Answer To: Your Task Select an International Business that is seeking to expand into a new or emerging market...
Abhishek answered on Sep 10 2021
MAN304— ISSUES IN INTERNATIONAL BUSINESS
ASSESSMENT 2: INTERNATIONAL BUSINESS REPORT
Table of Contents
Introduction 3
External Environmental Factors to be faced by Woolworths Supermarket in China 3
Expansion Opportunities for Any Business in China with Particular Reference to Woolworths 6
Expansion Challenges for Woolworths in China 7
Conclusion 8
References 9
Introduction
The business that will be talked about in this scenario is the market of China that is at present, considered as one of the potential markets where any new organisation can establish their operations. The management of Woolworths Supermarket has decided to move to China with its products and services. To be successful in business, some criteria need to be fulfilled. Different analysis such as the PESTLE has been conducted to understand the actual problems regarding the external environment associated with the organisation itself. This can provide an opportunity for the organisation for developing themselves more in the upcoming future. This report has provided the proper concepts and the different variables associated with the external environment.
External Environmental Factors to be faced by Woolworths Supermarket in China
Woolworths Supermarkets is at present one of the most noted supermarket chains, which primarily sells products such as fruits, meat and packaged foods. In addition to some other household products such as DVDs, health and beauty products, pet and baby supplies and other stationery goods. With their headquarter in Belle Vista, New South Wales and other approximate 1024 branches the management of the company has decided to open a new unit in China as they have no business operation in China and they have a plan to start operations in China (Mu, 2018).
Political Factor
Since the year 2012, China is considered as one of the potential and most suited countries where 65.4% of the global organisations tend to establish their operations in that country. One of the primary reasons behind the fact is due to the one-party system and culture; political disturbances are not reported in China. In addition to this, the China Business Tax or the Corporate Income Tax process in China is highly simplified.
The Corporate Tax or business Tax of China applies to all the organisations of China. It is levied on every organisations of China and the rate is 25% of the total profit of an organisation annually (Mu, 2018). Hence, all the companies of China are it the domestic or foreign organisation of China such as Woolworth, which has a plan to set up a market in China, would have to pay 25% as the corporate or business tax to the government of their profitability.
Another benefit of place in the market of China is the GDP. The Gross Domestic Product rate of China is 13.61 lakh crores USD (2018). Finally, to assert here, as the politics of the Republic of China is in the framework of a democratic republic, in which the President of China is the head of the state, hence China is free from all sorts of foreign intrusions and disturbances. However, the employment and labour Law of China is still not that much amicable towards the business organisations (Wang, Li & Zhang, 2017).
The China Employment Law is denoted as one of the strictest ones, as the termination system in the Employment Law of China is quite stringent. Apart from this, when the organisations tend to frame the labour and employment laws for their organisation, the management of the organisations cannot enforce the rules and regulations of their own.
They have to adhere to the local regulations and policies, besides the National Law of Republic China. Article 1 of 1995, China Labour Law has all the mechanisms to protect the legal interests and the privileges of the labours and employees. If any organisations put any attempt to breach the laws, then the company can be blacklisted and even the management officials can be prosecuted.
Economic Factor
As per the report released by the government of the Republic of China, the current employment rate of China as per 2019 is 65.05%. This figure exhibits one thing that the current...