timer Asked: Apr 26th, 2020

Question Description

Here is my Formal report, but it’s not done yet. I want it to be as a rough draft.

Other instructions are in the assignment file, just complete the report, that’s it!!

I attached the outline as well to help you

Make sure that it’s 8 pages, single space as instructions said

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Running head: FORMAL REPORT 1 Formal report Amira Al Badiya West Virginia University FORMAL REPORT 2 Introduction In today’s global environment, companies of all sizes are establishing operations in foreign markets. This type of expansion often provides many benefits, including greater opportunities for better growth. Companies keep adopting strategies that are aligned towards joining the global market. The rise in business expansion can be attributed to the decline in many barriers to international trade during the last half of the 20th century. As such, companies started pursuing global business strategy in quest for global competitive advantage. The allure of global markets is mesmerizing. Companies that operate in highly competitive or nearly saturated markets at home, for instance, are drawn to look overseas for expansion. However, the decision to expand to the international market is not one that is made in haste. Managers must ensure that they determine the value of that expansion to stakeholders before making the decision. Notably, Companies can easily underestimate the costs of entering new markets if they are not familiar with the new regions and the business practices common within the new regions. For some companies, a misstep in a foreign market can put their entire operations in jeopardy. Therefore, companies must ensure that they collect adequate information on the target location and business factors that affect that place before making the decision to expand. Companies often embark on an expansion strategy for various reasons. Some of those reasons include to improve cost effectiveness of their operations, to expand into new markets for new customers and to follow global customers. As these companies look for growth in new areas in the world, they prioritize which countries to enter. Because many markets look appealing due to their market size or low-cost production, it is important for firms to prioritize which countries to enter first and to evaluate each country’s relative merits. To best understand the countries, a FORMAL REPORT 3 company must conduct due diligence and identify factors affecting business in various countries then make the right decision. This report presents an analysis of various factors within specific countries and determine which country is best to start business. Basically, the report conducts due diligence on the business influencing factors that could fall into the categories of economic environment, political environment, cultural and social environment, and technological environment, such as market demand, competition, infrastructure, tax incentives, etc. The report shall present findings on business factors from china, Japan and India, since the company intends to expand to Asia. The report shall be organized as follows; the report begins with a table of contents, then a summary of the findings of the three countries under review. The findings section shall present some of the factors affecting business decisions in those countries. Finally, the paper shall present a conclusion and a recommendation identifying the selected country. We are conducting this analysis following a request by the CEO of Vivint solar to look at the best Asian country for expansion. As such, the target audience for the report is Vivint solar’s strategic planning committee who will review the findings of the report and make up a decision on the recommended country. Literature review In this section, we present some of the underlying principles that guide the process of expansion to other countries. Organizations can adopt different entry strategies depending on the choice. These strategies differ in the degree of risk they present, the control and commitment of resources and the return on investment they promise. Companies can either opt to go international through non-equity mode which includes export and contractual agreements, or through equity mode which involves the use of joint ventures and wholly owned subsidiaries. FORMAL REPORT 4 The market-entry technique that offers the lowest level of risk and the least market control is export and import. The highest risk, but also the highest market control and expected return on investment are connected with direct investments that can be made as an acquisition . For the case of this company, we propose that the company makes direct investments. This is the best approach since the company will be guaranteed to have huge return on investments regardless of the costs. Notably, for any business to be successful in its expansion, the company must follow seven key actions. The first critical action to successful expansion is setting the right strategy and priorities. Here, the company needs to ensure that the best strategy for expansion is selected and that the strategy chosen does not put the company in jeopardy. Once that has been done, the company must develop skills to evaluate, plan and execute entry into a new market. If the company cannot develop these skills within its employees, it could outsource. Next, the company should understand cultural, product and regulatory differences within various countries. Once that is done, the company should get the right advice for management decisions. Consequently, the company should build a strong management team and create a risk and governance structure fit for its purpose. From the factors identified, this report shall dwell on one factor, which involves analyzing business and cultural factors of each country. Background Vivint Solar is a leading full-service residential and industrial solar provider in the United States serving over 21 states. As part of each sale, the company designs and installs the system, allowing customers to enjoy the benefits of affordable, renewable energy. The company has deep installation prowess, having completed over 120,000 installations throughout the United States. Today, Vivint Solar is one of the largest full-service residential solar providers, with over FORMAL REPORT 5 139,000 customers . The company’s vision statement is to be an organization that encourages innovation and information sharing amongst its stakeholders to ensure that quality products are provided. On the other hand, the company’s mission is to ensure that it provides an environment that not only encourages success and happiness, but also well-being of employees and