Amazon Ready Meals Ltd (i.e. ARM) is a company based at Australia specializing in ready meals business. ARM is privately owned and has a history of five years operation in Australia. The company is composed of 120staff members, with the management department having 10staff members. In addition, the company has distributed its products evenly within its country of origin, having 30branches offering the company products (Sanford and Morrison 54). Within the five years of operation, successful performance has been evident with frequent increases in its profitability.
Successful performance has resulted from an established system of regular company reviews plus proper communication to consumers. Staff members are recruited on merit basis and are taken through frequent thorough trainings to improve their efficiency (Latham 155). Additionally, an initiative aimed at improving employee performance, there is attractive acknowledgements and encouragement to staff members as a way to realize the company goals and fulfillment of its mission. For this reason, the company has considered to expand its scope by venturing into a foreign country market. For this reason, ARM has embarked on a mission to take one of its products to Hong Kong, China.
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However, despite the company producing various ready meals products, Burgers products have been considered to be the best to venture into the foreign market. Being an Australian product, ARM burgers will efficiently define a strategy best suited to secure a reasonable market share within Hong Kong. ARM will be dedicated providing ready meals conveniently plus delivery and production of safe meal products as has been in Australia. Moreover, the ARM products must be legal and of highly standardized quality. The company aims to adopt frequent improvement and implementation of an integrated quality system through the management team (Columbus 99).
Identification and Analysis of Country Variables
Physical and demographic profile
Amazon Ready Meals is venturing into a market niche which is characterized by diversified ethnic settings. However, the ARM burgers will be targeted upon 90% Chinese citizens and an additional 2% Filipinos. ARM has considered provision of Chinese cuisine in the main meals to be a perfect strategy to capture the targeted market segment. Additionally, 1.8%Indonesians and 2% of the minority group will be apportioned appropriately (Latham 277).
Economically, basing on 2007data, Gini index revealed 53.27% whereby income distribution to various households was observed to be varied. Consequently, the data displayed a feasible market within the main Hong Kong ethnic groupings. ARM products will greatly gain from consumption from age-groups between 18 to 65years constituting 75% of the country's population. Moreover, 18-65age group lifestyle is considered to be easily manageable since the meals that will be availed by ARM will meet their requirements. By such provisions, ARM will acquire a competitive advantage over its competitors who offer similar products (Columbus 112).
ARM research on the target market has revealed that Chinese lifestyles are transforming with time towards consumption of ready meals. This is because Chinese residents have been observed to spend most of their time within the workplaces and also in commuting to work places. Nevertheless, even the Chinese government has considered this challenge and is thereby investing heavily in ready meals growth strategies. In doing this, the government is creating more and more opportunities for ready meals production and improving innovations. For these reasons, ARM burger products will have an attractive opportunity to secure a ready meals market share within Hong Kong (Thomassin and Kakali 111)
Chinese residents majorly exhibit diversified customs, lifestyles and values. For example, while greeting or while in a meeting, foreigners are expected to slightly bow or offer a simple handshake. Similarly, during group meetings, senior individuals should be given priority in greetings and individuals are usually addressed by use of their surnames or titles (Latham 184). In addition, persons of similar sex are not allowed to hold hands. On the other hand, it's against the Chinese norms for women to cross their legs while men's feet must be kept on the floor always. To some extents, such aspects are expected to affect ARM salespersons or restaurant attendants negatively in their efforts to affectionately welcome customers.
Similarly, according to Chinese customs, awarding of gifts is highly regarded and they are part of daily business operations. However, gifts which are not wrapped with blue or green hat are disregarded. Additionally, entertainment aspects are also part of Hong Kong's business operations. Hong Kong's residents' alliances or business deals are carried on within restaurants under an 8-course meal. Sitting etiquette is also a very crucial aspect within Chinese communities (Masciulli and Day 326). Business trips in China are conveniently done in the months of March to June or even November to October. For ARM products to thrive within Hong Kong, name cards or business card must be issued to client visiting the restaurant. According to Chinese customs, business cards exchange is very vital and lack of cards issue can result to ARM business operations termination.
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Major unethical consumer practices have been prevalent within Hong Kong due to increased counterfeit products. Such issues have threatened the business world due to the negative impression impacted on consumer behaviors. Such consumer attitudes related to ethical issues may influence consumer decision patterns and possibly hamper the move to sell ARM burger products. Similarly, there have been job related ethical issues particularly on hotel staff in Hong Kong. Significant differences have been observed during the analysis of demographic variable such as education level and age indicators which highly influences individual performance levels (Gomez and Ostry 304).
