Management Assignment Solution (Doc)

Added on - 21 Apr 2020

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Running head: MANAGEMENTMarket entry strategy and impact of globalizationName of the Student:Name of the UniversityAuthor note:
1MANAGEMENTExecutive SummaryThe purpose of the report is to state the effects of globalisation on China at present and at thefuture. By keeping these aspects in mind, the report has also analysed in detail about the twoindustries of China, which are offering opportunities to a foreign multinational. Finally, thereport concludes stating the recommendations, which the foreign multinational should follow,while adopting the market entry strategy.
2MANAGEMENTTable of ContentsIntroduction......................................................................................................................................4Impact of Globalisation on China....................................................................................................4Globalisation of China in future..................................................................................................9China on the world stage...........................................................................................................10BRICS and future of China........................................................................................................12Impact of globalisation on China’s automotive industry and agricultural industries................13Introduction of the foreign markets who can get benefited in China............................................14Introduction of the Two Industries chosen....................................................................................15PESTLE analysis of the Chinese industries...................................................................................17PESTLE of automobile industry in China.................................................................................17PESTLE analysis of beef products agriculture industry in China.............................................18Justification for the industries chosen............................................................................................19Automobile manufacturing industry in China...........................................................................20Beef agricultural industry in China............................................................................................21Recommendations..........................................................................................................................23Identify the market of China:.....................................................................................................23Select the location:.....................................................................................................................23Regulations and policies of Government:..................................................................................23Hire staff:...................................................................................................................................24
3MANAGEMENTConclusion.....................................................................................................................................24References......................................................................................................................................25
4MANAGEMENTIntroductionGlobalization constructs a world market where price efficiency can be outstretched.Almost every country is someway influenced by globalization. Globalization however, has anpositive impact on China because as its condition prevails it has the most lower cost labourfacilities as well as the manufacturing costs are also much lower. Therefore, China gets attractedby the global investors and with their help China has lowered its poverty. China is ruled bycommunal government but then also they are following western outlook as their policy to expandtheir economic growth by enhancing a well planner of globalization. The role that is played byGlobalization in the present world is huge. However, China who entered the wto few years backgo immensely benefited by it but Globalization has both negative as well as a positive effect thatno one can ignore. Therefore, Globalization is an essential component that is necessary for anynation to prosper as well as develop. This study is focussed on identifying in detail the impact ofglobalisation on China. The impact will be related to the current changes as well as the futurechanges. The study also recommends two industries, which a UK client can utilise to enter intoChina. Those two industries are automobile manufacturing and beef agricultural industries. Thisfurther justifies the recommended industries. Moreover, the paper also recommends anappropriate entry mode in China with suitable justification too.Impact of Globalisation on ChinaForeign Direct Investment and trade arethe two important factors that have contributedlargely in such a transition in the country. The rapid growth in terms of biggest exporting countryand the largest secondary economy has become possible because of foreign direct investment.The process of reforms that has started in the late 1970s has helped China developing its
5MANAGEMENTeconomy and human resource. The strategy to represent it as an open economy to the globalworld has helped in attracting various international markets. Investments and international tradeshave been the biggest assets in the rising industrialisation in China. Consequently, the countryhas continually maintained a uniform growth rate in GDP. The export oriented strategy of thecountry was largely financed by direct foreign investments. The growth in GDP can beunderstood with the help of data submitted by the World Bank national accounts data and OECDNational Accounts data files (Holz 2014).Figure 1: World Bank data on China’s GDP growth(Source:data.worldbank.org 2017)
6MANAGEMENTThere has been a significant transition in the different industrial regions in China.Theagricultural economy of the country did transform into an industrialised economy. The ruralbased society did transform into an urban based society. The country has actually carried onreaping the benefits of globalisation. The expansion is enlarged now due to a reduced barrier intoforeign countries. However, there are still barriers from some international companies especiallyfrom the United States. America has been in continuous threat ever since 1972. They have triedto sharpen their policy against China. This is for a reason that trade policies of China have kepton frustrating the United States(Bader 2017).China strategically plays a significant role by following the Western model of approachto develop their economic growth. In the year 2001 in September, China joined the prestigiousWorld Trade Organization (Shambigh 2013).Globalization has brought many changes and influences on China and they are:-Economic growth: As per the given statistics of the year 2016, China was successful inmaking nearly 1413 billion dollars, which stands in the sixth place. From 1965 to 1979,China’s GDP grew 7% but after making a successful entry into the global market, Chinawas successful in making its GDP nearly 10.5% in the year 1980 to the year 1990 (Wei2013). In the year 2017, it is being stated that the production level in the Chinese Industryhas increased by 15% while the demands of the consumer has been enhanced by 10%. Inthe year 2017, the GDP of China has come to 6.9% and it ranked 71stin the report ofGDP per capita rank. In terms of PPP, China stands second in the world after UnitedStates of America (Wei 2013).
7MANAGEMENTFigure 2: GDP growth till the year 2017
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