COMPREHENSIVE GLOBAL ANALYSIS
1
COMPREHENSIVE GLOBAL ANALYSIS
2Comprehensive Global Analysis MMG/448
July 27, 2017
COMPREHENSIVE GLOBAL ANALYSIS
In business, successfully initiating and maintaining is entirely dependent on external factors rather than the capabilities of the company. External factors play a significant impact mainly in the operational abilities of every company which is essential in the acquisition of returns. These external factors can be Brocken into political, economic, environmental, social and technological commonly referred to as the PESTLE analysis. All companies need to have all these factors constantly assessed especially before initiating the business in a new region that may present different advantages or risks that play a significant role in the operation of the company.
Initiating a new business has varied challenges, risks and benefits that can be manipulated to acquire the best results in relation to net profits acquired. It is therefore detrimental not to explore these issues to have an upper hand in relation to avoiding the associated risks that these areas pose.
Organization and services
The food and beverage market has continuously been met by constant transitions that have mainly been attributed to customer preferences and needs. The preferences, aside from taste, have been linked to the dire need for consuming healthy foods. Copa beverages will be a multinational company designed to provide non-alcoholic drinks like carbonated and energy drinks and mineral water. The raw materials that will be used in the manufacture of these products will be healthy and most importantly natural to attract consumers. Every successful business incorporates proper planning and financial management for ensuring maximum profits.
The second aspect of the products is that there will be different flavors of the products that would be designed to adhere to specific customer preferences e.g. diet soda that would specifically target obese individuals and those who do not like sugar. Revenue from the company is acquired through the production, sale, licensing and distribution of their products to their partners, retailers and distributors.
The company will be locally run from the regions in order to provide benefits to the locals despite the headquarters being located in the United States. The legal issue pertaining to international trade will be guaranteed through following the laws and adhering to the policies of the country. The packaging, and the use of social media will be used to appeal to the target population who will mainly comprise of the youth. This industry largely dominated by two companies namely Coca Cola and PepsiCo that take major shares of the market worldwide. The company dominates and has enjoyed loyalty all over the worldwide for a number of years thereby making it hard for its competitors to displace it at the helm of the industry. Copa beverages will however be solely built on cooperation with.
COMPREHENSIVE GLOBAL ANALYSIS1COMPREHENSIVE GLOBAL ANALY.docx
1. COMPREHENSIVE GLOBAL ANALYSIS
1
COMPREHENSIVE GLOBAL ANALYSIS
2Comprehensive Global Analysis MMG/448
July 27, 2017
COMPREHENSIVE GLOBAL ANALYSIS
In business, successfully initiating and maintaining is entirely
dependent on external factors rather than the capabilities of the
company. External factors play a significant impact mainly in
the operational abilities of every company which is essential in
the acquisition of returns. These external factors can be
Brocken into political, economic, environmental, social and
technological commonly referred to as the PESTLE analysis.
All companies need to have all these factors constantly assessed
especially before initiating the business in a new region that
may present different advantages or risks that play a significant
role in the operation of the company.
Initiating a new business has varied challenges, risks and
benefits that can be manipulated to acquire the best results in
relation to net profits acquired. It is therefore detrimental not to
explore these issues to have an upper hand in relation to
avoiding the associated risks that these areas pose.
Organization and services
The food and beverage market has continuously been met by
constant transitions that have mainly been attributed to
customer preferences and needs. The preferences, aside from
2. taste, have been linked to the dire need for consuming healthy
foods. Copa beverages will be a multinational company
designed to provide non-alcoholic drinks like carbonated and
energy drinks and mineral water. The raw materials that will be
used in the manufacture of these products will be healthy and
most importantly natural to attract consumers. Every successful
business incorporates proper planning and financial
management for ensuring maximum profits.
The second aspect of the products is that there will be different
flavors of the products that would be designed to adhere to
specific customer preferences e.g. diet soda that would
specifically target obese individuals and those who do not like
sugar. Revenue from the company is acquired through the
production, sale, licensing and distribution of their products to
their partners, retailers and distributors.
