Global Business Plan

July 27, 2017

COMPREHENSIVE GLOBAL ANALYSIS

In business, successfully initiating and maintaining is entirely dependent on external factors rather than the capabilities of the company. External factors play a significant impact mainly in the operational abilities of every company which is essential in the acquisition of returns. These external factors can be Brocken into political, economic, environmental, social and technological commonly referred to as the PESTLE analysis. All companies need to have all these factors constantly assessed especially before initiating the business in a new region that may present different advantages or risks that play a significant role in the operation of the company.

Initiating a new business has varied challenges, risks and benefits that can be manipulated to acquire the best results in relation to net profits acquired. It is therefore detrimental not to explore these issues to have an upper hand in relation to avoiding the associated risks that these areas pose.

Organization and services

The food and beverage market has continuously been met by constant transitions that have mainly been attributed to customer preferences and needs. The preferences, aside from taste, have been linked to the dire need for consuming healthy foods. Copa beverages will be a multinational company designed to provide non-alcoholic drinks like carbonated and energy drinks and mineral water. The raw materials that will be used in the manufacture of these products will be healthy and most importantly natural to attract consumers. Every successful business incorporates proper planning and financial management for ensuring maximum profits.

The second aspect of the products is that there will be different flavors of the products that would be designed to adhere to specific customer preferences e.g. diet soda that would specifically target obese individuals and those who do not like sugar. Revenue from the company is acquired through the production, sale, licensing and distribution of their products to their partners, retailers and distributors.

The company will be locally run from the regions in order to provide benefits to the locals despite the headquarters being located in the United States. The legal issue pertaining to international trade will be guaranteed through following the laws and adhering to the policies of the country. The packaging, and the use of social media will be used to appeal to the target population who will mainly comprise of the youth. This industry largely dominated by two companies namely Coca Cola and PepsiCo that take major shares of the market worldwide. The company dominates and has enjoyed loyalty all over the worldwide for a number of years thereby making it hard for its competitors to displace it at the helm of the industry. Copa beverages will however be solely built on cooperation with the local companies and the utilization of local raw healthy products.

Region analysis

Initiating an international business firstly involves playing close attention to the alliances that have been formulated in the region to help in trying to reach out to them as they will provide advantages to a new business in relation to creating connections and achieving establishment of the company in the new region. Another significant factor that needs to be analyzed is the stability of the region in regards to peace. Terrorist activities have become rampant worldwide and it is therefore essential to factor in these issues before deciding to invest in a particular region. Terrorism leads to destruction of property and creates fear in consumers thereby limiting the role of establishment in the region.

The political stability of the area can also be detrimental in businesses as they may hinder operations of the company due to varied political differences that may affect the company operations. Being aware of these issues can also be manipulated for the advantage of the company. Additionally, it would be critical to find out the all the financial options available for finding out the best options that would help in enriching the company or those that would run down the company.

Environmental factors can also significantly affect the company’s profits through inhibiting its operations. Establishing a business in an area that is prone to natural hazards inhibits the operations of the company and may at times lead to destruction of property leads t depreciation of its profits. Moreover, it is critical to review the social issues of that this region sticks to or considers critical. Culture in this instance is a critical aspect in a number of regions and it is therefore essential to ensure that the business does disrespect or go against the cultures of the region (Oxford College of marketing, 2016) .

Country analysis

After selection of the best region in relation to the above factors, narrowing down to a specific country also has its fair share of factors that can hinder the growth of the company. Firstly, there is a need to review the political and legal stability of the country in order to avoid heading into violation with a number of laws that could lead to hefty fine and also face opposition from political bodies who will ensure a downward trend of the company’s profits.

Moreover, countries have different cultures and therefore breaking some or either of them can be met by different with high retaliation which significantly affects the operations and penetration abilities of the company. Selling product that are in line with the culture of the country will be significant in acquiring acceptance from the society. This is also critical in regards to the overall ethical considerations of the country. Advertising and publicity is also highly rated in that they have the capability of bring both negative and positive aspect depending on how they are conducted. Advertisements must therefore be in line with the culture and ethical considerations of the country.

The physical environment of the country should also be assessed to find out the margins of associated risks or how much the company can manipulate these factors to make profits from the proceedings. Lastly, the national political stability with regards peace and reduction of wars related to acquisition of power can greatly affect the company’s margins.

In sum, dealing with businesses not only refers to making profits but also forming alliances with party nations and adhering to the culture and ethics of the consumers. These factors therefore increase an organizations chances of making it through the new region. This importance should also be beginning from the regional boundaries and then narrow down to the specific region.

References

Oxford College of marketing. (2016). What is a PESTLE Analysis? Retrieved from blog.oxfordcollegeofmarketing.com/2016/06/30/pestel-analysis/