Macro-environmental Analysis of Indian Market
With the introduction to globalization in terms of the business, the companies are highly proactive to expand their business and sources to the countries in which their business are not present but there are ample opportunities for the expansion. According to Hirst, Thompson and Bromley (2015), the business companies are mainly those companies who have a sustainable business market in the original countries and are willing to expand due to greater amount of customer service and level of business services. The following report focusses on the expansion of the Australian company Amcor Limited to the nations of Indian and European origin namely India and France respectively. The following paragraphs highlight the macro-economic and geo-political factors of the countries with the trade policies in each of the countries. The following paragraph highlights the potential dangers, risks and opportunities that are there in the short-term policies of the countries in the course of time.
Amcor Limited is one of the foremost and popular packaging companies of Australia that is operating on a global basis. It was founded by the Australian Paper Manufactures in the year 1860 and has its headquarters in Victoria of Australia. The corporate headquarters of the country is in Zurich, Switzerland (Amcor.com 2018). The company is famous for its responsible and high-quality packaging service for the various sectors of items like food, beverage and pharmaceutical products. According to Amcor.com (2018), the aim of the company is to manufacture sustainable packaging using the best of the technological services from the world employing over 33,000 employees across 195 countries.
Geographic – The geographical location of India is one of the biggest advantage for the country as it is a door to the whole of Asia. According to Steger (2017), the country has a tropical climate and fertile soil quality to facilitate production and increase the business inflow.
Political – The political form of India is stable in the modern case with the largest democracy and federal form of government structure. The system of India is developed on the multivariate political factors which is encouraged by the government. The political condition of India is stable to encourage business.
Economic – The economic condition of India is stable with a mixed economic system. The country has encouraged the system of privatization with a stable GDP growth of above 5% from the last few months (Cronin 2013). The policy of liberalization of foreign capital also has made the economic condition stable.
Social – The country has a huge population which encourages cheap labour. Due to the growth of unemployment, any company encouraging employment is welcome in the country. According to Deficit (2013), the social condition of India is stable in terms of the social order.
Technological – India is developing on the technological field as it is continuously growing in terms of the technological knowhow and spending amounts on research in these fields (Crane and Matten 2016). The influence of the IT industry as well as the constant up gradation of software is related to the technical up gradation.
Geopolitical Analysis of Indian Market
Legal – The legal system of India encourages the business scene in India as it has led to a number of laws and provisions for the better business field in the country. The development of the legal laws further has encouraged business and setting up of industries.
Environmental – The environmental condition of India in terms of setting the industry is not as favourable as it has low conditions of the air and water quality. According to Verghese, Crossin and Jollands (2012), there are no strict rules regarding the environmental care which implies efforts from the industry end is required.
Geographic – The location of France has both positives and negatives in terms of the setting up the company. The location of France has a prime influence with the Mediterranean Sea being the source of inflow of business. The climate of France is moderate influencing the setting up of Business Company (Hayes 2016). However, two-thirds of the country being hills and mountains, it becomes difficult to set up a company.
Political – The political condition of France is moderate in terms of the setting up of a company as the government is in debt in regards to the financial side. The country desperately needs business involvement but would not be able to give favourable side for the setting up (Hayes 2016).
Economic – The country has a stable economic situation as it is one among the first world countries of the world. The strong political scene of the country encourages industrial growth and has a good customer base for the demand for the goods. Due to recession, the country was a little bankrupt but it has evolved in the due course.
Social – One of the major issues of France is the disparity in the social class among the people of the class. There is a huge difference between the rich and poor which makes the poor class seek for the job in a desperate manner (Crane and Matten 2016). The social class of the country mainly wants the setting up of industries.
Technological – France is one of the most technologically advance countries of the world with access to everything that the country needs for setting up of industrial growth and measurement. The technical implications of the country encourages the setting up of industries.
Legal – The Police is one of the major law enforcement body of the country who regulates the law and order of the country. According to Dzever and Jaussaud (2016), the police controls the legal system of the country as well as the Ministry of Defence of the country. The country has a stable legal system which encourages business within the country.
Environmental – The country is proactive in making environmental positive changes to the business sector by implementing technical changes in the environmental associations of the country. The environmental changes are positive and have strict rules for the environment.
