Business Global Level Chosen Destinations â€Myassignmenthelp.Com

Question: Discuss About The Business Global Level Chosen Destinations? Answer: Introduction Woolworths limited company has been selected for the report.The report consists of the global scan and audit analysis and this required to be done for expanding the business entity to a global level in the chosen destinations that are China and India. Woolworths Limited is the biggest retailing Australian company. It is the second leading company in Australia by revenue. It was the ninth biggest retailer across the world in 2008. It operates its business in Australia and New Zealand. The company was founded in 1924 and its headquarter is located in Bella Vista, New South Wales Australia. The profit of the company is approx $-1.2 billion(2016) and revenue of the company is approx $59 billion(2016). There are approx 202,000 employees working in the company. It is the second largest company in New Zealand. Audit analysis and Global scan Woolworths is planning to expand its business operations and activities to global of China and India. Therefore, the marketing team, sales executive, and management are planning to evaluate and measures the opportunities and risk in the selected countries. The opportunities and risk in China and India are discussed below (Bayne, Schepis Purchase, 2017). Chinese market After the various researches, it has been analyzed that China is the biggest country in the world. It is one of the biggest countries with a highest population and economy. It is using effective policies, rules, strategies and norms for effective business operation. The country is using effective technology and resources to gain the competitive advantages. It has been analyzed that China is first largest country in terms of population and it is the highest populated country in the world (Lee et al, 2015). The country uses effective human resources and capital for the successful and growing economy. It is the biggest producer of the various brands and it maintains the low labor cost. The current GDP of the company is approx $11.8 trillion and the growth rate is approx 6.7%. The country is the world leader in technical innovation in textile manufacturing, producing of steel, aluminum and agricultural revolution. China is using the different modern technique for business. Now it has bee n noted that Woolworths limited company can expand its business easily through its effective policies and technology. It has been analyzed that high population is the major factor for the company to expand its business in such country. The high population will help to increase in demand for the products. Due to the low labor cost, the company will manage the workforce for the channels at very low cost. Efficiency and effectiveness will also help to expand the business operation of the company. The company can utilize the available resources in very effective way. It is the other benefit for the company (Lynch, 2014). Indian market The company can also expand its business activities and operation in Indian destination. Thus, the company needs to analyze and measure the risk and opportunities of the Indian market. The business of the company depends upon the risk and opportunities of the country (Gunjal, 2017). Thus, before starting the business operation in the foreign country, the marketing team and management of the business entity should analyze and identify the risk and opportunities available in the foreign market (Guha et al, 2014). The business entity also evaluates the environment of the country. Environmental factors affect the business operation of the company and these factors play a significant role in growth and success of the company. It has been noted that Woolworths has a great scope and opportunities to establish its supermarket in the Indian market. It has been noted that India is the second largest country in terms of high population. It will also help to enhance and expand the business of th e organization. The GDP and income level of the country are favorable in India. Thus, the current GDP of the country is approx $2.454trillion which has been increased by 7.2% as compared to the last year (Gereffi Luo, 2015). After the various researches, it has been analyzed that agriculture is the primary sector of the country which generates higher revenue for the Indian economy. Industrialization and modernization also influence the business of the company (Jie, Parton Chan, 2015). Globalization also a significant factor to show the foreign countries interest in investment in such country. It will help to increase the GDP of the country (Grant Jordan, 2015). The policies, strategies, and norms which are implemented by the government will also provide the financial support to Woolworths to expand its business. Further, the service sector is also considered the biggest sector to achieve the goals and objectives of the company. Now it has been observed that if Woolworths Company establishes its supermarket in Indian economy then it will not face any kind of issues and challenges in such country (Boutabba, 2014). Culture and market of China and India After the various researches, it has been noted that business factors play a significant role in the growth and success of the business entity in Chinese as well as Indian markets. The various cultural factors influence the business environment and performance of the company. Along with this, if the company operates its business in other destinations then various challenges are also faced by the company (Frynas Mellahi, 2015). The cross cultural factors influence the business operation of the organization adversely because the team members of the company are not able to able to understand the culture of the India and China. On the