The paper 'Is South Africa Atmosphere Suitable for the Business" is an outstanding example of a business case study. The medical equipment to be manufactured is a surgical table and a cost-saving country chosen as the desired destination in South Africa. The major factors that contributed to this decision making are the balanced country factor analysis as discussed in this report. Some of the most important factors include legal restrictions, political climate and economy of the country. The trade-off of benefits, cost and risks are the driving factors for the decision making process.
There should be balanced management of risks and benefits of investing in the country in order to enhance the chances of success in that particular country. The surgical table is primarily used in a theatre for performing an operation on a patient. The table will have five-section SS top, head control system for all positions, foot pedal for controlling the height which uses a hydraulic system, a foot that is detachable, brass plated clamps with nickel chrome. South Africa offers cheap labour and ready market for the product.
This analysis highlights the major factors and the trade-off of these factors in ensuring that the country’ s atmosphere is suitable for the business. Country factor analysis There are six major country factor analyses that will be important in considering the viability of the nominated country. These factors are important since they determine if the country will be liable for the business or not. The analysis of these factors is as follows; CFA Benefits Risks Costs Trade-off Political Sound political environment. Workers union strikes. No considerable cost due to politics Benefits more than risk and hence suitable for business Economic Developed economy Cheap labour available Effects of the recession still evident Less than 250, 000 USD The stable economy of the country guarantees sustainable business activity. Legal Less legal restrictions as compared to other developed countries The legal process is slow; i.e.
it takes about 4 weeks for the registration to be complete It cost about R330000 to complete the initial registration. The legal process is far favourable as compared to other countries. Culture The culture is diverse and accommodative There have been incidences of foreign-related crimes in the past No cost related to culture The culture provided a more conducive business environment. Education Skilled labour availability Quality production. Skilled and unskilled labour required but not guaranteed. Skilled labour require high payments The benefits of educating far outweigh their demerits and costs. Technology Testing and manufacturing of the equipment Expensive technologies required The cost is relatively high The input of technology outweighs the cost. Political According to Lockströ m (2007) sound political environment is one of the major factors for consideration when establishing an international business like medical manufacturing equipment in this case.
If the country chose has a volatile political environment with potential social upheaval, such a country will not be suitable for conducting any form of business since instability of political environment has a direct effect on the country’ s potential as a result of the increased cost of doing business.
In this case, South Africa has sound political environment fostered by responsible leadership that is ready to be accountable. It is only recently that the president of the country Thabo Mbeki resigned as a result of the corruption-related case. Other leaders in the region will stick to power even with rampant cases of corruption in the government. Setting a business in South Africa politically is recommended since the future of politics in the country is predictable as compared to its neighbour Zimbabwe. Economic South Africa is one of the world most developed economies, its GDP (Gross Domestic Product) is about 832 500 Million USD.
It is among the top 20 countries in terms of GDP. The economy of South Africa has developed significantly since World War II. The economy of the country has developed from an agrarian-based economy to mining than to technological-based economy with most of its imports being raw minerals, agricultural produce, electronic, machinery, chemical and even vehicles. The major consumers of the country’ s exports are Japan, Italy and the USA; the country’ s imports are mainly from Germany, the USA and Great Britain. Based on the sound economic position of the country, it is thus most suitable for starting a manufacturing company.
The position of the country economically will be in a situation to support all the requirement of the health equipment company economically. It is also important to note that the country offers considerable cheap labour as compared to most developed European countries with a high cost of labour. The neighbouring countries like Zimbabwe offer the country cheap labour and hence making the cost of product production lower (Miller & Vandome, 2010).
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