... Country Analysis Report for International Expansion Market Analysis for: Brazil, China, Russia, South Africa, and United Arab Emirates ------------------------------------------------- ------------------------------------------------- Contents 1. Foreword 2. Evaluation Criteria 3. Country Analysis – Demand Factor: Population 4. Country Analysis – Demand Factor: Number of Subscriptions and Percentage 5. Country Analysis – Demand Factor: GDP per Capita and Growth Prospective. 6. Country Analysis – Cost Factors 7. Country Analysis – Sociopolitical Factors 8. Conclusion - Best Country for Potential Entry 9. References ------------------------------------------------- 1. Foreword Hydis Electronics currently has the highest market share of mobile phones in South Korea. We have been focusing heavily to reach the status of market leader in our domestic market, but the Korean market for mobile phones has reached a plateau and our growth has been slow during the past few quarters. As such, we should now focus our strategies on expanding to foreign markets as a new engine for our company's growth. Possible candidate countries for entry were Brazil, China, Russia, South Africa, and United Arab Emirates (UAE). The goal was to figure out which country would have the highest potential profit as well as future growth for our company while having low risk involved. Upon careful analysis of the economic conditions...
Words: 2637 - Pages: 11
...Country Analysis: Russia MBA Fall 2015 International Management in Sport and Entertainment Table of Contents Country Analysis: Russia 1 Introduction 1 Economic Environment 1 Political and Legal Environment 2 Culture 2 Conclusion 6 Country Analysis: Russia Introduction Russia is the world’s largest nation, covering 6,5 million square miles, with a population of 143 million people recorded in 2014. Russia borders European and Asian countries as well as the Pacific and Arctic oceans. In order to make a decision, concerning the market expansion of an organization into Russia, the economic environment as well as the political and legal environment will be analyzed with a focus on the cultural aspects. Economic Environment Russia is one of the BRICS countries (Brazil, Russia, India, China and South Africa), which are projected to be the fastest growing emerging economies, with a combined GDP of $16 trillion. With a GDP of $2.6 trillion, Russia is a leading exporter of natural gas and oil and is the fifth largest economy in the world. Services are the largest sector of the economy and accounts for 58 percent of the GDP. The most important segments in services include wholesale and retail trade, repair of motor vehicles, motorcycles and personal and household goods. This represents 17 percent of total GDP; public administration, health and education (12 percent); real estate (9 percent) and transport storage and communications (7 percent). Industry contributes...
Words: 1926 - Pages: 8
...Overview Brazil Russia India China Conclusion Appendix Sources Contacts 4 6 7 10 15 19 24 29 31 33 34 Executive Summary The BRIC block has emerged as the economic power house of growth for the automotive industry through the last decade. What started as an exploration of new/extra markets for car sales in the early 90s has gone on to become the mainstream market of the new millennium. Supported by attractive macro-economic factors such as growing economic activity, urbanization, rising household incomes, developing credit markets and very low car density, the BRIC countries currently make up for the top 7 automotive markets globally. The BRIC block has been strongly growing for over 10 years; with 3 of 4 BRIC economies surging ahead even during the 2008 economic crisis. So that prompts us to ask how the dynamics have transformed over the years. What were the major drivers of growth in car sales in the last decade and into the future? Is the current slowdown a blip or is it here to stay? More importantly, what does the growth dynamics in China, Brazil and Russia mean to the Indian automotive market? We offer our perspective on the impact of macroeconomic factors on car sales in the BRIC block between 2001 and 2011. Below are the key findings of our analysis: 1. Car sales in Brazil, Russia, India and China grew at a CAGR of 8.8%, 5.7%, 14.5% and 34.3% respectively as against a globalcar sales average of 4.0% between 2001 and 2010. 2. In 2011, weak macro-economic conditions in...
Words: 2118 - Pages: 9
...1 CASE ANALYSIS: MABE: LEARNING TO BE A MULTINATIONAL STRATEGIC MANAGEMENT 04-75-498-02 Dr. Gerry Kerr July 7, 2016 Shawn Phaneouf 103801474 Kevin Victor 103798446 John Yahaya-Joe 103830915 Boyu Lu 103677756 Lichen Liang 103483267 2 Introduction Within just 60 years, Mabe had conquered the Latin American electrical appliance market and was continuing to press on towards global success. Through leveraging their foundational strategic partnership with General Electric (48% ownership) and developing others in new markets, Mabe was able to quickly spread it’s influence in international markets however, it now faced the challenge of pushing beyond Latin and North American markets. Boasting a sizeable and highly profitable appliance industry, Russia represents an attractive opportunity for Mabe however, with opportunities come a number of potential issues. This paper will address the core issue of whether Mabe should remain in the Russian market. The symptomatic issues that arise from this concern the suitability of Mabe’s joint venture partner Fagor, it’s future pricing strategy, whether to start producing locally and if other geographic markets should be entered. Various strategic and financial tools will be utilized to capture the relationship between the aforementioned issues and Mabe’s positioning as a whole, allowing the presentation of recommendations and thorough implementation plans. PESTEL Analysis Many factors define and impact the environment of an organization, which...
