Information about Vancouver - Coursework Example

Information about Vancouver INTRODUCTION The present business environment of global organizations is often identified to be influenced by various factors. In this regard, the influence of external environment is one of the major determinants for the modern business organizations especially while extending business subsidiaries in different overseas locations. Organizations are often recognized to highly comply with the influence of primary external environmental factors in performing various operational and corporate functions (Cupman, “Marketing Strategies in the Current Business Environment”). In keeping with the major influences of the external environmental factors in business, the primary objective of this report is to analyze the business operations of BMGB Tau Division in the growing market of Vancouver B.C, Canada. THESIS STATEMENT The discussion of this report intends to demonstrate the current political climate, demographic information and financial situation of the region for BMGB to successfully expand its business unit in the growing Vancouver market. CURRENT POLITICAL CLIMATE Understanding political climate of the host nations or areas can be considered as an essential practice for the organizations while intending to extend business units into any overseas location. In relation to the current political system, the country comprises stabilized democracy with its well-established institutional and political system (City of Vancouver, “Your Government”). The representative democratic structure of the political system significantly enables the city to make the entry for the global marketers convenient to extend their trade facilities. Moreover, the deregulatory process of governmental policies towards providing trade opportunity for the foreign entrepreneurs would also be a major factor for BMGB to successfully enter into the city of Vancouver. Therefore, the stable political environment can be considered as one of the major factors for BMGB to gain opportunity in marketing its range of electronic goods. In relation to the recent market trend of electronics and technology industry, a growing competition has been critically recognized within the city of Vancouver. The increasing number of globally renowned marketers along with strong manufacturers within the respective business industry has long been identified to increase the annual economic position of Vancouver at a significant extent (City of Vancouver, “Your Government”). According to the present day context, the local market of the city of Vancouver has been observed to be driven by fierce competition in household electronic items and telecommunication manufacturing and marketing industry. Moreover, a significant shift towards the e-commerce business industry has also increased the performance of the electronic manufacturers to gain a number of opportunities and market their range of electronic goods in the respective business industry (City of Vancouver, “Your Government”). In the context of legal perimeters, the city of Vancouver has been recognized to strengthen its trade performance. The legal policies for the foreign entrepreneurs of the city provide extensive scope to successfully establish and market their different business offerings. In this regard, the deregulation of trade barriers as well as offering lower interest rate for the foreign entrepreneurs by the city can also be considered beneath few of the major legal factors that influence marketers to extend their business subsidiaries into the respective location. Therefore, the legal factors of Vancouver can also be considered as a major aspect for BMGB to make effective investment decision while extending its business subsidiaries in the respective business market (City of Vancouver, “Your Government”). DEMOGRAPHIC INFORMATION The demographic factors can also be regarded as one of the major influencing aspects that can highly affect on the organizations’ overall business performances. These factors tend to influence the organizational operational process due to the complexities arising from cultural differences amid the customers from diverse countries. The demographic analysis of a particular state or location encompasses a number of influencing factors including median age of the population, annual household income along with education and current employment rate that exists within the population. Moreover, the demographic condition also tends to involve the social factors including the racial makeup and life-style trend along with social condition of the target market (Heisz, “Canada’s Global Cities: Socio-economic Conditions in Montréal, Toronto and Vancouver”). In relation to the current demographic condition of Vancouver, the city has been witnessing significant development relating to its number of demographic influences. According to the statistical data of the year 2011, the median age of population within Vancouver area was identified to be 40.2 years, a gradual increase as compared to the year 2006 (The Canadian Press “Census 2011: Seniors make up 13.5 per percent of Vancouver”). Therefore, it can be stated that the median age of the population would enable BMGB to make effective decision while entering into the Vancouver’s electronic market. The adequate stability in the median age would enable the organization to lay its major focus towards the consumer trends with respect to their annual household income which would facilitate the organization to establish its strong position in Vancouver. The median income level of Vancouver can also be considered as a major factor. According to a statistical report, the median total