Part II: Environmental Analysis (Target Country)

Student Names: Aqeela Romer, Carleen Etienne, Christina Williams, Tenniel Cartwright and Chelsi Fowler

Course: MKTG 412-0116

Instructor: Michael Rolle

Affiliation: The College of The Bahamas

Date of Submission: March 10, 2016

Canada’s Cultural life

According to “International Marketing,” ‘culture is an integrated system of learnt behavior patterns that are distinguishing characteristics of the members of any given society.” Canada’s culture originated from Europe, especially Britain and France. Canadians are relatively a broadminded, civil and very community-oriented people. Although they are individualistic in terms of their basic cultural traits, they nevertheless place a great deal of emphasis on the individual's responsibility to the community. This is seen as giving balance and a good quality of life. They’re also very protective of their constituent identity and encourage their people to stay true to it. Canada also has a low context which means most of its information is explicitly contained in the words.

Furthermore, Canada’s government is made up of constitutional monarchy that is also a parliamentary democracy and a federation. A multitude of languages are spoken in Canada. According to the 2006 census, English and French are the preferred language of 67.1% and 21.5% of the population, respectively. Canada also has five widely-spoken non-official languages which are Chinese (the home language of 2.6% of Canadians), Punjabi (0.8%), Spanish (0.7%), Italian (0.6%), and Arabic (0.5%).

They’re also perceived as diverse, and multicultural. Ethnic groups that reside in their country are British Isles origin (28%), French origin (23%), other European (15%), Amerindian (2%), other, mostly Asian, African, Arab (6%), mixed background (26%). Religions that are practiced in Canada are Roman Catholic (42.6%), Protestant (23.3%) (including United Church (9.5%), Anglican (6.8%), Baptist (2.4%), Lutheran 2%), other Christian (4.4%), Muslim (1.9%), other and unspecified (11.8%), none (16%) (2001 census).

Canada’s Cultural analysis

Based upon the information previously stated, Canada has many interesting norms associated with their culture. Some are uncommon in Exuma. Canada has a strong passion and moral view for community building and accountability. Canadians’ perspective is to help your neighbor when he is in need. In order to properly market and then successfully sell Exuma to Canadians, an international agent that acts as a change agent (International Marketing) has to associate its products and services to this respected trait of Canada. Sadly, it cannot be synthetic. Inhabitants of Exuma have to be genuinely loving and caring towards one another. Its beautiful beaches and scenery cannot compensate for it. Furthermore, Canadians are very patriotic individuals. They teach and train their people to respect and stay true to their beloved country. They’ll always be proud to be Canadian. Exumian inhabitants should also display this trait to closely relate and attract Canadians.

Also, like The Bahamas, Canada has low-context culture. To ensure that they receive and accept our offers, we have to be deliberate and strategic with our wording and conveyance of our marketing message. Also, Canada’s two main languages are English and French. The Bahamas’ two main languages are also English and French but French-speaking Bahamians are mostly illegal and legal Haitians. In order to communicate with Canadians and construct a proper marketing plan. With Canada being a multicultural by race and religion country, discrimination is not frequently practiced. Therefore, they respect all people. As an international agent, one must respect the customers’ positive norms for them to believe it’s palatable to purchase our products and services. Gays, blacks and Spanish-speaking people should be treated the same way a white CEO of a corporation is every single day. Inequality is something that Canadians detest. It’s best that Exumians never display that in their presence.

Consequently, Canada’s culture is special and admirable in many ways. The job of the international agent and marketing executive responsible for selling Exuma to Canada is to ensure that the activities, condition of the environment, and other contributing factors aren’t offensive towards Canada’s culture. Yes, the international agent is to bring new products and practices but they are also called to socially responsible. Entertaining and wooing Canadian guests while keeping their culture intact and respected is the goal. Also because of Canadian’s open-mindedness, the new activities and products that will be introduced are anticipated to be accepted and enjoyed by them. To successfully capitalize on selling Exuma to Canada, one has to keep in mind their culture. For without doing so, all efforts in gaining their business will be lost.

Political Environment

“The political environment in international business consists of a set of political factors and government activities in a foreign market that can either facilitate or hinder a business' ability to conduct business activities in the foreign market” (Political Environment in International Business, 2016). In order to conduct business in a country, it is vital that market managers are aware of the political environment and the players involved in it. There are a number of factors that contribute to whether or not a country will be able to enter the international market politically.

In The Bahamas the government type is said to be democratic with its number one industry being tourism. During prior years the tourism industry was not as successful. It has been stated that the Bahamas has not always seen a “boom” in the tourism industry but has experienced a decline in the industry in the late 20th century. “….the hotel industry was in a state of shock with low occupancies and low average rates” (Tourism Today, 2016). However, it has taken international countries to believe in The Bahamas which has created the tourism product today and contributed to numerous foreign direct investments present in The Bahamas.