Words: 2782 - Pages: 12
...MABE: Learning to Be a Multinational Strategic Management 75-498 Section 1 Professor T. Mao By group 10: Daniel Sgro 103442079 Elizabeth Oduwole 104078842 Mohammad Rafi Siddique 103606130 Si Shen 103552129 Table of Contents 1. Problem Identification…………………………………………………..…2 a. Key Issue……..………………………………………………………………...…2 2. Situation Analysis………………………………………………………..…2 b. External Analysis……...…………………………………………………………2 i. PESTEL………….……………………………………………………...….……2 ii. Industry………….………………………………………………………….……3 iii. Porter’s 5 Forces…..……….……………………………………………………3 iv. Diamond Model……………………………………………………………….…4 v. 1-2-3 Model………………………………………………………………………4 vi. CAGE Framework…………………………………………………………....…5 c. Internal Analysis………………...…………………………………….…………5 vii. VRINE……………….………………………………………………..…………5 viii. Value Chain…………..…………………………………………………………6 ix. Financial………………..……………………………………………..…………6 3. Alternatives & Recommendation…………………………………….……7 d. Alternatives………..………………………………………………………..……….……7 e. Recommendation………...…………………………………………...….…….………....7 f. Implementation………………………………………...………………………………...8 g. Contingency Planning……………………………………………………………………8 4. Appendices………………………………………………………….………9 h. Appendix A: VRINE Table…………………………………………………......……….9 i. Appendix B: Decision Matrix…………………………………………....…….…..……9 j. Appendix...
Words: 5635 - Pages: 23
...future. Potential Markets Although there are several markets available all over the world right now, we are currently focusing our energy and attention on expanding and developing overseas in Russia. Unfortunately Russia is very advanced already and has recently begun to expand their business’s efforts towards reaching the consumers within the “green” market. Russia currently has one company that is already succeeding within this field due to the fact that they are local from the country, start up cost are high and equipment is more accessible. However, given the current economical conditions anything is possible and any business can be successful to those willing to take risks. Absolute and Comparative Advantage I would not say that Russia has a comparative or absolute advantage overall. We both have the equal resources and opportunities to gather materials necessary, we are both large in size, and we both have the same advances and availability of technological resources. Business Opportunity Analysis As a group we believe Russia to be the wisest choice for expansion of our green house constructions. Russia will also provide much cheaper labor costs. One difficulty may be to assign or find a manager within the country based on the simple fact that many of the people in Russia are still living within a communist government and may not fully grasp...
Words: 3827 - Pages: 16
...| Russia: PEST Analysis for Foreign Direct Investment | Principal of Finance | Russia: PEST Analysis for Foreign Direct Investment Overview Russia is a large country with a long history extending back to the 12th century AD when it first freed itself from Mongol domination (Russia). Russia’s most relevant historical past is its emergence from Communist rule and the breakup of the Soviet Union under Mikhail Gorbachev in 1991 due to his policies of glasnost and perestroika, or opening and restructuring. Since that period Russia has been defined by a kind of political turmoil that has seen every sort of leader from a, it is said, Vodka imbibing progressive in Boris Yeltsin to a former intelligence officer in the KGB with a black belt in Judo, in Vladimir Putin (Russia). While the political turmoil has unfolded publicly, the business and professional climate has deteriorated from the heady days of the Soviet breakup when foreign enterprises believed the region was ripe for investment and, to some degree, exploitation. The level of corruption has largely dissuaded the full development of foreign investment and is an international concern, not just local to Russia: “the prevalence of corruption and crime in business affairs has been generally recognized as a major cause of concern...”(Taylor, Kazakhov & Thompson par.1). Until Russia is able to solve this unregulated chaos, business in Russia will remain an exercise in risk rather than revenue. Political Many...
Words: 2627 - Pages: 11
...Methodology 16 Data & Analysis 17 PEST-analysis 17 Porter’s competitive forces 20 SWOT-analysis 23 Recommendations 28 Results 30 References 31 Introduction SEAT, S.A., is a Spanish car manufacturer and a wholly-owned subsidiary of the German Volkswagen Group. The headquarters of the company is located in Martorell near Barcelona, Spain. SEAT presents a range of cars delivering the combination of superior engineering and young design. It makes sustainability principles its priority: reduction of CO2 emission, energy efficiency, and recycling. By 2006, the firm has already produced 16 million cars in total. 75 per cent of the manufactured cars are exported to all over the world. SEAT launches it products in almost 40 countries across Europe, 11 countries in Asia and 16 countries in North and South America. It even sells cars in Africa. However, for some reasons, SEAT struggled a lot to enter the Russian market. But why did they struggle? How can they be successful in so many countries and on the other hand have problems to enter the Russian market? In this paper we are trying to identify the mistakes and explain what has happened. First, we give some background information about the company SEAT and describe the events that made it so hard for the Spanish firm to enter the market. Then, we will present some theories and analyse the Russian car market and the company itself. We are going to use the PEST-analysis, Porter's Five Forces and the SWOT-Analysis. Finally, we will...