Unethical behaviors have been considered to be either harmless, benefiting the individuals actively or passively benefiting. Results revealed the need for a clear ethical policy on employees and clearly recognizing the harmless behaviors within workplaces.
However, ARM burger business management will only benefit through the ability to identify such ethical areas whereby staff members require education and guidance. In order to sail through, ARM must address the ethical issues related to finances, environmental rights, staff members' justice, consumer justice, care for society and utilitarianism (Das 196).
Business profitability in Hong Kong is highly influenced by favorable political environment. During economic turmoil, Chinese businesses are not adversely affected since the government frequently intervenes by issue of special relief packages. An analysis of fiscal 2008 revealed that China government advanced approximately 11billion dollars to households (Columbus 189). The advancement was aimed at supporting the Chinese population against difficult economic moments. Such initiatives by the government serves as an assurance to ARM business in offering ready meals since the clients purchasing powers is assured.
In 1997, human rights demonstrations almost jeopardized major industry performances whereby fast food industry was observed be adversely affected. However, currently Hong Kong has few cases reported on protestations. China government under the political framework has facilitated inclusion of business sectors within the 28functional constituencies. With such inclusion, business policies are expected to be successful. For such reasons, ARM burgers will sail through due to an assured business representation emanating from political back-up under functional constituencies within the Electoral College (Masciulli and Day 363).
Future export needs in Hong Kong are threatened by an Import licensing requirement linked to non-tariff barriers imposed on common imports to Hong Kong. Due to such threats, ARM may suffer decline in profitability (Thomassin and Kakali 191). In addition, minimum import price ceilings may influence ARM burger business profitability with implementation of Anti-Dumping Duty levy in the future foreign imports. Besides other cities, Hong Kong has expended its free market economy which normally is highly dependant on international trade and finance. Consequently, Hong Kong is exposed to unavoidable economic turmoil which began way back in fiscal 2008.
In fiscal 2007, Hong Kong reported a splendid amount of services trade and products sale equivalent to 404% on GDP. Moreover, the past decades the city's service industry goes beyond a mark of 90% in GDP proportion. Consequently, GDP averagely has been observed to be accelerating since fiscal 1989-2007 at an average of 5%. Such attractive growth capacity will assure ARM burger products of its successful performance due to the city's ready meals reception capacity (Sanford and Morrison 76).
Trade, investment and foreign policy profile
In Hong Kong, Trade and Foreign Affairs departments avails advices to business travelers traveling to Hong Kong. The department offer alerts on personal security while in Hong Kong, enabling individuals to identify suspicious behaviors. Similarly, possible quarantine information on measures undertaken overseas is provided on the travel bulletin. Business travelers are advised to organize a comprehensive travel insurance, contact details should be well registered as a precaution for emergencies. Such information and provision is essential in enabling ARM burger venture into Hong Kong. AR staff members' security is assured through application of such precaution measures (Gomez and Ostry 294).
ARM burger business will have a good opportunity to invest in a foreign market particularly in Hong Kong. Generally, Hong Kong serves as a China's trading gateway. Such provisions make Hong Kong an accessible and a dynamic market which is less of barriers to market entries (Pigott 714). Additionally, a diversified network entailing British businesses has been established and it provides support or services to new market ventures. Similarly, Hong Kong in conjunction with Macao host above 100trade fairs plus exhibitions which offer various companies' access to Asia Pacific Markets. This is a perfect opportunity for ARM business since they will have a chance to grow their business internationally, and secure a large clientele base in Hong Kong. China's free market existence is a perfect ground for venturing into its market freely without barriers.
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Foreign relations issues in Hong Kong are majorly the obligations of China. Government Moreover, Hong Kong is mainly a separate customs territory and its economic entity is separate from the rest part of China. For this reason, Hong Kong is able to engage in international agreements by its own on issues related to economic or commercial matters. Consequently, without depending on China, Hong Kong participates in full membership of various international economic organizations (He 699).
Such international organizations include World Trade Organization (i.e. WTO), Economic Cooperation Forum of Asia Pacific (i.e. APEC) plus the Task Force of Financial Action (i.e. FATF). For this reason, Hong Kong has emerged as an effective and articulate champion of free marketing plus free-trade barriers platform (Ferrington 175). Such independence aspect of Hong Kong will enable ARM burger business to sail through successful since the city will fully support its entry into the foreign market of Hong-Kong.
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