Over the years, there have been numerous changes in terms of political dynamics of The Bahamas. The Government was ruled by the white minority for a number of years, who sought to keep the white minority at top. Through the leadership of Sir Lynden Pindling and the newly formed Progressive Liberal party, the “People’s Party” was victorious in the general election lead a legacy in the country. “The effect of politics on international marketing is determined by both the bilateral politics relations between home and cost countries and the multilateral agreements governing the relations among groups of countries.” In order to participate in international marketing, both governments have to be on par and meet the various expectations the other government may have. When marketing to foreign investors, such as Canada both governments have to come to an agreement in order to have full success.

The tourism industry in The Bahamas is built on foreign investors, such as Baha-Mar, Atlantis and Breezes. From the yesteryears, foreign investors have played a pivotal role in the success of the Bahamas’ tourism industry. The tourism industry in Exuma has encountered foreign investors who have found interest in the island that can be one of The Bahamas’ hidden gems. “This is a hidden gem and you can now return to your home city and let your family and friends know that you have seen paradise on earth.” (V. Alfred Grey) Minister Grey has encouraged the visitors to tell their family and friends about the island of Exuma not only to benefit themselves, but the island of Exuma itself. It is vital that Exuma stays true to its belief and continue to be an island that many tourists will visit in order to escape from the city life and experience the “true island experience”.

To succeed in a market, the international market needs much more than business know-how. Therefore, Marketers must know much more than business when entering the international business market. They must have an insight of the political environment of the country in order to see how they are going to approach the desired country and the how both countries will benefit. A full understanding of another country’s legal and political system will rarely be possible; the good manager will be aware of the importance of this system and will work with people who do understand how to operate within the system (Czinkota, 2007)..

As a market manager it is important to have connections with persons apart of the international market in order to exceed maximum profits. The island of Exuma has the potential to be one of The Bahamas’ greatest tourism attractions if marketed to the international market in order to share this island with persons throughout the world. Canada would be the ideal country to target because the government of The Bahamas is familiar with Canada’s government and has done business in the past. Politics plays a pivotal role in deciding whether or not to invest in foreign markets.

Legal Environment

Laws are important rules that keep a Country running in proper order. Each country has a different set of laws and methods in which these laws are implemented (Czinkota 2007). The legal system of the Bahamas, Canada and many other countries of the world can be categorized into common law. Common Law originated from England, is based on tradition and depends less on written statutes and codes than on precedent and custom (Czinkota 2007).

In addition to having a system that is categorized as common law, the Bahamas is a parliamentary democracy and a member of the British Commonwealth. The governor general holds the highest office and represents Queen Elizabeth 11, who is the head of state. The Bahamas is a stable democracy that shares democratic principles, personal freedoms, and rule with the USA and Canada (Bahamas Safety Report 2015).The Bahamas; in particular the island of Exuma is an ideal destination for Canadians to come for a vacation. Although there are many commonalities between the legal systems of The Bahamas and Canada there are a few differences that marketers must pay special attention to in order for marketing efforts to be successful (Czinkota 2007). Some laws and rules that should receive special attention when visiting the Bahamas is the driving, dress code, and bringing pets, interacting with pets, beach and park conduct.

In Canada motorists drive on the right hand side of the road because British law applies in the Bahamas motorists drive on the left hand side of the road. Also it is the law that all drivers and passengers wear a seat belt while driving and riding in a vehicle anywhere in the Bahamas. Children who weigh less than twenty pounds shall face the rear of the vehicle secured in an infant seat fitted to the rear seat. Lastly a child weighing twenty and less than forty pounds should sit in a convertible car seat fitted to the back (Bahamas Safety Report 2015).

Exuma has many beautiful beaches and sea parks that are protected by the Bahamas national trust. The Bahamas national trust was established by an act of parliament in 1959, it is responsible for the conservation of natural and historic resources of the Bahamas (Bahamas National Trust). Pig beach is a part of the land and sea park of Exuma therefore it is protected by the Bahamas national Trust. However Visitors are free to go and swim with the pigs but must not harm or steal them or any other animals in the national parks. Sometimes visitors like to travel with their pets when they go on vacation and here in the Bahamas that is welcomed but preparations must be made with the ministry of agriculture before a visitor comes so that they can obtain a special permit. Furthermore when visitors leave the beach and decide that they want to walk the streets they should ensure that they cover up because walking the streets in beach clothing is inappropriate.

