Country Analysis an Example of the Topic Government and Law Essays by

Country Analysis ECONOMIC & LEGAL CONDITIONS GERMANY The economy of Germany has finally seen an upturn after the stagnation of economy over 5 years, from 2000-2005. It is well known fact that before the union of East Germany and West Germany, East Germany was less developed economically, as compared to the West Germany. So, after the union, the efforts for integration and modernization of East Germany started. This was a costly practice, but the need of the time. Even today, around 80 billion USD are transferred from the West to East Germany. For past five years, there was a period of stagnation in the German economy. Its GDP growth rate was around 0.7% over past five years. Last year, it was 2.6% which was a healthy sign for their economy. The period of stagnation can be attributed to a number of reasons like non-flexible labor market structure, almost flat consumption levels in the domestic markets, falling investment levels in plants and equipments, higher cost of capital and near to monopoly situation in the service market. In orde r to boost up economy, a number of measures have been taken. These measures include, increasing female participation in labor market, corporate restructuring, increase in mandatory retirement age. The GDO of Germany is 2.81 Trillion USD, according to estimated of 2007. Its per capita income is 34,200 USD. Its inflation rate is 2.3%. Germany is technologically very advanced country, especially in terms of engineering. Its industry portfolio includes iron, steel, coal, cement, chemicals, machinery, vehicles, machine tools, electronics, food and beverages, shipbuilding, textiles. Need essay sample on "Country Analysis" topic? We will write a custom essay sample specifically for you Proceed The government of Germany is very stable so far. Despite the first left-right coalition in past 36 years, the government is going on well. Its civil society is quite developed. Moreover, under the umbrella of European Union, it has introduced a number of reforms to make itself capable of leveraging the benefits of EU membership. Thus, its laws and regulations are getting more liberal. CHINA Previously, the Chinese economy was a typical model of communism. It was the country which had no international trade at all. it was closed to the foreign investors. However, over the time the need to transform into market based economy was realized. The strategy was gradual. The steps taken were, discarding collectivist agricultural system, liberal trade policies, more independence to the state owned enterprises, making China attractive for foreign investors. China is the second largest growing economy of the world. As a result of restructuring there has been very significant improvement in the Chinese economy. According to estimates, its GDP has increased tenfold since then. The government of China is facing several economic challenges. Few of them are: Due to the layoffs in the state owned enterprises, there is a need to create opportunities for them. Reducing corruption Removing environmental damage, resulting from the transformation Besides, China is also one of the aging countries in the world. There is massive urbanization. The GDP of China is very significantly remarkable. It is 6.991 trillion $. Because of its huge population, its per capita income is not that very impressive. It is 5300 USD. Around 45% of its labor force is engaged with agriculture. Inflation rate is 4% and official unemployment rate is 4%. The real growth rate is 11.4% that is commendable. Its major industries are: mining and ore processing, iron, steel, aluminum, and other metals, coal; machine building; armaments; textiles and apparel; petroleum; cement; chemicals; fertilizers; consumer products, including footwear, toys, and electronics; food processing; transportation equipment, including automobiles, rail cars and locomotives, ships, and aircraft; telecommunications equipment, commercial space launch vehicles, satellites. Chinas major exports are plant and equipment, plastic, optical and medical surgical instruments, and iron and stee l. Exports totaled 974 Billion USD.In terms of government, China is stable. Its laws are now comparatively liberal and open to international market. However, those international firms need to adjust to its culture, which is significantly different from others. QATAR The economy of Qatar is purely based on Oil. According to the estimated, around 85% of its export earning, 70% of government revenues and 60% of GDP comes from the oil export. Due to recent boom in oil prices has affected the revenues of Qatar positively. The current economic policy of Qatar is that of expanding the production of natural resources. As a result, it is growing these days. Moreover, it is also focusing on the growth of non-energy sectors. The current GDP (2007) of Qatar is around 57.69 Billion USD. It has one of the highest per capita incomes in the world, which is 80,900 USD per year. Its real growth rate, which is 14.2 % is higher than the inflation rate of 13.8%. In the view of current economic conditions, such performance is not bad at all. The major industries in Qatar are the refinement and production of crude oil. Since natural gas is