Signature Assignment: Challenges of Expansion to a Foreign Location, programming homework help

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Company- STARBUCKS

Prepare a minimum1,750-word report addressing the points listed below. The use of tables and/or charts to display economic data over the time period discussed is highly encouraged, you may submit any economic data in Microsoft® Excel® format in a separate file. You may use the U.S. Department of Labor's Bureau of Labor Statistics (BLS), U.S. Dept. of Commerce's Bureau of Economic Analysis (BEA), the Federal Reserve of St. Louis's FRED data, the CIA World Fact Book, World Bank data, and World Trade Organization, or other appropriate sources you might find on the Internet or in the University Library. The new sections of your report should:

  • Evaluate current global economic conditions and their effects on macroeconomic indicators in your selected country. Provide forecasts for population growth, gross domestic product (GDP) growth, GDP per capita growth, export growth, and sales growth.
  • Evaluate any competitors' existing production in the chosen country.
  • Assess sales forecasts in the selected country by using the Federal Reserve of St. Louis's FRED data, the CIA World Fact Book, World Bank data, World Trade Organization, or other appropriate sources you might find on the Internet or in the University Library.
  • Categorize the type of economy that exists in your selected country as closed, mixed, or market. What is the difference between these types of economies and how might this affect your expansion?
  • Assess how your chosen country's current credit market conditions, especially interest rates and the availability of financing, affect demand for your product or service and your planning or operating decision for your production in that country.
  • Analyze the role of the selected country's central bank on that country's economy.
  • Compare the availability, education, and job skills of the work force in the selected country. Discuss any additional challenges of international production, such as political stability, availability of government financing or other incentives, threat of capital controls, and exchange rate risks.
  • Explain any additional supply chain challenges you anticipate if attempting to make your product in your chosen country and selling the product in other countries.
  • Based on the data gathered and analysis performed for this report write a conclusion in which you:
    • Create business strategies, including price and non-price strategies, based on your market structure to ensure the market share and potential market expansions and explore global opportunities for your business in a dynamic business environment and provide recommendations.
    • Develop a recommendation for how the firm can manage its future production by synthesizing the macroeconomic and microeconomic data presented.
    • Propose how the firm's position within the market and among its competitors will allow it to take your recommended action.
    • Recommend strategies for the firm to sustain its success going forward by evaluating the findings from demand trends, price elasticity, current stage of the business cycle, and government.
    • Recommend any comparative advantages your company will have over competitors currently operating in that country, and defend your position, either for or against, expanding your company's production into your chosen country based on your research.
    Cite a minimum of three peer reviewed sources not including the textbook.

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Running head: CHALLENGES OF BUSINESS EXPANSION

Market Analysis & Business Expansion
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CHALLENGES OF BUSINESS EXPANSION

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Market Analysis & Business Expansion
Introduction
For a business that wants to grow and make more profits, the best way to do it first is to
look at the market, analyze it and realize where there is a market for the same. Starbucks as a
company that is doing better in the United States of America provides beverages products to
clients in the States and other parts of the world. Despite the fact that the company is doing well
in the States there is a need for expansion to other countries where business can boom to enable
them to do a lot better. Among the regions where the company is likely to do a lot better is in
Asia. There is a lot of demand for beverages and different products and particularly if they
choose the United Arab Emirates.
This paper will majorly focus on the population growth, real gross domestic product, its
growth, income per capita, progress of exports and the increase in sales in the country (UAE). It
will also focus on competitor existence in the chosen country and the distribution of market. The
type of economy in the country will be looked at, and credit market conditions will be assessed
(Makinen& Library of Congress, 2016). The most significant bit will be the role of the Central
Bank in the economy, workforce availability, and education with job skills available in the labor
market being looked at. Finally, the supply chain challenges and other problems likely to be
faced in the international production will be looked at. Data from efficient sources will be used
to assess the viability of the market in the United Arab Emirates. With all these factors and
challenges considered, Starbucks will have enough to judge from whether to expand into the
foreign market since the risks would have been analyzed and the forecasts of the expected profits
from the market would have been assessed. Finally, recommendations on what should be done in

CHALLENGES OF BUSINESS EXPANSION

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the case of success or failure will be given so as to ensure an improved market shortly.
Economic indicators and their effects
The Starbucks Company has to look out at the economic indicators and what effects they
have on the economy. GDP for instance and the rate of unemployment in the chosen country
(UAE) have a great impact on business directly and indirectly. Establishing the business in the
country means creating employment for the citizens of the country which will have a positive
impact on the economy. Starbucks has a great economic base, and its establishment in the
country will be great to the country. Equally, they will be able to make good profits from the
country’s economy. The beverage sector has a lot to improve on. It’s a gap in the economy that
needs to be covered hence the need to establish the business there.
Macroeconomic indicators like the rate of unemployment, the rate of inflation, and GDP
will be greatly affected positively. In as much as the company will be making profits, it will also
improve the economy. Per capita income will grow. When employment is created, people earn
and improve their standards of living a thing which promotes their per capita income and the
general productivity of the country. The rate at which UAE is adopting new technology indicates
that it can be a good place for the business to develop. All required for such success to...

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