4.1 Geographic Environment
Location
Myanmar is located in Southeast Asia, bordered by India and Bangladesh in the northwest, China in the northeast, Laos in the east, Thailand in the east and southeast, and the Indian Ocean to the south and the west.
Terrain
Myanmar is bordered by China, Thailand, India, Laos and Bangladesh, its coastline along the Bay of Bengal and the Andaman Sea. Availability of natural resources Myanmar is rich in natural resources such as petroleum, timber, tin, antimony, zinc, copper, tungsten, lead, coal, some marble, limestone, precious stones, natural gas, and hydropower. Climate Myanmar has a tropical climate with three seasons: a cool winter from November to February, a hot season in March and April, and a rainy season from May through October. The average annual temperature is 28°C (82°F). Target geographic area Infrastructure construction is expected to have the fast growth, especially, in capial town like Yangon ,as the government of Myanmar is now concerning for infrastructure development to support the country’s economic growth. Myanmar is planning one more new hotel zone in Yangon, to cope with growing prospective visitors. It is expected to be constructed along with the project of the Hanthawaddy Airport. Furthermore, 2014 Asian Summit will be held in Myanmar, the demand for hotel and land has started rising in cities such as Yangon in preparation for supporting foreign investors and tourists to the country. These all are a huge opportunities to growing cement business in Myanmar.
Analysis: Discuss how geographic environment could have impact on your business operations
Myanmar's roadways are not easily access by cars, but by jeeps or ox carts. The railways aren't much good for transportation. There are about 2,000 miles of track, but they don't connect with railways outside of Myanmar, only with major cities within the country. This make it hard for importing the cement to Myanmar, since our sourcing has located in our own country, so transportation the raw material is a major factor. The major mode of transportation for passengers or for carrying cargo is the use of the inland waterways. Due to this occurring, these have slow down for supply chain management and logistics to transport the raw material, product from supplier to the manufacturer. As a result, the manufacturing must be located close to the major ports. For now, this means primarily in the Yangon area. But concentration in Yangon, the firm will face with the high land prices.
Another important thing is Yangon's infrastructure is undeveloped. There are many high-rise residential buildings have been constructed or renovated only in downtown and Yangon area, but most towns which locate near by the capital continue to be deeply impoverished.
However, There is an airline in Myanmar that is owned by the government and does have international service to a few countries/cities. The transportation make it difficult for expanding the market to other region in the country, the distribution gets harder to broaden to other city, since there is only a few way to transport product and monitoring a business by the manager.

http://www.asianinfo.org/asianinfo/myanmar/pro-transportation.htm http://www.atlapedia.com/online/countries/myanmar.htm http://www.chinalawblog.com/2012/07/myanmar-foreign-investment-the-reality-on-the-ground.html

4.2 Economic environment Population size | 60,280,000 | Population growth | 1.07% | Age distribution | 0-14 years: 27.5% (male 7,560,859/female 7,278,652)
15-64 years: 67.5% (male 18,099,707/female 18,342,696)
65 years and over: 5% (male 1,184,291/female 1,533,599) | Degree of urbanization | 34% of total population | GDP/GDP growth | $51.93billions/5.5% | Contribution of GDPGrowth by manufacturingService and agricultural sector | agriculture: 43%, industry: 20.5%, services: 36.6% | Purchasing power/PPP | $83.74billions | Inflation | 8.9% | Economic system | Emerging economy | Major export and import Product | Export product: rice, corn, seafood, wood, pearl, robber，natural gas, jade. * Import product: * Industrial raw * material, mechanical equipment, fuel. | Major export and import Tradition partners | Export partners: China, Japan, Thailand, India.Import partners:China, Thailand, Singapore , South Korea. | Balance of payment | 802millions US$ |

