Management Research Paper: International Business Expansion

International Business Expansion
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Macro environment of Singapore
Singapore attracts many business investments from foreign companies because of its outstanding macro-environment, which includes the political, economic, social, technological, (PEST) factors. These macro-environment factors in Singapore significantly contribute to the success of business growth.
In the political factor, Singapore's political structure presents low political risk and stability. This political factor is favorable for foreign businesses because changes in Singapore's policies, rules, and regulations will not happen regularly. The changes in the laws may affect foreign businesses because a country might change its laws to exploit more of the foreign company's resources (Wirtz & Chung, 2015). For example, a country originally taxes foreign companies for 10%, but if the pollical factor is unstable and corrupt, the country can suddenly change its laws and pass bills to increase tax rates for foreign companies. Luckily, the political factor in Singapore is not corrupt and promote fair business opportunities.
In the economic factor, Singapore has a free-market economy, which means the government has little influence over the business sector. This promotes a corruption-free environment in handling businesses. Additionally, the country is located in a strategic area where they can effectively utilize the cheap labor cost of other countries and other productive assets that can help in decreasing the cost of production. As a result, Singapore's economic environment improved GDP, GNP per capita, and employment rates (PESTLE Analysis of Singapore, 2015).
In social factors, the people in Singapore have high literacy rates. The people follow the traditional eastern values, such as family centeredness. The people try to fulfill their materialistic needs; thus, making them work harder. The businesses can expect greater purchasing power from the citizens in Singapore compared to other countries (PESTLE Analysis of Singapore, 2015).
In technological factors, Singapore is one of the most technologically savvy countries, which is updated in the use of the latest technological developments. The country's use of technology is to improve the quality of varying sectors, such as education, entertainment, business, etc. (Wirtz & Chung, 2015).
Types of Leadership: Authoritarian and Transformational
An authoritarian and transformational leadership will work in Singapore. One of the biggest problems in business expansion in other countries is addressing the cultural differences in the host country. Different works of literature about the dominant business culture reveals the contradictions between the norms and values of the people between Asian countries and Western Countries (Lin & Sun, 2018). In Asia, there is a great power distance from leaders to employees, especially to western leaders like Americans. Asians expect the American leaders to be more direct and knowledgeable in handling a business. They have paternalistic values where a central figure needs to give orders and delegate tasks (Lin & Sun, 2018). Therefore, authoritarian leadership is effective in leading Asian employees based on their dominant culture. Additionally, transformational leadership is also effective because the interest of the leader can be integrated into the work performance of the employees. Transformational leadership appeals to Asian employees because it activates inspiration, a higher sense of self, and transcendence of self-interest for the sake of the company (Lin & Sun, 2018). However, the problem with Asian employees with American managers is that the employees expect them to know what they are doing to solve the company's problems rather than collaborating as a whole. Asian employees prefer to be given a task than to give their opinion about the best solution (Lin & Sun, 2018).
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Political, Cultural, Environmental, and Economic risk
As stated in the chairman, the political and cultural risk of doing business in Singapore is low (Wirtz & Chung, 2015). However, there may be issues in the cultural and environmental aspects because Singapore is a multicultural country and a center of industrialization in South East Asia. Singapore has no common identity since the population of the country is predominantly Chinese, Indian, or Malay ethnicity. Although the country is small, high cultural differences exist, so our company needs to understand the norms and values to develop effective strategies in benefiting from the diversity in Singapore (Maclachlan, 2010). Additionally, Singapore has a low environmental risk because the country is strict when it comes to their guidelines on environmental management. The country has strong laws that address environmental risks, such as sudden environmental changes and adjustment of public policies that may impair the profitability of companies that promotes environmental risk (Uhrynuk & Burdulia, 2020). Therefore, our company that manufactures rubber tires, which promotes risks, needs to follow the environmental guidelines for better business expansion in the country.
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