic hardship, socially viability and corruption
perception. Some of the major factors that are discussed in this report are Ease of doing business,
Percentage GDP growth, Corruption Perception Index, Total Labor Force (In Millions), Unemployment
as a % of total labor force, Country Population (In Millions) & % of population with access to electricity.
Each of the factor are discussed in detailed and relevant trend is identified and on the basis of the trend
analysis we selected three companies Ethiopia, Ghana & Cameroon are the most suitable countries for
opening news branches in each of these countries and also are according to support the XYZ limited
company major product line.
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1. Introduction:
This report is about the evaluation of several indicators that are necessary for the expansion purposes or
launching of new branches into the other international countries. XYZ Limited is a manufacturing
company and started to thinking about expansion by opening their branches into three other African
countries. XYZ limited is a large scale manufacture of motorcycles and their spare part. XYZ limited is
also the country largest supplier of electric motorcycles and special tyres. Currently the management of
the XYZ limited considering expanding their operations. For this purpose XYZ limited selected five
different African countries for expanding their operations and installed their production line in any of the
three African countries out of total five African countries. The name of five selected African countries for
expansion purpose is Zambia, Zimbabwe, Ethiopia, Ghana & Cameroon. Several important indicators are
use in this evaluation to select the top three countries where XYZ limited open their branches.
2. Methodology:
In this assessment we use nine different type of indicators are used to analyze the suitability of country
with respect to XYZ limited operations. The data of all these indicators are selected and taken from the
World Bank website. The indicators that are selected named as Co2 Emission, Ease of doing business,
Percentage GDP growth, Human Right & Rule of Law, Corruption Perception Index, Total Labor Force
(In Millions), Unemployment as a % of total labor force, Country Population (In Millions) & % of
population with access to electricity. All of these selected indicators evaluate countries social, legal,
economic & financial capacity over the last several years. Largely we use to focus on the data starting
from the year 2015 to onwards till date available on the World Bank website. The detailed evaluation of
each of the above mentioned indicator are discussed with their pros and cons in the below paragraphs.
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3. Evaluation & Selection of Countries:
The name of five selected African countries for expansion purpose is Zambia, Zimbabwe, Ethiopia,
Ghana & Cameroon. As per XYZ limited only three countries will be selected that are most suitable for
their international operations. Evaluation of each indicators and their ranking according to their trend over
past years are discussed below:
3.1. Total Labor Force (In Millions):
Labor Force is one of the most vital elements of this evaluation because the success of the business
operation in any country depends upon its labor force. If the labor is cheap and largely available in the
country where company wants to open their new branch or move their operations then this will the one of
the top achievement of the management in selection and success of their expansion in that country.
Ranking 3 1 2 4 5
Year Cameroon. Ethiopia. Ghana. Zambia. Zimbabwe.
2010 8.73 39.35 10.70 5.46 6.11
2011 8.98 40.81 10.94 5.59 6.18
2012 9.24 42.34 11.18 5.72 6.32
2013 9.51 43.94 11.43 5.92 6.47
2014 9.78 45.58 11.67 6.14 6.61
2015 10.07 47.25 11.92 6.36 6.71
2016 10.37 48.87 12.22 6.59 6.80
2017 10.68 50.54 12.52 6.83 6.91
2018 11.00 52.24 12.84 7.09 7.03
2019 11.33 53.95 13.16 7.35 7.16
2020 11.58 53.55 13.36 7.55 7.20
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As per above mentioned table Ethiopia has the highest growing labor force market then on second
number Ghana and the third one is Cameroon. Ranking is assigned to the countries on the basis of highest
labor force value of the respective country.
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
0.00
10.00
20.00
30.00
40.00
50.00
60.00 Total Labour Force (In Millions)
Cameroon. Ethiopia. Ghana. Zambia. Zimbabwe.