http://www.indexmundi.com/burma/#Environment http://data.un.org/CountryProfile.aspx?crName=MYANMAR In Myanmar, the infrastructure is inadequate. They really need to improve their infrastructure to face global economy. Roads, ports dams, electricity and clean water, that will be a big challenge for foreign investor. Transportation is very important for export and import product., but right now Myanmar can not provide required transportations for many companies. So right now, Myanmar government welcomes many companies to go to their country to build infrastructure. One more example is that many foreign mobile phones can not be used in Myanmar. And it is very different for foreigner to withdraw the money.
As the poorest country in Asian, recently, we can see that Myanmar will have a very good future. As one country of ASEAN, Myanmar have more opportunities to do the business and get the investment or technology form other ASEAN countries. More capital will flow into the country. Free flow investment will give a Myanmar a big help. After American president visited to Myanmar, Myanmar got more attention from all over the world. And also there are the challenges, more competitor will come out. As we know, the GDP is 51.93billions dollar. The GDP growth is 5.5%, compare to last 4years 4.9%, the economic will become more better and better. More and more people come to Myanmar for traveling, and Myanmar export more natural gas and other product. Actually, Myanmar has very abundant natural resource. It is a good opportunities for Myanmar to develop the country. Also, the PPP is increased. Due to economic become more better, the level of people’s life will also become better. The inflation rate is 8.9%. it may caused by supply more money or devaluation of the currency. For this point that not good for the investor.
In addition, the exchange rate is a main thing for a foreign company. Myanmar’s foreign exchange rate remained stable in the last three months of the year, after the government introduced reforms in April and ended 35 years of a fixed rate. As a result, businessmen have expressed more confidence in the trading and investment sectors.

We can get the information about foreign direct investment for electricity 14529.742millions, natural gas 13815.375millions$, mining 2794.463millions$, tourism and hotel 1064.811millions$, manufacture 1728.447millions$， total is 33932.838 millions$. As we can see more and more investment come to Myanmar.
Analysis
From all of those conditions about economic environment, we can know it is a good chance for our company to do the business in Myanmar. First, Myanmar will improve the speed to develop their infrastructure. Also, when many company come to Myanmar for build their company or industry, they need the material, the demand of our product will increase. So our have a big market in Myanmar. No matter what, when a country want to develop or want to become more better, they must need material. Also, ASEAN community provide our company a good chance. We do not need to worry about the problems about trade barriers. It is so convenient. The government will encourage us to do the business in Myanmar as well, so that they can develop their economy better. As the development of the country become better and better, it can create a good environment for our company to do the long-term work. Also, we are going to face competitors, we must try to increase our product’s quality without increase the price, so that we can get more market in Myanmar.

4.3 Social and Cultural Environment
In 2010, China becomes the number one country which trades with Myanmar. Myanmar people like to import product from China, because the product at very low price, at the same time, have a good quality.
In Myanmar, most of people believe Buddhism. Everyone goes inside of the temple, they must take off their shoes, even the president of Myanmar.

Burmese is the official language in Myanmar. 65% of people speak it, and English as the second language for Myanmar people. In verbal communication, people express themselves in a indirect way, not like US people. They have a high context culture. Sometimes, “yes” not means “yes”. Also, people in Myanmar like to use body languages, they like to use body language while they are talking. But there are so many body languages are considered as rude action that you cannot do during communicate with other people. For example, you cannot touch one’s head. One more example, when you accept or give things, you must use both of your hand.
And Myanmar has a long history about dance, traditional dance is very famous, women will wear the long traditional dress, people really like that. In addition, the symbol color in Myanmar is deep red, because is the rube color which the monks wear.
Seafood is the common food for Myanmar people, they like to eat fish, also, like many other countries, rich will be the main dish. They also like to eat fruit and vegetable. They like to eat salad as fast food. Actually, their food is very similar to Thai food.
Most of people are simple and out of stress. 89% of people believe in Buddhism. And more than 65% of people live in the rural area and living from agriculture. They will wake up in the early morning, and then go to do the work in farm. They still use the old way to do the farming. When they have free time, they like to visit their friends or relatives. They really like to talk to each other, during talking time, they will drink the green tea. They have a simple life. In addition, they really like the traditional festival, they like to celebrate it, and play game with each other.