The company will be locally run from the regions in order to
provide benefits to the locals despite the headquarters being
located in the United States. The legal issue pertaining to
international trade will be guaranteed through following the
laws and adhering to the policies of the country. The packaging,
and the use of social media will be used to appeal to the target
population who will mainly comprise of the youth. This industry
largely dominated by two companies namely Coca Cola and
PepsiCo that take major shares of the market worldwide. The
company dominates and has enjoyed loyalty all over the
worldwide for a number of years thereby making it hard for its
competitors to displace it at the helm of the industry. Copa
beverages will however be solely built on cooperation with the
local companies and the utilization of local raw healthy
products.
Region analysis
Initiating an international business firstly involves playing
3. close attention to the alliances that have been formulated in the
region to help in trying to reach out to them as they will provide
advantages to a new business in relation to creating connections
and achieving establishment of the company in the new region.
Another significant factor that needs to be analyzed is the
stability of the region in regards to peace. Terrorist activities
have become rampant worldwide and it is therefore essential to
factor in these issues before deciding to invest in a particular
region. Terrorism leads to destruction of property and creates
fear in consumers thereby limiting the role of establishment in
the region.
The political stability of the area can also be detrimental in
businesses as they may hinder operations of the company due to
varied political differences that may affect the company
operations. Being aware of these issues can also be manipulated
for the advantage of the company. Additionally, it would be
critical to find out the all the financial options available for
finding out the best options that would help in enriching the
company or those that would run down the company.
Environmental factors can also significantly affect the
company’s profits through inhibiting its operations.
Establishing a business in an area that is prone to natural
hazards inhibits the operations of the company and may at times
lead to destruction of property leads t depreciation of its profits.
Moreover, it is critical to review the social issues of that this
region sticks to or considers critical. Culture in this instance is
a critical aspect in a number of regions and it is therefore
essential to ensure that the business does disrespect or go
against the cultures of the region(Oxford College of marketing,
2016).
Country analysis
After selection of the best region in relation to the above
4. factors, narrowing down to a specific country also has its fair
share of factors that can hinder the growth of the company.
Firstly, there is a need to review the political and legal stability
of the country in order to avoid heading into violation with a
number of laws that could lead to hefty fine and also face
opposition from political bodies who will ensure a downward
trend of the company’s profits.
Moreover, countries have different cultures and therefore
breaking some or either of them can be met by different with
high retaliation which significantly affects the operations and
penetration abilities of the company. Selling product that are in
line with the culture of the country will be significant in
acquiring acceptance from the society. This is also critical in
regards to the overall ethical considerations of the country.
Advertising and publicity is also highly rated in that they have
the capability of bring both negative and positive aspect
depending on how they are conducted. Advertisements must
therefore be in line with the culture and ethical considerations
of the country.
The physical environment of the country should also be
assessed to find out the margins of associated risks or how
much the company can manipulate these factors to make profits
from the proceedings. Lastly, the national political stability
with regards peace and reduction of wars related to acquisition
of power can greatly affect the company’s margins.
In sum, dealing with businesses not only refers to making
profits but also forming alliances with party nations and
adhering to the culture and ethics of the consumers. These
factors therefore increase an organizations chances of making it
through the new region. This importance should also be
beginning from the regional boundaries and then narrow down
to the specific region.
5. References
Oxford College of marketing. (2016). What is a PESTLE
Analysis? Retrieved from
blog.oxfordcollegeofmarketing.com/2016/06/30/pestel-analysis/
Comprehensive Analysis of Global Entry
1Comprehensive Analysis of Global Entry
2Comprehensive Analysis of Global Entry
Comprehensive Analysis of Global Entry
Turnkey project
This is a type of project whereby the object has to be
constructed so that it can become ready for selling. The buyer
purchases the completed product since it is always as per his
specifications. The item can be sold to the buyer who would
later complete it into a useful product. Turnkey is made to mean
the items which are ready for the consumer use. This is
generally applied during the sales and the supply of both goods
and services to the customers. When the buyer purchases the
item, the ignition key must be turned for the item to be operated
6. without challenges.
