Economic and Social Conditions in Africa - Assignment Example

Economic and Social Conditions in Africa Introduction: International marketing refers to marketing activities carried out by a company in various overseas countries other than the country of its origin. In international trading, various kinds of marketing practices transverse outside the boundary together with market recognition and target, doorway selection, marketing mix, and assessment to participate in international markets. Politics, Law & Business Ethics: Politics and laws for commerce of a new business comprise of a set of necessary norms of behaviour. The core law gives instructions under danger of penalty or permit. Law and policies of the two countries may be different. In the case of tax law all it needs is the imbursement of currency to the government and there is no alternative to this. So, it is necessary to understand that adequate steps need to be taken at the time of considering the amalgamation to start up the business. International trade: The business deal of various goods or the inventory is called trade. International trade is the trading of commodities done in an international market. It refers to the merging of distinct and emerging markets to the national place and transforming them into a huge market place. The falling market place in the country helps in boosting international trade and making the activity a success. Many of the markets are not the country markets that are suitable for the consumer product manufacturing. The new trade theory focuses on increasing the returns to the specialization in the industry that may exist. The following factors will make the difference in the profitability and increased revenue of the firm. Political conditions: African political unsteadiness and other connected trouble is essentially an outcome of its management dilemma. At conjugal level, African governments are much depended on the various practices from the western state system, and they are modelled, the various traditions or civilizing practices. “The president is the head of state, and is elected by the National Assembly from among its members. The president's constitutional responsibilities include assigning cabinet portfolios, signing bills into law, and serving as commander in chief of the military. The president works closely with the deputy president and the cabinet.” (South African political risk: Political risk and the Mo Ibrahim foundation, 2010). The form and circumstance can be dissimilar, but the governing style in various culture had features that can be found in modern systems of governance. The situation of implementation of the contemporary western state system, several African community discarded the ways. At the reign of the colonial rule, they clinched the western models and made use of them, by conducting the independence, the execution was deformed and involved a set of support twisting at the elevation of the change from colonial rule to freedom. “The Scramble for Africa was powered not so much by conditions in Africa, but by the economic, social and political conditions in Europe during the second half of the nineteenth century. In economic terms, it was not so much as an overproduction of ... goods in Europe as an undersupply of raw materials.” (The scramble for Africa, 2008). The post-colonial government wanted nationwide harmony through the unification of political and economic power, involving various colonial regulation and institution to strangle and repress the pluralism that was present in the era. “South Africa’s post-apartheid governments have made remarkable progress in consolidating the nation's peaceful transition to democracy. Programs to improve the delivery of essential social services to the majority of the population are underway. Access to better opportunities in education and business is becoming more widespread.” (U.S department of state background note, 2007). The active political conditions supported by western policy have a significant task in the deficiency of African inhabitants, of the necessary services, which are solution to expansion. The incorporated environment of international market and safety apprehension, say that such issues cannot be mistreated. “The market outcome of the allocation of resources especially in Africa is socially unacceptable; they cause massive deprivation and inequalities, marginalisation and in some cases, trigger interethnic conflicts, as various groups struggle for scarce state resources. Again, this is more common in countries less endowed with natural resources while in those cases with natural resources.” (Ong’ayo 2008, p.6). Economical conditions: The economic conditions of Africa are the one prevailing through out, “One of the principal reasons for the holding back of Africa's economic performance has been the continuation of military conflicts. In the early 1990s, in the aftermath of the Cold War, many political analysts were predicting a significant "peace dividend", in terms of a resolution of many historic conflicts which had a subsequent economic recovery.” (Africa economic report 2004, 2004). The worldwide recession pessimistically influenced the financial movement in Africa. Development in the continental gross domestic product (GDP) declined from 4.9 % in 2008 to 1.6 % in 2009. “South Africa was one