They cannot easily to accept western culture, but the culture in Asian country has more similar. And Thailand is the neighborhood of Myanmar. Thailand is the main investment country for Myanmar as well. So it will be easier for Myanmar people to accept Thai culture and Thai product.
Analysis:
Even if there are more similar between Myanmar and Thailand than western countries, they still have many differences. First, they have different language, so maybe they will communicate with each other in English. Due to English is not their native language, so there will be many conflicts between each other. Misunderstanding and miscommunication will happen between each other, due to the different meaning of the word. Actually, there are many similar between Thailand and Myanmar. For example, Thai people also cannot touch other’s head, that is rude. And there are so many similar kind of food between. But we still need to pay attention on the small difference.
All in all, culture environment does not have too much effect, except language. So when we do the business in Myanmar, we need to care more about communicate with each other in a good way, and understanding each other well. That will help our business a lot.

4.4 Political system and Legal system
The current government of Burma is led by Prime Minister (and General) Thein Sein. There is a political reform in Myanmar during 2011-2012. Myanmar struggle to reform political system from socialist to democratic which undertaken by military government. Resulting of the democratic leader Aung San Sugi who has been fight for democratic system in Myanmar for many years, Burman got more freedom today.
The legal system of the Union of Myanmar is a unique combination of the customary law of the family, codified English common law and recent Myanmar legislation. The principles of English common and statutory law were implanted in Myanmar by the British law codes.
Political stability and Political risks
Myanmar has plenty of local concerns, including a long-time civil war with the Karen minority groups. And also, the struggling to be democracy by Aung San Sugi, which was like a silent war between the government side and the democratic side.
Myanmar is also home to many ethnic nationalities, s A minority group of Muslims of ethnic-Indo origins living in Burma’s Western Arakan state. They have no legal rights and are not considered citizens of Bince gaining its independence, the various ethnic group have fought the government to achieve their own autonomy. These lead to political risk in doing a business in Myanmar. Nationalization
Based on the socialist system, which led by the military government, the sovereignty was belonged to the government completely. So the government can rule the country independently.
In the past, the government attempted to develop the economy following a “Burmese Way to Socialism,” with nationalization of most industries. The policy was failed. Now, the government has opened the economy to market forces, particularly inviting foreign investment. But there is some industries which limited by government for nationalization such as oil and gas.
Confiscation
Land confiscation disputes are increasing in Burma, where all land is owned by the state. As the government considers new laws to attract foreign investors, millions hectares owned by local people like farmer were being taken by government, private companies and the military to support economy prepares for more foreign investment.
Expropriation
Myanmar is on the list of the most risky countries which may have the high rate of creeping expropriation. It is risky for investor who would like to undertake business at Myanmar, since there is a corruption and low respect of property rights. But according the new foreign investment law of Myanmar, Myanmar guaranteed that they will not do the expropriation in foreign business to attract many foreigners to do business in their country.
Trade and investment laws
The new version of the Myanmar foreign investment law reduces the number of restricted for foreign investors, but also gives the government the power to restrict some manufacturing or services business. Myanmar has opened to foreign investors to participate in exploiting their natural resources along with enhancing long-term mutual benefit through economic cooperation. In restricted sectors, foreign investors can propose a 50-50 joint venture with Myanmar citizens. In unrestricted sectors, the law permits wholly-owned foreign businesses or joint ventures with a minimum 35 percent foreign stake.
Import policy Import of capital goods, industrial machineries, raw materials and other essential items are allowed. But import of product which can be domestically produced such as consumed product are restricted, in order to encourage domestic production. Import of certain non-essential items such as alcohol, cigarettes to protect public health is prohibited.
Major Import Items
• Power tiller • Hand tractor
• Water pump • Hydraulic excavator
• Cement • MS rods and mild steel
• Electrical apparatus • Transport equipment

Investment Incentives
Companies who registered in new law Myanmar have gained the special benefits and tax incentives. Exemption from income tax up to three years for an enterprise engaged in the production of goods or services. And it may be extended for a further period, depending on the success of the enterprise. The law provided the benefits, such as exemption from income tax up to 50% of the profits on exported goods, exemption from custom duty on machinery equipment or imported items which are used during construction time, and relief custom duty on imported raw material for the first three years of operating.

