Likelihood Of Inflation In The Us Economy


The world markets are largely being reshaped as we know it. Due to numerous innovations markets that were previously not accessible either by transport or by communication are now emerging. The internet is also playing a revolutionary role in reshaping the world's markets and does so by enabling remote access to be easily accessible to consumers as well as developers at just the click of a button. This there is the growing need for businesses to take their claim and establish crucial market niches in the market ahead of the competition. Demand is also growing for companies to develop diverse product to match the consumer's varied tastes and preferences. Therefore there is the need for companies to emerge from traditional production methods and diverse into modern methods which are more suitable to the consumers. As such it is important that the companies which do so have a strong industrial knowledge base and worthy leadership in order to pioneer new innovations. It is also important to the company that it should pursue new ventures not only in its parent country but also in other international countries (Adler, 2008, pp.46). However, before it does so, the company must first analyze the legal, political, economical and cultural landscape of the intended country before it partakes in the venture. Thus, to that end, this paper seeks to analyze one such company, Panda Electronics Limited and its possibility of expanding into the United States of America. Moreover, it will analyze Panda electronics Ltd. Long term goals and sustainability.

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Since the 1950s, the economic globalization trend has shown rapid developments over the years with innovative technology being needed and created to match this trend. Furthermore in today's modern age their exists a greater desire to have more diversified and able technologies which are able to satisfy human needs and wants at the same time. Panda Electronics Ltd. Is a Chinese State owned company which exists to provide solutions to such technological problems. Panda electronics is an electronics company which covers several integral industry areas such as modern communications, digital audio video and smart electronics systems, electronics equipment and electronics manufacturing. It was founded in 1936 and is largely regarded as the cradle of China's electronic industry.

Panda Electronics, though largely profitable in its parent country, will fail to remain profitable unless it seeks to venture out internationally. Panda is reputed for being one of the largest electronics manufacturers in Eastern China. However, competition is catching up and may overthrow Panda from its seat of fame. During its Eleventh five-year plan, it was noted that Panda's global consumers had reached 90 million. This number though appreciable can be substantially increased if Panda Electronics were to venture out internationally. In other words, if Panda is to be sufficiently profitable and sustainable in the coming years, it should be ready for change (China Playbook, 2006, pp.40).

Country Profile of the United States of America

The United States of America is largely known to have a very liberal and free market environment. It holds a position of being a superpower and thus is largely influential in most markets. Furthermore, it represents a large potential market from a different culture as its citizens are sure to appreciate diversity and new products. Hence, its market viability cannot be ignored.

Government, Legal and Political Analysis for Panda Electronics to properly venture in

The United States of America bears a free market system and as such is a very vulnerable form of market where exploitation can easily happen. This might therefore be a point of concern and might discourage the possibility of Panda and other companies from establishing markets here. However, the United States of America bears a strong legal framework that bears heavy penalties for any individual seeking to exploit these vulnerabilities. It also consists of very stringent laws which seek to regulate the workings of any company within its borders. Thus the United States of America has a robust legal framework which if Panda Electronics Limited Complies with, might enable Panda to establish a thriving market within the United States ( Northouse, P.2007.pp. 34).

The government of the United States is largely reputed the world over to be one of the most democratic and free government systems. It is largely respected to a point whereby other nations are modeling their governance systems on it. It defines equal devolution of power so that each of its member states has a say in the government's affairs. Such devolution of power also puts into place rigid systems foe handling issues, with minor matters being handled at county and state level and major matters being dealt either by the country as a whole. Thus it provides an almost perfect chain of command.

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Cultural Dimensions of the United States and China

The United States has a rich, cultural background and this largely because of the different ethnic groups living within its borders. Because of so many different groups being clustered together, there exists a large demand for a diverse range of goods to fully satisfy the population as a whole. Thus there exist similarities and differences in the Chinese and American cultures. In order for Panda Electronics to succeed in establishing a viable market in the United States, it will have to develop products that properly intertwine the two cultures. Managers and CEOs who are intended to head these market establishment campaigns should be follow the five dimensions as stated in Hofstede (Hofstede, 2003, pp.45). These five dimensions include: uncertainty avoidance, individualism, masculinity power distance and long-term orientation.

1. Power Distance. America is considered to be a low power distance country whereas China is a high power distance country. Managers and CEOs should thus be aware of this fact and what it means. B basically, it means that China is better suited to a hierarchal system than the United States. Hence in America there exists equality among everyone. Moreover, in America there exists the tendency of people socializing only with those who they deem to be of their class. Therefore for Panda Electronics to be successful, it must carefully consider the cultural difference between its parent country and that of America and work towards developing products that are more acceptable by American culture and standards.

