Global Business Context

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Global Business
Introduction
When the business plan to expand and join international market, research has to be done to ensure that, the right country is chosen for this expansion. Very many factors have to be put into consideration especially the one that will affect the business directly and indirectly. Factors such as political factors, economic factors, social cultural factors, and technological factors, availability of the raw materials, availability of labor and its cost among other should be put into place first before starting any business.
Market determination
The business concerning making of the chocolate and selling based first on intensive research to come up with Saudi Arabia as the appropriate country to start the business. Before predetermining the country, a survey was conducted in very many-selected potential market that included Somalia, Yemen, Iraq, Saudi Arabia and Pakistan. With the help and availability of the form of technology such as the internet, chambers of commerce in the respective countries` embassies and market visits, the company researched on the potential area and the unexploited market and took its advantage. The company visited the chamber of commerce and got the information regarding the kind of the business that it will engage in. The main things it mostly checked on was how the government in Saudi Arabia embrace the investors in the country and the satisfaction they (investors) have with their business. The company also checked on their competitors and the market share they are enjoying currently. The factor of availability of the market in the country was regarded, as it is also paramount. The labor source, its availability and cost was compared to other countries before coming to a conclusion that the business will be situated in Saudi Arabia (Johnson & Turner 2009).
Before finally coming up with Saudi Arabia, potential country were narrowed down to a fewer number which was Yemen, Saudi Arabia and Pakistan. In consideration to several factors such as peace and the sustainability of the business, Saudi Arabia was selected (Johnson & Turner 2009). The survey was conducted by use of questionnaires and interviews that were mostly done online to lower the cost.
Eventually Saudi Arabia favored the establishment of chocolate business due to its varied market that is favored by several festivities that heavily use the commodity. This made possible for it to be selected among the others. The site where the business was to be established and the legal process followed to the letter. Legal documents were to be obtained from the relevant authority in accordance to the compliance of the government order and regulation of the country before the commencement of the business. Charges of the document were established and were very much favorable especially on my business (Ricks, 2006).
Before official opening of the business, some important questions were essential to answer. The first one was the question of the cost of outsourcing services from a foreign company or manufacturing for our own. The second one is the time taken and the cost effectiveness both will have. For the case of the chocolate company, the plans were to start the business as soon as possible. Thus, the company decide to import the chocolate from United Kingdom a selling them to Saudi Arabia. This was to be done at the initial stages before the market is fully established. This was to help familiarize our products with the market, as the customer will have their taste (Should, 2006).
Political factors affecting the business
The politics of a certain country poses a very important role in the business establishment. The political position of each country influences the spending power of a certain nation towards a certain nation. According to the study that was conducted in the consumable industries on how the government of Saudi Arabia influences its business, it was found that they really embrace it. Taking the fact that the country has high population and most of it, area is a desert; it requires more supply of the foodstuff. The political environment of the country is stable because the religion of the country supports a lot of respect and imposes very severe charges on the lawbreakers. The regulation law on the consumable goods especially foodstuff is good which every investor can condone. The government has also put market ethics that ensures that the business compete well in the business sector making the quality of the product to be kept in good position (Travis 2007).
The government of Saudi Arabia knows that if the countries economy is get to the peak, the people of the country must have enough food security that each one of them can afford. Thus, for investor who wishes to provide the foodstuff supply his /her idea is embraced strongly by the nation (Johnson & Turner 2009). The marketing ethics of the country is concurrent with the culture and the religion of the country. The government has some governing rules on this making it possible for all the business to be accommodated in the process. The government makes our business more possible as they have many agreements with different countries. The government support by imposing considerable charges on food materials like chocolate.
The formation of our business will be based on full knowledge of foreign direct investment of the selected country and the relationship to the United Kingdom in terms of business. The arrangement of the company will help us segment the market and establish the market share (Travis 2007).For every company that needs to expand in any country, it has to alias with the government of that country. This will help the business to und...