Potential Markets for Motor Vehicle Manufacturing Company Expanding - Case Study Example

Motor vehicle manufacturing company Task Motor Vehicle Manufacturing Company Introduction The fictional company in focus is MNC,which is a motor vehicle manufacturing company U.S. The company started with an investigational vehicle in 1896. Currently, it is among the greatest automobile manufacturers around the globe. The company manufactured its first vehicle in 1903 and referred to it as Model Apt. The vehicle contained an under floor engine, which the company sold at $850; furthermore, during the first season of selling cars, the company sold 1,708 cars. After experimenting on cars, the company gained interest in dealing with speed; therefore, it created an experimental speeding machine, which they called 999, followed by introducing model Coi and Bye. As time elapsed, the company advanced and manufactured model Creo and Kay vehicles (Canis 2011). The motor manufacturing company is famous for manufacturing automobiles and operating credit; thus, getting an income of exceeding $3 billion. The company owns an automobile rental company considered the prevalent worldwide. It also manufactures dissimilar categories of vehicles, which include Ford, Lincoln among others. The company has a controlling interest with other fabricators such as the Mazda and GMSC. Throughout the WWII, the company contributed noticeably because it manufactured dissimilar military hardware, which incorporated; tanks, jeeps, airplanes and engines. The company centers on the cycle with the intent of maintaining its position as a top motor vehicle manufacturing company (Canis, 2011). In the matrix, I will choose three countries, which entail Britain, China and South Africa as my emerging countries considering the provided elements of economic systems. These elements include the economic system of the chosen countries, the political environment, legal and regulatory environment, technological environment, ethical system, social responsibility indicators and cultural dimension A matrix demonstrating my emerging countries for business expansion verses the elements of economic systems (Canis, 2011). Economic Political t Legal Technological Ethical Social responsibility Cultural dimension Britain E G E E E E G China E G A E P E P South Africa E E A G G E P Key E- Excellent G-Good A-Average P-Poor Britain Britain’s economic system is favorable for the expansion of my MNC because the peoples’ economic status in Britain is highly volatile. Their population dominates of employed individuals who enjoy their spending powers. Other economic factors such as the taxation variations, indicted interest rates, conversation rates, financial growth and inflation rates in Britain are excellent. With such characteristics, many individuals in Britain are capable of purchasing more products and services from my MNC Company hence being a potential country for my Company’s expansion. In addition, Britain has a good political environment because it is stable and there is less regulations of motor vehicle product; therefore, this will enhance efficiency in our business. Legal regulatory environment existing in Britain is good to the Company because numerous legal changes in the country that favors motor vehicle businesses. With such supportive laws and regulations, Britain will be a great destination for the Motor Vehicle Company, as it will allow efficient operation; furthermore, many people will be willing to purchase the company’s products and services. I consider conducting our business expansion in Britain because of its excellent technological environment. Britain has high level of technology and most of its populace is technology literate; therefore, they will browse on the goods and services that we offer thus increasing our online business rates (Adner, 2002). Britain’s population has individuals whose ethical system is excellent; therefore, it will be easy to work with such individuals in expanding the company’s business. Such people are capable of offering genuine advice concerning our business and the possible ways in, which personnel can increase, the total profit. The social factors present in Britain are good indicators on why the country can be the best destination for our business expansion. For the precedent few years, total population of Britain has amplified; therefore, this will be a good target as the demand for merchandise and services will be high. Finally, Britain’s cultural dimension is good to any business including our motor vehicle company. They have a friendly culture that accommodates change; therefore, they will welcome our company in their country and be interested in our products together with services (Adner, 2002). China The economic status of China is excellent for the expansion of our business considering that the country has a new economic status, where it overtook Japan and it ranks as the second leading economy country worldwide. With such economic status, many Chinese will be willing to purchase merchandise and services. China is a good destination for the business’ expansion because of its political stability, which will offer an appropriate and safe environment to conduct business. With such an environment, it will be easy to expand business and make profits. Legal and dogmatic environment in China is average when dealing with our business because the country’s legal system has experienced some legal changes that do not effectively supports conduction of our business. Therefore, expanding the company’s business in china will be affected by this factor hence lowering the company’s profits (Peterson, Rhoads & Vaught, 2001). China’s advancement in technology is high; thus, being advantageous to the business as most of our clients will view and purchase our products online. Ethical system in China is very poor because most Chinese are not welcoming and very discriminative hence creating a bad business environment. According to dissimilar conducted research, the outcomes demonstrate that China has a very high stable population; therefore, quite percentage of the population will be willing to purchase our commodities. Finally, China’s cultural dimension is very poor because they are very discriminative; they do not socialize with people from dissimilar cultural backgrounds. This makes the country to be a bad target for the expansion of our business because they will not be willing to taste our products and services (Adner, 2002). South Africa I prefer South Africa to be a destination country for the expansion of our motor vehicle business because they have an economic environment of prosperity. Their economic factors such as exchange rates, fiscal growth, inflation rates and taxation rates are very favorable. This will make them purchase products. Indeed, South Africa has a stable political environment thus will be safe consequently encouraging business (Adner, 2002). The legal and regulatory environment that South Africa is not favorable to the motor vehicle business because of dissimilar changes that have occurred, hence introducing our business to their market will not earn us profits. Most people in South Africa are technology literate; therefore, this will enable them to acquire more information regarding the business hence promoting online purchases. The ethical arrangement in South Africa is excellent; hence, this will enable easily socializing with people making them enthusiastic to purchase merchandise (Adner, 2002). South Africa’s populace is high with large percentage entailing wealthy individuals; therefore, they will purchase products. Finally, South Africa’s culture is not friendly, which will affect it forcing them not to accommodate us together with our business thus making it not to be a good country for our business expansion (Adner, 2002). I will recommend Britain as the emerging market for the company’s expansion because considering the seven business elements; Britain exudes the most favorable environment for the entire elements. In line with the drawn matrix, China and South Africa lacks the need elements unlike Britain, which possess most of the elements; therefore, turning out to be excellent meaning conduction of our business will be successful. Conclusion From the above assessment on the emerging market for our motor vehicle company, it is evident that for any business organization to expand and become successful, it should consider dissimilar factors such as the economic systems of the destination target, their political environment, legal regulation, and technological factors. As a senior business manager of the company, I can turn the company’s expansion into success through identifying the above-identified success measures with the intent of setting the company in a successful environment. References Adner, R. (2002). When are technologies disruptive? A demand-based view of the emergence of competition. Strategic Management Journal, 23(8), 667-688. Retrieved from: http://search.proquest.com/docview/225006524?accountid=45049 Canis, B. (2011). U.S. Motor Vehicle Industry: Confronting a New Dynamic in the Global Economy. Darby, PA: DIANE Publishing. Peterson, D., Rhoads, A., & Vaught, B. (2001). Ethical beliefs of business professionals: A study of gender, age and external factors. Journal of Business Ethics, 31(3), 225-232.Retrieved from: http://search.proquest.com/docview/198050419?accountid=45049 Read More