How to complete a EFE for Macy's Inc.

MGT/711 v7

Country Profile Matrix

MGT/711 v7

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Country Competitive Profile Matrix

Research 3 countries or regions you are considering for expansion in preparation for your Week 6 assignment.

Describe each factor as it relates to the country or region you are considering.

Add additional rows and factors, as needed. Consider adding a factor unique to each country or region you are considering.

Rate and weight each factor for each country or region. Remember that the weight of all factors for that country must total 1.0.

Format references according to APA guidelines.

Submit your assignment.

Factors	Country Name India	Weight	Rating	Weighted Score	Country Name Australia	Weight	Rating	Weighted Score	Country Name China	Weight	Rating	Weighted Score
Population	India has the second largest population of 1.412 billion. Such a high population offers a large competitive market space for investors (Gordon, 2022)..	0.20	5	1.0	Australia population of 27.1 million, indicates fewer marketplace prospects for potential investors (Trading Economics.com.2021)	0.10	3	0.30	China has a population of 1.426 billion. With such a high population, the market is large and thus offers a good environment for competition (Gordon, 2022).	0.10	5	0.50
Culture	Indians have a high spending habit, meaning the middle-class and upper-class Indians will promote business. growth is reshaping the lifestyle of Indian families (Farrell & Beinhocker, 2007).	0.05	2	0.10	Australia culture, and the culture of the west are similar. Australian culture places considerable emphasis on egalitarianism, while the U.S places more importance on authoritative and strong leadership styles (dynamic Business.com, 2011).	0.10	5	0.50	Chinese culture of trustworthiness, hierarchical and reserve is good for business and garners a system of social relations, based on jointly beneficial collaboration, trade and trust, both on personal and business levels (FBA.Help, 2020).	0.05	3	0.15
Economy	India is expected to become the third largest economy by 2030 in the world. This economy is good for a new or continuing business (World Economic Forum, 2021).	0.15	2	0.30	Australia has the 12th largest economy; Australian GDP is projected to be 6.7% larger by the end of 2022 meaning businesses are likely to thrive here. (Austrade.gov.au, 2022).	0.10	5	0.50	China has the fastest-growing economy in the world, meaning that it can promotes and invests in business success and growth (China Briefing.com, 2022)	0.10	5	0.50
Government	India is a Sovereign Socialist Secular Democratic Republic with a Parliamentary form of government which is federal in structure with unitary features: · Parliamentary System · Constitutional · Federal · Parliamentary Republic (India.gov, 2022).	0.05	2	0.10	Australia has a democratic form of government that are stable. The government sectors are: · Federal Monarchy · Parliamentary System · Representative Democracy · Constitutional Monarchy (Parliament of Australia, n.d.)	0.10	5	0.50	China has no democratic government as it is ruled by a one-party communist state (Albert, Maizland & Xu, 2021)	0.05	2	0.10
Legal Environment	The legal environment is favorable to business, but there is a single common law framework with federal and unitary features (Luthra & Koshy, 2021).	0.02	1	0.02	Has a national statutory framework that ensures justice to foreign investors and consumers (Austrade.gov.au., 2022)	0.10	4	0.40	China has a civil law legal system and is tied to the political system and has high corruption. Therefore, they are not very effective protective measures (Santander Trade.com, 2020).	0.02	1	0.02
Regulatory Environment	India has a better business regulatory environment that seeks to prevent market failure (OECD.org, 2022).	0.05	2	0.10	Regulatory environment is optimal since there are laws in place to protect businesses (Austrade.gov.au, 2022).	0.10	4	0.40	The market is extremely regulated, leaving little freedom for American and European investors (Dadush & Weil, 2021). .	0.03	2	0.06
Workforce Characteristics	India has one of the highest workforces behind China. Although Its labor force is estimated at 509.3 million which covers only 46.2 % of the population India’s youth lack skills necessary to adequately compete (DW.com.,2022)	0.03	1	0.03	Australia has an exceedingly skilled workforce and most educated, multicultural and multilingual in the world (Austrade.gov.au, 2022)	0.10	4	0.40	China has a skilled and semi-skilled workforce of over 200 million that is available at lower costs (English.gov.cn, 2021).	0.10	4	0.40
Operational Logistics	Have low operational logistic capabilities and ranked 47 out of 155 nations because it has less skilled workforce (Bureaus, 2010).	0.10	1	0.10	Good operational logistics owing to its skilled labor force	0.05	4	0.20	Chinese operational logistics are developed and translated to better profit margins as there is a large pool of technocrats and professionals (Chu et al., 2022)	0.10	3	0.30
Competitive Environment	Competition in the market is not transparent as there is a high political impact in businesses	0.10	1	0.10	Australia has a healthy and competitive environment for foreign investment business.	0.05	3	0.15	China competitive neutrality framework in which public and private businesses face the same set of rules, and no contact with the state gives competitive advantage to any market participant (Herrero, 2021).	0.05	1	0.05
Technology	India is ranked at an negative -5.15 in technology compared to China composite score of 0.26 and Australia at 2.97 regarding technological advancement (Global Finance.com, 2022).	0.10	1	0.10	Australia is hesitant to embraces technology to a greater degree. that new technologies are not being accepted rapidly by Australians (AP, 2020).	0.05	4	0.20	China embraces innovative technology, and it is third as one of the many countries with advanced technology in every sector of the economy (World Population Review.com, 2022)	0.20	5	1.0
Infrastructure	India’s infrastructure has a majority of its regions being underdeveloped due to poverty and ranked at number 35 in the logistics performance (India CSR.in, 2018).	0.05	2	0.10	Australia has developed supportive infrastructure that will support foreign investment into the business environmental infrastructure. Roadways, air, and water conveyance systems in Australia are excellent.	0.10	5	0.50	The Chinese government has invested profoundly in infrastructure. Therefore, the transport systems, security systems, social services, and supporting business infrastructure is exceptional (China Briefing, 2022)	0.15	5	0.75
		1.0		2.05		1.0		4.05		1.0		3.83

