Fluent Essays

BA 563 Research Submission Part 1 For this first research assignment, you are to choose a country and a product with a potential or actual; market in that country,and conduct a PESTEL analysis. The purpose of this assignment is to get you to research and analyze a foreign country environment and to think about the challenges that may need to be overcome in developing a business strategy for that country. This assignment will help prepare you to develop a business case study which will examine a specific issue that impacts a specific company in the country you choose. The steps to complete this assignment are as follows: (1) Choose a foreign country that will be the subject of your research project.  Make sure it’s a country for which you are able to utilize a variety of data sources for information.  You should also try to make it a place you are genuinely interested in knowing more about.(2) Review the material on PESTEL analysis posted on Blackboard.  You are also encouraged to look for other readings or examples on your own.(3) Identify a specific product (a physical good or a service) that you think may have a market in that country.(4) Apply the PESTEL model to your chosen country using the product you selected.  This is important!  PESTEL analysis is best done with a specific country/product combination in mind. Your submission should start with a brief introduction to your country and product and a brief explanation of how/why you made the choice you made.  In less than one page, give me the basic geography, demographics, economic statistics, political system and historical context.  You should then go through the PESTEL model elements one by one and provide at least four examples of specific features of your country that correspond to the examples in the main PESTEL model reading.  The factors you identify can be presented as bullet points.  You should include a summary statement of what the factors mean for your business objective. For example:  For marketing Zyrtec allergy relief medication in in China, ECONOMIC factors include; - (GDP&GNP) Rapid increases in income growth in urban areas.- (Inflation) Price inflation of 4% annually over the last five years.- (Exchange Rates) Pressure from US to allow Chinese currency to reflect supply and demand in the global currency market.- (Globalization) Chinese consumers are increasingly demanding foreign made goods. These factors suggest that the market for Zrytec in China is likely to grow as Chinese consumers have more income and more ability to buy packaged pharmaceutical goods.  If the Chinese currency becomes stronger compared to the US dollar, US made products will also be less expensive for the Chinesethen they are today. You should provide references and a citations list at the end of the document identifying the sources of your factual information. Country and Product Background Info Thailand is one of Asia’s top countries to visit because of its beautiful white sand beaches, festivals, tropical getaways, luxurious hotels, delicious and diverse food choices, and year round sunshine weather. Since a lot of tourists visit Thailand year round, majorities of the local Thailand population are paying more attention to their appearance to be socially accepted and because of this; they are investing heavily in personal care and beauty products. Due to this growing trend, men’s grooming products and services specifically have become a major category and are expected to become increasingly dynamic over the next couple of years. For this reason, I believe Evolution Man which is a men’s grooming product company from California will thrive in Thailand. Thailand is the second largest economy in Association of Southeast Asian Nations (ASEAN) after Indonesia, and is an upper middle-income country with an open economy, a gross domestic product (GDP) of $479 billion, and 3.9% growth in 2017.[footnoteRef:1] This beautiful tropical country is located in the center of mainland Southeast Asia, and encompasses diverse ecosystems, including the hilly forested areas of the northern frontier, the fertile rice fields of the central plains, the broad plateau of the northeast, and the rugged coasts along the narrow southern peninsula.[footnoteRef:2] Thailand’s population in 2018 is 69.18 million people, which makes it the 21st most populous country on earth.[footnoteRef:3] There is a diverse range of ethnic groups within the country with, 75% of the population being Ethnic Thai, 14% Thai Chinese, and 3% ethnically Malay. The official language of Thailand is Thai, with over 90% of the population using the language daily in their home and work lives.[footnoteRef:4] [1: “Trade market overview”, accessed on September 30, 2018, https://www.export.gov/article?id=Thailand-market-overview ] [2: “Thailand”, accessed on September 30, 2018, https://www.britannica.com/place/Thailand. ] [3: “Thailand Population accessed on September 30, 2018, http://worldpopulationreview.com/countries/thailand-population/. ] [4: Ibid ] Thailand’s political system is a constitutional monarchy with the monarch as the head of state. The King is the Chief of State and the Monarchy is hereditary. The Prime Minister is the Head of Government and holds all the executive powers including implementation of the law in the country and running the day-to-day affairs.[footnoteRef:5] The legislature in Thailand is bicameral. The parliament called National Assembly consists of: Senate (the upper house) having 270 seats with its members appointed by the military to serve six-year terms and the House of Representatives (the lower house) having 396 seats with its members elected by popular vote to serve four-year terms.