Executive summaryThis paper presents a report on international business mainly on how to expand an existing business to a foreign country where the business does not exist. This involves establishing McDonald’s food joint in Papua New Guinea. The analysis will present the challenges that will face the company in its expansion and the solutions to such problems. There is also presentation of the investment environment in the chosen country. It also involves the analysis of the fast food sector so as to identify the major competitors in the industry.
This analysis will also help the company in identifying the problems that are encountered in the sector. The paper also involves identifying the most suitable market mode of entry into the international market. The mode of entry will be supported by advantages to the company so as to justify the mode and to weigh how beneficial the mode can be to the company (Dunning, Lundan, 2008). The investment environment in the chosen country will be analyzed so as to identify the opportunities the company can take to prosper in the country. The country analysis will also help the company in identifying the challenges and regulations in the country of the investment.
The changes, which arise as, a result of these components will be analyzed in the report. It also suggests the most appropriate organisation structure that will head the company operations to the international market. It also presents a critical review on the effects of logistics and supply chains used by the company in the market to achieve success. It evaluates strategic factors that influence companies to venture in to the international market.
It presents a critical analysis on regional investment in the APEC decisions and the impact it creates, once a company ventures into the international expansion (Dunning & Lundan, 2008). Another section will dwell on the region analysis to identify the investment in the APEC region. The analysis will research on the ways in which the regional organization shapes the environment for business in that area. The analysis will involve policy in relation to trade and investment and factors such as improvements to infrastructure, economic development, education, training and any other initiatives and policies aimed at improving trade and ease of doing business.
APEC is the best region because the organization works towards reducing trade barriers to all non-member countries. This will help the company to acquire growth in the chosen country (Daniels, Radebaugh & Sullivan, 2013). Another section is the analysis on social, legal, economic, political and technological (SLEPT) issues in the region and the specific country. There is also a section on research and development. The third is implementation of the global strategy. The final section will look at global business in relation to marketing a business in the international market, and putting into considerations the supply chains. Country AnalysisThis section involves reasons why McDonald’s should venture into the international market especially in Papua New Guinea.
Therefore, there is a need to look at the investment environment in the country. The country has a large population that will provide a big market for the company. The also has a lot of raw materials that will be of high benefit to the company because there will be no need of relying on raw materials from other countries.
It also involves discussing how social, legal, economic, political and technological factors contribute to companies going global. The reasons include, economies of scale, the company will enjoy large profits by producing in large scale because it will cut down its expenses. The economies of scale are the benefits which are achieved by a company when it produces in large scale. Competition is another factor driving McDonald’s into the international market. The company feels that, companies, which are in, the fast food industry in other countries, earn a lot of profit, and they give substandard services.
This drives the company in the market to increase and boost the profits and offer quality services to consumers. SLEPT is another reason why McDonald’s should invest in the international market.