BUS101: ALT400 Business Proposal for Asia-Pacific Market Entry

This business proposal outlines the introduction of the ALT400, a four-wheeled vehicle, into the Asia-Pacific market. It analyzes the economic, social, political, and cultural factors influencing the automotive industry in the region, including low inflation, changing consumer lifestyles, emission standards, and diverse cultural perceptions. The proposal is supported by statistical and industry evidence, such as the increasing sales of motor vehicles in the Asia-Pacific region. Ethical and corporate social responsibility issues are addressed, including pricing, employee benefits, and advertising. The proposal also includes an analysis of cross-cultural skills necessary for effective communication and interaction within the diverse Asia-Pacific market, referencing relevant academic sources. The business proposal focuses on market analysis, addressing key contextual factors, and assessing cross-cultural skills to ensure effective implementation of the proposed strategy.

Creating a
Business Proposal
Student’s Name:
Student’s ID:
Subject Code:

Business idea
An automobile company is going to manufacture a new product into the
market within the Asia-pacific region. The new product would be a four-
wheeled vehicle, and the proposed name is ALT400. To introduce the
new product, the company required to identify all the issues or concerns
of the industry in the market of the Asia-pacific region.

Economic issues
 Low inflation rate due to weak import prices such as low prices on
commodity
 Low flexibility in the rate of exchange that drives imported inflation
 Slow growth in productivity and high risk of growing old before the
population grow rich (Bowen and Zheng, 2015)
 Low level of mobility that led to a decrease in the growth of economic

Social issues
 There is an increase in the life expectancy of the population and
decline in the fertility
 Empowerment of the youth due to the low unemployment rate and
the adolescent childbearing rate is also high
 Lifestyles of the customers are changing which affect the buying
behavior

Political issues
 Various regulation on the emission standards that force the
automobile industry to build technologies (Ofreneo, 2016)
 Risk in managing the regulatory, commercial and warranty litigation
 Risk of international as well as national compliances in the regulatory
environment
 A high rate of taxation in the products of the automobile industry

Cultural issues
 Different people sharing a different language and follow diverse
cultural perceptions
 Employees, as well as customers, have different beliefs and attitudes
on the production of the product (Soedarmono and Tarazi, 2016)
 Level of education is also an essential factor for the production of new
vehicle
 Use of advanced technology can lead to the innovative creation of the
new product

Statistical and industry
evidence
 Sale of motor vehicles increased by 18% in the Asia-Pacific region
 In the region of Asia-pacific, the number of passenger car sold is 40.7
million units
 The total production of motor vehicles is 4 million units
 The total number of the scooter, as well as motorcycles sold in the
region, is 10.25 million units

Ethical and corporate social
responsibility issues
 The main ethical issue is the price of vehicles concerning customers
as low-income people prefer low price vehicle (Gopal and Thakkar,
2016)
 Health as well as the safety of both consumers and employees within
the workplace
 Benefits of employees which involve reward, pension, paid leaves or
overtime allowances
 Advertising is also the major concern which makes people choose the
new products

Continued…
 Maintaining accountability and stewardship on the operational
efficiency
 To maintain a reduction in the production of waste and carbon
emissions
 Road safety is a concern in the production of a vehicle

Analysis of cross-cultural skills
 Positive attitude and behavior are the strengths for interacting with
the people in Asia-Pacific region
 Communication skills need to be developed for effectively
communicate with the diverse cultural people

References
 Bowen, S.A., and Zheng, Y., 2015. Auto recall crisis, framing, and
ethical response: Toyota's missteps. Public Relations Review, 41(1),
pp.40-49.
 Gopal, P.R.C. and Thakkar, J., 2016. Sustainable supply chain
practices: an empirical investigation on Indian automobile
industry. Production Planning & Control, 27(1), pp.49-64.
 Ofreneo, R.E., 2016. Auto and car parts production: can the
Philippines catch up with Asia?. Asia Pacific Business Review, 22(1),
pp.48-64.
 Soedarmono, W. and Tarazi, A., 2016. Competition, financial
intermediation, and riskiness of banks: evidence from the Asia-Pacific
region. Emerging Markets Finance and Trade, 52(4), pp.961-974.