International Business Profile of Targety

Question: Discuss about the International Business for Profile of Targety. Answer: Introduction The purpose of this report is to analyze the company profile of Targety, which is a retail company in Australia. This report will evaluate the business environment of the Canadan market in order to propose international expansion to the selected company. In order to expand in global market, it is highly important to implement an efficient research and development process. In this manner, it would be easy to select the targeted country where the company would be able to conduct sustainable business. Completion of this report would help Targety to expand in the Canadan market in an effective manner. This report will conduct a study in order to evaluate the external market forces, which may affect the business growth of Targety. Targety is an online retail business in the Australian market. The company has physical stores in the domestic markets. Moreover, Targety has a range of products including clothing, grocery and technical appliances. The aim of the company is to expand in the international market in order to increase business profitability. In order to conduct this study, appropriate methodology has been selected. In this report, a secondary research approach has been applied in which the data has been gathered from authentic secondary sources such as government database, journal articles and press releases (Hair 2015). However, the methods applied in this study have a set of limitation, which prevents to define accurate study result. The method of secondary study is time consuming and therefore, it would be difficult to assess a range of data. Economic Factors The Government of Canada has implemented an approach of competitive business environment. The economic policies of the Canadian government are market-oriented, through which the government has enhanced market competitiveness (Stiftung 2016). It makes the country a better place for the international organizations .The GDP of Canada is 53956.38 USD as on 2013 (Data.worldbank.org 2016). After assessing the GDP trend of Canada, it can be said that the total economic activity of the country has increased over the period of time. In 2008, the GDP of the country was 46398.70 USD and thereafter, the GDP decreased to 40764.12 USD in 2009 (Data.worldbank.org 2016). Therefore, it can be said that GDP of the country is increasing day-by-day, which is eventually increasing competitiveness of the market. As of 2013, per capita income of Canada was 42610 PPP dollars. In 2008, per capita income of Canada was 39500 PPP dollars. Therefore, it can be said that per capita income of the country is gradua lly increasing, which would be beneficial for Targety. When it comes to the inflation rate and trend, in 2016, inflation rate of Canada is 1.61%, which has been increased by 2.13% in contrast with 2014 report(Media 2016). Political Political Factors Discussion Type of government Canada is a democratic country, where the citizens have the right to choose government through election. Therefore, it can be said that Canada is stable in terms of political background. However, change in government would affect the business environment of Canada after five years. Government structure Canada follows a hierarchical government structure, where, Sovereign (Governor General) is the top authority. Under the governor general, there are two divisions such as parliament and prime minister. Parliament controls senate and house of commons. Under prime minister, there are three divisions such as prime ministers office, ministry and privy council office. International Relations Canadas international relationship is known as the largest business relationship in the world. The government of Canada has established healthy business relation with the other countries like United States (Carey, Lester and Luong 2016). Apart from that, the country has good business relationship with Argentina, Brazil, and Antigua and Barbuda. The increasing income per capita of Canada shows that the country would improve its international relations within upcoming five years, due to its healthy political environment. Political risk Political risk of the country is very low. In 2015, Justin Trudeau has been elected as the prime minister for the next five years. Therefore, it can be said that Canada is a politically stable country, where international organizations can conduct sustainable business. However, change in government would affect the business policies of Canada. Government may change the taxation policies for international organizations, which may affect business environment of this country negatively in future. Level of corruption As Government has implemented efficient policies and procedures for the business organizations, corruption of the country is comparatively low. Canada government has implemented fair business policy, which helps the organizations to conduct ethical business. In this manner, the government has reduced the level of corruption in this country. However, the market is highly competitive, which tends the organizations to adopt unethical business process. Therefore, it can be said that the government needs to revise policies as per requirements; otherwise, corruption of the country would increase in next five years. Legal In order to improve the business