Business Environment in China - Case Study Example

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The following case study "Business Environment in China" casts light on the globalization of business operations that has been intensified due to enhanced communication, as well as a reduction in the barriers among different countries relating to financial, political, cultural and societal factors. …
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Business Environment in China
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Download file to see previous pages The fast-food restaurant in the UK has planned to expand its business operations, as well as initiated plans in entering the business market of China. Therefore, the company is concerned with minimizing its exposure to different sorts of risks, such as political, as well as economic risks among others, that are associated with the expansion of business activities in the international market. (citation) This discussion will stress on the analyzing of certain significant aspects that would be conducted by the company in order to ascertain, as well as to acquire valuable information. This information is required to be evaluated with the objective of determining valuable decisions that are required to be initiated for performing business operations of the fast-food company in an appropriate manner. Moreover, the company is required to utilize varied strategic tools which include SWOT analysis, Porters five forces model as well as Hofstede five-dimensional models among others for determining the suitability of the decisions for entering into the business market of China. Globalization signifies that an enlarged number of nations are incessantly partaking in the world economy in order to attain significant benefits. In this regard, globalization is fundamentally defined as a process of incorporation as well as interaction amid different people, organizations along with governments that facilitate the smooth and improved flow of technologies, goods as well as services. It also enabled the effective flow of investments in the international market due to enhanced deregulation as well as communication among dissimilar countries (European Commission, 2004). The fast-food company in the UK is required to adopt the globalization procedure with the motive of expanding its business operations as well as sustain enhanced growth in the international business market. The company needs to perform business operations as a fast-food company in the business market of China by providing quality products as well as complying with the requirements or the preferences of the customers, particularly of China. All these major initiatives would certainly assist the company in acquiring a better customer as well as brand loyalty especially in the market segment of China. For instance, McDonald’s has adopted the globalization process in order to expand its business operations worldwide (Mujtaba & Patel, 2007). The different strategic tools that will assist the fast-food company in determining the market conditions of China as well as in formulating helpful strategies for performing effectively in the business market of China have been framed hereunder. (citation) SWOT Analysis The company is required to perform a SWOT analysis before entering into the business market of China in order to determine its strengths, weaknesses, opportunities as well as threats (Ferrell & Hartine, 2010). Strengths One of the major strengths of the company is that it possesses several fast-food restaurants in the UK as well as in other nations that ultimately raise its profitability at large. The other strength of the company is that the management team of the company is quite an expert as well as skillful that enables them to perform effective business operations. ...Download file to see next pagesRead More
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