Global Business and Environment Prevailing †MyAssignmenthelp.com

Question: Discuss about the Global Business and Environment Prevailing. Answer: Introduction In the contemporary global business scenario, a more integrated and inclusive commercial environment prevails. In this structure, the commercial enterprises venture in different countries, for the purpose of expansion of business prospects and profitability (Wang et al., 2012). However, for venturing in different countries and for making the venture successful, it is of immense importance for the companies to take into account the macro-environment of the country and the external factors, which can have implications on the concerned business. One of the primary efficient tools for the purpose of analyzing the same is the PESTLE Analysis Framework, which helps the company in concern to get an overview of the overall environment of the country it thinks of venturing (Yksel, 2012). This assignment, keeping this in consideration, performs the PESTLE Analysis for Singapore, keeping in mind the company in concern, the New Zealand based company Kiwikids. The analysis takes into account the political, economic, social, legal and technological and competitive environment prevailing in the country in concern. PESTLE-C Analysis of Singapore This section elaborates the overall environment of Singapore, which are expected to directly or indirectly affect the profitability and sustainability of the concerned business, both positively as well as negatively, provided the venture happen (Tremewan, 2016). Political Factors Singapore enjoys a stable political environment with the political risks being very low. The country enjoys a democratic environment where the representatives are elected by the citizens and who work for the betterment of the society as a whole. This in turn, indicates that there is the presence of favorable environment for businesses to flourish and for foreign firms to venture (Rodan, 2016). However, there are complaints regarding limitations of freedom of speech of the opposition parties in the country and there are threats of cumbersome defamation lawsuits and imprisonments, which limits the freedom of opposition parties to a considerable extent and lowers the inter-party debates. Economic Factors Singapore, over the past few years, has prospered magnificently and the economy of this country is one of the most prospective free-market economies in the global scenario. Among the ASEAN countries, Singapore enjoys the highest per capita income and the government of the country also believes in diversification in the economy (Lim, 2016). One of the primary factors contributing to the impressive economic growth of the country is the presence of a highly competitive and corruption free business environment, which facilitates free-market interactions of the demand and the supply side players of any industry. The diversification agenda of the government has also paved the way for inclusion of newer industries including pharmaceutical, tourism and others in the country. The strategic location, clubbed with all the above-mentioned factors make the country extremely favorable for the foreign entrepreneurs to venture. However, there are several limitations in the economic structure of the country which includes the shortage of labor, thereby contributing to increase in the costs of labor and also a recent decline in the overall labor productivity. These limitations are also to be taken into account by the concerned enterprise before entering the markets of the country (Morley, 2015). Social Factors Singapore, being an Eastern country, is a perfect cultural balance between the Eastern culture of tradition and family values and the Western competitive and fast-paced culture. The young generation of the country, especially is highly motivated and works hard in the globally competitive environment, which contributes to the overall increased productivity of the nation. The overall literacy rate in the country is impressively high and almost the majority of the population has excellent command over English and Chinese languages. The linguistic advantage clubbed with the high purchasing power of the consumers of the country makes it a lucrative location for the company to venture as Singapore provides the opportunity of having skilled labor as well as a huge market for their products (Keong, 2013). Technological Factors One of the strongest attributes and contributors to the impressive economic development of Singapore and its overall better lifestyle is the path-breaking technological advancement, which the country has made within the last few decades. The internet framework in the country is extremely praise-worthy as more than 70% of the households of the country enjoy broadband services. The IT structure being extremely developed the government has been slowly moving towards an e-government scenario (Chen et al., 2012). This can have positive implications on the business ventures in the country, especially by facilitating fast and efficient communication. However, this is especially true for the e-commerce and online business sectors. But, the same is also expected to facilitate the online marketing strategies for the businesses. Legal Factors The legal environment of the country is also one of the driving factors in the development of the business environment in the country. The legal infrastructure, along with the cross-border commerce laws and policies make it productive for the businesses to venture in this economy. The concerned company here, being the one, which deals with nutritious foods for children, the company will fall under the Sale of Food Act in the country and has to abide by the standards of AVA, which includes the presence of certified documents from the food-safety authority of the country. The country also has regulations on packaging, expiry date, minimum and maximum level of relevant constituents and labeling requirements (Tremewan, 2016). Environmental Factors The environmental regulation in the country is extremely vigilant and the Anti-Pollution Unit, along with the Ministry of Environment works effectively in maintaining a low pollution level, especially in the urban regions. Water being one of the scarce resources, the Drainage Act of the country also deals with the major concerns of preventing water pollution from oil and industrial byproducts. This aspect has also to be taken into account by the concerned company while venturing in the concerned country (Rosenbaum, 2013). Competitive Factors For Kiwikids to enter and prosper in the markets of Singapore, it is important to take into account the competitive threats and opportunities which are already existing in the market. Given the fact that Kiwikids venture in the Growing Up Milk sector, which is mainly concerned with the growth of children, the concerned sector in Singapore has been expanding in the current period. However, one of the major factors, which is predominant in this sector and has major implications on the expansion and success of any company trying to venture in this market is the presence of the importance of goodwill and word of mouth. The parents in this country are not much experimental regarding the food and nutrition products of their children and brand loyalty is a big issue in this market, which may create hurdles for the new entrants in the supply side. However, the people in the country, with time, are becoming more cautious regarding the nutritional aspects of the foods, which they are providing to their children. Nutritional aspects such as protein, DHA, vitamin and others have become important components in the food products for their children. This poses as an opportunity for the new entrants to market their products on the basis of the nutritional value, which if done successfully, can help the new companies to gain sustainable and considerable size of the concerned market. Conclusion From the above discussion, it can be asserted that the overall social, political, economic, technological and environmental environment of the country, in spite of the several limitations which are currently existing in the economy, are mostly favorable to the economic development of the country. This in turn, indicates that the environment of the country and the external factors of the country are favorable for the businesses to flourish and also makes the country a lucrative region for the foreign entrepreneurs, including the concerned company, to venture in the economy of Singapore. References Chen, M. Y. C., Lin, C. Y. Y., Lin, H. E., McDonough, E. F. (2012). Does transformational leadership facilitate technological innovation? The moderating roles of innovative culture and incentive compensation.Asia Pacific Journal of Management,29(2), 239-264. Keong, C. S. (2013). Multiculturalism in Singapore-The Way to a Harmonious Society.SAcLJ,25, 84. Lim, L. Y. (2016). 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