Words: 8444 - Pages: 34
...CHRISSOLEON COURSE: CASE STUDIES – SPECIAL TOPICS IN SERVICE SECTOR 2014 DERVENI VASILEIA (100) 1/5/2014 CONTENTS: INTRODUCTION 3 THE PROPOSAL 3 TALK TO ME INC. 3 THE RUSSIAN ENVIRONMENT 4 DOUBTS ABOUT THE PROPOSAL 5 DECISION ANALYSIS 5 What really happened 6 REFERENCES: 6 INTRODUCTION The present case study refers to Talk to Me Inc., a company specialized in telecommunications that examined back in 1995 whether or not to expand in the Russian market. The company’s background and action so far, as well as the environment of Russia played a catalytic role in making the decision of expanding in the soviet country. THE PROPOSAL The case begins with the proposal of the Russian Ministry of Communications to Talk to me Inc., known as the 50/50 project. The purpose of this project is to develop an entirely new telecommunications network in Russia and got its name from its goals. In particular, the 50/50 project’s aims were to connect 50 Russian cities, to establish 50 long-distance transit switches and 50 thousand kilometers of digital lines. The 50% of equipment required for the project would be manufactured in Russia and the 50% of the funding would come from Russian resources. This project was expected to last 10 years, with an estimated Budget of $40 billion. Among Talk to me Inc., the Ministry had also approached numerous other American telecommunications companies, such as AT&T and US West, as...
Words: 1091 - Pages: 5
...Conditions in Russia and Their Effect . . . . Kouznetsov and Jones CONDITIONS IN RUSSIA AND THEIR EFFECTS ON ENTRY MODE DECISIONS OF MULTINATIONAL MANUFACTURING ENTERPRISES: A QUALITATIVE STUDY IDENTIFYING ISSUES FOR FURTHER RESEARCH IN THE AREA OF COUNTRY CONDITIONS AND THEIR IMPACT ON ENTRY MODE ALEX KOUZNETSOV, Melbourne Institute of Technology ASHELEY JONES, Melbourne Institute of Technology This study examines entry modes employed by foreign multinational manufacturing enterprises (MMEs) when entering Russia. This exploratory study focuses on country-specific conditions associated with the chosen entry mode - an important component in the consideration of overall entry strategy. Information from field studies representing 18 manufacturers – 10 directly manufacturing in Russia and 8 selling their products in Russia via representative/sales offices – was obtained by means of personal interviews with senior management in Moscow and constituted the primary qualitative data. Research questions are posed for further examination of conditions in Russia and the effects of such conditions on the entry mode decisions of MMEs. The study finds economic conditions to be the only important determinant of entry modes for large multinational manufacturing companies investing in Russia with other country factors playing no role in their choices. INTRODUCTION With the expansion of global business activity, the ability to analyze the key characteristics of potential...
Words: 6551 - Pages: 27
...networks’ success or failure. The paper is theoretical and makes use of different sources of evidence: empirical and theoretical studies on franchising and inter-organisational networks. The conceptual framework is finally tested on a small case study of two franchising networks operating in Russia. JEL-code: Franchising Networks, Performance, Flexibility, Information Exchange, Innovation and Learning Outline I. Introduction 3 II. Definition of franchising networks 4 III. Institutional environment of a transition economy 5 IV. Performance of franchising networks 7 A. Flexibility 7 B. Information exchange 10 C. Innovation and learning 12 IV. Conceptual Framework 15 A. Sociological and Economic Traditions of Network Research 15 B. Economic Theories for the Study of Networks 16 C. Sociological Theories for the Study of Networks 17 D. Conceptual Framework for the study of Performance of Franchising Networks 20 V. Empirical case study 23 VI. Conclusions 23 VII. Bibliography 25 Introduction With people waiting in line for three hours to get into the first McDonald’s restaurant opened in Moscow in 1990, the concept of franchising was brought to Russia. After almost a decade this concept does not sound unfamiliar any more. Lots of Western companies like McDonald’s, Alphagraphics,...
