QUESTION

1.Analysis of risks and opportunities (must be relevant to the nature of the business) in each country (Brazil and India). (1300-1500 words)

2.The selected destination country (Select one country and justify your decision) (150-200 words)

3.Discuss and justify the proposed entry for the chosen country (500-600 words)

                                                                        SAMPLE SOLUTION

Introduction

Before venturing in a new market, it is advisable that analysis for the opportunity that is at hand be carried out. Some of the analysis that should be done include Political, Economic, Social and Legal analysis otherwise known as PESTL analysis and Strength Weakness, Opportunities and Threats analysis otherwise known as SWOT analysis (M & Govindappa, 2017; p.28). These analyses can be used in establishing potential opportunities and risks that exists in the new ventures that have been identified. It is worth to note that the foreseeable risks and opportunities determine the profitability of an investment opportunity. The risks and opportunities should focus on the market as well as business environment created by both legislations and competitors. This paper will, therefore, analyse the potential open markets in India and Brazil which are targets for CHEERS Limited Company.

Market Analysis

Market refers to a place where buyers and sellers meet for purposes of transactions. The competition, legal, economic and cultural environments determine how easy it becomes to penetrate through a market.

Focus on the Indian Market.

India is one of the countries in the world that has diverse opportunities based on its attributes. The country enjoys a great political stability that has made it to take strides in terms of economic development despite being very populous. The specific factors that make the Indian market attractive to CHEERS Limited are as follows:

Political Environment

The political environment is fully dependent on political leadership and their leadership styles. The Indian government is one of the oldest in the globe having gotten independence in the year 1947. Since then, the country has enjoyed unprecedented peace that makes its market have very minimal risks (Sridhar et al., 2016). Besides, the country’s company operations laws give enough room such that monopoly industries and companies’ formations is highly regulated. This has, therefore, led to formation of many private companies within the country.

Based on these laws, it is evident that the operations of CHEERS Limited Company will, therefore, be boosted and it will smooth operations that will in effect boost its earnings in the event it makes a decision to venture into this market. According to Vehapi and Dolićanin (2016; p.29), through privatization legislations, the government of India encourages privatization so as to enhance efficiency of service delivery and products produced. This is achieved through creation of a stiff competition which works to the advantage of investors and the citizens at large. Besides this, international trade legislations in India are very flexible and accommodative. Being that the parent company for CHEERS will be based in Australia, it will be a foreign company in India. This flexibility will, therefore, work to the advantage of the company. Based on the above factors, the economy of India is very stable making it an attractive and promising business environment.