other hand, social factors also affect the purchasing power of the people. Hence, it affects the trade activities of the company negatively. In India, there is a tendency to buy the products from local shops at the low prices (De Mooij, 2013). There are many cultural factors exist in the China and Indian market which are discussed below. Distribution of information and knowledge: Distribution of income also plays a significant role to develop and expand the business in the foreign An expansion in the transparency level is required to be created by Woolworths Ltd between its benefits and the cost of merchandise sold. Situating of the brands is very troublesome in the event of Indian markets and furthermore constructing trust and picking up a piece of the pie. For example, Uber is a multinational company which offers private taxi benefit and it is established in the United States of America (Fang, 2014). The business entity moved towards the Indian market and for influencing the customers they introduced attractive. This helped them in picking up trust and acquired an expansion the goodwill and piece of the pie. Apart from the previously mentioned factors, there are some market section modes which are available in the worldwide market condition. These market passage choices can be used by the business substance for entering in the host economy for extending the business. While choosing the market passage modes, the business company should contemplate a portion of the satisfactory standards and controls (Das Nair Dube, 2017). Attitudes, values, and styles of people: The attitudes, values, and styles of the people influence the business operation and activities of the organization. Bargaining power of people also affect the supermarkets of Woolworths limited company. If the company wants to start operation in India and China then the company will have to start and develop some offers and discount schemes to gain success in the Indian market. This issue does not exist in Chinese market therefore, it builds and increases the foreign direct investment rate in the Chinese market (Cappelli, Singh, Singh Useem, 2015). Woolworth Limiteds Strategic capabilities The business entity has successfully attained and builds the image Australia. Moreover, the business corporation is also planning to expand the business operations in the international markets (Kleinmanand Lin, 2013). The chosen destinations for the expansion plans are India and China and these markets are chosen as they are the two economies who have the highest population density. A highly crowded economy can be considered as one of the factors which can be proven beneficial for the business as it leads to an increase in demand. The below presented are the factors which dictate the strategic capabilities of Woolworths Ltd: Financial Position: On the basis of the recent survey it has been observed that the past years or from the period of the establishment of the entity, an approx. count of more than 1000 stores has been launched in the region. This presents a high level of success attained by the business organization (Lee et al., 2015). Moreover, the establishment of new outlets will require the business entity to make huge investments. And this also shows that the business entity is financially stable. On the basis of the conducted survey, it has been noted that Woolworths Limited has attained a growth rate of 7.96% in past five years which has been considered quite high as compared to its competitors. Brand Image: Developing a brand image is a crucial task for the business entity and which requires adaptation of appropriate strategies. The basic element in this concept is providing high-quality products, offering discounts and special schemes to the customers. Moreover, adoption of better and improved mechanisms of promotional and advertisement etc. can also be considered as relevant for establishing the brand image of the entity (De Mooij, 2013). According to the survey report of 2005, Woolworths Limited has been ranked on top in retail charts, for adapting the best innovation strategies. Afterwards, in the year 2012, it was listed at the peak position for as the sustainable retailer and recently it is ranked as the major online distributor of products and services in Australia. SWOT analysis The below presented is the SWOT analysis which has been executed over Woolworths Ltd. This has been done as the management of the business entity is planning to develop the establishment strategies for the new markets. Moreover, this analysis will also make the business corporation aware of the risks and the expenses which will be incurred by the business: Strength: the Brand image of the business corporation has been considered as one of the biggest strength of the organization (Mukherjee, Cuthbertsonand Howard, 2014). The brand equity of the Woolworths aids the business corporation in developing the trust of the consumers. Moreover, the firm also provides a quality of products, which makes the entity more strong in the market. Further, the business entity has been focusing on the strategies which are developed for maintaining strong relations with the customers. This is also considered as one of the strengths of the company, as it will bring a hike in the goodwill of the firm. Weakness: On the basis of the conducted survey report in 2012, it has observed that the business entity has been facing an increase in the debt ratio and for the last year the debt ratio was at peak as compared to the last five years and this has been considered as one of the weaknesses of the business Corporation (Grantand Jordan, 2015). Opportunities: As discussed in the above-analysed report the expansion of the business entity in the new markets and regions can be considered as one of the biggest