there in abundance, therefore, the ammonia and fertilizer industry is also one of the significant pies in the industrial pie chart of Qatar. Besides, petrochemical industry and cement industry are also one of the contributors of the GDP of Qatar. Qatars present prospering economic condition is due to the natural gas and petroleum reserves over here. Since these resources are in ample amount, therefore sustained economic growth of Qatar is expected in next few decades. This conclusion is based on the premises that its 15 billion barrels are expected to last over 20 years. Likewise, its 25 trillion cubic meters of natural gas reserves are also expected to sustain for very longer period of time. Thus, it can be asserted that Qatar economy has high prospects of being prosperous in coming years. In terms of the stability of Government, Qatar is a bit weak. This can be asserted due to past events of overthrowing the rulers. Over the time, its laws and regulations are getting more liberal and now its policy is oriented towards attracting foreign direct investment. GERMANY The economy of Germany has finally seen an upturn after the stagnation of economy over 5 years, from 2000-2005. It is well known fact that before the union of East Germany and West Germany, East Germany was less developed economically, as compared to the West Germany. So, after the union, the efforts for integration and modernization of East Germany started. This was a costly practice, but the need of the time. Even today, around 80 billion USD are transferred from the West to East Germany. For past five years, there was a period of stagnation in the German economy. Its GDP growth rate was around 0.7% over past five years. Last year, it was 2.6% which was a healthy sign for their economy. The period of stagnation can be attributed to a number of reasons like non-flexible labor market structure, almost flat consumption levels in the domestic markets, falling investment levels in plants and equipments, higher cost of capital and near to monopoly situation in the service market. In orde r to boost up economy, a number of measures have been taken. These measures include, increasing female participation in labor market, corporate restructuring, increase in mandatory retirement age. The GDO of Germany is 2.81 Trillion USD, according to estimated of 2007. Its per capita income is 34,200 USD. Its inflation rate is 2.3%. Germany is technologically very advanced country, especially in terms of engineering. Its industry portfolio includes iron, steel, coal, cement, chemicals, machinery, vehicles, machine tools, electronics, food and beverages, shipbuilding, textiles. The government of Germany is very stable so far. Despite the first left-right coalition in past 36 years, the government is going on well. Its civil society is quite developed. Moreover, under the umbrella of European Union, it has introduced a number of reforms to make itself capable of leveraging the benefits of EU membership. Thus, its laws and regulations are getting more liberal. SOCIAL CONDITIONS CHINA According to the estimates of 2006, the literacy rate in China is 90.9%. This is quite high literacy rate. Probably this high literacy rate is the reason for the technological advancements by China. 45% of Chinese population is engaged with agriculture, 24% with industry and rest with service sector. There is a very growing trend of Urbanization, as there are greater economic activities in coastal areas than do internal areas. The religions there are officially atheist; Daoist (Taoist), Buddhist, Christian 3%4%, Muslim 1%2% (2002 est.) China is a collectivist society. They are very much adhered to their culture and cultural values. GERMANY Germany is the country that is considered to be the heaven of engineering education. Its literacy rate is 99%. Its labor force is 43 Million. 33% are engaged with industry, 2% with agriculture and the rest with services. The economic level and social conditions in the West Germany are better than East Germany. Population over there is 82,369,548 (growth rate: 0.0%); birth rate: 8.1/1000; infant mortality rate: 4.0/1000; life expectancy: 79.1; density per sq mi: 235. Major religions are protestant 34%, Roman Catholic 34%, Islam 4%, Unaffiliated or other 28%. Germany is very much an individualistic society with little long term orientation. QATAR The literacy rate in Qatar is 89%. Its population is 907,229 (growth rate: 2.4%); birth rate: 15.6/1000; infant mortality rate: 17.5/1000; life expectancy: 74.1; density per sq mi: 214. Major religions in Qatar are Muslim 77.5%, Christian 8.5%, other 14% (2004 census). In terms of social values, Qatar is the collectivist society. Traditionally its culture reflects Islamic teachings. TECHNOLOGICAL FACTORS CHINA In terms of technology too, China is far ahead of many of its neighbors, especially in terms of military technology. Most of the modern technologies are being adopted very rapidly there. Armed forces are not the only area Chinese are experts at. They are renowned for low cost development. Although low cost labor is main reason for the low cost development. However, modernization of processes has also led to this effect. In todays world, one of the most significant drivers of technological development is