[footnoteRef:6] The history of Thailand is long and complex. The earliest Thai kingdoms date back to the Paleolithic period, some 20,000 years ago. The country, however, experienced great splendor during successive kingdoms between the 10th and 14th centuries, after the Sukhothai kingdom was established. The Chakri dynasty is the current ruling royal house of the Kingdom of Thailand, and has been largely credited with reviving the economy of the kingdom from the time it took over.[footnoteRef:7] [5: Ibid] [6: Ibid] [7: Ibid] PESTLE Analysis Political[footnoteRef:8] [8: “Thailand Country Commercial Guide accessed on September 30, 2018, https://www.export.gov/Thailand country commercial guide. ] · United States has a good partnership with Thailand that stretches beyond a bilateral relationship with an impact on the broader region. · Thailand and the United States have longstanding cooperation in international law enforcement efforts Comment by Jamison, David J..: How is this related to your product? · Ongoing U.S. support for Thailand government efforts to promote good governance through democracy and civil society activities · Despite the new Thai Public Procurement Act that has been in effect since August 2017, corruption and lack of transparency in government procurements are major concerns for U.S. companies.   These factors suggest that Evolution Man should be aware of the political environment in Thailand and that US maintains a good partnership with Thailand in regards to trade, security cooperation and cultural exchange. However, they should also be concern about the possibility of corruption and lack of transparency within the government when it pertains to business transactions. Economic[footnoteRef:9] [9: Ibid] · Thailand’s economy experienced slight accelerated growth in 2017 and has remained stable · Thailand’s beauty and personal care products market was valued at approximately $4.7 billion in 2017, a 7.8% increase over 2016. · Among ASEAN countries, Thailand leads as an original equipment manufacturer (OEM) for international cosmetic brand. · Thailand currently imports approximately 20% of personal care ingredients from the U.S. These factors suggest that the market for Evolution Man in Thailand is likely to grow as Thailand consumers are continuing to purchase cosmetic beauty and personal care products over the next couple of years. Also, Evolution Man needs to focus on convincing consumers to shift to cheaper natural personal care alternatives. Social[footnoteRef:10] [10: Ibid] · Consumers shopping for beauty and personal care are shifting to multi-brand beauty stores. · Thailand is entering an aging society and demand is rising for anti-aging products in various styles with low-to-premium positioning. · Consumers are showing interest in natural and organic hair care due to the health and wellness trends · Thai consumers are price conscious and generally served by local suppliers and low-priced imports. These factors suggest that the market for Evolution Man to succeed in Thailand is very high. Consumers demand for low priced beauty and personal care items in many different beauty stores are due to an aging society and people who are gravitated towards health and wellness trend products. Technological[footnoteRef:11] [11: Ibid] · Sephora open online store in Thailand in 2016 which has had a significant impact in Thailand. · The e-commerce market in Southeast Asia is one of the fastest-growing and most promising with its projection to grow to $11 billion in 2025. · The total Thai e-commerce revenue is expected to reach $3.5 billion in 2018. · Thai government focuses on “Thailand 4.0” policy for constructing a broadband network for all villages across the country. The Thai government’s “Digital Thailand” initiative that started in 2016 has brought about a wave of opportunities for businesses across different industries to digitize their operations and services, especially for small business seeking to undergo digital transformation.  As a result, cross-border market opportunities offer growth rates of approximately 25%, which is well above those found in most traditional retail markets.  Legal[footnoteRef:12] [12: Ibid] · The 1966 Treaty of Amity and Economic Relations facilitates U.S. and Thai companies' economic access to one another's markets · Thailand recently amended its Civil Procedure Code to include class-action lawsuit provisions · The regulatory environment protecting intellectual property in Thailand is at times difficult to navigate. · Thailand is not a signatory to the WTO Agreement on Government Procurement. These factors suggest that Evolution Man should be aware of all of the recent laws and customs that the Thailand government has imposed, but also should be encouraged that the US and Thailand maintain good relationships in open trade markets. Environmental[footnoteRef:13] [13: Ibid] · There is a growing focus on a more natural beauty trends among Thai consumers.  · Due to increasing awareness of health and wellness among consumers in Thailand, there is a healthy demand for natural and herbal personal care and beauty products · Extreme heat and global warming Comment by Jamison, David J..: How is this related to your product? · Plastic waste management These factors suggest that the company Evolution Man should be concern with Thailand activists and international advocacy groups who are for reducing plastic waste in the environment. Also, consumers are moving towards more natural and organic beauty trends so the company should take these into account to when conducting business in Thailand. . OVERALL: Very good effort. BA 563 Research Submission Part 1 Grade Sheet Rubric Weights: Country background = 10 point Product identification = 10 point PESTEL examples = 60 Relation between PESTEL and product introduction strategy = 10 References = 10 Does not meet Expectations (0-50) Meets Expectations (60-80) Exceeds Expectations (90-100) Weight* Score Country Background (10%) 100 10 Product Identification (10%) 100 10 PESTEL Analysis (60%) 95 (see comments) 57 PESTEL and Strategy (10%) 100 10 REFERENCES (10%) 100 10 TOTAL 97%