Assessing country markets The attractiveness of markets can

Assessing country markets. The attractiveness of markets can be assessed using various criteria:

Geographic proximity • How far, how easy to get to, how easy to do business with. Cultural differences are also very important.

Government policies • What will the government let you do? Degree of free market access and central planning, China? Approach to multinationals. France has a very old fashioned labour market and strong unions slow change, this has put inward investors off. UK is much more flexible.

These! • Natural resources • Crucial for some primary industry, is there enough water, oil, power, etc. • Commodity prices • Movements may open up possibilities and close down others. Changes in oil price have made certain oil finds economic. Price of tin? Silver? Etc.

And these • Exchange rate movements • Eurozone, other out of eurozone locations could appear cheaper. • Political and legal system • As before, China is freeing up in many ways without the government losing real control.

Level of economic development • GDP or Human development index • India? What sort of demand is there likely to be in the country in the next 20 years. Investment decisions should involve long term forecasting.

And these • Potential labour force • Demography, training and education. China v India • Level of technology • A country with good infrastructure and technological capability may have much more potential than an underdeveloped economy.

Finally • Likely return on investment. • The whole point of this assessment. How much profit are firms making from each £ invested. If you could answer this you have the other questions licked. • Other criteria? Competition? Consumer tastes? Tradition and culture?

Daisy • • Fresh fruit and fruit salads Juices, smoothies Salad products Fresh bread rolls made to order No hot food, all cold, and healthy Organic, ethical Premium price but not super premium

Your next wonderful task. • We have a wonderful new fast food sensation called • Daisy. • All food fresh as a Daisy. • You have grown the business brilliantly throughout the UK. There are 200 branches of it around the country employing 3000 people full and part time including only 10 at the head office in Wilbarston.

Where are you going next? You are the development team for Daisy, you have to create a report on which of the following locations will be the best one for the next phase of the development of the Daisy brand. With reasons why. There is a lot at stake, you must get it right.

Where are you going next? • • Option 1 Option 2 Option 3 Option 4 Ireland USA Norway Russia