Investment Climates % of Foreign Ownership allowed (any restrictions on any sector) | -Foreign companies looking to invest in Burma will be allowed up to 100 percent ownership of firms operating in the country.-Sectors allowed are : agriculture and irrigation, livestock and fishery, forestry, mining, power oil and gas personal goods, household goods, leather, etc. | Corporate Income Tax | -Resident companies are taxed on aworldwide basis. -Non-resident companies are taxed only on income derived from sources within Myanmar. -Newly established economic enterprises and MFIL companies are entitled to enjoy exemptions and relief from taxes.-A partnership is taxed as an entityand not on the individual profit shareof the partners | Tax holidays | -five-year tax holiday from the start of commercial operations. | Incentives provided for certain sectors | -Exemption or relief from customs duty or other internal taxes on machinery equipment, instruments, machinery components, spare parts and materials used in the business. | Labor Cost | -Myanmar has the region’s lowest cost labor with minimum wages of just $32 per month-Foreign firms will not be allowed to employ unskilled foreign workers, and citizens of Myanmar must make up at least 25 percent of their skilled workforce after five years, with companies ensuring the necessary training to achieve that. | Special Economic Zones | -The Myanmar SEZ Law is a basiclaw for any Special Economic Zone(SEZ) within Myanmar whereas theDawei SEZ applies only to a specifieddesignated area, i.e. the Dawei SEZ,which is located in the TanintharyiRegion in the south, and is the firstSEZ in Myanmar. |
Bribery and Corruption
Due to the long time era of socialism undertaken by military rule, there are many political violence and the repression between two opposite side of political system, the country’s political environment continue to be deteriorate. Myanmar has to faced with many bribery and corruption by their own government. But there are only a few corruption have been revealed to the public. Most of their corruption has undertaken by the ruling elite such as the high level position in military.
Most of their corruption issues are from the crime activities, such as drugs and human trafficking, and illegal logging.

Legal restrictions
Protecting Intellectual Property
In Burma, there is almost a complete stifling of economic innovation by the
SPDC. The few cases of innovation are under government corruption in the form of forced payments to officials and also threatened with expropriation or nationalization. Burma’s patent, trademark, and copyright laws are all deficient in regulation and enforcement.
An intellectual property rights law, first drafted in 1994, still awaits government approval and implementation. Burma has no trademark law, although trademark registration is possible. There is no legal protection in Burma for foreign copyrights.
Antitrust law
No antitrust or competition laws have been introduced in Myanmar. It is unlikely that such laws will be introduced in the current parliament, since two military conglomerates are allowed to enjoy virtual monopolies. Even if such laws were to be introduced in the parliament, enforcement would be deficiency, since general economic law enforcement measures have been weak in the context of weak rule of law.
Analysis: Analysis: Discuss how political and legal environments could have impact on your business operations and marketing strategies.
First of all, foreign investor in Myanmar must concern about an unstable policy toward the reformation in new political system. Due to this unstable policy, there are both positive and negative side for foreign investors. In positive side, government provided more freedom to the business industry in terms of democracy system. And they released the law to attract and facilities the international business as well. But for the negative side, even if the government try to attract the foreigner to invest in their country, but there’s still a risk for expropriation or confiscation in Myanmar, since the sovereignty is not belonged to the Burmese perfectly as it should.
Since Myanmar was ruled by military government for many eras, their regulation and policy still remain from the socialist and military rule, which was very weak context of law, also their enforcement for any particular crime action are weak too. And their law also support for the military government actions , no matter it was right or wrong actions. This is a difficulty for doing business in Myanmar, since their council law is unfair. Thus, the foreign investor need to follow the strict law in conducting business in Myanmar all the time.
Furthermore, due to Myanmar has no protection law for intellectual property and antitrust law, the foreigner must take into account for this issue. Foreign investors will need to concern about the various ethnic groups of the country and its politics. There are more than 130 ethnic groups and many are represented in the parliament by ethnic-based parties. This means negotiating for projects on a local, regional and central level will be likely. It would the foreigner in dealing with the business project.
There is a high risk that the local fighting will cause outbreaks of violence between Muslim and Buddhist communities elsewhere in the country. More widespread violence would risk damaging international business in Myanmar. http://www.bti-project.de/laendergutachten/aso/mmr/2012 http://en.wikipedia.org/wiki/2011%E2%80%932012_Burmese_political_reforms http://www.mapzones.com/world/asia/myanmar/economyindex.php http://www.blc-burma.org/PDF/LIOB/Lawkapala%2028%20Eng.pdf