the use of internet. According to the estimates of 2007, there were around 232,780 internet hosts in China. Moreover, according to the estimates of 2006, there are around 123 million internet users in China. GERMANY In case of Germany, the technological advancements are quite obvious. Germany has been the centre of many engineering endeavors. It is significantly advanced country, in terms of technology. According to the estimates of 2007, there were around 16 million internet hosts in Germany. Moreover, according to the estimates of 2006, there are around 38 million internet users in Germany. QATAR Qatar is not very much developed in terms of technology. However, the government is making the efforts to ensure more development in technological areas. This is being done through building institutions for technical education, foreign educational affiliations and alliances. Moreover, according to the estimates of 2006, there are around 289,900 internet users in Germany. BIBLIOGRAPHY CIA - The World Fact Book - China. (n.d.). Retrieved Feb. 10, 2008, from https://www.cia.gov/library/publications/the-world-factbook/geos/ch.html#Econ. CIA - The World Fact Book - Germany. (n.d.). Retrieved Feb. 10, 2008, from https://www.cia.gov/library/publications/the-world-factbook/geos/gm.html#Econ. CIA - The World Fact Book - Qatar. (n.d.). Retrieved Feb. 10, 2008, from https://www.cia.gov/library/publications/the-world-factbook/geos/qa.html#Econ. China: History, Geography, Government, and Culture Infoplease.com. (n.d.). Germany: History, Geography, Government, and Culture Infoplease.com. (n.d.). Market Potential Index for Emerging Markets - 2008 | globalEDGE. (n.d.).

Tata Motors Hbr Case Profitability of the Nano Essay Example

Tata Motors Hbr Case Profitability of the Nano Essay Example Tata Motors Hbr Case Profitability of the Nano Essay Tata Motors Hbr Case Profitability of the Nano Essay Memorandum To Chairman, Tata Motors Ltd Issue Profitable Production of the Nano Issues A primary issue Tata must consider is the current and future profitability of the Nano. In order to determine if their strategy of entering the small car market is feasible, the influences on the industry must be evaluated. If evaluation of the industry indicates that future profitability is in question, the company must consider canceling the project, or focus on areas where Tata can influence the industry to improve the likelihood of profitability. Analysis Profitability/Feasibility One must consider the sensitivity to prices and the affordability of the car to the primary target market (India). Case Exhibit 3 estimates that 21% of households have income levels high enough to be considered part of the target market (ie: families that may own a motorcycle or small car), with almost all (98%) residing in the $4000-$10000 income bracket. Even at low gros margins, the Nano would be 22% of household income for those families that make $10000 annual income. Although 40 million households are estimated to be in the $4K $10K income bracket, it can be expected that a small number of these will be earning $10,000. Therefore, the target market can be considered greatly reduced, and their price sensitivities very high. However, as discussed, it can be assumed that these households already have a motorcycle, and approx 2 million could switch to a cheap car. In the analysis of Case Exhibit 6 there is no reference to Labour or SGA costs for the Nano. When these are estimated (general and admin costs assumed to be negligible due to Tata’s current operations of vehicle production), the cost of the Nano rises to a point where $2200 (USD) per unit price will not be profitable. If the 24% Post Manufacturing Tax remains (p. 18), a promotional budget is included (assumed to be 20% of per-unit sales up to first 250,000 units), and labour cost/unit is included (Appendix Exhibit 1), the sale price of the Nano must rise to approximately $2600USD (Appendix Exhibit 2). Also, current profitability is a poor indicator for future profitability. A rise in raw material price will mean a rise in price of supplies (eg: steel). The already near-zero profit margins will diminish without an increase in selling price. Industry/Strategy Tata is entering a new market, and a careful analysis of the competitive forces in India must be carried out (see Appendix Exhibit 3 – Porter’s Five Forces). Considering rivalry, Tata is the leader on price. This gives them a very important competitive advantage in a highly price-sensitive market. Although market share has large potential for increasing, the threat of new entrants increases the rivalry over the coming years. The advantage for Tata lies in sourcing low-cost inputs through a unique supply chain. The supply chain is supported by inputs from suppliers in close proximity to the Tata facility, and is characterized by a high number of suppliers competing with one another for the Tata business. There are many input substitutes available with a relatively low purchasing cost. This places Tata in a strong position over suppliers and allows them to manufacture cars at a low cost. The competitive force of the buyer can be considered low for the Indian market. Since the Nano will be the cheapest car available, it may be the only option for many car