Exuma is a phenomenal place for Canadians to visit because not only is the environment beautiful, the people are amiable and very hospitable. Like every country in the world the Bahamas has laws that governs the way the people live however these laws are very flexible and wouldn’t hinder visitors from enjoying their trip but instead allow for their continued safely while they experience paradise.

Economic Analysis

The economic foundation of Canada is said to be one that remains strong, well supported by solid protection property rights and an independent judiciary that enforces the rule of law effectively. Additionally, Canada, like The Bahamas has an open economy in which they initiate open-market policies that are geared towards facilitating global trade. The investment flows have been strong and the economy has remained resilient amidst recent years of international and domestic challenges. With a growing population of 35.5 million people, Canada has somehow managed to pay strict attention to public finances. As of 2014, gross domestic product (purchasing power parity) was $1.6 trillion which contributed to a 2.5% growth in 2014, 5 year compound annual growth 2.6% and $44,843 per capita. Unemployment stood at 6.9% in 2014 but has since increased to 7.1% as of November, 2015.

As it relates to tourism arrivals in The Bahamas, Canadians are the second largest group of tourists that visit The Bahamas. Recent statistics posted on the Tourism’s website indicate that 32,024 tourists came from Canada as of 2014. Therefore, with a country of 35.5 million people, it is imperative that Canada be targeted to visit the island of Exuma.

Canada's current account deficit (on a seasonally adjusted basis) was said to have expanded again in the first quarter of 2015, up $4.4 billion to $17.5 billion, after narrowing in the first three quarters of 2014. This change in direction over the last two quarters was said to be mainly due to trade in goods, especially energy products. In the financial account (unadjusted for seasonal variation), “Canadian investments abroad slowed in the first quarter, while foreign investment in Canada reached $62.1 billion” (Canada's balance of international payments, first quarter 2015. Foreign investment in Canadian bonds was the largest contributor to the net inflow of funds to the economy” (Canada's balance of international payments, first quarter 2015). Canada is tied closely to the U.S. economy with leading exports that include oil, minerals, automobiles, manufacturing goods, and forest products (Index of Economic Freedom, 2016). Below gives a summary of international trade statistics of Canada

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Media Availability

Canada is said to one of the most “wired” countries in the world. “With nearly 87 per cent of Canadian households being connected to the Internet, Canada ranks 16th globally in terms of Internet penetration in 2013 which is up from 80 per cent in 2010”(The Canadian Internet).

In The Bahamas, even those media challenges still exist on isolated islands. For the most part, there are numerous media outlets throughout the Bahamas. The Bahamas has had a lively and relatively free press since the early 1800s, broadcasting was a government monopoly until 1992. Furthermore, due the level of media availability in both Canada and The Bahamas, exposure can be maximized. Many distribution strategies can be deployed when conducting with or in Exuma such as email and newsletters, electronic media, poster boards, video commercials and many more.

References

Czinkota, M. R., & Ronkainen, I. A. (2007). International Marketing. India: Cengage Learning.

Canada. (n.d.). Retrieved March 10, 2016, from http://www.heritage.org/index/country/canada

Canada- Language, Culture, Customs and Etiquette. (n.d.). Retrieved March 10, 2016, from http://www.kwintessential.co.uk/resources/global-etiquette/canada.html

Canadian International Merchandise Trade Database. (n.d.). Retrieved March 10, 2016, from http://www5.statcan.gc.ca/cimt-cicm/home-accueil?lang=eng

Cruise ship visits Inagua | Bahamas Local News. (n.d.). Retrieved March 10, 2016, from http://www.bahamaslocal.com/newsitem/95900/Cruise_ship_visits_Inagua.html

FREQUENTLY REQUESTED TOURISM STATISTICS. (n.d.). Retrieved from http://www.tourismtoday.com/sites/default/files/docs/stats/FrequentlyRequestedStatisticsBrochure2014.pdf

Home page | Tourism Today. (n.d.). Retrieved March 10, 2016, from http://www.tourismtoday.com/

International trade. (n.d.). Retrieved March 10, 2016, from http://www5.statcan.gc.ca/subject-sujet/theme-theme.action?pid=1130

Political Environment in International Business: Definition, Factors & Impact - Video & Lesson Transcript | Study.com. (n.d.). Retrieved March 10, 2016, from http://study.com/academy/lesson/political-environment-in-international-business-definition-factors-impact.html

Archieve.org. (n.d.). Retrieved March 10, 2016, from http://www.archieve.org/

The Bahamas National Trust. Retrieved March 10, 2016, from http://www.bnt.bs

The Bahamas Safety 2015 Report. Retrieved March 10, 2016, from https://osac.gov/pages.org

The Canadian internet. (n.d.). Retrieved March 10, 2016, from https://cira.ca/factbook/2014/the-canadian-internet.html