of the few countries on the continent able to implement strong and coordinated countercyclical fiscal and monetary policies. Fiscal stimulus measures together with cyclical revenue shortfalls resulted in a sharp deterioration of the fiscal position by 6.2 percentage points of GDP, culminating in a deficit 7.3% of GDP in 2009/10.” (South Africa: Overview, 2010). As financial movement showed down inflation charges withdrew, assist also by minor intercontinental oil and food cost and by high-quality farming harvests in various parts of the country. “As global demand fell, the prices of major African export commodities, such as crude petroleum, coffee, cotton and tropical logs, dropped significantly in the first quarter of 2009,particularly when set against their record high levels of mid-2008. However, prices recovered strongly in the following two quarters and are expected to stabilize in 2010.” (Malawi 2010, p.4). Social Conditions: Education systems are significant for information and wisdom to enlarge people's choice, and to enable them to live a better life. In this context, it is hopeful that the standard chief employment rate in Africa will increase. An indication of this amplified elementary school enrolment is the proportionate diminish in the figure of out-of-school kids go down from 43 million in 1999 to 30 million in 2005. “Africa had made considerable progress in a number of social development areas, with remarkable gains in such areas as primary school enrolment, measles vaccination, use of insecticide-treated bed nets, reductions in HIV prevalence rates in some countries and improvements in some aspects of gender equality.” (Economic and social conditions in Africa in 2009 and prospects for 2010, 2010). In comparison with other regions, African countries are measured by reduced health as proved by the indicators on HIV/AIDS, TB and malaria, newborn, child and motherly death. All areas apart from North Africa persists to be rigorously affected by HIV/AIDS. as regards 68 per cent of the 33.2 million persons existing with HIV/AIDS globally are in Africa exterior of North Africa. “The corruption-HIV/AIDS context, South Africa has had its most high-profiled judgment recently. President Thabo Mbeki fired Former Deputy President Jacob Zuma in 2005, because the latter having found a ‘generally corrupt relations’ with his ex-financial adviser by the Durban High Court.” (Ozkan 2006). The majority of African youths inflowing to the employment market continue to be a miserable forecast. They remain unemployed, underemployed or immovable in badly salaried jobs in the casual economy. The youth joblessness rate remains at 18 per cent in the continent, excluding North Africa. In contrast, the job loss rate in North Africa has been somewhat deteriorating from 27.6 per cent in 1996 to 26.7 per cent in 2006. On the sex aspect, though young females in regions other than North Africa have minor job loss rates than youthful males, this does not mean that they command a superior position in the labour market. “Improved human well-being is a crucial objective of sustainable development and is closely linked to environmental goods and services. Human well-being is multidimensional and requires access to resources to live a good life in good health, such as income, food, cleanwater, and energy; personal security through the absence of conflict, the ability to mitigate environmental disasters, and good governance.” (Environmental change and socioeconomic factors in Africa, 2010). Technological factors affecting the business strategies of Presence Multimedia in UK: The UK based Presence Multimedia has several technological factors to consider before starting the new venture in West Africa. In the same manner as social and economical factors, a technological notion also has great impact on the business strategies in West Africa. “Technology factors are the scientific advances, which influence the competitive position of the enterprise. Maintaining awareness of new technologies decreases the probability of becoming obsolete and promotes innovation.” (Neblett n.d, p.4). The company has to adjust to the technological features of the African countries and it is quiet different from the European nations. This makes a great difference in the marketing and other business strategies of Presence Multimedia there. This small web designing and development studio enables the 3D and CGI representation, e-commerce incorporation, flash games, mobile web functions, etc in its stores. “Modern and fast technology which can make the marketing business more efficient, gives more choices on how to send, receive and store information.” (What are the factors that influence marketing environment? 