The above mentioned chart shows the trend of labor force with respect to countries over the last 10 years’
time period. The trend of the labor force of the Ethiopia, Ghana & Cameroon are upward sloping over the
last 10 years and is highest in number among the all 5 countries. As the labor force is highest in these
three countries means that the availability of skilled and unskilled labor is not an issue for the
management to start their operations. As according to the manufacturing operations of the company they
also need large amount of skilled work force as well as support staff to support the operations to run
successfully.
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3.2. Unemployment as a % of total labor force:
The level of unemployment is also worth taking in selection of countries. As the countries with higher
level of unemployment will normally be suitable for the expansions. Because the higher the employment
lower the rate of labor as compared to those countries where the unemployment is lower.
Ranking 4 5 2 1 3
Year Cameroon. Ethiopia. Ghana. Zambia. Zimbabwe.
2010 4.11 2.34 5.38 13.19 5.21
2011 3.96 2.31 5.60 10.55 5.37
2012 3.82 2.29 5.91 7.85 5.15
2013 3.67 2.25 6.20 8.61 4.98
2014 3.53 2.26 6.52 9.36 4.77
2015 3.55 2.27 6.81 10.13 4.78
2016 3.58 2.29 5.53 10.87 4.79
2017 3.60 2.30 4.22 11.63 4.78
2018 3.62 2.32 4.28 12.01 4.80
2019 3.64 2.33 4.32 12.52 4.83
2020 3.84 3.24 4.65 12.85 5.35
As per above mentioned table Zambia has the highest level unemployment in labor force market then on
second number Ghana and the third one is Zimbabwe. Ranking is assigned to the countries on the basis of
highest rate of unemployment in labor force percentage of the respective country.
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2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00 Unemployment as a % of total labor force
Cameroon. Ethiopia. Ghana. Zambia. Zimbabwe.
The above mentioned chart shows the trend of unemployment percentage of labor force with respect to
countries over the last 10 years’ time period. The trend of the labor force of the Zambia, Ghana &
Zimbabwe are upward sloping over the last 10 years and is highest in number among the all 5 countries.
As the unemployment rate with respect to labor force is highest in these three countries means that the
availability of skilled and unskilled labor is not an issue for the management to start their operations. As
according to the manufacturing operations of the company they also need large amount of skilled work
force as well as support staff to support the operations to run successfully. Large number of labor is
unemployed in these countries means cheap labor. The labor cost is one of the largest expenses that
reduce the company profits. by using cheaper labor company expanses will be much lower and company
operations enjoys health profits in these countries.
But the value of labour force is highest in Ethiopia, Ghana & Cameroon but the unemployment rate is less
than Zambia & Zimbabwe. So as per calculation of year 2020 the labour force idle with respect to
unemployment rate is highest in Ethiopia, Ghana & Cameroon as a shown below in table:
Total Labour Force (In Millions)
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Country Name Cameroon Ethiopia Ghana Zambia Zimbabwe
2020 11.58 53.55 13.36 7.55 7.20
Unemployment as a % of total labor force
Country Name Cameroon Ethiopia Ghana Zambia Zimbabwe
2020 3.84 3.24 4.65 12.55 5.35
No. of Unemployment labor force
Country Name Cameroon Ethiopia Ghana Zambia Zimbabwe
2020 0.44 1.73 0.62 0.95 0.39
So the countries with highest value of unemployed labour force will be selected as mentioned above in
table. Because the labor will be cheap and readily available for the company operations.
3.3. Country Population (In Millions) & % of population with access to
electricity:
As XYZ limited is major product is electric bikes, so sales of the product is largely depends on the
population and the electricity access to the population in the country. Countries with larger populations
and their wider part of population have access to electricity is the major contributing factor is deciding
whether to launch new branch in that country or not. As the population grows their needs to use vehicles
also grow so it will directly impact the sale of the company.
Ranking 3 1 2 4 5
Row Labels Cameroon. Ethiopia. Ghana. Zambia. Zimbabwe.