Words: 6518 - Pages: 27
...Study Submitted By: Dhia Karajih Hessa Ahli Issam Abbassi Sameera Al Buraiki Ted and Harry’s Ice Cream Factory 2 Q1: Do you think Ted & Harry’s Russia was a success? There are different views about what makes a business successful. Typically success should be judged by the ability of the business to meet its objectives. The success of businesses can then be judged in terms of their ability to meet important targets (objectives) and creating a cycle of stakeholder satisfaction. Accordingly, we should measure the success of Ted and Harry’s Russia against the objectives Ted and Harry have set when they decided to branch out in Russia and see whether it was met. The idea of promoting peace was the main objective, and from this standpoint, we can say that Ted & Harry Russia was successful in its business experience in Russia. In the first place, Ted & Harry's motivation was sourced from their social responsibility and not just to make profit for the business, although it is an important element of the organization's existence in the market. Moreover, the goal of the organization in branching out in Russia was based on the idea that “International Peace Could Be Promoted Through Cooperative Business Ventures” Ted and Harry believed after their first visit to Russia. Considering those two criteria, Ted & Harry’s Russia was successful in supporting its social responsibility and it successfully concreted a relationship with the Russian local partners. Although there were a lot...
Words: 2503 - Pages: 11
...COUNTRY-MARKET ENVIRONMENTAL ANALYSIS By Name Tatyana Ruchkina (Iup201121) I choose Russian Market as my analysis objective. Because I wonder why they hold so strong economic and can be leading positions in many areas. So I will collect data to find some answers in this paper. 1) Culture Russia is a multinational state. In the Russian Federation than the Russians who make up more than 80 percent of the population live about 180 other Nations. Historically dominated by Russian culture, based on the Russian language, however some role in the development of Russian culture, play and culture relatively large regional peoples of Russia, such as the Tatars, Bashkirs, Kalmyks and others. 2) Demographic The population of Russia is 146 100 000 people. According to the 2002 year, ethnic Russians make up 80% of the total population, while six other ethnicities have a population exceeding 1 million - Tatars (3.8%), Ukrainians (2%), Bashkir (1.1%), Chuvash (1.1%), Chechens (0.9%) and Armenians (0.8%). In total, 160 different ethnic groups and indigenous peoples live within the Russian federation's borders. 3) Social Social factors are also very important to international business. For a international cooperation, they should do some adjustments in the local markets. There are many factors in the social categories, such as social value, attitudes toward success and ethic issues and so on. 4) Economic Russia belongs to the category of agro-industrial countries. . The Russian...
Words: 544 - Pages: 3
...COUNTRY-MARKET ENVIRONMENTAL ANALYSIS By Name Tatyana Ruchkina (Iup201121) I choose Russian Market as my analysis objective. Because I wonder why they hold so strong economic and can be leading positions in many areas. So I will collect data to find some answers in this paper. 1) Culture Russia is a multinational state. In the Russian Federation than the Russians who make up more than 80 percent of the population live about 180 other Nations. Historically dominated by Russian culture, based on the Russian language, however some role in the development of Russian culture, play and culture relatively large regional peoples of Russia, such as the Tatars, Bashkirs, Kalmyks and others. 2) Demographic The population of Russia is 146 100 000 people. According to the 2002 year, ethnic Russians make up 80% of the total population, while six other ethnicities have a population exceeding 1 million - Tatars (3.8%), Ukrainians (2%), Bashkir (1.1%), Chuvash (1.1%), Chechens (0.9%) and Armenians (0.8%). In total, 160 different ethnic groups and indigenous peoples live within the Russian federation's borders. 3) Social Social factors are also very important to international business. For a international cooperation, they should do some adjustments in the local markets. There are many factors in the social categories, such as social value, attitudes toward success and ethic issues and so on. 4) Economic Russia belongs to the category of agro-industrial countries. . The Russian...
Words: 544 - Pages: 3
...Introduction This essay shall discuss what the Disney difference is and how it affects the company’s corporate, competitive and functional strategies. As Disney have plans on doing business in Russia, the discussion turns to the challenges they are likely to face and how the management team can best prepare themselves for such challenges by planning early. We will then be turning our attention to Hong Kong where Disney has announced its expansions plans of Hong Kong Disney Land. Lastly, the discussion takes to the how strategic management process is to be used to “keep the magic coming” in a given economic climate. 1a: Disney Difference Disney difference, to sum up, is the “experience”. Disney tries to achieve this experience by bringing happiness to its consumers. Vice President & General Manager of Disney Institute, Jeff James (2012) stated, "We create happiness by providing the finest in entertainment for people of all ages, everywhere." Disney implementation of this happiness factor can be seen in many ways. For example, Cinderella Castle, in Disney Theme Park allows the visitors to dine with Disney Princesses, immersing a storybook setting for breakfast, lunch and dinner. Thus instead of just having to watch/read the cartoon/story book, which could only allow one to be only exposed visually to the character, Cinderella, the Disney fan is now able to dine with her as well. This “imagination-comes-to-life” offering of Disney translates into happiness for the customers...
Words: 2253 - Pages: 10
