International Business: Assignment (Doc)
Added on 2021-06-16
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Running head: INTERNATIONAL BUSINESSInternational businessName of the studentName of the universityAuthor note
1INTERNATIONAL BUSINESSExecutive summaryThe aim of this report is to discuss about the opportunities and challenges in off shoring themanufacturing facility in Bangladesh. M&S textile is considering off shoring their manufacturingfacility to Bangladesh in order to reduce their cost of manufacturing. This report considereddifferent parameters in order to determine the advantages and disadvantages of doing business inBangladesh. This report concluded with a few recommendations, which will help to overcomethe identified barriers and leverage the advantages more effectively.
2INTERNATIONAL BUSINESSTable of ContentsIntroduction......................................................................................................................................3Country profile.................................................................................................................................3Political environment.......................................................................................................................4Socio-cultural environment.............................................................................................................5Economical environment.................................................................................................................7Ethical factors..................................................................................................................................8Potentiality of the selected country..................................................................................................8Recommendations............................................................................................................................9Conclusion.......................................................................................................................................9Reference.......................................................................................................................................11
3INTERNATIONAL BUSINESSIntroduction Initiation of cost leadership is important for the contemporary business organizations dueto the reason that it helps the organizations to gain competitive advantages by reducing the costof operation. On the other hand, the less will be the reduction of the cost of operation, the morewill be the profitability of the organizations. This is motivating more business organizations toinitiate different strategies of reducing the cost. One of these strategies is off shoring of themanufacturing facilities to a major developing country. This strategy gained momentum in therecent time due to its effectiveness. Some of the developing countries are having lower cost ofhuman resources and infrastructural elements, which is attracting more business organizationsfrom the developed countries to invest (Ellram, Tate and Petersen 2013). M&S is the largest producer of aboriginal fabrics in the world. They are based inAustralia and are having their presence in number of countries around the world. Currently, theyare having their offerings in different forms and designs. However, M&S is having theirmanufacturing facility only in Australia (M & S Textiles 2018). Cost of operation in Australia isincreasing with the economical development. Thus, it is becoming more important for them tooff shoring their facilities in some of the developing countries in order to reduce their cost ofoperation. This report will discuss about the potentiality of Bangladesh as the county of choice forM&S for their off shoring facility. In addition, different advantages and disadvantages that willbe faced by M&S in operating in Bangladesh will also be discussed. In accordance to theidentified factors, a few recommendations will be provided in this report. Country profile Bangladesh is a country located in South Asian region and part of Indian subcontinent.They are considered as a developing nation and are showing positive growth in the recent time.One of their major developing sectors is the textile industry. According to the reports,Bangladesh is the second largest producer of textiles in the world after China (Habib, 2016).More textile companies are entering the country due to the availability of cheap labor along withhaving favorable transportation and logistics facilities. Thus, Bangladesh is selected as the mostpotential country for off shoring the business for M&S. The following sections will discuss
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