Starting a New Business in a Foreign Country: Bakery in Port au Prince, Haiti
This paper explores the process of starting new business in the foreign country. The business proposed is a new bakery producing traditional Haitian bread. The bakery would be based in Port au Prince, Haiti. The environmental analysis and the assessment of opportunities, returns and risks are provided in this paper. Various strategies including entry, production, development, financing and marketing strategies are created and provided in this study in an international setting for new bakery.
The study discusses legal, economic, socio-political, cultural, technological, and demographic structure of the country. The description of the new bakery including product, organizational and legal structure, as well as reason for expansion is provided. The core competencies are provided the international expansion strategy and global competitive advantage for new bakery. An operational plan is developed for production, financing and marketing of the new business.
This study identifies raw materials, logistics, suppliers, distribution channels and the target audience (buyers) of the new business. Moreover, the return on investment is projected after taxes, exchange rates considerations and duties. The main aim of this study is to provide environmental analysis and planning the entry strategy for the business proposed as a case study.
An Environmental Analysis
Socio-Political FactorsHaiti is located on the island of Hispaniola. Haiti is the poorest country among the states in both North and South America. Moreover, the country experiences continuous political instability (CIA, 2016). The rebellion and exile of the president led to new elections in 2004 which were held under control of United Nations. Thus democratically elected authorities including parliament and president were inaugurated in 2006 after numerous delays. The current authorities do their best to stabilize political situation. The geographical location and natural phenomena have great impact on social structure and welfare in Haiti (CIA, 2016).
Haiti’s economy is characterized by a free market, cheap labor, and tariff-free access to the US market for export in many segments and industries (CIA, 2016). The weaknesses economy and risks of operating in Haiti include corruption, low level of living and education, poverty, frequent natural disasters. All mentioned factors impede the growth of economy. As the result of the earthquake in January 2010, the economy suffered a serious setback and the capital city was destroyed (Laurent, 2015). According to Central Intelligence Agency, 4/5 of Haiti’s population lives under the line of poverty and more than half of population in abject poverty. Thus, Haiti is currently the poorest country in the region (CIA, 2016).
The population is highly dependent on the agricultural sector and this fact reflects the total dependence of the crop level. The economy is generally vulnerable to the natural disasters, while the deforestation caused by the human activities aggravates the situation. According to U.S. Department of State, the Government of Haiti focuses on encouraging and attracting foreign investments in order to create conditions for economic growth led by the private sector. In order to attract foreign companies and private investors the government holds measures …