Analyzing Emerging Markets for Strategic Business Expansion Assignment, Singapore

The Individual report will be on identifying and analyzing an emerging market of your choice in order to assess its potential for investment.

This assignment will be on identifying and analysing an emerging market of your choice to assess its potential for investment.

The problem:

Your Managing Director (MD) has asked you to undertake a study to identify a potential emerging market in Asia, Africa or Latin America that will support the company’s next phase of expansion plans. The company is specifically interested in designing new business models, products/services for this chosen market.

Your MD is particularly interested in the ‘institutional voids’ that exist in this chosen country and particularly welcomes your input and suggestions as to how these could be overcome. Naturally, your MD would be interested to know how you (based on your in-depth understanding and analysis) were able to identify your chosen emerging market and the reasons and justifications in suggesting your innovative business models, products/services for this chosen market.

Bibliography

Follow the Harvard format

Step 1: You have to evaluate the overall attractiveness of an emerging market of your choice at the country level in which the selected company is not yet active. You can do this in terms of cultural or administrative distance or any other suitable criteria that is relevant for your chosen company.

Step 2: Now identify some of the ‘institutional voids’ within this chosen emerging market. You might want to use the World Economic Forum Global Competitiveness Index, World Bank, IMF, or OECD studies to identify the ‘institutional voids’ existing in the country. Select the ‘voids’ that would have the maximum impact on the operations of your chosen company. Naturally, you would like to choose only those ‘voids’ that can be resolved by the company and not macro country-level voids that are more within the remit of the government.

Step 3: Research and identify business models, products, or services adopted by other comparable companies either in the chosen emerging market or any other emerging market that addresses or overcomes these ‘voids’. You might also refer to peer-reviewed journals and academic articles that have suggested ways to overcome these ‘voids’.

Conclusion/Step 4: Finally, you provide a recommendation / strategy how your chosen company can enter this chosen emerging market. Your MD would naturally expect you to provide specific recommendations and steps the organization should take to implement this plan.

your country/company selection:

Choose two emerging markets, not a developing economy

Choose a (smaller) Singaporean (?) company, not necessarily an MNE, the selected company shouldn’t have yet entered either emerging markets

• Step 1: compare two emerging markets (PESTEL, CAGE distance) and select the most attractive one
• Step 2: ensure to select the most relevant institutional voids for your company/business (avoid macro-level voids i.e., political, openness)
• Step 3: focus on the business models of competitors to overcome institutional voids selected in Step 2
• Step 4: how can your company overcome the selected institutional voids? Choice of entry modes? Human resources management strategy?

Three categories of HR in MNEs

• Host-country nationals (HCNs): Citizens of the country where the subsidiary or affiliate is located. HCNs make up largest proportion of employees that the firm hires abroad
• Parent-country nationals (PCNs): Also known as home-country nationals, PCNs are citizens of the country where the MNE is headquartered
• Third-country nationals (TCNs): Employees who are citizens of countries other than the home or host country. Most work in management and have unique skills