income of the area had increased up to C$68,970 in 2011, which was considerably higher than the income level of population during the year of 2010. In this regard, an increase in annual median income level of the population would be a major factor for BMGB to develop effective pricing strategy of its range of electronic goods. Moreover, higher augmentation of median income would also enable the organization to formulate effective financial strategy (The Canadian Press, “Census 2011: Seniors Make Up 13.5 per Percent of Vancouver”). Although the area is often observed to face civil unrests due to the political turmoil along with racial makeup, the current business environment of Vancouver is considerably suitable for the foreign entrepreneurs. In order to circumvent possible disputes associated with the racial makeup, the business strategy of BMGB should highly focus on developing effective policies and ensuring compliance with each trade regulation within the organization (The Canadian Press, “Census 2011: Seniors Make Up 13.5 Per Percent of Vancouver”). FINANCIAL SITUATION The economic environments of the global countries have witnessed certain unfavorable conditions due to the rapid fluctuations in economic parameters. . However, the continuous emergence of commercialization and the increasing amount of Foreign Direct Investment (FDI) enable the area of Vancouver to be recognized as one of the major destinations to achieve significant economic growth. The industrial sector has long been witnessed to play a key role in developing the economic condition. In relation to the current financial environment, the ‘Port of Vancouver’ plays a leading role in terms of executing C$172 billion of trading activities of goods with over 160 global countries. The port tends to contribute C$9.7 billion within the annual Gross Domestic Product (GDP) and also contribute C$20.3 billion in the overall economic output of Vancouver (Port Metro Vancouver, “Facts & Stats”). The rapid pace of trade operations by the countries can be considered to significantly increase the annual outcome of Vancouver even during the period of global economic turmoil. In relation to the currency rate and fluctuation, the area of Vancouver has been witnessed to gain the attention of the global investors through its strong financial stability. In this regard, the key economic sectors of Vancouver include industrial centers and Port of Vancouver that have been recognized to play pivotal roles to extensively increase the financial stability of the area. Additionally, the forest product as well as mining industry located in the respective area has also been considered to substantially stabilize the financial condition of Vancouver. Correspondingly, the largest labor market within the area of Vancouver which is well-equipped due to the high level focus on professional education would also facilitate BMGB to make effective employment decision which can further improve the functional activities while entering into the growing market of Vancouver. The annual increase of 2.2% in the employment rate of Vancouver would enable the organization to make effective employment decision for its range of operational activities within the respective business market (Port Metro Vancouver, “Facts & Stats”). Despite the continuous development of the port industry, tourism can also be considered as one of the major industries of Vancouver, which provides strong support to the area’s annual financial outcome. Additionally, the entertainment and event industry such as film production studios located within the area also can be considered to stabilize the financial position of Vancouver. Correspondingly, it can be stated that the financial condition should be regarded as one of the paramount factors for BMGB to empower its range of financial, management and operational strategies. The strong financial background of the area of Vancouver would further empower the decision making process for the corporate overlords of the organization to gain a significant profit by marketing its range of electronic goods in Vancouver (Heisz, “Canada’s Global Cities: Socio-economic Conditions in Montréal, Toronto and Vancouver”). CONCLUSION According to the critical understanding of the major information, it is affirmed that the extension of business subsidiary in the area of Vancouver would provide adequate support to BMGB. In this context, the sensitive political environment relating to the trade facilities and regulations would provide adequate opportunity for BMGB to build its sustainable position in the target markets of Vancouver. Moreover, the growing trend in the area’s demographic condition is also a major considerable factor for BMGB while extending its business units in the respective location. Therefore, the stability of the median age population along with distinct ethnic background of the population would also enable the organization to target different groups of customers by a long way. Besides, the discussion has also demonstrated the growing financial condition of Vancouver, which can significantly empower the decision making process of the corporate executives to build strong position of BMGB in Vancouver. Works Cited “Your Government.” City of Vancouver. 2014. Web. 10 Feb. 2014. Cupman, Julia. Marketing Strategies in the Current Business Environment. 2009. Web. 10 Feb. 2014. Heisz, Andrew. Canada’s Global Cities: Socio-economic Conditions in Montréal, Toronto and Vancouver. 2006. Web. 10 Feb. 2014. “Facts & Stats.” Port Metro Vancouver. 2014. Web. 10 Feb. 2014. “Census 2011: Seniors Make Up 13.5 Per Percent Of Vancouver.” The Canadian Press. 2012. Web. Feb. 10, 2014. Read More