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Business report - Essay Example

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Name: Instructor: Task: Date: Business Report Executive Summary The purpose of this essay is to study the various factors that are paramount in establishing a successful business in South Africa. Similarly, the paper discusses how an Australian company such as ABC Learning that deals with children’s education has a potential in succeeding in the economy of the South Africa…
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Business report
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Business report

Download file to see previous pages... On that note, there is S.W.O.T analysis and the superseding recommendations that are also critical in the success of a company in a foreign country. 1.0 Introduction ABC Learning is a center for childcare and a huge provider of early childhood education services in Australia. It was acquired by GoodStart Childcare in late 2009 (after ABC had opted for liquidation in 2008) and was deemed as the largest early childhood education provider globally. The market capitalization of this institution, according to Australian Securities Exchange, is A$2.5 billion as noted in March 2006, and it has branches around the country. Similarly, because GoodStart Childcare Limited is a not-for-profit entity, there have been plans to open branches in other countries. On that account, the best choice has been South Africa because of many reasons that we are going to discuss1. However, it is imperative to observe that South Africa has been a viable choice because of its economic prosperity and economic stability. The only second-world country in Africa also has a warm socio-cultural environment that does not discriminate but allows lasting integration. 2.0 P.E.S.T.E.L Analysis 2.1 Political Environment The political nature of South Africa is among the friendliest in Africa as compared to other nations. Since the end of apartheid in 1994, the country has witnessed successive calm transitions of the ANC government that encouraged more investors and tourists. Similarly, the parliament has passed numerous policies and acts which directly support foreign investment. This is because of the various advantages of such ventures in the form of the employment creation and improvement of living standards. On the same scope, the number of deals and tenders the government offers to foreign businesses has been increased by the friendliness towards foreign investment2. It is also fundamental to observe that about 40% of feasible tenders are offered to foreign investors, making South Africa the biggest provider of tenders in Africa. Therefore, ABC Learning would be able to make profit by the imparting of knowledge to children of all colors in South Africa. 2.2 Economic Environment In terms of economic properties of South Africa, there are many interesting issues to note. For example, the management skills of most South African businesspersons are highly trained and admirable. This starts from time management whereby managers and workers prefer to arrive at their work places early due to the love of their job. Additionally, during meetings, burning issues are debated satisfactorily in order to attain a workable solution3. In other words, the forging of relationships at the workplace is paramount in order to solidify the essence of economic prosperity between nations. For example, ABC Learning plans to establish a branch that will realize economic success within a given time. Furthermore, in the context of doing business with other nations, South Africa was ranked number 34 in 2011, which places it among the most promising countries in the Global Index4. In the same context, the income category of the country is classified as upper middle income. Additionally, the per capita of South Africa is (US$) 5,770.00 with a population of 49,320,150, making the country only closer to nations such as Brazil and India. Therefore, these factors should encourage ABC Learning to have a chance of success in ...Download file to see next pagesRead More
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Business Report
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