Qualitative Analysis

Qualitatively compare the 1) political, 2) cultural, and 3) competitive environments in your two markets. Based on your analysis, recommend the “one best market” as your firm’s next market to enter. The firm in discussion is H&M (a clothing line) therefore the analysis should have a focus on the clothing and fashion retailing industry and its possible customer target. The two markets (and their economies) to COMPARE ARE SOUTH AFRICA AND AUSTRALIA and decide which one is a better option for H&M to venture and open business.

4 – 5 PAGES

 

•             Font type should be 12-point Times New Roman throughout the document.

•             Double-space all body text.

•             Indent first line of a new paragraph

References include in-text citations, articles and websites all properly formed in APA style.

 

Use Tables and Figures liberally – Anything that could be presented in a table, should be presented in a table.

 

Attached you’ll find more info on both countries from the same project.

South Africa

Supply Chain Efficiency

Since the embargo on South Africa ended with the end of the apartheid, South Africa’s foreign trade has flourished. They have many ports, including the largest port in Africa, Durban. South Africa’s logistics is further supported by an extensive freeway system that it heavily relies on. The country is currently expanding on its rail system as well, to further aid in the transport of goods. With South Africa’s growing foreign trade, delays or stoppages in the supply chain from H & M seem unlikely.

Economic Development

South Africa has the largest economy in Africa. Even so, it has an extremely high unemployment rate of 25%. That is one of the highest rates amongst emerging-market nations. Like many countries, it suffered from the global recessions of the late 2000s. However, South Africa does see its middle class growing.

Social Development

With the removal of the apartheid almost 20 years ago, South Africa has made major strides in social development. Democracy was established, education levels have risen, and access to basic necessities such as water and electricity has increased for most of the nation. South Africa still suffers from inequality, high poverty levels, and large unemployment rates.

Ability to Adapt

South Africa has seen a rapid growth of foreign brands opening shops within its borders. In the past, only South Africans that travelled had access to many foreign brands. With the success of stores such as Zara, Steve Madden, and Gap in South Africa, H & M also stands to do well, if it enters the market. Due to years of limited access to foreign brands, wearing such brands is still a sign of wealth in South Africa.

Political Stability

As mentioned earlier, South Africa is now a democracy. It has made major strides since the 1990s, but it still suffers from inequality, high poverty levels, and high unemployment rates. This will most definitely have a major impact on the nation’s 2014 elections.

Availability of HR Skills

South Africa is currently dealing with a skills shortage amongst its workers. This is part of the reason for the large unemployment rate. With education levels on the rise, the younger generations of South Africans are better suited for the modern workplace. The government has implemented skill development legislation to help tackle this issue.

Australia

Supply Chain Efficiency

Supply chain management is one of the biggest Industries in Australia, many Universities offer online masters programs for logistics. The country is usually seen as the worlds biggest island and is extremely developed, and all in all, one of the most efficient and prosperous countrys in the world. Roads and highways are well established, fair weather year round, and Australia is one of the biggest supporters of international trade liberalization. Access to hundreds of ports is one of its main geographical advantages.

Economic Development

Australia is a very wealthy country with a market economy, high GDP, and lower poverty. The Australian dollar is their currency, and in a 2006 merger between the Australian Stock Exchange and the Sydney futures exchange, the Australian Securities Exchange became the 9th largest in the world. In 2010 Australia ranked 3rd in the index of economic freedom, has the 5th highest GDP, and is the 12th largest economy in the world. In fact, they were the only major country to not experience a recession in the 2008 world meltdown. Very rich in natural resources, low interest rates, and low inflation rates are just some of the many attractions for investors.

Social Development

Unemployment is just over 5%, which is fantastic. They rank second on the human development index and surpass many countries in comparisons of national performance in facets such as quality of life, health, education, economic freedom, and protection of civil liberties and rights. The government has established many foreign allies such as the United States and some Asian properties. English being its national language also facilitates many business transactions.

Ability to adapt

Australia has proven its ability to adapt whether it be in the social, economic, or environmental sector. The country is very much developed and desires the latest technology and fashion, very similar to the united states. The country is largely populated by immigrants and its Melbourne ranked first in the world most livable cities and has an annual growth rate of almost 4% in the last 15 years, and was the only country to not go into a recession in 2008, even with all its major trading partners experiencing one.

Political Stability

The political environment is a very stable, and secure one, similar to the United States. Free trade is encouraged through all its territories, and they are one of the biggest activist for international trade liberalization. Quality of life is high, corruption is low, and the economy is in fantastic shape. Their government is similar to are in that they have 3 branches, they hold elections, and are usually led by either one of two political power houses.

Availability of HR Skills

With education being as good as it is, the unemployment level and inflation levels always at a low and stable rate the availability of a qualified labor pool is rampant. Higher education is common, again, a very similar environment to that of the United States. Qualified HR personnel should not be to challenging to acquire.