Strategic Report: Amcor's Global Market Entry in India and France

This report provides a strategic analysis of Amcor Limited's potential for international expansion, specifically focusing on market entry into India and France. The report begins with an executive summary and an introduction to Amcor, an Australian packaging company. It then delves into a comparative analysis of the macroeconomic and geopolitical factors, trade and business policies, and potential dangers, risks, and opportunities within each country. The analysis considers geographical, political, economic, social, technological, legal, and environmental factors. The report highlights India's advantages, such as its large population and developing technology sector, while also acknowledging the environmental concerns. France's stable economy and technological advancements are contrasted with its social disparities and potential for economic instability. The report examines trade policies, including India's Foreign Trade Act and France's adherence to EU trade regulations. Finally, the report concludes with a recommendation on the most suitable market for Amcor's expansion, supported by justifications based on the analysis of various factors.

Running head: INTERNATIONAL AND GLOBAL BUSINESS
INTERNATIONAL AND GLOBAL BUSINESS
Name of the Student
Name of the University
Author Notes

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Executive Summary
The aim of the report is to analyse the macro-economic and geo-political factors that
affect the expansion of Amcor Limited, an Australia based packaging company to the
province of Europe and Asia namely France and India respectively. The principles of
the report is to analyse the weakness, threats, risks and opportunities of the
company in association to the company and also to decipher the ways in which the
company can mark their presence and expand to the sources. The
recommendations as to which market is the best for expansion is also considered in
terms of the business sector. The company’s expansion in terms of the different
factors are considered in the concerned matter in the report mentioned.

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Table of Contents
1. Introduction...............................................................................................................3
2. About the company – Amcor Limited.......................................................................3
3. India and France as a country for market entry.......................................................3
3.1 Macro-economic and Geo-political forces of India.............................................3
3.2 Macro-economic and Geo-political forces of France..........................................4
3.3 Trade and business policy of India.....................................................................5
3.4 Trade and Business policy of France.................................................................6
3.5 Potential dangers, risks and opportunities in India.............................................6
3.6 Potential dangers, risks and opportunities in France.........................................7
4. Recommendation......................................................................................................7
5. Conclusion................................................................................................................8
6. Reference.................................................................................................................9

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1. Introduction
With the introduction to globalization in terms of the business, the companies
are highly proactive to expand their business and sources to the countries in which
their business are not present but there are ample opportunities for the expansion.
According to Hirst, Thompson and Bromley (2015), the business companies are
mainly those companies who have a sustainable business market in the original
countries and are willing to expand due to greater amount of customer service and
level of business services. The following report focusses on the expansion of the
Australian company Amcor Limited to the nations of Indian and European origin
namely India and France respectively. The following paragraphs highlight the macro-
economic and geo-political factors of the countries with the trade policies in each of
the countries. The following paragraph highlights the potential dangers, risks and
opportunities that are there in the short-term policies of the countries in the course of
time.
2. About the company – Amcor Limited
Amcor Limited is one of the foremost and popular packaging companies of
Australia that is operating on a global basis. It was founded by the Australian Paper
Manufactures in the year 1860 and has its headquarters in Victoria of Australia. The
corporate headquarters of the country is in Zurich, Switzerland (Amcor.com 2018).
The company is famous for its responsible and high-quality packaging service for the
various sectors of items like food, beverage and pharmaceutical products. According
to Amcor.com (2018), the aim of the company is to manufacture sustainable
packaging using the best of the technological services from the world employing over
33,000 employees across 195 countries.
3. India and France as a country for market entry
3.1 Macro-economic and Geo-political forces of India
Geographic – The geographical location of India is one of the biggest advantage for
the country as it is a door to the whole of Asia. According to Steger (2017), the
country has a tropical climate and fertile soil quality to facilitate production and
increase the business inflow.

