Primary Task Response Legal Factors South Korean and American judiciaries are similar, and juries are notrequired during trials. Both countries’ legal systems are very stable and highly influential in defining and supporting growth and liberalization in economic and legal environments. South Korea has a shortage of judges due to its very tough law examinations, in contrast to the United States where judges can be found in abundance (Warner, 2010). Again, just like the United States, South Korea’s legal environment draws its strengths from regulatory incentives, favorable tax policies, and an exclusive constitutional (Supreme Court in the United States).
However, its weaknesses can be found in the absence of juries in trials, weak IPR enforcement, and inefficient customs operations. In terms of legal factors, the United States offers a much better option. Cultural Factors South Korea’s culture is quite diverse and rich, but it is still quite conservative (just like most Asian countries’). This is in stark contrast to the United States, where culture plays little to no role in business. In South Korea, western ideals and practices are still not wholly embraced, therefore AutoEdge will have to exercise discretion in its advertising, marketing, and business approach (less aggressive and more holistic, but still market-driven).
It will be crucial for the company to conduct market, social, and cultural research in order to understand its target market and how to satisfy its needs. For instance, advertising campaigns should convey the intended message without necessarily raising eyebrows in the wrong way and being a “turnoff”. The United States’ cultural environment is perfect because the company has operated there before and therefore understands how to approach it (Bas, 2010).
Also, there are no cultural concerns that the company actually needs to be concerned about in the United States; ethics is a more sensitive issue as compared to culture. Financial Factors The company is looking to grow and expand; there is no doubt about that. The sharp decline of its stock price (and valuation), the negative publicity emanating from its selling of automobile parts that have failed quality tests has created a hostile business environment, especially in the United States (Warner, 2010). Although it is possible to turn things around and rebuild its image and standing among consumers and in the industry, such efforts will take time.
During that time, revenue will be required to operate and support the company, because it still needs to stay afloat while plotting a comeback. As a result, it would be wise and prudent for the company to look to new markets for growth while rebuilding its operations in the United States. This is where South Korea comes in. It makes sense financially by offering a new and untapped market for the company and a frontier for new revenue while it gets back on its feet (Bas, 2010). Economic Factors Just like in the United States, South Korea’s economic environment is well defined and supported by government policies.
Due to strong and stable economic reforms, both countries have continued to witness steady economic growth. The United States’ economic outlook has in the past decade been under heavy scrutiny because of high unemployment rates and plummeting economic standards, but the economy still remains not just the biggest in the world but one of the most stable (Bas, 2010).
South Korea’s economy has also been one of the biggest and most stable in all of Asia for decades. In terms of economic factors, AutoEdge is spoilt for choice because both countries offer ideal economic conditions for growth and expansion. In addition, both countries have big and powerful export sectors that are the backbone of their economic growth. Since AutoEdge is a major exporter, this creates a strong and stable foundation for growth and expansion (Bas, 2010). In summary, South Korea and the United States both offer ideal conditions for the company’s growth and expansion plans, but South Korea moreso because it is relatively untapped by American automotive companies and it presents the biggest potential for growth as compared to the United States.
If it came to choosing, South Korea would be the better option. Secondary Task Response I learned that SWOT analyses and vulnerability assessments are crucial in the successful operation of businesses, and that the more efficient and effective they are, the higher the chances of a business thriving by generating more revenue and expanding into new market frontiers.
After reading the postings I am interested in knowing: How a SWOT analysis can be integrated into a business’ strategic plans going forward. It is one thing conducting a SWOT analysis, but converting it into strategic advantage is another dilemma altogether. I am also interested in knowing how vulnerability assessment can be turned into a strategic tool for growing and expanding a business. I think my posting is different from the others because it is more exploratory and probing. Since I am basically discussing PESTLE, I have to provide a critical and balanced view of legal, financial, economic, and cultural factors.
This leads to a more comprehensive outlook compared to the other postings. References Bas, T. (2010). South Korea (9th Ed. ). Singapore: Apa Publications. Warner, A. G. (2010). Strategic analysis and choice a structured approach. New York: Business Expert Press.