2010 20.34 87.64 24.78 13.61 12.70
2011 20.91 90.14 25.39 14.02 12.89
2012 21.49 92.73 26.00 14.47 13.12
2013 22.08 95.39 26.61 14.93 13.35
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2014 22.68 98.09 27.22 15.40 13.59
2015 23.30 100.84 27.85 15.88 13.81
2016 23.93 103.60 28.48 16.36 14.03
2017 24.57 106.40 29.12 16.85 14.24
2018 25.22 109.22 29.77 17.35 14.44
2019 25.88 112.08 30.42 17.86 14.65
2020 26.55 114.96 31.07 18.38 14.86
The above mentioned chart shows the trend of total population of the countries over the last 10 years’
time period. The trend of the population growth of the Ethiopia, Ghana & Cameroon are upward sloping
over the last 10 years and is highest in number among the all 5 countries. As the population is highest in
these three countries means the expected sales & demand of electric motor bikes will be much more in
these countries than the other countries.
But the population with respect to aces to electricity is the major factor that must consider because if the
access to electricity is less then despite of higher population the sales will badly affected by this. The
trend of electricity access to population with respect to each country is given below in the chart:
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00 % of poulation with access to electricity
Cameroon. Ethiopia. Ghana. Zambia. Zimbabwe.
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Ranking 2 3 1 5 4
Country Cameroon. Ethiopia. Ghana. Zambia. Zimbabwe.
As per above mentioned chart, shows the trend of Total population access to electricity over the last 10
years’ time period. The trend of Total population access to electricity of the Ethiopia, Ghana & Cameroon
are upward sloping over the last 10 years and is highest in number among the all 5 countries. As the
population is highest in these three countries, also has the highest access of population to the electricity in
these countries means the expected sales & demand of electric motor bikes will be much more in these
countries than the other countries. So these countries will be more beneficial for the opeing of new
branches than remaining countries. Peoples will be much willing to use electric bikes because not only of
their cheaper than petrol bike but also has less in overall cost than the petrol bikes.
3.4. Ease of doing business:
One of the major barrier in doing international expansion is the ease of doing business in that country.
Despite of all the above discussed factors if the ease of doing business is not possible in that country than
the country will not the suitable for expansion purposes and chance of loss or failed expansion will
increases by much greater degrees. Ease of doing business score (0 = lowest performance to 100 = best
performance)(Rogge & Archer, 2020).
Ranking 5 4 2 1 3
Country Cameroon Ethiopia Ghana Zambia Zimbabwe
2015. 41.89 43.78 56.99 60.45 47.80
2016. 41.77 44.06 58.04 60.25 47.79
2017. 45.05 46.15 58.38 64.23 48.59
2018. 46.00 47.06 60.43 65.71 50.51
2019. 46.10 47.98 59.96 66.94 54.47
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2015. 2016. 2017. 2018. 2019.
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
47.80
47.79
48.59
50.51
54.47
41.89
41.77
45.05
46.00
46.10
43.78
44.06
46.15
47.06
47.98
56.99
58.04
58.38
60.43
59.96
60.45
60.25
64.23
65.71
66.94
Ease of doing business
Zimbabwe Cameroon Ethiopia Ghana Zambia
The above mentioned chart shows the trend of ease of doing business with respect to countries over the
last 10 years’ time period. The trend of the ease of doing business of the Zambia, Ghana & Zimbabwe are
upward sloping over the last 10 years and is highest in number among the all 5 countries. While the
Ethiopia & Cameroon has the lowest score of ease of doing business in the country. This will be major
problem for the management because all of the above factors are in the favor of Ghana, Ethiopia &
Cameroon. So the careful consideration is given in this area and sought out the reason that makes the ease
of doing business is less favorable in these two countries but in the meanwhile the score of both these
countries is near to 50 and also in increasing trend year over the year but less than other two countries.