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Political – The political form of India is stable in the modern case with the largest
democracy and federal form of government structure. The system of India is
developed on the multivariate political factors which is encouraged by the
government. The political condition of India is stable to encourage business.
Economic – The economic condition of India is stable with a mixed economic
system. The country has encouraged the system of privatization with a stable GDP
growth of above 5% from the last few months (Cronin 2013). The policy of
liberalization of foreign capital also has made the economic condition stable.
Social – The country has a huge population which encourages cheap labour. Due to
the growth of unemployment, any company encouraging employment is welcome in
the country. According to Deficit (2013), the social condition of India is stable in
terms of the social order.
Technological – India is developing on the technological field as it is continuously
growing in terms of the technological knowhow and spending amounts on research
in these fields (Crane and Matten 2016). The influence of the IT industry as well as
the constant up gradation of software is related to the technical up gradation.
Legal – The legal system of India encourages the business scene in India as it has
led to a number of laws and provisions for the better business field in the country.
The development of the legal laws further has encouraged business and setting up
of industries.
Environmental – The environmental condition of India in terms of setting the
industry is not as favourable as it has low conditions of the air and water quality.
According to Verghese, Crossin and Jollands (2012), there are no strict rules
regarding the environmental care which implies efforts from the industry end is
required.
3.2 Macro-economic and Geo-political forces of France
Geographic – The location of France has both positives and negatives in terms of
the setting up the company. The location of France has a prime influence with the
Mediterranean Sea being the source of inflow of business. The climate of France is
moderate influencing the setting up of Business Company (Hayes 2016). However,

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two-thirds of the country being hills and mountains, it becomes difficult to set up a
company.
Political – The political condition of France is moderate in terms of the setting up of
a company as the government is in debt in regards to the financial side. The country
desperately needs business involvement but would not be able to give favourable
side for the setting up (Hayes 2016).
Economic – The country has a stable economic situation as it is one among the first
world countries of the world. The strong political scene of the country encourages
industrial growth and has a good customer base for the demand for the goods. Due
to recession, the country was a little bankrupt but it has evolved in the due course.
Social – One of the major issues of France is the disparity in the social class among
the people of the class. There is a huge difference between the rich and poor which
makes the poor class seek for the job in a desperate manner (Crane and Matten
2016). The social class of the country mainly wants the setting up of industries.
Technological – France is one of the most technologically advance countries of the
world with access to everything that the country needs for setting up of industrial
growth and measurement. The technical implications of the country encourages the
setting up of industries.
Legal – The Police is one of the major law enforcement body of the country who
regulates the law and order of the country. According to Dzever and Jaussaud
(2016), the police controls the legal system of the country as well as the Ministry of
Defence of the country. The country has a stable legal system which encourages
business within the country.
Environmental – The country is proactive in making environmental positive changes
to the business sector by implementing technical changes in the environmental
associations of the country. The environmental changes are positive and have strict
rules for the environment.
3.3 Trade and business policy of India
According to the opinions of Gawande, Krishna and Olarreaga (2012), India
has moderately strict trade and business policies in the country with the principle act
being The Foreign Trade (Development and Regulation) Act, 1992. The act makes

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sure that the external business of the country has provisions for growth and
development in the country and regulates the import and export of the country. The
trade regulation measures to make the business of the country more effective as well
in the ministry of the Commerce and Industry. The separate ministry measures to
effectively implement the laws of the trade policy and foreign trade in the country.
There is a proper EXIM policy for the proper trade and business policy of the new
business companies that will make the business companies operate in the country
(Dzever and Jaussaud 2016). The policies of the country are therefore positively
affected for the setting up of new business in the country.
3.4 Trade and Business policy of France
France being one of the most developed countries in terms of trade and
business function, has immensely effective trade and business policies for the
setting up of new business industries in the country. The country promotes a
balanced trade policy that is in favour of the policy of Open Europe trade with the
compliance to the International Trade Rules. According to Hayes (2016), the trade
policies of the country also has access to better trade in relation to the environmental
factors in association to the EU-Canada Comprehensive Trade Agreement (CETA)
to have better commitments to the business policies. The company has World Trade
Organization associations that regulates the association to the trade and commerce
of the business. The country also follows the European Union Trade Policy with the
new generation agreement.
3.5 Potential dangers, risks and opportunities in India
Potential danger – There are a number of dangers for opening up a business in
India with the changing policies and taxation system in India. According to Coad and
Tamvada (2012), the short-term policies of the country changes at a major rate
which makes sure that the country faces tremendous pressure with respect to the
changes at each year changes in the short term policies of the country.
Risks – The changing political scenario with the changes in trade policies and laws
of the country serve as a great risk for the changing face of the opening of industry in
India. The difference in opinions of the country with the 23 official language barrier
serve as one of the greatest risks (Prebisch 2016). In addition, the country is prone
to major changes in the economic scene which make potential risk in the country.

