Evaluation of Market Opportunities - PDF
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Added on 2019-12-04
Evaluation of Market Opportunities - PDF
Added on 2019-12-04
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GLOBALBUSINESS
TABLE OF CONTENTSIntroduction......................................................................................................................................3Main Body.......................................................................................................................................3Evaluation of market opportunities through analytical and technical skills................................3Evaluate and apply appropriate theoretical frameworks to operational and strategic problemsfacing international business operations. ....................................................................................6Evaluation of the main regulatory frameworks, which shape and constrain the conduct ofbusiness within the Triad: European Union, USA and Asia Pacific and develop competitivestrategies for doing business in the Triad....................................................................................9Analysis of the macroeconomic, political and cultural environment of the Russia and China.11Conclusion.....................................................................................................................................16REFERENCES .............................................................................................................................172
INTRODUCTIONGlobal business can be defined as the international trade conducted by the companyaround the globe. In today's scenario, this has become highly important to do internationalbusiness in order to expand market share and revenue (Hill, 2005). It is because revenue andmarket share cannot be enhanced by operating the business in a single country only. After theglobalization era, every company aims to enlarge its business opportunities in other emergingmarkets of the world. The business, however, involves large amount of risk because the externalenvironment of other country is altogether different from the host country of the company. Thisreport is focused on the global business of the US and Europe Car Manufacturing Industries.This industry has set up its plant in the Asia Pacific Region and emerging markets (Walker andTobias, 2005). Further, this report describes the international risk analysis of this industry in theemerging markets of the China and Russia. Along with that, this report also describes theanalysis of the market opportunities through the analytical and technical skills. Moreover, thediscussion has been made on the regulatory framework of the Triad-European Union, USA andAsia Pacific. Furthermore, the analysis has been done on the macroeconomics, political andcultural environment of the Chinese and Russian market.MAIN BODYEvaluation of market opportunities through analytical and technical skillsAnalytical skills mainly refers to as the ability of a firm to visualize, conceptualize,communicative and also they possess the skills to solve both complex and easy problems bymaking decisions which are sensible and provide information. Further, technical skills refer to asthe knowledge and abilities for accomplishing mathematical, engineering, scientific andcomputer coding duties. These skills are highly required by the employees of the carmanufacturing industries so that they can establish their business organization in other countriesof the world. (Jones and Alexander, 2009) Moreover, the industry is setting up its productionplant in the markets of China and Russia because these markets are the emerging markets.However, there are many international risks available in these markets which are to be analyzedand converted them into market opportunities. The marketer has to apply their technical and3
analytical skills so that they can establish their production plant in both the market. The riskanalysis has been done as follows:International Risk AnalysisInternational risk mainly defined as the possibility of the loss which can be caused bysome unfavorable business operations in other country. In shorter manner, it can be defined asthe external environment risk which is outside the impact of a country's government. The rate ofprofit and growth is relatively higher in the case of international business and due to this risk rateis also higher. The main causes of international risk are changes in the environment ofinternational and huge difference in culture of different risk (Ili, Albers, and Miller, 2010).Global risk involves the risk of political and cultural environment, market risk, currencyexchange risk, transport risk and so on.The car manufacturing industries of US and Europe has to do the risk analysis of Russiaand China through using analytical and technical skills by undertaking some of the externalfactors and these are described below:1.Political Risk: In Russia, there is a great political instability. The president is elected forthe third time and people are not excited for his return. Moreover, the relation betweenRussia and USA is not good which may create problem for the industry to set up. On theother hand, China has communist rule and they enhance more of the MNC to getestablish. Thus, the political risk is low in Chinese market.2.Economic Risk: In Russia, the recession is going to continue till 2016 as well but it willbe less severe. Thus, economic issue may not arise more in Russia. Further, in China theeconomic risk is high as there is an expectation of slow down of economy in 2016(Norcliffe, 2006).3.Transport Risk: The modes of transport in Russia are highly updated and thus theproduced goods can be transferred in an easier manner to US and Europe. However, thesedays Russian economy have a negative impact on the freight rail transportation and thiscan create issue for the car manufacturing industry to transport their stocks from Russiato US or Europe (Rubenstein, 2001). Further, the transportation risk in China is lessbecause the transport and logistics companies of China accounts for 3.2% market sharethis implies that there is less threat about the availability of the transport mode.4
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