Ready Meals in India and China

Executive Summary This paper provides a proposal for the company on the most suitable country or emerging market for the company to expand its production of ready meals. Ready meals markets have been steadily growing in recent years across all geographical regions of the world. The proposal is based on the increased growth of ready meals markets and institutional analysis of India and China, which are two emerging markets that continue to experience high levels of growth. While India and China are some of the leading emerging markets worldwide, its important for the company to determine the most suitable market to enter. Therefore, this paper seeks to answer the question, “Which emerging market is suitable for expansion of ready meals production between India and China?” To answer this question, the researcher conducts an institutional analysis of each country and identifies opportunities and threats in the market. The analysis is based on secondary data such as website, peer-reviewed journals, and reports on the topic. From the results, China is the most suitable country for the company to expand into because of its suitable political, economic, and socio-cultural environment. Emerging Markets Strategies – Proposal on Production of Ready Meal in India and China Ready Meals have experienced steady growth in nearly all regions worldwide due to various factors including the increase in the number of women joining the workforce, socio-economic evolutions, and busy and hectic lifestyles in modern societies. The growth of market for these food products has occurred in Emerging Markets (EMs) that have recently experienced high levels of growth and development. As a company that focuses on production of ready meals targeting consumers in developing countries, expansion into emerging markets is critical toward enhancing competitive advantage and profitability. This presents a preliminary country analysis of India and China’s emerging markets in terms of opportunities and threats and recommends a suitable country for the company to enter. Institutional Analysis of India and China India and China are regarded as two emerging markets that continue to experience high levels of growth and development in recent years. Given the growth and development that have characterized these markets, India and China provide suitable markets for the company to enter and provide its ready meals products. Currently, India and China are two emerging markets with the greatest growth opportunities and potential for investors (Gaffney, 2017). These two emerging markets are expected to continue outperforming the United States as possible investment opportunities overseas. The emergence of these markets as possible foreign investment opportunities for investors and businesses is attributable to suitable conditions for doing business. However, these countries have different political, economic, and socio-cultural environments that influence opportunities and threats in the market, which in turn determine the ease of doing business. Political, Economic and Socio-cultural Environments India has maintained a stable political and macroeconomic environment in the past few years following the enactment of Modi’s policies. These policies have helped to revive the economy of India over the past four years. India has maintained a stable democratic political environment that is characterized by suitable government policies. However, corruption has been a major issue in India’s political environment and poses a significant challenge to the nation’s economic growth and development. Modi’s policies have focused on reforming the tax system and fighting corruption with de-monetization (Mourdoukoutas, 2017). From an economic perspective, India’s business environment has improved over the past few years due to Modi’s policies. Following the enactment of these policies, India is currently outperforming many emerging countries in per capita growth while experiencing decreased inflation and unemployment. Even though India experienced self-sufficiency in food production, most of the population is poor as 57 million children suffer from malnutrition (Pavithran & Mukthar, 2011). Similarly, China has a relatively stable political environment despite being a socialist state under democratic dictatorship (Fogel, 2010). While the country has been accused of violation of human rights, China has continued to experience political stability. Economically, China has experienced rapid economic growth and development to an extent that it’s the second largest global economy. The country has remained a major recipient of the global destination of foreign direct investment (FDI). Following the adoption of market economy reforms, China has established suitable economic policies and remained an attractive destination for FDI. Unlike India, China has a relatively rich population though both countries have huge disparities in incomes. It’s estimated that nearly 50% of China’s labor force is in agriculture and has a relatively huge population of rural poorly educated people (Pavithran & Mukthar, 2011). Opportunities and Threats Given the political, economic and socio-cultural factors, China has numerous opportunities for this company. The country’s relative dependence on agriculture makes it a suitable destination for ready meal products. Additionally, China has a huge population, encourages free trade, and maintains capitalist-based business models (Pavithran & Mukthar, 2011). The opportunities in the Chinese market has a well-developed infrastructure that would enhance the ease of doing business. However, there are threats in doing business in China including likelihood of political instability due to dictatorship, a relatively older population, and intense competition in the food production market. On the contrary, India has opportunities brought by the younger and rapidly growing population, suitable economic policies, market reforms, and political stability due to democracy. However, the country would generate threats to the company relating to poverty, unemployment, and lack of civic amenities. In light of the political, economic and socio-cultural environments as well as opportunities and threats, China seems to be the most suitable emerging market for this company. It is an attractive destination for foreign direct investment given its suitable economic conditions unlike India. Since most of the Chinese population relies on agriculture, the country would be an ideal location for this company in relation to production and sale of ready meals. In conclusion, the market for ready meals has experienced tremendous growth in recent years due to various factors brought by globalization and technological developments. Emerging markets provide huge potential for growth and development of businesses providing ready meals. An example of some of the leading emerging markets in the world that would be suitable for this business is India and China. While these countries have relatively stable political environments, they have different economic and socio-cultural environments that influence the ease of doing business. Based on an institutional analysis of these countries in terms of their opportunities and threats, China would be the most suitable country for the company to expand its operations. China has numerous opportunities and suitable environment for doing business in comparison to India. References Foger, G.K 2010. Business Environment in China: Economic, Political, and Cultural Factors, University of Southern Indiana, viewed 7 June 2018, Gaffney, C 2017. US Risk is Rising. Here are Two Emerging Markets that will Outperform, CNBC, viewed 7 June 2018, Mourdoukoutas, P 2017. 10 Top Emerging Market Funds in 2017: China and India Take The Lead, Forbes, viewed 7 June 2018, Pavithran, S. & Mukthar, J 2011. A Comparative Study on the Emerging Economies of the World: India or China. International Journal of Economic Issues, vol. 4, no. 1, pp.123-131.