consumers. The company values people and has ensured that it treats individuals with respect by letting care and concern for all to guide the company’s actions. Additionally, Vivid solar champions clean energy and opts to take risks. The driving force of the company is its belief that, regardless of position or title, each of us is leading the way to a clean, sustainable world. The energy industry is going through reformation, driven by consumer demand for choice and control. Most people and countries are adopting solar energy hence an indication of potential growth. The company has recorded a tremendous growth in size, and has approximately 5000 to 10,000 employees. The company’s revenue is approximately $ 100 million to $ 500 Million, making it a big corporation. Since the demand for solar energy has increased globally, the company opts to expand to capture potential customers. The company focusses on installation of solar services and sales parts of solar systems. Findings Country A: Japan Japan is an island country which is located Far East of Asia and it bordered by the Sea of Japan to the east of Pacific Ocean to the east and spans from the sea of Okhotsk in the north to the East China Sea and by the Philippine Sea in the southern side. Culture/ Politics/ Government Politics in Japan are conducted in framework of a multiparty bicameral parliamentary representative democratic constitutional monarchy whereby the emperor is the celebrated head of FORMAL REPORT 6 state and the prime minister is the head of the government and the head of the cabinet which directs the executive branch. The culture of Japan has changed abruptly over the millennia from the country’s prehistoric period to its contemporary modern culture which absorbs influences from Asia, Europe and North America. The government of Japan is a constitutional monarchy in which the power of the emperor is limited and it’s relegated primarily to ceremonial duties. As in many other countries, the Government is divided into three main branches i.e. the Legislative, the Executive branch and the judicial branch. Economy The economy of Japan is a highly developed free-market economy. It’s the 3rd largest in the world by nominal GDP and the 4th largest by purchasing power parity and it’s also the world’s 2nd largest most developed economy. In 2016, its per capita GDP was at $38, 937. Due to a volatile currency exchange, the Japan’s GDP as measured in dollars fluctuates sharply. Analysis of Factors Japan is a leading country in many activities like innovations, boasting a highly attractive business and living environment within one of the world’s largest economies. Japan has a stellar reputation among western and Asian companies which are attracted by its capabilities, personnel and well-developed laws, such as intellectual property rights. Many industries also are attracted to start their works in Japan because of its developed consumer base. The huge ready market is a trend setter among regional economies and is utilized by many businesses as a test location. Some businesses say japan is a good country for testing products which are new to the market and other businesses say that it is a good country as it offers a good environment for business expansion. Japan has also become home to popular business giants like Apple, BMW, MercedesBenz, Microsoft, Chanel, Louis Vuitton, Tiffany & Co., and the list goes on. These brands have enjoyed and still enjoy a good share of the Japanese economy. If their presence in Japan wasn’t profitable, they’d already left by now. So, in essence, Japan has all the opportunities and resources a business needs to excel in. What is needed is to put on the thinking hat and churn out those beautiful ideas. Japan’s free-market economy has earned it second place in the world’s GDP ranking and fourth-largest in purchasing power parity (PPP). There are diverse business opportunities in FORMAL REPORT 7 Japan; Japan has the most significant electronic goods Industry in the world and also comes in third in automobile manufacturing. In the same token that Japanese consumers are highly educated, their workforce is extremely learned as well. There are over 600 universities in Japan, which speaks to the extraordinary value placed on education in Japanese culture. With this level of education comes the understanding of the importance of the advancement of the collective. Japanese workers are highly devoted to the companies that they work for and strive toward the success of the group over the success of the individual. Their workforce adheres to pillars of further developing expertise, increasing knowledge, and attention to detail. Japan also wouldn’t be able to compete as a global player if they didn’t have a highly developed infrastructure. With telecommunication technologies, well-built roads, highways, factories, airports and harbors, Japan has positioned itself to play a pivotal role in the international marketplace. Now more than ever, venturing into foreign markets is an increasingly viable option. Taking measures to start a business in Japan can lead to many exciting opportunities for your company. Being the third largest economy in the world, the Japanese market offers a quick business launch, a highly educated population, and a well-established infrastructure that is built around facilitating global commerce. These attributes are what makes Japan a strong competitor in the international marketplace, and a worthwhile realm to expand your business. Country B: India India, country that occupies the greater part of South Asia. Its capital is New Delhi, built in the 20th century just south of the historic hub of Old Delhi to serve as India’s administrative centre. The rate of growth in the number of factories and employment from 1860 to 1940, places Indian development on a par with Russia and Japan. In monsoon south Asia, however, the seasonal boom and slack in economic activity was on a scale not visible in many other societies causing large fluctuation in demand for money and interest rates within the year, a phenomenon that is historically prompted return-hungry financiers keen to reap the windfall during periods of high activity to keep money idle in the slack season rather than being lent long term. FORMAL REPORT 8 Economy The ability to buy a product is vital for a marketer. It can be in terms of income distribution, economic conditions of nation, credit availability. India being an emerging economy has slots of potential markets. The availability of infrastructure, the business development, the policies, and the distribution of income are also important parameters. A high inequality in distribution will lead to limited potential as the market is widely controlled by few