Global business is the modern form of business in this 21st century. Global business involves the interaction of people from different cultures, societies, and diverse background. Due to modernization and advancement in technology, most businesses are beginning to explore international markets for better profits and opportunities. In the recent past, trading has become increasingly global in some way because of the need to gather and increase the company’s financial bases. This paper is dealing with various issues of consideration for Crappy Shades Company.
Crappy shades as a company aims at going global in its business venture. Having carried out adequate research, the company intends to expand its business to the nation of China. There are various factors that have influenced the stakeholders to choose venturing into business in this nation. One of the major reasons is that this company has a very stable economy that is growing at a very fast rate. (Friedman, 1999) Product branding is a key factor in determining the selling trends in that country.
In China for example Crappy Shades can be renamed after a populous Chinese personality to increase perceived value of the customer towards the Company’s product. A good brand name should be; easy to remember, easy to pronounce, legally protect-able, easy to recognize and attractable. There are different kinds of brands that can be applied by Crappy shades company. This requires in-depth research so as to know the prominent personalities in the nation that the citizens therein like. A brand image and Company name normally play a very big role towards the success of the organization.
The brand image for Crappy Shades sunglasses should be that of good quality. This is due to the fact that nobody would want to purchase any low quality products. This is especially the case in global business sector. There are various challenges that this Company may face in managing new employees. There is more diversity in workforce in this twenty first century. The workforce is diverse in age, race gender, ethnic origin, sexual orientation and religious belief. Global business organizations are attracting people from diverse backgrounds .
One of the challenges would be dealing with employees who deeply believe in Chinese culture. China is among one of the countries with unique culture and beliefs. (Hofstede, 1980) The country is well known for its diverse but strict cultural understanding for food, religion, family beliefs, lifestyles etc. All these factors must be inherently taken care of by a detailed preliminary research on the specific cultures that must be incorporated. A nice idea would be to employ as many of the locals as possible to be able to quickly integrate the two cultures adequately.
Another possible challenge will be the issue of language. There are cases where the company may employ locals who may not adequately understand English. The main language of the Chinese people is the Mandarin language. Mandarin is the overall language adopted nationally among the Chinese population. This is bound to bring in some communication barriers which can also result in other problems in the Company. However, there are also other foreign languages that have been adopted such as English, Japanese and French.
The management in Crappy shades should be prepared for criticism not only from its new employees, but also from the other competitors in the market. This criticism may either be positive or negative. Any negative criticism from new employees would be a great challenge for the management team. The literacy levels according to the latest government estimates are estimated to be 89 % for adults which are a good indication of how the Chinese market can be able to understand, critic and accept the products from the company.
(Howard, 1993) Another challenge that will be possibly encountered by Crappy Shades Company when managing new employees will include incurring extra costs on training them. This is due to the fact that every organization has policies and rules that are unique to it. Having new employees means that they have to be trained concerning the Company’s policies. Another factor is that, bearing in mind this Company has been in operation in United Kingdom, there are high chances that some U. K employees will move to China.
This can result in conflicts where the natives assume that there is favouritism on the employees from United Kingdom. (Hill, 2005) There are various elements of the national business environment in China that may affect the move that is about to be taken by Crappy Shades Company. The business environment will always affect the success of the business directly. When there is a good business environment in a nation, business therein are bound to excel. The following factors in the business environment in China will affect the next move that Crappy Shades Company will take;
• Political environment • Economic factors • Technological factors • Legal factors One of the elements that will affect Crappy Shades Company includes the political arena in China. This is due to the fact that the political environment in a nation directly affects consumers’ spending behaviour. When consumers have good spending behaviour it will mean that the chances of the business succeeding will be high. On the other hand when there is poor spending behaviour among consumers in China it will mean that the sunglasses will not easily be sold and hence minimal profits will be incurred.