opportunity of the business corporation. Apart from the physical expansions the business entity should plan and develop the brand name in the online market. Threats: The low-pricing policy adopted for aiding the consumers can be proven one of the threats for the business corporation. Also, intensification in the competitive environment is one of the biggest threats for Woolworths Ltd (Kleinman Lin, 2013). Risks involved in the Chinese and Indian markets The below discussed are the risks which can be observed and experienced by Woolworths Ltd in the new markets, where the company has been planning for the expansion: Legal system: As the business entity is operating in Australia, and the company is planning to expand the business in Indian and Chinese markets, the business entity will be facing differences in the rules and regulations followed and adopted by the new markets and regions. There are huge foreign direct investments from across the globe, as China has an optimum number of foreign companies and they are already operating in the same region. Woolworths Limited is a supermarkets chain in Australia. For instance, the entity will face some issues in India while dealing in some products such as Alcohol as there are some regions in India where consumption and selling of alcoholic products are banned (Bailey, 2017). Tax System: There is a big difference between the tax policies and the norms imposed by Australian and Indian governing authorities (Muasa, 2014). Australian tax policies and the exemption of tax policies differ from the Indian as well as Chinese tax system. Also in case of India Sales Tax has replaced all other taxes and has made the tax system easier. These differences in the tax system will be developing a number of issues for the business entity. Recommendation The business entity has chosen India and China for expansion of the business operations and so they should concentrate their focus towards the consumers more both the regions have the best human resource and which will be proven beneficial for the business entity. Also, China will be proved a most beneficial option for the expansion purpose as the region has there is a number of multinational corporations operating in this region and also have a huge amount of foreign direct investments and which will be proven beneficial for Woolworths. Conclusion In the limelight of the above-executed analysis, it has been inferred that Woolworths Ltd is a multinational supermarket chain and is planning to expand the business operations in new markets. And for this, India and China are the new regions which have been chosen. The above-presented report has been focused on the global scan and audit analysis of the risks which will be faced by the business entity during the expansion. References Bailey, M., 2017. Absorptive Capacity, International Business Knowledge Transfer, and Local Adaptation: Establishing Discount Department Stores in Australia.Australian Economic History Review,57(2), pp.194-216. Bayne, L., Schepis, D. and Purchase, S., 2017, A framework for understanding strategic network performance: Exploring efficiency and effectiveness at the network level,Industrial Marketing Management. Boutabba, M.A., 2014, The impact of financial development, income, energy and trade on carbon emissions: evidence from the Indian economy,Economic Modelling,40, pp.33-41. Cappelli, P., Singh, H., Singh, J. and Useem, M., 2015, Indian business leadership: Broad mission and creative value,The Leadership Quarterly,26(1), pp.7-12. Das Nair, R. and Dube, S.C., 2017, Growth and Strategies of Large, Lead Firms-Supermarkets. De Mooij, M., 2013.Global marketing and advertising: Understanding cultural paradoxes. Sage Publications. Fang, T., 2014, Understanding Chinese culture and communication: the Yin Yang approach,Global leadership practices, pp.171-187. Frynas, J.G. and Mellahi, K., 2015,USA Oxford University Press, Global strategic management. Gereffi, G. and Luo, X., 2015, Risks and opportunities of participation in global value chains. Grant, R.M. and Jordan, J.J., 2015.Foundations of strategy.John Wiley Sons. Guha, N., Warnakulasuriya, S., Vlaanderen, J. and Straif, K., 2014, Betel quid chewing and the risk of oral and oropharyngeal cancers: A meta?analysis with implications for cancer control,International journal of cancer,135(6), pp.1433-1443. Gunjal, T.D., 2017, A Swot Analysis And Recent Fdi Controversy Of Retail Sector In India,International Research Journal of Multidisciplinary Studies,3(4). Jie, F., Parton, K. and Chan, C., 2015, Australian beef supply chain integration: case studies of the two largest Australian supermarkets,International Journal of Supply Chain and Operations Resilience,1(2), pp.121-138. Kleinman, A. and Lin, T.Y. eds., 2013,Springer Science Business Media, Normal and abnormal behavior in Chinese culture(Vol. 2). Lee, A., Yao, J., Mizerski, R. and Lambert, C., 2015.The strategy of global branding and brand equity.Routledge. Lynch, R. 2014, What is global strategy? And why it is important?, Assessed on 10th September 2017, https://www.global-strategy.net/what-is-global-strategy/. Muasa, S.M., 2014. Cost leadership strategy and sustainable competitive advantage of Naivas supermarket limited in Kenya.Unpublished MBA thesis university of Nairobi. Mukherjee, M., Cuthbertson, R. and Howard, E. eds., 2014.Retailing in emerging markets: a policy and strategy perspective. Routledge. Tradingeconomics, 2017, China GDP, Assessed on 10th September 2017, https://tradingeconomics.com/china/gdp. Tradingeconomics, 2017, Indian GDP, Assessed on 10th September 2017, https://tradingeconomics.com/india/gdp. Woolworthsgroup, 2017, Woolworths supermarkets, Assessed on 10th 2017, https://www.woolworthsgroup.com.au/page/about-us/our-brands/supermarkets/Woolworths