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Global Business Plan - Essay Example

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Previously the position and the scope of Canada pertaining to the market and production of energy resources like crude oil have been analyzed. It has been identified that Canada has vast deposits of oil in the Atlantic as well as in its land, making it a rich source of crude oil resource…
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Global Business Plan Essay
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Global Business Plan

The political, legal and regulatory risks highlighted that the region has a stable and development oriented political scene, which is supported by the legal system in Canada. Moreover the regulations in the region are similar to the ones in US, making the low and favorable for investment. The exchange rate risks are low for the country is low as well as the currency of the country is quite stable. The competitive risks in the region however are high as there exists fierce competition amongst the local and the international business. The government has taken steps to lower this risk for investors.
The distribution and supply chain risks highlighted that the middleman in the oil production sector who is responsible for transporting and dealing with manufacturers and distributor faces high level of risks. The physical and environmental risks are also high in Canada due to its extreme climate and the rocky terrain of the land which makes extraction and digging difficult and time consuming. Additionally the social risks in the region are also present which relate to the conflicts attitudes of the French speaking and the English speaking Canadians.
The SWOT analysis of the Oilpec Inc Company was also performed which identified that the strengths of the Oilpec Inc pertained to its knowledge and experience in the field of distribution, marketing, exploration, storage and refining of oil. The weaknesses of the company pertained to the stigma that is related with the oil companies in the minds of the people and the rising prices of oil which creates hardships for people in the worked. The opportunities that are available to the company pertain to the fact that the company can keep its operations costs low and offer consumers in the market with oil at lower prices. The threats that are faced by the company however include the high level of competition in the industry.

Rationale for Selecting the Country
The rationale for selecting Canada as a prospective region for operations for the Oilpec Inc Company was based on the strategic and risk analysis of the region. This analysis provided that the economy of the region is a fast growing one which is supported by the incrementing Canadian dollar and the increased economic activity. Moreover in Canada there is no currency restrictions placed on the repatriation of funds. Thus, in some cases, the repatriation may have tax consequences. In Canada, exchange rates are stable, so a foreign company will avoid these risks

The policies of the region specific to immigration have allowed the country to have access to skilled people resources. Additionally while the crude oil sector in the region has a competitive industry, this allows new companies to enter in the market as by lowering barriers to entry. Additionally the legal environment is favorable for international companies, as Canada is a US oriented country with strong cultural and economic relations with the USA partners. This enables businesses form the United States to establish them selves in Canada with relative ease.

Marketing Mix and Marketing Plan
The target markets for the products to be manufactured by Oilpec Inc include all oil consumers in the international market.

There exists intense competition in the industry for exploration, manufacture and distribution of crude oil in Canada and this requires a unique marketing strategy for the product by Oilpec Inc. The company ... Read More
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