Download Assessing country markets.

Assessing country markets.
The attractiveness of markets can
be assessed using various
criteria:
Geographic proximity
• How far, how easy to get to, how easy to
do business with. Cultural differences are
also very important.
Government policies
• What will the government let you do?
Degree of free market access and central
planning, China? Approach to
multinationals. France has a very old
fashioned labour market and strong unions
slow change, this has put inward investors
off. UK is much more flexible.
These!
• Natural resources
• Crucial for some primary industry, is there
enough water, oil, power, etc.
• Commodity prices
• Movements may open up possibilities and
close down others. Changes in oil price
have made certain oil finds economic.
Price of tin? Silver? Etc.
And these
• Exchange rate movements
• Eurozone, other out of eurozone locations
could appear cheaper.
• Political and legal system
• As before, China is freeing up in many
ways without the government losing real
control.
Level of economic development
•
GDP or Human development index
• India? What sort of demand is there likely
to be in the country in the next 20 years.
Investment decisions should involve long
term forecasting.
And these
• Potential labour force
• Demography, training and education.
China v India
• Level of technology
• A country with good infrastructure and
technological capability may have much
more potential than an underdeveloped
economy.
Finally
• Likely return on investment.
• The whole point of this assessment. How
much profit are firms making from each £
invested. If you could answer this you
have the other questions licked.
• Other criteria? Competition?
Consumer tastes? Tradition and
culture?
Daisy
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Fresh fruit and fruit salads
Juices, smoothies
Salad products
Fresh bread rolls made to order
No hot food, all cold, and healthy
Organic, ethical
Premium price but not super premium
Your next wonderful task.
• Your next wonderful task.
• We have a wonderful new fast food sensation
called
• Daisy.
• All food fresh as a Daisy.
• You have grown the business brilliantly
throughout the UK. There are 200 branches of it
around the country employing 3000 people full
and part time including only 10 at the head office
in Wilbarston.
Where are you going next?
You are the development
team for Daisy, you have to
create a report on which of
the following locations will be
the best one for the next
phase of the development of
the Daisy brand. With
reasons why. There is a lot at
stake, you must get it right.
Where are you going next?
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Option 1
Option 2
Option 3
Option 4
Ireland
USA
Norway
Russia