3.5. Percentage GDP growth:
GDP growth rate is must consider as the GDP grows the demands for goods also grows and if the
demands grows the supply will also grows faster (Simon & Simon, 2018). The table gives a bird eye view
of the all the countries historical growth rate of GDP over the last 10 years:
Ranking 3 1 2 4 5
Country Cameroon Ethiopia Ghana Zambia Zimbabwe
2011. 3.38 11.18 14.05 5.56 14.19
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2012. 4.63 8.65 9.29 7.60 16.67
2013. 5.00 10.58 7.31 5.06 1.99
2014. 5.72 10.26 2.86 4.70 2.38
2015. 5.67 10.39 2.12 2.92 1.78
2016. 4.54 9.43 3.37 3.78 0.76
2017. 3.54 9.56 8.13 3.50 4.71
2018. 3.96 6.82 6.20 4.03 4.82
2019. 3.48 8.36 6.51 1.44 -6.14
2020. 0.49 6.06 0.41 -2.79 -6.25
The above mentioned table shows the trend of percentage of GDP growth rate over the last 10 years’ time
period. The trend of the percentage of GDP growth rate of the Ethiopia, Ghana & Cameroon are upward
sloping over the last 10 years and is highest in number among the all 5 countries.
2009. 2010. 2011. 2012. 2013. 2014. 2015. 2016. 2017. 2018. 2019. 2020.
-10.00
-5.00
0.00
5.00
10.00
15.00
20.00
25.00 Percentage GDP growth
Cameroon Ethiopia Ghana Zambia Zimbabwe
As the GDP growth rate is highest in these three countries means , that these countries are developing
countries and year over year their economy performs better than past and grows. So with in the growing
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economy the business also grows with much faster paces and their local governments also support their
operations to attract investments in those countries. in this way these countries are worthy than other two
countries whose GDP are in negative numbers.
3.6. Corruption Perception Index:
The corruption perception index of is shows the level of corruption in that country. (Gilman, 2018) As
according to this index ranking Zambia, Ghana & Ethiopia are the least ranking or less corrupted
countries.
Ranking 4 2 1 3 5
Values Cameroon Ethiopia Ghana Zambia Zimbabwe
2021 2020 2019 2018 2017 2016 2015 2014
0
10
20
30
40
50
60 Corruption Perception Index
Cameroon Ethiopia Ghana Zambia Zimbabwe
Cameroon is stand at number 4 in corruption perception index. This would be a problem for the opeing
branch in the Cameroon but the Cameroon score on index is at 27 and Zambia is stand at 33in 2021 so
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there is not much difference in between them. So this might be ignored there as all the other factors are in
the favor of the Cameroon. As the GDP of the is much greater in growth and their growth is consistent
and in growing in trend.
4. Conclusion:
As per detailed discussion and evaluation of 6 major factors that are necessary before taking any decision
regarding any expansions or opening new branches in international countries. Overall as the result of all
of the above factors except corruption perception index Ethiopia, Ghana & Cameroon are the most
suitable countries for opening news branches in each of these countries. As company major product is
electric motor bike and these countries have highest population with highest labour forces and the
population of all these three selected countries have maximum access to electricity that are major driving
factors of the company sales in these countries in times of rising fuel prices and costly petrol motor bikes.
Moreover the GDP of these three selected countries are consistently in growing trend but the other two
countries have negative GDP. With the growth in GDP the economy also grows that directly impacted the
sales and growth of company and eventually hits positively the company profitability. So as per all these
factors supported Ethiopia, Ghana & Cameroon are the best selected countries for the opening of new
branches of XYZ limited company and also are according to support the company major product line.
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5. References:
Rogge, N., & Archer, G. (2020). Measuring and analyzing country change in establishing ease of doing
business using a revised version of World Bank’s Ease of Doing Business Index. European Journal of
Operational Research. https://doi.org/10.1016/j.ejor.2020.07.065
Gilman, S. C. (2018). To Understand and to Misunderstand How Corruption is Measured: Academic
Research and the Corruption Perception Index. Public Integrity, 20(sup1), S74–S88.
https://doi.org/10.1080/10999922.2018.1472974
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