2. Individualism. America is considered to have an individualist mentality, whereas China is considered as having a collectivist mentality. This means that American citizens are more concerned with working for themselves than as a group. Thus Panda electronics should formulate and develop products which answer the question in the American consumer's mind, 'What will this do for me?'

3. Masculinity. America is a country largely reputed for is gender equality. Indeed, there are as many women doing the same job as women. Thus, Panda electronics must eliminate gender bias from its products and develop products that can be used by both sexes.

4. Uncertainty avoidance. China and America share similar cultural practices. However Americans tend to dissociate themselves from forming relationships with the countries. They will only do so if the prevailing conditions are right. Thus managers should therefore formulate policies that help in circumventing the different perspectives.

5. Long-term orientation. China has a high long-term ranking of 118. The United States, on the other hand, has a low score of 29, which indicates a short term orientation for the United States. The long term orientation for China indicates that changes can occur rapidly but it comes at a price, while short term orientation for China indicates that changes cannot occur rapidly. Rather they occur over a long period. This can be attributed to the fact that if changes were to occur in an industry for example, the changes must undergo thorough vetting and analysis under the America legal system. This process takes a lot of time hence the delay.


The world is changing at a rapid pace. Today's managers have to move with this pace if they are to ultimately succeed. The managers have to shift their thinking globally instead of locally. They have to think of new ideas that will literally change the world's way of doing things. They have to be pacemakers. For managers to be highly successful, they need to incorporate the various factors which affect a company's marketability in a region. They have to think ahead and formulate possible problems and their solutions. They have to think about how to globally increase their companies' profits.

Managers and CEOs are essentially the leaders in the company. A leader's general attitude and performance is an inspiration to those he is leading. A leader who is well disciplined and shows dedication to transforming Panda Electronics into an international brand should be chosen to head Panda's venture. A leader should have strong ideals and values and need to have the following four personality traits: idealized influence, motivator, intellectual stimulation, and individual consideration (Northouse, p.183).

A leader is someone who can earn the trust and collaboration of his subordinates. This is not because they fear him but rather they view him as an inspiration and as one who is willing to take them and the company forward. Such leadership qualities are what Panda Electronics should strive to look for when selecting the head of this particular venture (Drucker. P. 1999. Pp. 65)

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Market and environment analysis of the United States


1. There exists a large market demand for cheap electronic goods within the United States. There is a high demand for a diverse electronic range of goods and services within the United States market.

2. The current economic recession has left many American citizens unemployed. This situation provides a potentially large cheap labor source for Panda Electronics.

3. The United States has large and well developed infrastructure.

4. The United States has a clear intellectual advantage over other countries. Hence the cost of training employees would be kept to a minimum (Kochan, 2003.pp.66)


1. The United States has many other Electronic companies which pose a significant threat to Panda Electronics. Panda, therefore, has to develop new and diverse range of products that appeal to the American consumer.

2. The United States is currently facing an economic downturn which may prove to be unfavorable to Panda especially in terms of sales. This is due to the low buying power of the American consumer. Thus Panda might be forced to subsidize its products which might mean losses for the company.


1. The thriving economy creates a substantial market for electronic goods.

2. The United States has a large population which presents a large consumer base.

3. The United States has a well-rooted knowledge industry ( Rush, 2002. pp. 58)


1. Competition- Competition in the United States is brutal, with competitors spending billions of dollars trying to outdo each other. Panda has to develop innovative products that will carve out a niche and keep the competition at bay.

2. The current economic recession still proves to be a major setback, though reports say that it is receding. Panda would therefore have to consider the financial implications of this factor before it moves forward.


Based on the review if the United States as a whole and taking into consideration the various factors that may affect the establishment of Panda Electronics in its market, it is therefore advisable that Panda Electronics Wade off the current economic crunch but capitalize on it. By doing so, it would able to set up a viable industry by taking advantage of the United States rich resources. Furthermore, it is recommended that Panda Electronics keep a keen outlook on the revolution of the American culture so as to properly adapt its policies and products at the time of the venture. Moreover, Panda Electronics must find from its employees, well motivated and mature and competent leaders are up to the challenge (Dale, 1969. pp. 26)


In the modern age, where trends are appearing and disappearing constantly and economies of countries growing rapidly, it is vital that Panda be able to capitalize on this trends especially if it intends to venture out to new international markets. For its venture into the United States to be successful, Panda has to critically analyze the United States' government, its political and legal framework, its culture and its industry. Panda also has to analyze the markets by doing a SWOT analysis and critically look at the strengths, weaknesses, opportunities and threats of the potential United States market. Finally, Panda has to select a capable and inspirational leader who is able to pursue the venture and ensure that Panda is well founded in the United States market. This can only be done through thorough critical analysis of its employees (Tein, 2004. pp.20)