The paper "Evaluation of Venture Alternatives in Germany and Singapore" is a great example of a business case study. Globalization has emerged as a critical and emerging business management trend. In this regard, a majority of the organisations partaking in this strategy have in the recent past expanded their influence in the emerging foreign markets. On one hand, this involves the venturing into new markets not only possessing new geographical locations and differences, but also diversity in culture, social structures, political intrigues as well as economic status. As such, organisations adopt diverse strategies such as venturing in markets with increased similarities with their current operational areas.
As an investor in the fast-food industry, with investments and an operational business venture in Perth, this report is developed as an analysis of an evaluation of venture alternatives in Germany and Singapore. Conclusively, the report develops a conclusion on the best alternative venture location between the two alternatives. In order to offer a critical audit of the fast-food markets, the report applies the political, economic, and social and technology (PEST) analysis approach. 2.0 PEST Analysis A PEST analysis as Lin (2006, p. 93) stated offers a critical audit analysis on markets macroeconomic factors.
These are the factors that incorporate and influence the market on a large scale basis of which industry players and organisations have no control over. Therefore, they are external factors that influence the business operations, success rates as well as gain potentials in the long run. Through this approach, the report evaluates the PEST analysis of the Singapore and Germany markets as compared to the Perth market analysis. 2.1 Political Factors A political factors evaluation includes the valuation of existing political goodwill and approach status in an economy.
This includes and engulfs the presence of favourable or prohibitive investments measures and regulations. On one hand, an evaluation of the political climate in Germany establishes limited support for direct investment ventures. In this regard, the government has increased its control over the market through the increased development and incorporation of state capitalism approach in which the government controls entry into key market industries deemed important to the national interest (Dale, 2004). On the contrary, is the Singapore market.
On its market, an increasingly growing market, the Singapore industry has increased its attractiveness to foreign investors in the market through favourable FDI policies. Comparison analysis on the political environment of both Singapore and Germany establishes that Singapore is more preferable due to its open FDI policies for foreign investors in the fast-food industry, such as the proposed venture. 2.2 Economic Analysis An economic analysis in a market involves a range of economic indicators and index analysis. On one hand, as Domac and Kandil (2002) argued, such an analysis incorporates the development and establishment of the existing economic growth rates through GDP evaluation.
On the other hand, the analysis evaluates the industry per capita values that indicate the availability of the disposable income, a virtue that indicates the consumers’ purchasing power in an economy that is a viable demand potential measure. On one hand, an evaluation of the Perth economic status indicates a growing market that has over the years recorded growing income rates and thus increased and forecasted future demand increments. As such, this makes the market a viable venture through which the existing venture should retain influence and business into the future.
On the other hand, an evaluation of the German market establishes a stabilizing market economy. In this regard, as of 2010, the market had a GDP value of $ 3.39 trillion. Moreover, despite the implications of the 2008 global financial crisis that impacted on entire Europe, the market managed a growing economy of 3.5% in 2010.
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