environment of the country, the government of Canada has implemented an efficient legal system. According to the legal policies, international organizations should conduct ethical business and should maintain minimum product or service quality. Various policies have been implemented by the Canadian government in order to protect the intellectual property of business organizations (Dub, Brunelle and Legros 2016). The government has also ensured international trade by reducing the taxation cost. It helps the international organizations to reduce organizational cost for increasing profitability. Apart from that, the government has implemented an efficient set of employment policy in order to ensure that organizations are giving equal opportunity to the employees. FDI Business environment of Canada is attractive and therefore, foreign organizations haveshown interest towards this country. As per World Investment Report 2016, the country is acquiring the 14th position among 189 countries worldwide. In 2013, FDI Inward Flow of this country was 71753 USD, which has become 48643 USD in 2015. When it comes to the FDI policies, the government of Canada has implemented efficient policies in order to attract foreign organizations (Ferraz et al. 2015). The aim of the government is to make Canada the most attractive regimen for business investment. Finance In Canada, interest rate of CANARA bank is 5.25% to 8% yearly. Banking sector of Canada is the most renowned public sector. In this country, foreign organizations can get access to the banking benefits in an effective manner. The Federal government and territorial legislatures are solely responsible for implementing taxation rules in Canada (Ariizumi, Hu and Schirle2015). In order to conduct sustainable business in this country, an organization needs to pay all kind of taxes including income tax, consumption tax and wealth tax. Sociocultural Factors Discussion Key values and tradition In Canada, people measure success by personal achievements. People in this country are confident and believe in open discussion. It has been noted that people in Canada tend to be reserved and maintain privacy. In this kind of social environment, Targety would be able to conduct sustainable business. Business process of Canada Canadian people believe in punctuality while conducting business (Carey, Lester and Luong 2016). Moreover, people in this country believe in equality and therefore, it is a stable cultural environment, where an international organization can conduct sustainable business. Language and Communication In order to communication, people rely on direct conversation with assertive tone. It makes the social environment healthy and stable for business. Structure of society In Canada, there are two different social groups such as Anglophone and Francophone Canadians. In case of French Canadian, they are more formals, emotional and hierarchical. Therefore, it can be said that Canadas social structure would help the international organizations to communicate with the target market in an efficient manner. Forecast After evaluating the business environment of Canada, it can be said that Targety would be able to conduct sustainable business in this country. As the business policies of Canada encourage the organizations to conduct ethical business, Targety would be able to increase business profitability by 5% within 5 years. Apart from that, the company would be able to hire efficient workforce, as the country maintain equal opportunity and low discrimination. Conclusion While concluding, it can be said that business environment of Canada is attractive for foreign companies. The government of Canada has a range of policies in order to safeguard foreign companies. Moreover, the growing economy of Canada shows that Targety would be able to gain competitive advantages after targeting Canada as the target market. Overall, the Canadian market would help Targety to achieve its vision, which is to be the largest online retail company in global market. Reference list Ariizumi, H., Hu, Y. and Schirle, T., 2015. Stand together or alone? Family structure and the business cycle in Canada.Review of Economics of the Household,13(1), pp.135-161 Carey, D., Lester, J. and Luong, I., 2016. Boosting productivity through greater small business dynamism in Canada Data.worldbank.org. 2016. GDP per capita growth (annual %) | Data. [online] Available at: https://data.worldbank.org/indicator/NY.GDP.PCAP.KD.ZG [Accessed 2 Sep. 2016] Dub, J., Brunelle, C. and Legros, D., 2016. Location Theories and Business Location Decision: A Micro-Spatial Investigation in Canada.The Review of Regional Studies,46(2), p.143 Ferraz, S.B., Romero, C.B.A., Nogami, V.K.D.C. and Veloso, A.R., 2015. Personal values and green purchase behaviour: a cross-cultural study between Brazil and Canada.Latin American Journal of Management for Sustainable Development,2(3-4), pp.296-314 Hair, J.F., 2015.Essentials of business research methods. ME Sharpe Media, T. 2016.Historic inflation Canada historic CPI inflation Canada. [online] Inflation.eu. Available at: https://www.inflation.eu/inflation-rates/canada/historic-inflation/cpi-inflation-canada.aspx [Accessed 2 Sep. 2016] Stiftung, B. 2016. SGI 2015 | Canada | Economic Policies. [online] Sgi-network.org. Available at: https://www.sgi-network.org/2015/Canada/Economic_Policies [Accessed 2 Sep. 2016]