Assigment: develop a research proposal - Essay Example

Aloe is grown in regions where the climate is tropical, as aloe vera is highly intolerant to cold weather conditions. Therefore, in order to maximise the ability to produce and cultivate aloe, a new start-up company would require establishment and launch in a country with a climate supportive of aloe production. A new business being established in the Dominican Republic would be ideal for growing and harvesting aloe vera, as today there are only 8600 acres in the Dominican Republic devoted to aloe production.

This region would, theoretically, provide tremendous opportunities where there would be minimal competition from other aloe-producing companies. With such a small fraction of available land in the country currently devoted to aloe production, there should theoretically be minimal competition for a new business seeking opportunities in this industry. This research project proposes an examination of the potential for a new start-up company to establish an aloe production presence and achieve profit growth in the Dominican Republic. . The objectives of the study include: Evaluation of labour practices and availability to ensure immediate talent management for the new venture.

Identify the potential barriers to new market entry that could provide competitive and/or profit disadvantages. 2.0 Literature review The Dominican Republic experienced a 9.1 percent increase in GDP in 2007. In 2010, GDP growth was 7.5 percent (Global Property Guide 2010). Therefore, according to actual economic statistics, the country would provide an ideal environment for new business launch within a growing economy whilst many other Latin American countries are facing drops in local product production.

What appears to make the Dominican Republic an ideal environment for launch is the government-supported development of the Free Trade Zone, an attempt by the government to attract and retain foreign investment. The Free Trade Zone provides significant incentives for foreign businesses, including reduced export tariffs, complete exemption from corporate income taxes (Dominican Republic 2013), and exemption from the value-added tax (VAT). The Free Zone also provides businesses with the ability to sell up to 20 percent of its products locally (within the country) so long as the products are manufactured within the nation.

All of the aforementioned incentives are viable for a 15 year, completely renewable period (Smith, Ferreira and da Serra 2013). Government support, therefore, for reducing costs for foreign businesses supersedes many other foreign nation incentive programs that should assist a new start-up company to achieve profitability. Additionally, the Dominican Republic provides