Analysis of Potential Markets for Company a

Only available on StudyMode
  • Download(s) : 55
  • Published : April 2, 2013
Open Document
Text Preview
Analysis of Potential Markets for Company A


Abstract
This research article will try to make a detailed analysis of the business culture of China, India, Brazil and Nigeria, in order to provide more information for the decision-making of the company A, which is famous shoe maker, located in Northampton, the United Kingdom, as an essential part of its international expansion. Literature review will be adopted as the research method, to gather the secondary data, for the analysis and discussion. It reaches the conclusion that before the investment of A in the Chinese market, it is necessary for the mangers to have a better understanding of the cultural differences in the four different countries, including China, India, Brazil and Nigeria. In order to expand the profit margin, the company A should enter into the market of China and India, to maximize the profitability for stakeholders.  

Table of Content
1.0 Introduction4
2.0 Literature review5
2.2 High and low context cultures8
2.3 The seven dimensions of culture9
3.0 Discussion9
3.1 Comparison between Britain and China9
3.2 Comparison between Britain and India11
3.3 Comparison between Britain and Brazil12
3.4 Comparison between Britain and Nigeria13
4.0 Recommendations14
5.0 Conclusion15
Reference16


1.0 Introduction
Company A is a shoe manufacturing company, located in Northampton, the United Kingdom. The products of company A have been sold in various cities of the UK. Company A has taken up nearly 30% of the British shoe market, with nearly 800 employees, who have been selected through the strict recruitment procedure. What is more, after the recruitment, all the employees have been well trained. However, with the development of globalization, the competition in the domestic market has been much more fierce, while the market share of company A has been reduced, due to the entry of foreign competitors. In order to expand the profit margin, company A made the decision of international expansion of the entire business, by investing in other countries. India, Brazil, China and Nigeria have been selected as the target markets for foreign investment. The second largest population, cheap labor forces and the mature free market economy have attracted the attention of the British investors. China also is competitive with the largest population and fast speed economic development. Brazil has grown into the country, which attracts the largest amount of foreign direct investment in Latin America. Nigeria has been famous for its rich resources, cheap labor forces as well as under-developed international market. Nigeria has been one of the most potential emerging markets for most multinational enterprises and foreign capitals. The company A decided to set up the company in the four countries. However, due to the differences in terms of geography, historical background, education, religions, as well as behaviors, it is of high possibility that the some conflicts will occur in the process of cross-cultural communications. Cultural conflicts happen when there is controversy between the home and host country in the process of management and operations of most multinational enterprises. To be more specific, it can also occur in terms of international human resource management. The employees can have conflicts in the process of teamwork, due to the different cultural backgrounds. But the cultural conflict will expose company A to more risks and uncertainty in the process of international expansion. This report will be aimed to provide some effective suggestions and recommendations for Company A to avoid the risks of cultural conflicts, based on the overview of the theories in the fields of cross-cultural communications and international human resource management.

2.0 Literature review
2.1 Hofsdete’s five dimensions
Geert Hofstede made it to find about the relationships between culture and people’s values, values and their behaviors as...
tracking img