The stability of the political environment in China is very important if for Crappy Shades Company to succeed. Each nation has got policies that affect investment ventures in the nation by foreigners. Such policies in most cases affect the laws that are enacted concerning business regulation and the taxes that are imposed to it. If for instance the polices include high taxes charged on foreign investment businesses in China, then this would mean the business would not get high profits Each and every government also has various positions on business ethics.
Such issues will automatically affect the running of the business. There are also other issues in relation to the political environment that may affect Crappy Shades Company. They include the government’s policies in relation to the economy in the nation. The views that the government of China has in regard to religion and culture may also affect Crappy Shades as a Company. (Scholte, 2004) Still on the political environment, any involvement of the government in China with other trading agreements will mean a lot for this Company.
They include the European Union, ASEAN and NAFTA among other agreements. This is due to the fact that these external bodies also play a big role in influencing the business environment. Various economic factors in China will also in way or the other affect the operation of Crappy Shades Company. For instance interest rates always mean a lot to foreign investors. These are usually controlled at the national level by the central bank in the nation. High interest rates will always attract foreign investors unlike low rates of interest.
For instance f there are very low interest rates in China, it will mean that Crappy Shades Company will have very minimal benefits or even incur losses. This will make the enterprising business to collapse. The other economic issues in China that could affect the expansion of the company include inflation levels. In case the nation has got high inflation levels, then it would be very hard for the company to thrive. On the other hand low levels of inflation will result in business getting increased profits within a very short time. Other issues also include the per capita of the employment levels in the nation.
The Gross Domestic Product per capita in the nation can also affect the Company in one way or the other. Socio-cultural elements in the national business environment in China can also affect Crappy Shades’ move. This includes the religion that is in China. Sometimes the religion may not really ‘agree’ with the products sold by Crappy Shades Company. It is therefore very important that such information be clearly analysed before coming up with a very final decision. In case the religion is not comfortable with people wearing shades, then it would mean that Crappy Shades Company will not do well in the nation.
Other socio-cultural elements in the nation’s business environment that might affect the company include people’s attitudes. This is in relation to foreign products in the market. There are some nations where people have a very negative attitude towards any product that is linked to foreigners. This may be hard for the company and in the case where such an attitude is prevalent; the company may actually have to do more marketing. On the other hand there are some nations where people disregard local products and would definitely go for any foreign product.
This would mean that the business would have maximised profits within a very short duration. (Friedman, 1999) The products that Crappy shades are dealing with are actually leisure based. This means the time that people spend China for their leisure will determine whether people will highly purchase the shades or not. In case people in China rarely spend time in leisure, then fewer products will be bought. On the other hand, if people in China spend valuable time in leisure, then many sunglasses will be bough by the locals in the area as they enjoy their time out.
Tax rate is a crucial consideration before any investor can start his business. For this case, there should be a thorough consideration to ensure the tax will not raise the price for our products. This is to ensure that out products will be purchased in our market at a fair price but in case the tax rate will be high in our new location, this means that the prices for our goods will be high hence low demand. Language is also part and parcel of the socio-cultural factors in the nation that may affect product diffusion in China.
The roles of women and men in china could affect the attitude of the people in relation to who should wear sunglasses and who should not. This is also in relation to the attitudes and the social norms in China. Are women comfortable wearing sunglasses? What about the men? Does the age affect the way one is perceived when wearing sunglasses? Some of these issues may affect whether some people in the nation will purchase sunglasses or not. (Hofstede, 1980) Technology in business environment in China will also affect Crappy Shades Company in one way or another.
If the technology in China makes it possible for this Company to produce sunglasses of better quality but at cheaper cost, then starting the Company there will be a welcomed idea. Technology in terms of service provision is also very essential and will affect Crappy Shades. This includes whether there is advanced technology like mobile telephones and also banking via the internet. Legal measures in the Chinese business environment may also affect the business. Some nations require so much protocol measures to be carried out before a Company invests therein. These can be costly and would adversely affect Crappy Shades Company.Sample Essay of AssignmentExpert.com