Question

Organizations interested in pursuing global markets must consider the external environment. Many of the same environmental forces that relate to domestic markets also apply to global markets (Lamb, Hair, & McDaniel, 2018). You will look at the global marketplace in which, thanks to the Internet, even small companies can participate. The external marketing environment is full of opportunities and threats that can have a profound effect on the success or failure of a company, a brand, or a product in the global marketplace.

In Part 1 of this Assignment, you will practice scanning the global marketing environment (i.e., environmental analysis) for opportunities or threats to expansion of Perigord Bakery as the owner.

Read the scenario and then address steps 1–3 in at least 5 of the 10 PowerPointslides due in Unit 4 per the instructions.

Scenario: You are the owner of Perigord Bakery, which is currently located in the city closest to where you live. You specialize in breads and sweets from many different countries and now have operations in six regions of the U.S. You realize the market has become saturated in the U.S. At a recent international trade show, you were surprised at how many requests you received to license or franchise your concept in other countries.

Your task is the following:

Based on the scenario, identify another country outside the United States to research and determine the feasibility of entering this foreign market for the Perigord Bakery as the owner by addressing the checklist items.

Checklist:

Step 1: Cultural Factors

• Identify several cultural factors in the country you are pursuing that may affect market expansion of the bakery, such as: behavior patterns, the concept of time, lifestyle, etc. You can use Commisceo™ Global Consultancy’s website to research country cultural factors.

• Considering these cultural factors, do you see them as possible opportunities or threats to entering this market? Please explain your response.

Step 2: Demographic Factors

• Identify at least four (4) demographic factors in the country you are pursuing, such as education, the size, growth, density, and age of the population, etc. Use the U.S. Census International database as a source of reference for the demographic information. It allows you to look up data by country and years.
• Explain why these demographic factors are opportunities or threats to entering this market.

Step 3: Economic Factors

Access The World Factbook from the CIA and select the country of choice in the upper right hand corner search box.

• Identify these three economic factors in the country you are pursuing: GDP per capita (see the Reading area), GDP growth rate, and the unemployment rate in your chosen country.
• Explain why these economic factors are opportunities or threats to entering this market based on the country you chose.

Answer 1

PERIGORD BAKERY

ANALYZING CULTURAL FACTORS FOR MARKET EXPANSION IN INDIA

CULTURAL FACTORS

1. THERE ARE MANY RELIGIOUS GROUPS BUT CAN MAINLY BE CLUBBED INTO FOUR MAJOR ONES WITH SECULAR OVERTONE AND HARMONIOUS LIVING AT LARGE .
2. PEOPLE HAVE HIGH SENSE OF SELF REALIZATION BUT ARE WELCOMING OF STRANGERS AND NEW WORLD ORDER
3. CASTE SYSTEM HAD ONCE PREVAILED BUT IS MERGING IN SLOWLY
4. THERE ARE NOT LESS THAN 120 DIFFERENT SPOKEN LANGUAGES BUT COMMUNICATION IS NOT HURDLED ACROSS THE LAND AS PEOPLE ARE WELCOMING .HINDI IS SPOKEN BY 41% POPULATION AND PEOPLE HAVE ADOPTED ENGLISH WELL.

THE ABOVE INDICATES A GROWING MARKET FOR SOCIAL SERVICES PRODUCTS , CONSUMABLES , CLOTHING ,ENTERTAINMENT HEALTH RELATED PRODUCTS , MANUFACTURING AND ELECTRONICS MARKET , FOOD PRODUCTS etc

PERIGORD BAKERY

ANALYZING DEMOGRAPHIC FACTORS FOR MARKET EXPANSION IN INDIA

DEMOGRAPHIC FACTORS

1. INDIA IS POPULOUS – 2ND MOST POPULOUS COUNTRY IN THE WORLD-A FEAT IT CAN ILL AFFORD TODAY WITH 2.4% OF WORLD LAND AREA HOWEVER WITH 25 % OF POPULATION IN WORKING AGE GROUP. SKSILLED / SEMISKILLED LABOUR IS AVAILABLE AND AFFORDABLE
2. WITH ABOUT 74% LETERACY ON AN AVERAGE PEOPLE SEEK WORK TO EARN AND SATISFY BASIC NEEDS
3. INCOME DISPARITY PREVAILS IN THE SOCIETY
4. SEX RATIO IS ON CORRECTION BUT IS STILL TILTED TOWRADS MALE
5. LIFE EXPECTATNCY IS AT 66.8 YEARS AGAINST WORLDAVERAGE OF 70 YEARS BUT IS STABLE
6. IS RANKED AS AS 7TH LARGEST ECONOMY IN THE WORLD
7. IS 3RD LARGEST IN TERMS OF PURCHAGING POWER PARITY (PPP).

PERIGORD BAKERY

ANALYZING ECONOMIC FACTORS FOR MARKET EXPANSION IN INDIA

ECONOMIC FACTORS

GDP IS AT $ 2.9 TRILLION AND AIMED AT 5 TRILLION BY 2024

GDP PER CAPITA AS IN 2017 WAS AN ENCOURAGING $1964 approximately

GDP GROWTH RATE IS PEGGED AT 12 % IN 2019-20

INDIA’S MARKET IS CONSIDERED AS FAST GROWING AND CONSUMER ORIENTED. SERVICE SECTOR, FOOD PROCESSING AND MANUFACTURING HAVE GOT GREAT PUSH THROUGH GOVERNEMENT’S “MAKE IN INDIA” INITIATIVE

PERIGORD BAKERY

ANALYZING FACTORS FOR MARKET EXPANSION IN INDIA

SUMMARY – WITH GREAT FLEXIBILITY AND ADAPTABILITY IN THE SOCIAL SYTEM INFLUENCING CONSUMER BEHAVIOUR POSITIVELY , A STABLE ECONOMY WITH GROWING GDP AND PPP, INDIA IS A PLACE TO INVEST AND EXPAND