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Opportunities – The opportunities of the country is vast in relation to the opening of
a new company in the country. The country is unsaturated for the industrial zone and
welcomes new and potential multinationals for their growth in employment
opportunities. In addition, due to the establishment of the said industries, the
financial condition of the country becomes better.
3.6 Potential dangers, risks and opportunities in France
Potential danger – The potential danger for the country is to analyse the forms and
the trade policies of the country in relation to the business and other activities of the
country. France is prone to the factors of recession and for that reason, it serves as
a potential danger for any country opening up their business in France (Schaper et
al. 2014). The country is not politically stable due to the major terrorist attacks and
the valuation of the industries in terms of the danger threats. The policies and the
factors of France is of great danger in the concerned force.
Risks – The risk of the country is to measure the policies of the country in terms of
the international business and the policies of the country. The factors of the country
for the establishment of the business industries is to have the risk associated with
the business sector in the concerned time (Ehrmann 2015). The establishment of the
industries in the country also have risks associated with the recession and global
inflation to the services.
Opportunities – Setting up an industry in France calls for a number of opportunities
in the establishment of the industries in the country. According to the views of
Prebisch (2016), the opportunities for the establishment of the industries calls for the
pro-factors in the industrialization sector in the concerned place. There are a lot of
opportunities in terms of the setting up of industries in the sector which means that
the contribution of the growth is of immense importance.
4. Recommendation
After the assessment of both the countries, it can be assessed that the most
suited country for the market entry will be India for Amcor Limited as the country has
a number of pro for the foundation for the industry. India being one of the developing
nations has prominent opportunities for the development of the nations for the easy
way into the political and the economic scenario of the nation. Being an unsaturated
zone with ample scope for the development of the industrial sector, the scope for the

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entry of Amcor Limited into the country will be comparatively easy and more
effective. The company will just have to look into the environmental factors and the
other factors are suitable. The company will find cheap labour and will have ample
market for the establishment of the industrial sector. The better entry will be India for
the company in terms of both trade and business policies for the same.
5. Conclusion
In conclusion, it can be said that the entry of Amcor Limited into the countries
of the zones of Asian and European nations of the countries is to be analysed
according to the macro-economic and geo-political factors of the nations. The entry
of the company into the countries calls for better growth of the company in terms of
the entry of the new company into the market. The report focussed on the expansion
of Amcor Limited into the province of the countries along with a detailed analysis of
the factors that affected the industrial growth. The company made sure to have all
the detailed analysis of the countries with the PESTLE and the risk, threat and
opportunities.

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6. Reference
Amcor.com. (2018). [online] Available at: https://www.amcor.com/ [Accessed 29 Aug.
2018].
Baylis, J., Smith, S. and Owens, P. eds., 2017. The globalization of world politics: an
introduction to international relations. Oxford University Press.
Coad, A. and Tamvada, J.P., 2012. Firm growth and barriers to growth among small
firms in India. Small Business Economics, 39(2), pp.383-400.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship
and sustainability in the age of globalization. Oxford University Press.
Cronin, M., 2013. Translation and globalization. Routledge.
Deficit, O.T., 2013. Manufacturing trade deficit and industrial policy in
India. Economic & Political Weekly, 48(8), p.41.
Dzever, S. and Jaussaud, J. eds., 2016. China and India: Economic performance
and business strategies of firms in the mid 1990s. Springer.
Ehrmann, H.W., 2015. Organized business in France (Vol. 2283). Princeton
University Press.
Gawande, B.K., Krishna, P. and Olarreaga, M., 2012. Lobbying competition over
trade policy. International Economic Review, 53(1), pp.115-132.
Hayes, J.P., 2016. Making trade policy in the European Community. Springer.
Hirst, P., Thompson, G. and Bromley, S., 2015. Globalization in question. John Wiley
& Sons.
Mahrenbach, L., 2013. The trade policy of emerging powers: Strategic choices of
Brazil and India. Springer.
Prebisch, R., 2016. Towards a new trade policy for development. ECLAC Thinking,
Selected Texts (1948-1998). Santiago: ECLAC, 2016. p. 211-238.
Schaper, M.T., Volery, T., Weber, P.C. and Gibson, B., 2014. Entrepreneurship and
small business.

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Steger, M.B., 2017. Globalization: A very short introduction(Vol. 86). Oxford
University Press.
Verghese, K., Crossin, E. and Jollands, M., 2012. Packaging materials. In Packaging
for Sustainability (pp. 211-250). Springer, London.