Licensing
This is a situation in which an authorized company gives
another company a permission to make its business operations
made to produce or supply good for the buyers to consume. The
license secures the company from government interferences by
legalizing its activities and hence enabling the buyer to realize
that the items supplied are of a good quality and acceptable by
the government. The business entity has to pay for a license so
as to be able to use a certain logo, graphic design, slogan,
signatures, character and trademark for the benefit of attracting
the potential buyers into the business.
Corporation
This is a legal entity with which the owners of a given business
are separated and distinct from it. A corporation has some rights
and responsibilities which enable him to enter into loans, seek
contracts and borrow money from different financial
institutions. He is again able to sue and to be sued and again
own assets which he can transform into money for business
purposes. Corporations can either be large or small depending
on the amount of money invested in it. For a corporation to
retain his identity, some legal formalities ought to be followed
and hence enabling him to retain his status.
Franchising
This is a business condition which allows the enterprise owner
to use a certain business model and a brand of an item for a
given duration of time. The owner of a give product or services
gets the products distribution from dealer who is regarded as
Franchisees. The franchisee pays the initial fee to the owner of
the product for security purposes. This enables the franchisee to
7. use different trademarks and hence acquiring a support from the
franchisor who is the product’s owner. The use of a well known
brand of a product adds an advantage to the franchisor.
Joint venture
This is a business enterprise which shares ownership from two
or more people who share the returns, risks and the governance.
The joint ventures are incorporated although they do not form a
corporation entity. A venture is characterized by a number of
elements like the number of parties involved, the products and
their technologies, the party’s contributions, the structure’s
form, the amount of the initial contribution, the economic
arrangement, the governance control, the human resource
model, the input or output services and the exit and the
evolution provisions by the company.
Pros of Turnkey
· The contractor is always given a fixed price
· It is used to eliminate the extra expenses incurred
· It brings out a contractual relationship with a single person.
Cons of Turnkey
· A high price is incurred
· Its control is difficult due to challenges
· The customers are not associated with the entire project.
Pros of Licensing
· It requires very little capital
8. · It provide business people an access to different markets
· It enables new products to be introduced to the market.
Cons of licensing
· It is always hard to make enough control of the items or
products entering the market
· Restriction given by the government might hinder its
efficiency
· It brings out limited returns to a business.
Pros of corporation
· They are able to raise additional funds hence making them
easy to operate
· They sometimes deduct the cost benefits of the employees.
· Their shareholders are not liable of any debts.
Cons of corporation
· They require a lot of time to form
· Due to governmental monitoring, additional paperwork is
resulted
· Their profits are interfered with by the high taxes paid.
Pros of franchising
· They offer independence to small businesses
9. · They have a higher success rates
· It is easy to secure money through it.
Cons of franchising
· It needs a formal agreement which might be time consuming
· Bad performance of one party may lead to the failure of
another party
· It may result to sharing of the profit made.
Pros of joint venture
· It is not a permanent arrangement
· Gives different companies opportunities to acquire expertise
· The parties involved share the risks incurred
Cons of joint venture
· Objectives which are not clear can be set
· Poor communication is faced
· It is hard for member to exit the partnership due to the
contract signing.
Licensing is the mode of entry for the country of Asia because
it only needs a legal permission from the government for a
person to run a business.
References
10. Coughlin, J. H., & Thomas, A. R. (2002). The rise of women
entrepreneurs: People, processes, and global trends. Westport,
Conn: Quorum Books.
Czinkota, M. R., Donath, B., & Ronkainen, I. A.
(2004). Mastering global markets: Strategies for today's trade
globalist. Mason, OH: Thomson/Southwestern.
Bates, C. G., & Ciment, J. (2015). Global social issues: An
encyclopedia.
Hill, C.W., & Hult, G.T. (2017). International Business
Competing in the Global Marketplace
(11th ed.). Retrieved from
https://phoenix.vitalsource.com/#/books/126019051X/cfi/6/4!/[e
mail protected]:0.