DECISION 3 - MARKET ENTRY MODE
Global Market Strategy – MGMT - 6065
Group 10
Decision 2
Team members - Radhika Lotankar
- Akhil Chapala
Date - December 3rd, 2017
Professor's Name - Dr. G. Chopra
Part ONE –BERI Analysis
Matrix with the 7 BERI criteria to analyze 5 countries German, Sweden, Denmark, Netherlands and Poland. Measuring the criteria and weighting, using a 5-point ranking (0-4)
Political Stability
Political stability index (weak is -2.5 and strong is 2.5) 2015
Students Rating Index 5-point ranking (0-4)
|
Countries |
Web Rating Index |
Students Rating Index |
|
Germany |
0.72 |
2 |
|
Sweden |
097 |
2.05 |
|
Denmark |
0.89 |
2.02 |
|
Netherlands |
0.93 |
2.03 |
|
Poland |
0.87 |
2.02 |
Ref-http://www.theglobaleconomy.com/rankings/wb_political_stability/#Germany
Economic Growth
Economic Growth index (weak is -2.5 and strong is 2.5)
Students Rating Index 5-point ranking (0-4)
|
Countries |
Web Rating Index |
Students Rating Index |
|
Germany |
1.85 |
2 |
|
Sweden |
3.18 |
3 |
|
Denmark |
1.29 |
1.85 |
|
Netherlands |
2.14 |
2.15 |
|
Poland |
2.68 |
2.50 |
Ref - http://www.theglobaleconomy.com/rankings/economic_growth/
Inflation
Rating for Inflation (weak is -2.5 and strong is 2.5)
Students Rating Index 5-point ranking (0-4)
|
Countries |
Web Rating Index |
Students Rating Index |
|
Germany |
0.5 |
0.50 |
|
Sweden |
1.0 |
1 |
|
Denmark |
0.3 |
0.35 |
|
Netherlands |
0.3 |
0.35 |
|
Poland |
0.6 |
0.60 |
Ref- http://www.theglobaleconomy.com/rankings/inflation/
Currency Convertibility.
Rating for currency convertibility (The highest value was in the USA: 18569.)
Students Rating Index 5-point ranking (0-4)
|
Countries |
Web Rating Index |
Students Rating Index |
|
Germany |
3466.76 |
2 |
|
Sweden |
511.0 |
0.50 |
|
Denmark |
306.14 |
0.30 |
|
Netherlands |
770.85 |
0.70 |
|
Poland |
469.51 |
0.40 |
Ref-http://www.theglobaleconomy.com/rankings/GDP_current_USD/
Balance Payment.
Rating for balance payment (The highest value was in Japan: 57.85 percent)
Students Rating Index 5-point ranking (0-4)
|
Countries |
Web Rating Index |
Students Rating Index |
|
Germany |
1.69 |
0.3 |
|
Sweden |
4.45 |
0.4 |
|
Denmark |
3.30 |
0.3 |
|
Netherlands |
7.99 |
0.7 |
|
Poland |
13.01 |
0.13 |
Ref-http://www.theglobaleconomy.com/rankings/bank_credit_to_government/
Gross National Income
Rating for Gross National Income (per US $)
Students Rating Index 5-point ranking (0-4)
|
Countries |
Web Rating Index |
Students Rating Index |
|
Germany |
$49,090 |
4.5 |
|
Sweden |
$48,700 |
4.3 |
|
Denmark |
-$50,660 |
4.8 |
|
Netherlands |
$49,410 |
4.5 |
|
Poland |
$25,870 |
2.8 |
Ref- https://en.wikipedia.org/wiki/List_of_countries_by_GNI_(PPP)_per_capita
Labour cost/Productivity
Rating for Labour cost/Productivity.
Students Rating Index 5-point ranking (0-4)
|
Countries |
Web Rating Index |
Students Rating Index |
|
Germany |
57.36 |
3.0 |
|
Sweden |
55.28 |
3.0 |
|
Denmark |
55.75 |
3.0 |
|
Netherlands |
60.06 |
4.0 |
|
Poland |
25.81 |
2.0 |
Ref- https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_hour_worked
Collectable data of the top 3 countries .
· Germany
· Sweden
· Denmark
Germany
Germany’s inflation depends on their purchasing value file. The record says that the measurement depends on the buyer who spends on a market merchandise and enterprises.
As Germany is more into engineering, the economy keeps on being more grounded and encounters high development in import and export market. Its political system is currently seeming to be stable. Its currency (euro) stability is very important as Germans are assume control worldwide markets, additionally stability is cost, and development is the principle point objective for them.
Sweden
The inflation rate in Sweden depends on the purchaser’s price index, the estimation of the expansion is done on the bases of the percentage rise in the consumption compared to the analyzed risen period.
Sweden's economy relies upon its import and export fare with the foreign. As Sweden is more into the auto mobiles and chemical good, so the economy apparently is stable. The Swedish krona is practically equivalent to the euro and henceforth is ended up being steady with the foreign business the country deals with.
Denmark
The expansion rate depends on the Danish utilization as the normal purchaser rate spend is considered before indicating the inflation. As Denmark has a blended economy and is into natural resources and oil, so the economy depends in the services and manufacturing. Denmark’s will embrace the euro in close by future however starting at now the economy is great and its standard with the krona is valuable.
Part TWO: Secondary Market Screen
In the first place organize includes screening a generally vast number of nations on the premise of a select. Identifying market opportunities is the significant components in the universal advertising condition, this area is worried about distinguishing market openings.
Objectives of SSC
The targets of this section are:
· Worldwide data framework can help lessen vulnerability in basic leadership
· Portray the procedure of worldwide advertising research
· Demonstrate the issues related with leading worldwide advertising research.
Market Screening in Context
Market screening is one of numerous steps in the internationalization process. That includes
seeing a positive or negative boost to internationalize, undertaking screening of business sectors to create a short-list, performing top to bottom research on and examination of the short-recorded market, last choice of the market or markets to enter; choice of the method of section; development in a portion of the as of now entered remote markets.
Specific secondary screening criteria for three countries
Being European countries, all are politically stable in their business and the currency rate also remains to be stable and so does the business. Rating for all this top three countries remains similar.
Rating Index 5-point ranking (0-4)
|
|
Countries |
Rating of the criteria |
|
1. |
Germany |
2.5 |
|
2. |
Sweden |
2 |
|
3. |
Denmark |
2 |
Specific Secondary screening criteria – Germany
The optional market has long limit offers applicable system at a sensible cost. There is liquidity up to a stretch in bond market. It is also being notices that an European subsidizing and market could be a reasonable beginning stage for additional coordination.
Other than guaranteeing that German Government securities can be exchanged whenever, it is similarly essential that purchase and offer requests can be executed at equitable costs. In this regard, there are no other settled salary securities on the European capital market whose value quality is to that of German Government securities.