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Growth opportunities, expansion factors, and market demand analysis

Last reviewed: December 16, 2013 ~7 min read
Abstract

In this paper, we are going to be examining the different growth opportunities in the US, China, Brazil and Russia. During this process, there will be a focus on the strategy which is being utilized and the role of ethics for the organization. Together, these elements will highlight the various challenges everyone is facing and the impact on them.

Growth Opportunities

Discuss the challenges of values-based business decision making ethics in the current marketplace.

A values-based business decision is focusing on how ethical practices will influence the actions of the firm, their relationship with customers and its long-term impacts on the brand name. This can provide organizations with the tools they need to become more competitive and it enables clients to offer them with something more. In the future, this helps an organization to be able to stand out and offer stakeholders with something more. (Khanna, 2010) (McMurrian, 2006)

However, there are challenges associated with using this basic approach in the current marketplace. The most notable include: added costs and creating a congruent strategy. In the case of added costs, the use of this model has been shown to increase the amounts of training and time discussing why ethics are important to staff members and managers. The basic idea is to have these attitudes become a part of the organization itself. (Khanna, 2010) During the process, the expenses will continue to increase and productivity will decline while everyone is learning how and when to utilize these practices. This can hurt the competitive position of the organization. (Aslund, 2012) (Khanna, 2010)

Creating a congruent strategy is when everyone is working together to achieve the long-term goals of the organization itself. This means that staff members and managers must be embracing the same ideas and attitudes in the process. The challenge is that these issues can make the situation much worse. This is from certain groups of employees or supervisors being resistant to these new ideas. (Aslund, 2012) (Khanna, 2010)

When this happens, they may go along with the company's program. However, once they have completed everything, is the point they will revert back to their old attitudes in the process. Once this occurs, the organization will have division and confusion about how to address various challenges. As everyone is continuing to embrace these ideas and will see others who are able to act differently. (Aslund, 2012)

Research all four markets that you can expand into and access the current social and political climate of each.

Four potential markets for expansion include: Brazil, Russia, China and the United States. Brazil is rapidly developing country, with tremendous amounts of natural resources. However, the current situation is one where there are high levels of corruption and vast social disparities exist. (McMurrian, 2006) At the same time, the political leadership is being challenged through a series of street protests against government spending and their inability to address issues impacting the poor. (Khanna, 2010)

In the case of Russia, it is becoming more authoritarian. This occurred after Vladimir Putin became President and has imposed a series of laws which are cracking down on political dissent. Socially, Russia is a divided society, with many different minorities and there are vast disparities between the wealthy and poor. These factors make it more difficult to do business in Russia. This is because the government could seize the assets of firms and will restrict their activities in the process. (Khanna, 2010)

As far as China is concerned, the country is experiencing tremendous amounts of growth. However, the Communist Party remains firmly in control of the government and will often engage in activities to restrict political dissent. At the same time, they will arrest anyone who is too vocal against their current policies. Socially, there are vast differences between the wealthy and poor. The government is trying to maintain some kind of balance by ensuring that sustainable growth continues. If this does not happen, there is a realistic possibility of some kind of coup taking place. (McMurrian, 2006)

The U.S. is facing challenges with political infighting in Washington over the budget, government spending and the deficit. The result is that there will be times when there are greater amounts of uncertainty about future growth. At the same time, the current policy on interest rates will invite inflation down the road. Socially, America is an open society and allows for greater amounts of dissent and discourse. This means that the firm can market to a larger segment of customers in the process. (Aslund, 2012)

Pick three that are the best fit for you on the comparison to company values.

The region which best matches the company's values is the U.S. This is because there are various regulations that enable the firm to protect the interests of stakeholders and impose different policies in the process. (McMurrian, 2006) At the same time, the current investment environment and social attitudes will help the company to offer something new to consumers. (Aslund, 2012) (Khanna, 2010) (McMurrian, 2006)

Brazil has the potential to meet the company's values. This is because many people are tired of the corruption and want a change in their lives. The firm could tap into this anger and use it to show how they are different. The attitudes could help the company to build a unique brand image which is much different. (Aslund, 2012)

China offers the potential for tremendous amounts of growth. However, there will be restrictions placed on the activities of the firm and there is the possibility of protests from low wages / poor working conditions. These factors can be addressed by having an ethical policy which will offer employees with something more. This is achieved by having better forms of compensation and ensuring their needs are addressed. When this happens, the company can benefit from the tremendous amounts of growth by augmenting their polices with the political and social atmosphere. (McMurrian, 2006)

Create recommendations that include a detailed rationale for your three choices.

The best recommendation to the firm is to focus on gaining market share inside the U.S. This is because it is more open, there are lower amounts of social dissent and people are more willing to embrace ethical attitudes in the process. These variables are working together to influence how the firm will interact with customers by offering them with something more. In this case, their ethical practices are the most important. (McMurrian, 2006)

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References
3 sources cited in this paper
  • Aslund, A. (2012). The US Should Establish Normal Trade Relations. Washington: Peterson International Economics.
  • Khanna, T. (2010). Winning in the Emerging Markets. Boston, MA: Harvard University Press.
  • McMurrian, R. (2006). Building Customer Value. Journal of Business and Economic Research, 4 (11), 11- 18
Cite This Paper
PaperDue. (2013). Growth opportunities, expansion factors, and market demand analysis. PaperDue. https://www.paperdue.com/essay/growth-opportunities-discuss-the-challenges-179917

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