riches which has the purchasing capability. Social cultural Environment The market should adjust the decisions with respect to the cultural and social beliefs. McDonald’s had to stop its products containing beef, as cow is regarded as goddess in India. But in many cases, firms are able to dilute the cultural beliefs by exposing them to a new culture. Archie’s has made its market in India by promoting different occasions like Valentine’s Day, Father’s Day and Friendship Day. The companies which are consistent with the cultural beliefs and are able to attract the loyal customers more easily and can retain them more effectively. Political and Legal Environment It consists of Government Regulations, policies, social groups etc. Any kind of business must be abided by the legal policies of the nation. Protects customers from exploitation by the businessmen. Protects interest from society. Protects companies from unfair competition. There are various kinds of laws India like Consumer Protection Act, Environment Protection Act, Indian Contact Act, Competition Law etc. Every citizen is required to be abided by the Indian Constitution. Policies like displaying the Expiry date, MRP, and Green Circle on vegetation Food Product also influence the marketing decision. FORMAL REPORT 9 Technological Environment A market must be aware of recent technological updates. Being technologically upgraded and the latest technology provides competitive advantage over the competitors. There are unlimited opportunities for innovation and every competitor tries to exploit the new usage of the product. The innovation can be in terms of the new usage, new package, new material, and new method of production or even new kind of promotion. The recent era has seen many indescribable innovations like Tata Nano, Apple I phone, Kindle E-reader, M-Commerce, Micro Credit, etc. Infrastructure plays an important role as it is necessary to have well developed roads to facilitate faster transportation of goods. Tax incentive is whereby tax imposed by the government on goods and services sold by the various businessmen is reduced to a level that is favorable to all. This is very vital as it ensures that consumers make reasonable profit in the due course. Market demand is essential in a technological environment as the product produced should be based on the current technology. Demographic Environment It is related to population and population mix. It is people who contributed to demand. It is manpower which help in the production and supply. Thus as a marketer, on must understand the demographics of the nation. India is ranked second in terms of population after China. Provides an exceptional opportunity for business. The high population growth has attracted many FMCG firms and retailers in countries like China and India whose markets are yet unexplained. Country C: China China is an emerging economy that offers lot of market opportunities for foreign investment. Although the country has a huge potential for economic growth offering access to a large market and FORMAL REPORT 10 considerable savings in labor costs, caution must be used due to differences in the political and cultural environment that create risk and pose uncertainty for foreign investors. According to the Chinese Constitution, "The People's Republic of China is a socialist state under the people's democratic dictatorship led by the working class and based on the alliance of workers and peasants." Conclusion China would be the most appropriate company to establish business because the company has proven to be growing and has a promising future. Besides, most factors identified make it easier to do business in the country. We recommend that the company to invest in this country since it serves as a hub of economic growth and has customers who want to utilize our products. Outline INTRODUCTION I. Introduction A. Background Today, many companies intend to expand their businesses to external markets across the international sphere. However, taking a business abroad demands a wide range of considerations to ensure that the decision being made is accurate so as to minimize on costs. Starting business in any country means that the organization intends to take risks. Therefore, various factors should be considered before making the decision. B. Purpose The purpose of this report is to analyze various factors within specific countries and determine which country is best to start business. C. Significance The findings of the report will help a long way in helping the company’s CEO to make the best decision regarding the country to invest on. D. Scope The report will focus on factors affecting business in China, Japan and India since those are the three countries in Asia identified by the company. E. Organization The report shall be organized as follows; the report begins with a table of contents, then a summary of the findings of the three countries under review. The findings section shall present some of the factors affecting business decisions in those countries. Finally, the paper shall present a conclusion and a recommendation identifying the selected country. F. Authorization The report was requested by the CEO of Walmart company, a united states’ based technology firm that intends to expand. The target audience of this report is the board of management of the organization that will review its findings and come up with a decision on the same. G. Literature Review Various studies have been conducted on the topic of factors affecting business in various countries. In a study by Mcathy, the top five major factors considered by companies when selecting locations include costs, infrastructure, labor characteristics, government and political factors and economic factors. Other scholars have identified other sub factors within the businesses. These factors play a bigger part in determining what options are considered in selecting locations to start businesses. Other factors include accessibility of the place, visibility and others. These factors have direct implications on major policy decisions to be made in business. H. Sources Ahlstrom, D., & Ding, Z. (2014). Entrepreneurship in China: an overview. International Small Business Journal, 32(6), 610-618. This article gives an overview on the nature of business in China and gives an analysis on some of the things that can be considered when setting up business in the country. The article will be useful in identifying some of the ways to conduct business in the country. Shapiro, J. (2016). China's environmental challenges. John Wiley & Sons. This article on the environmental challenges of china explain the business environment of the country ...
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