Analysis of England
The report focuses on the importance of international and global business in the context of the changing world. The challenges and opportunities that are faced by organisations while trying to gain entry in a foreign land is explained in detail in the report. Analysis of the macro environment factors along with the geo-political factor of two such countries are conducted in the report. The focus of the report is on Woolworths, a supermarket store located in Australia (Woolworths.com.au 2018). The aim is to identify the factors that may affect that expansion of Woolworths in countries like England and India. The macro environment and geo-political factors of the two countries are analysed to provide an idea about forces that work in the economies. The development of trade and business policies of both the countries are analysed so that its effectiveness can be judged. At the same time assessment of the current policies of ENGLAND and India are made so that the risk and opportunities are identified. Furthermore, recommendation is provided about the choice of country that Woolworths need to expand its market to.
Woolworths is one of the leading supermarket stores in Australia. Its chief competitors in the industry include Coles and Wesfarmers. Woolworths was established in 1924 and have since grown into a reputed domestic company in the market (Woolworths.com.au 2018). The number of locations in which the company currently operates is about 1000 places all across Australia. Despite the fact that Coles is considered as a competitor of the company it forms about 80% of the Australian supermarket (Woolworths.com.au 2018). The speciality of Woolworths is mostly to sell groceries such as vegetables, meat and packaged foods. However, the company also sells other electronic products like DVDs, health and beauty products, magazines and other stationary items. The expansion into a foreign market can help Woolworths to gain international stature.
For the report, the two countries that have been selected are England and India. England is a part of the United Kingdom and is considered as one of the most developed countries in the world. The economic condition of the country is stable and it is considered as the second best country that provides shelter to a number of immigrants. Hill et al. (2017) stated that over the years, the English economy has had considerable changes and a fall out with the European Union has resulted in the country to become independent from being monitored by the Union. Despite this the country provides an excellent opportunity for business and new companies capable of increasing the economic condition of the country is always a welcoming factor.
India can be considered as a country that is at its developing stages. The economy of the country is not considered as one of the top in the world as the country have more than half its population in the below poverty line. Any disruption in the economy of the US or ENGLAND may lead the monetary condition of the country to fall apart and provide problems for the people (Scarborough 2016). At the same time, entry into the country can be difficult mainly due to political forces that govern the country. However, one of the advantages that India may provide is the vast area of land that the country has. India has a total area of 3,287,263 km sq as compared to England, which has a total area of 130,279 km sq. This can be considered as a huge advantage for the country and new companies like Woolworth attempting to establish its business in the country can gain advantage for further expansion.
Analysis of India
The current economy of England is considered as the sixth largest economy that has seen steady growth of 1.7% since 2017. The forecast of the growth in the economy for 2018 is about 1.5%. Other macro environment factors such as the social and technical competence of the country is high as the people are aware of the latest technology and the society provides support to the new organisations that try to set up business. For Woolworths, the legal market of the country need to be taken into consideration as the country has strict laws about the environment of the country. The monarch controls the geo-political system of the country. Therefore, the political parties do not interfere about the affairs of an organisation (Piekkari, Welch and Welch 2014).
On the other hand, the geo-political situation in India can be considered as unstable mainly because of the regular interference of the political parties in the legal as well as the affairs of the states. Companies entering India normally need to abide by the laws made by the political government and the macro environment factors of the country are not as stable as that of England. The social and technical factors in India are underdeveloped. As observed by Peng (2016) most of the people in India reside in areas that do not provide them with the provision of technology. Therefore, it can be said that the social backwardness of the country, which consists about 21.9% of the entire population of the country, may provide Woolworths with a disadvantage of expansion or growth in the country.
The trade and business policy in England ensures that the current business of the country is not disrupted. The implementations of the trade agreements between the countries that are related with England are minimal mainly due to the less interference from the government. Woolworths can gain an opportunity of £1.3 trillion per year if it is to establish its business in the country. According to Luthans and Doh (2018), the agreement with the World Trade Organisation over the Government Procurement provides England to act as an independent member away from the monitoring policies of the EU. Therefore, Woolworths can continue its trade ties with other countries and Australia and increase its profitability. At the same time, the existence of the unilateral trade preference of England can provide Woolworths with an opportunity establish trade relations with the poor countries.