2010). Modern technologies will generate newly designed products through novel methods. The flash games, mobile applications, 3D designing and web designing all have gone through a newer dimension as the result of technological advancement. As West Africa is not so much developed as the European or Asian countries, these developments will make a huge impact on the local people. The newer technologies will amaze the customers and these customers will be willing to pay for novel products. E-commerce and computer web designing and developments are all the enhancements to the development of a new business firm in West Africa. Various marketing strategies will keep the customers taking notice of its products. This effective marketing strategy through online and other traditional media will help the business to grow. “The spread of the Internet has opened up a number of opportunities for using IT innovatively to extend the reach of the retailer into the homes of its customers.” (Factors affecting the use of technology, 2010). The new technologies help to reduce expenditures, and can perk up the value leading to modernization. This progress will give advantage to the customers as well as the Presence Multimedia Company providing the services. The other factors to be considered in the technological area include novelty, fresh product growth, and rate of technical obsolescence. This will create an impact on the local groups to handle the enhanced local technologies. UK wide technology is applied by this company in West Africa making the African natives to study and use these skills. There should be international marketing strategies to develop the business in West Africa through online and other means. Legal factors: The legal factors are another issue to consider while setting up business all over the world. These legal subjects were different from place to place and countries to countries. “These are related to the legal environment in which firms operate. In recent years in the UK there have been many significant legal changes that have affected firms' behavior. The introduction of age discrimination and disability discrimination legislation, an increase in the minimum wage and greater requirements for firms to recycle are examples of relatively recent laws that affect an organisation's actions.” (PESTEL analysis of the macro-environment, 2007). The legal changes will have an effect on the expenditure and requirement of the products of Presence Multimedia company in West Africa, when the new techniques developed and when the rule influences the probability of the clients while buying the products or using the service. “West Africa is the newest of the emerging markets and remains one of the world's best kept secrets, although not to the Commercial Service!” (West Africa-the newest of the emerging markets, 2010). The different laws that have been practiced in the West Africa include the consumer laws which help to the customer from being preys of unfair practices in the sales. Competition laws consider the small firms against the big ones, employment laws exist for the worker’s welfare in terms of wage, shelter, etc and health. Safety laws guarantee the safety of workplace of the employees. “When laws of two countries differ, it may be possible in a contract to specify in advance which laws will apply, although this agreement may not be consistently enforceable.  Alternatively, jurisdiction may be settled by treaties, and some governments, such as that of the U.S., often apply their laws to actions, such as anti-competitive behavior, perpetrated outside their borders.” (Political and legal influence, n.d). Environmental factors: “Entering into a foreign market is like discovering new territory for business owners. Foreign countries have different laws, economies, business strategies and currency.” (Capozzi 2010). Along with these, the environmental variations also sometimes hamper the accomplishment of business. The environmental factors in West Africa also make a strong impact in the success of the multimedia company. The weather and climate changes will influence the business and it is entirely different from UK. The global warming causes several environmental changes, which have become a major topic to consider while starting up in West Africa. They have to consider more eco-friendly products to use and have to live on the environmental adjustments. The global climate change is making the firms to go through difficult situations and limits the possibility of their success. The external and internal environment of the company also makes a difference. “The internal environment of the company includes the factors which are within the company and under the control of company like product Organizational culture, Leadership, and Manufacturing (quality).” (What are the environmental factors affecting business and the impact of the environment factors affecting it? 2010). The external factors include social surroundings, dealers, challengers, etc. For this company, it is important to pass all these hurdles and attain an own space in the market. Conclusion: “Many challenges continue to face the nations forming the western bulge of Africa.” (Gordon n.d). To accomplish its goals and to attain success in the new project in West Africa, Presence Multimedia has to consider all these social, environmental, legal, political, environmental and technological factors. They have to see the global factors which help in promotion of the company’s business strategies in West Africa. They also have to work on an effective planning and it should be according to their strategy to do the big businesses. “By comparing the similarities and differences between domestic and international marketing needs and planning requirements, then the organisation is in a better position to isolate the key factors critical to success.” (Chapter 1: Introduction to global Marketing, n.d). 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