Introduction

The Competitive Profile Matrix (CPM) is an approach that provides comparability for the business and its competitors and discloses its comparative strengths and weaknesses (Hanover Research.com, 2022). Corporations frequently utilize the CPM tool to give a guide to comprehend better the external environment and the competition within a particular industry. The profile matrix detects a firm's significant competitors and makes informative comparisons utilizing the industry's critical success factors. The analysis also discloses the corporation's comparative strengths and weaknesses against its competitors. As a result, a business such as Macy's can effortlessly detect the areas it should advance and the areas it should guard. Therefore, this document will highlight relevant points that will determine which country will provide an optimal prospect for entering the foreign marketplace founded on the overall weighted scoring of each country.

CPM Clarification

Within the business environment, external competition is inevitable. Therefore, to understand the parameter of the relative weaknesses and strengths of businesses, the utilization of the competitive profile matrix (CPM) is an operative method of analyzing marketplace competition and formulating a strategic plan for investment (Capps, Cassidy, Gravois & Warner, 2019).). The above Country Competitive Profile Matrix (CPM) examines the competitive environment for India, Australia, and China, which characterizes economies within the Asia-Pacific region. As indicated above, the weighted scores are 4.05 for Australia, 3.83 for China, and 2.05 for India. The overall score indicates that Australia has a healthier competitive environment than India or China. Australia has the highest weighted score structured on its general legal, optimal workforce characteristics, and government structure developed with an open market for potential foreign investors (Austrade.gov.au., 2022). However, China's fast-growing economy is ranked 32nd for business ventures. Its second placement in scoring and potential for foreign investors is because it lacks a conducive democratic government, therefore suggesting that the business environment may not be as advantageous as in Australia, which has a ranking of 14 (Data. World Bank.org.,2021). As shown in the CPM Matrix, India is considerably less developed regarding skilled workforces, technology, and logistics, as equated to Australia and China prospectively. Additional factors regarding starting a business for foreign investing take 2.5 days in Australia compared to 27 days for India and 33 days in China, thereby giving an advantage to Australia (Nation Master.com, 2013).

Moreover, India's governmental structure is not fully democratic and has four forms of government which may cause further delays for potential investors and weaken investor confidence. However, Australia is slowly accepting new technologies, but this has not become a factor for foreign investment. However, India's high population affords an advantage, which could render investors a considerable market share if investors start a business (Ministry of External Affairs Government of India, 2021). Australia's weighted score of 4.05 indicates an optimal choice for business investors that contemplate foreign investing. The EFE matrix tool aids in a business's potential growth and advantages while recognizing the marketplace's strengths, weaknesses, opportunities, and threats (Strategic Management Insight.com, 2021). Additionally, the (CPM) scoring provides comparability with the competitors. For the corporation to appropriately choose among the three countries while recognizing possible threats, external factors could theoretically destructively affect the business and reduce its market share (Tien et al., 2021). Therefore, choosing the country with the highest weighted score is optimal to render a competitive marketplace entry with better chances of succeeding. The organization is Macy's, which offers high-quality consumer products. These products will appeal to and are affordable for all social class levels within the entry into the global marketplace, followed by China, and India, associated with the ideal sites due heavily in part to the weighted scores from the CPM table. Australia's strengths regarding its healthy and competitive environment for business, democratic form of government, highly-skilled workforce, economy, and culture offered beneficial aspects advantageous to Macy's possible foreign business investment. Therefore, China is a secondary location for the Macy's Inc. subsidiary.

Summary

Comprehending and researching the marketplace with the intention of global expansion requires dutiful research, strategic planning, and comparison. The benefits of expanding the global aspect are interminable, particularly if Macy's approaches it correctly. Nevertheless, there are potential downsides along the way that can hinder progress when the company forgoes investigation and analysis, such as an EFE, IFE, and CPM, that aid the firm when making strategic and data-driven decisions for the brand. According to Sohel, Rahman & Uddin (2014), "Analyzing organizations in this manner is an effective way to evaluate many competitors in one framework to support an effective strategic plan" (p 43). Although CPM is a practical tool for competitor analysis, it also presents limitations in which non-uniformity may transpire regarding weights. Since assigned weights are subjective and assigned by the evaluator and not identified methodically, these weights do not ensure guaranteed returns for the business (Sohel, Rahman & Uddin, 2014).) Therefore, it would be best to utilize additional tools such as SWOT, IFE, and EFE alongside the CPM to deliver empirical research data.

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Copyright 2021 by University of Phoenix. All rights reserved.

Copyright 2021 by University of Phoenix. All rights reserved.