According to the opinions of Gawande, Krishna and Olarreaga (2012), India has moderately strict trade and business policies in the country with the principle act being The Foreign Trade (Development and Regulation) Act, 1992. The act makes sure that the external business of the country has provisions for growth and development in the country and regulates the import and export of the country. The trade regulation measures to make the business of the country more effective as well in the ministry of the Commerce and Industry. The separate ministry measures to effectively implement the laws of the trade policy and foreign trade in the country. There is a proper EXIM policy for the proper trade and business policy of the new business companies that will make the business companies operate in the country (Dzever and Jaussaud 2016). The policies of the country are therefore positively affected for the setting up of new business in the country.
Macro-environmental Analysis of French Market
France being one of the most developed countries in terms of trade and business function, has immensely effective trade and business policies for the setting up of new business industries in the country. The country promotes a balanced trade policy that is in favour of the policy of Open Europe trade with the compliance to the International Trade Rules. According to Hayes (2016), the trade policies of the country also has access to better trade in relation to the environmental factors in association to the EU-Canada Comprehensive Trade Agreement (CETA) to have better commitments to the business policies. The company has World Trade Organization associations that regulates the association to the trade and commerce of the business. The country also follows the European Union Trade Policy with the new generation agreement.
Potential danger – There are a number of dangers for opening up a business in India with the changing policies and taxation system in India. According to Coad and Tamvada (2012), the short-term policies of the country changes at a major rate which makes sure that the country faces tremendous pressure with respect to the changes at each year changes in the short term policies of the country.
Risks – The changing political scenario with the changes in trade policies and laws of the country serve as a great risk for the changing face of the opening of industry in India. The difference in opinions of the country with the 23 official language barrier serve as one of the greatest risks (Prebisch 2016). In addition, the country is prone to major changes in the economic scene which make potential risk in the country.
Opportunities – The opportunities of the country is vast in relation to the opening of a new company in the country. The country is unsaturated for the industrial zone and welcomes new and potential multinationals for their growth in employment opportunities. In addition, due to the establishment of the said industries, the financial condition of the country becomes better.
Potential danger – The potential danger for the country is to analyse the forms and the trade policies of the country in relation to the business and other activities of the country. France is prone to the factors of recession and for that reason, it serves as a potential danger for any country opening up their business in France (Schaper et al. 2014). The country is not politically stable due to the major terrorist attacks and the valuation of the industries in terms of the danger threats. The policies and the factors of France is of great danger in the concerned force.
Risks – The risk of the country is to measure the policies of the country in terms of the international business and the policies of the country. The factors of the country for the establishment of the business industries is to have the risk associated with the business sector in the concerned time (Ehrmann 2015). The establishment of the industries in the country also have risks associated with the recession and global inflation to the services.
Geopolitical Analysis of French Market
Opportunities – Setting up an industry in France calls for a number of opportunities in the establishment of the industries in the country. According to the views of Prebisch (2016), the opportunities for the establishment of the industries calls for the pro-factors in the industrialization sector in the concerned place. There are a lot of opportunities in terms of the setting up of industries in the sector which means that the contribution of the growth is of immense importance.
After the assessment of both the countries, it can be assessed that the most suited country for the market entry will be India for Amcor Limited as the country has a number of pro for the foundation for the industry. India being one of the developing nations has prominent opportunities for the development of the nations for the easy way into the political and the economic scenario of the nation. Being an unsaturated zone with ample scope for the development of the industrial sector, the scope for the entry of Amcor Limited into the country will be comparatively easy and more effective. The company will just have to look into the environmental factors and the other factors are suitable. The company will find cheap labour and will have ample market for the establishment of the industrial sector. The better entry will be India for the company in terms of both trade and business policies for the same.
5. Conclusion:
In conclusion, it can be said that the entry of Amcor Limited into the countries of the zones of Asian and European nations of the countries is to be analysed according to the macro-economic and geo-political factors of the nations. The entry of the company into the countries calls for better growth of the company in terms of the entry of the new company into the market. The report focussed on the expansion of Amcor Limited into the province of the countries along with a detailed analysis of the factors that affected the industrial growth. The company made sure to have all the detailed analysis of the countries with the PESTLE and the risk, threat and opportunities.
Reference:
Amcor.com. (2018). [online] Available at: https://www.amcor.com/ [Accessed 29 Aug. 2018].
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