In the case of India, the legislation that concerns the trade relation between the country and foreign lands include the Foreign Trade (Development and Regulation) Act, 1992. It helps in the development of foreign trade by importing goods and exporting augmented materials for the improvement of the economy. As stated by Reiche et al. (2016) the interference of the political parties may provide hindrance in the trade policies. At the same time, proper monitoring of the trade system can help Woolworths to understand the trade relations that are being undertaken and at the same time ensure that a simplified process is followed so that complication regarding the attainment of trade policies can be mitigated. Therefore, it can be said that despite the monitoring of the Government trade relations in England is better than that of India. Hence, Woolworths can gain advantage by considering trade policies while expanding its market in England.
Recommendations
The analysis provides an idea about the risks and opportunities that exist for Woolworths owing to the current state of the political and macro environmental scenario in England and India. The analysis has shown that England can provide opportunities for Woolworths to maintain its trade relations with other countries. The possibility of expansion in poor countries can be gained as England trade policies encourage such relations. At the same time, the social and technological development of the country may also provide Woolworths with an opportunity to remain innovative by gaining the support of the social people. However, the lack of involvement of the Government may cause a disrupt situation in the company. As stated by Chimni (2017) it is essential that the Government provide legal assistance to a company so that it can continue its business and ensure that legal policies related to the country are maintained.
On the other hand, in the case of India, the risk can be attributed to the fact that excess rules and intervention from the Government may provide Woolworths with a disadvantage of expansion. According to Derudder and Witlox (2016), it is necessary that the countries provide freedom for the companies to continue with the business in a free manner. At the same time, the opportunity that can be gained from setting up business in India is that with a vast area of land space, Woolworths can expand its market all around the country. This can provide Woolworths with opportunities to gain more profit and at the same time ensure that popularity of the company among the people increases. With a vast population, Woolworths can increase its talent pool by providing employment opportunities to the people of the country.
Conclusion
Therefore, after the analysis, it can be concluded that expansion in foreign country requires research and at the same time the factors that require to be kept in mind while conducting the business. In the case of England, the advantages that Woolworths may receive include proper technological support and skilled employees that are capable of using innovative techniques in the business. At the same time, the freedom of conducting unmonitored business can help Woolworths to expand its business in further areas of the world. Therefore, the manner in which Woolworths used to conduct business in Australia can be continued in England, as the laws of business are more or less same for both the countries. Hence, Woolworths can consider England as a potential expansion country mainly due to the freedom of trade and business it can commence in the country.
At the same time, in the case of India, the company need to adjust to the laws and political rules that may provide a hindrance in the free flowing nature of the company. The fact that India is in a developing stage makes the economy of the country. However, with a large population, India can provide excess labour for the company. The setting up of branches all across the country can be made in large numbers so that Woolworths can gain profit in the market. Hence, Woolworths can consider India as a potential market expansion opportunity mainly due to the support from the local people and the ability to earn more money from the country. At the same time most of the people remain at home that can assist Woolworths in terms of unit of the product sold.
Therefore, after the analysis of the macro environment factors and geo-political factors it can be said that England is in the lead ahead of India for Woolworths to expand its market. This is mainly because of the leniency of the Government and the manner in which the people are technically aware of the different innovation tools that Woolworths may use for manufacturing its products. At the same time, the analysis of the trade opportunities also support England as the open relation to trade between countries can provide Woolworths to establish relationship with other poorer countries in the world. The opportunities that exist in England are more than the risk factors as England can provide Woolworths with an opportunity to conduct business based on laws that are familiar to the company.
At the same time, despite the large population and wide area of land, India does not provide any advantage to Woolworths. The people are mostly backward and the technological competence of the country does not encourage any innovation to take place. The interference from the Government and the political parties provides India with a disadvantage for the world. Hence, it can be said that for expanding its business in a foreign market, Woolworths can consider England as it can provide the company with an opportunity to develop in the market and at the same time attempt to find other countries in which expansion can take place. The support from the legal laws, society and the technical competence of the people in England can provide Woolworths with an opportunity to grow in the market.
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Woolworths.com.au. 2018. [online] Available at: https://www.woolworths.com.au/ [Accessed 30 Aug. 2018].
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