International Business - Assignment Example

? International business Task: Introduction The development of business on the global front is dependent on various factors. These factors include the willingness of entities to globalize, international regulations, information technology and the state of the international economy. United Arab Emirates (UAE) is performing exceptionally well in international business. The country was previously renowned for its massive oil reserves. However, the nation has diversified its economy by creating business hubs in Abu Dhabi and Dubai. These hubs have attracted massive investment into Middle East and UAE. Therefore, any entity seeking to venture into the Middle East economy should prioritize UAE since it is the gateway to this region. This write-up seeks to evaluate the possible entry of Wal-Mart, a leading retail entity into the UAE market (Wal-Mart stores, 2012). Project description and progress Wal-Mart is the leading entity in retail business globally. It commenced operations in mid 1950s in Arkansas. Later, the entity expanded on a national level then on a global level. The entity seeks to offer the lowest prices in the market. Consequently, the entity attracts enormous clientele. The attractive pricing offered by this entity has priced out the other competitors since the clientele seek to maximise their purchasing power (Global Province, 2004). Wal-Mart’s enormous revenues and stringent cost management have allowed the entity to avail their merchandise at reduced prices (Blog win, 2011). The entity has presence in most regions globally. Nonetheless, the entity has not taped into the Middle East market. The entry of Wal-Mart into this market will alter the dynamics of the retail sector (Frank, 2006). Business matching and marketing Wal-Mart’s entry into the UAE market will require proper strategizing. Such strategizing is imperative for a venture of this magnitude. Ill-advised ventures primarily culminate in failure and losses. It is crucial to make decisions pertaining to ventures on credible information to avoid such a scenario. My knowledge on the dynamics of the UAE economy will assist me in advising Wal-Mart management appropriately. Additionally, the location of retail store will have a considerable implication on the revenues of the entity. Consequently, I will provide the management of Wal-Mart with strategic locations that will enable the entity attract enormous clientele. The above details elaborate some of my roles in the matching and networking of Wal-Mart. Objective of joint venture or strategic alliance Joint ventures denote a business founded on an accord between various individuals. The accord elaborates the input of each party in the venture (Gutterman, 2002). The accord elaborates how long the agreement binds the parties. In this scenario, Wal-Mart will require information on the market and store. As a party in the joint venture, I will provide stores located strategically across UAE. A strategic alliance is cooperation that aims at accomplishing specific objectives. An example of a strategic alliance is the North Atlantic Treaty Organization (NATO) where the parties involved aimed at securing their nations against military adversaries. In the above case, Wal-Mart aims to boost its revenues via expansion into new market. Similarly, I aim at boosting my income by renting my store to a client that will offer better returns (Frank, 2006). Scope of business This joint venture relates to the retail industry. The prospects of the industry are enormous. The UAE population has generally high income. Consequently, the citizenry have substantial income that they can expend. Conclusively, the market in this nation has immense potential that is unexploited. Additionally, UAE’s retail market lacks a dominant entity. As such, the market is distributed equally among the key players in the sector. This signifies that Wal-Mart can enter the market and attain dominance. Wal-Mart can dominate retailing since it offers lower prices. Reduced pricing is an aspect of the firm that my win the entity colossal clientele (Business monitor, 2012). Summary of opportunities and current business environment Despite the global economic calamity, UAE has enormous opportunities for any investor. The creation of cities like Dubai and Abu Dhabi that offer modern facilities in the financial sector has attracted enormous business interest (Oxford Business Group, 2008). Additionally, the diversification of UAE’s economy has revealed the nation’s ambition to create a surrounding that support trade. Appropriate legislation provides necessary legal support for realization of the above ambitions hence, creating multiple opportunities and an enabling set-up for business. Business opportunities exist in valid industries such as finance, real estate, tourism and professional practise (Noack, 2007). Doing business in UAE The simplified business procedures have eliminated bureaucracy. This has made conducting business easier. Thus, registration of businesses that would have previously dragged on for several months now takes few weeks. Additionally, the relaxed taxation has allowed entities to retain and plough back a considerable proportion of their cash-inflows. Overall, conducting business in UAE is simple (Kothari Auditors & Accountants, 2012). Lesson learnt A government’s policies have an enormous impact on both foreign and local investment. As such, the policies embraced by the UAE have encouraged investment. Entry of a business into new market requires planning to guarantee success in the new market. Conclusion International business leads to foreign investment, which is an integral constituent of any business. The entry of Wal-Mart into UAE economy would denote the entity’s ambition to boost its income through expansion. Conclusively, UAE’s business policies have created an enabling business surrounding hence, creating countless business opportunities. References Blog win. (2011). Wal-Mart: America’s strongest weapon against China. Retrieved on May 21, 2012 from http://theblogwin.com/tag/walmart-international-presence/ Business monitor. (2012). United Arab Emirate Business forecast. Retrieved on May 21, 2012from http://www.businessmonitor.com/bf/uae.html Frank, T. (2006). A Brief History of Wal-Mart. Retrieved on May 21, 2012 from http://www.reclaimdemocracy.org/walmart/2006/history.php Global Province. (2004). Watching Wal-Mart. Retrieved on May 21, 2012 from http://www.globalprovince.com/walmart.htm Gutterman, A. (2002). International joint venture. California, CA: World Trade Press. Kothari Auditors & Accountants, (2012). About UAE. Retrieved on May 21, 2012 from http://www.kothariauditors.com/aboutuae.html Noack, S. (2007). Doing Business in Dubai and the United Arab Emirates. Munich: Grin publishers. Oxford Business Group, (2008). The Report: Dubai 2008. United Kingdom: Oxford publishers. Steward, C. (1999). Developing Strategic Partnerships: How to Leverage More Business from Major. England: Gower publishing limited. Wallace. R. (2004). Strategic Partnerships: An Entrepreneur's Guide to Joint Ventures and Alliances. Chicago, IL: Dearborn Trade Publishing. Wal-Mart stores. (2012). Our Global Presence. Retrieved on May 21, 2012 from http://www.walmartstores.com/Careers/7792.aspx Read More