buyers and there will be few substitutes available until foreign competitors can establish a similar low-cost structure. The buyer gains leverage with very high price sensitivity, essentially in the form of affordability. The barriers to entry are in favour of Tata. They can realize economies of scale in terms of increasing their capacity for vehicle production, their efforts in promotion, labour and material inputs, and distribution facilities. These will be difficult barriers to overcome for new entrants, and high (or increasing) average costs may keep competitors from entering. The government taxation policy also serves as a barrier to profitability for manufacturers. A high threat of substitutes will be a competitive force against Tata, as consumers opt for the popular and cheaper options of motorcycles or public transit. In terms of car substitutes, however, Tata has the advantage of lowest cost. Ethical Considerations An ethical consideration is whether Tata’s values are in the right place and, if so, are they truthful? The Chairman proclaims the Nano is â€Å"the people’s car†. However, will an increase in cars really have a positive effect on the productivity and quality of life of the average Indian? Despite the Nano’s low emissions, pollution will increase with a dramatic increase in cars. Also, congestion will have a negative impact on urban centres, and the quality of the car is not suitable for rural roads. If the Chairman’s values really are with the interests of the people, the resources for the Nano could be redirected to efforts in improving infrastructure and mass transit systems. Recommendations Based on the assessment of current and future profitability, I am recommending Tata move forward with production, but maintain as narrow a margin as possible to establish early market penetration and brand equity. The goal of $2200USD selling price is unprofitable and unrealistic. Even at the selling prices described in Appendix Table 2, Tata will still be the leader in cost competitiveness. They should therefore implement a higher selling price. As was described in the competitive forces model, Tata must retain its â€Å"First Mover† position. To accomplish this, Tata needs to continue to keep their suppliers in a technology development and low-cost race, and ensure an increase in car manufacturers does not provide the suppliers with greater competitive force. Finally, international market share is a requirement, as the Indian market will quickly become diluted. Tata can distribute in their currently occupied markets of Southern and Eastern Europe, and can also use this opportunity to raise prices to increase margins to cover the narrow margins in India. Before Tata can establish itself in other developing countries, the profitability of the business model must first be proven in its home country. Word Count: 1012 Exhibit 1 |Labour Costs / Car | |Cars per year |250000 | |Number of Employees |2000 | |Employees as Percentage of Cars Produced |0. % | |Average Employee Salary | $5,500. 00 | |cars / employee / year |125 | |Labour Costs / Car | $44 | Exhibit 2 Nano Costs (adapted from Case Exhibit 6 Making the Nano)-in USD |24% Post Man Tax |16% Post Man Tax | |(INR:USD=45:1) | | | |Total Parts / Supplies | $1,477 | $1,477 | |Labour / Car |$44 |$44 | |Post Manufacturing Tax | $533 | $355 | |Sales Tax $89 | $89 | |Total Variable Cost per Unit | $2,144 | $1,965 | |SGA / Car (20% of Costs per Unit) | $429 | $429 | |Total Unit Cost | $2,572 | $2,394 | |Selling Price (Gros Margin Target 5. 5%) | $2,714 | $2,526 | |Selling Price (Gros Margin Target 2. 5%) | $2,637 | $2,454 | Exhibit 3 [pic]

Whole Food Market Essay Example | Topics and Well Written Essays - 500 words

Whole Food Market - Essay Example Whole Food Market has developed an innovation strategy of its kind that would suit its organic business model. Firstly, they integrated the differentiation strategy whereby they provide their customers services they cannot find anywhere else so as to maintain a loyal customer basis. On the contrary, the supermarket was the first to dump use of plastic bags so as to conserve the environment. Furthermore, its social dimension towards its value proposal in engaging in wind energy practices; an environmental friendly approach is part of its innovation strategy. Moreover, in order to satisfy their organic goal, they have also expanded their business to developing their own line of sea food and an animal welfare system and more so boosting new and creative animal production practices. Therefore, putting these factors in mind, it is clear that the organization has justified its organic practices.The environment that Whole Food Market operates in is full of potential. The external threats ar e competition from fast food companies as well as other green companies. However, its differentiation strategy has worked out in terms of beating rival companies. On the other hand, the supermarket realizes the environmental challenges, hence its approach to renewable energy and elimination of plastic. Such corporate responsibilities have enhanced favor to the supermarket from its green customers. Another environemental principle is always being ahead producing high quality products as well as realizing and utilizing opportunities.