Management Essay Example | Topics and Well Written Essays - 1500 words

Management - Essay ExampleThese factors can be both a threat and opportunity for the company. It is a threat because they ar beyond control of the company, that the acronym chap becomes an appropriate term. It becomes an opportunity when the company takes advantage of the environment and it becomes a rearranged word as STEP towards strategies in entering the market. Any company wishing to enter new market should study the macro-environment factors surrounding the country. freshman consideration is the political compend that consists of political stability, legal framework for contract enforcement, hatful regulations and tariffs, favored merchandise partners, anti-trust laws, pricing regulations, assessations tax rates and incentives, wage legislations, mandatory employee benefits, industry safety regulations and product labeling requirements. The political compendium done for Sainsbury showed following results Trade restrictions. It will not be difficult for Sainsbury to est ablish technical subscriber line relations with Qatar because of its existing friendly relationship with U.K. It has an existing Free Trade Agreement that provides benefits to both assure parties (Pratap, 2011). One of the Qatars policies that makes setting up of large industries possible here are the regional integration, trade liberalization and expansion of market volume, thus encouraging mass production and economies of scale. Tax policy. Benefits owing to tax incentives include the following No income tax or social security deductions payable on engage and salaries. No taxation is payable on exports and customs duties start at 5% Foreign investors are permitted full repatriation of capital and profits overseas in outside(prenominal) currency. Corporate tax on foreign companies is 10% Source KMD Consulting Legal. According to SMD (2008), the Foreign Investment Law No. 13 of 2000 offers foreign will power up to 100% foreign ownership in sectors of agriculture, manufacturing , health, education and tourism. In Feb. 1, 2010, this law has been amended and straightway includes 100 percent ownership in businesses such as consultancy services, information technology (IT), services link to sports, culture and entertainment as well as distribution services. Minimum capitalization required for a Qatar company is 200,000 QR and contracts entered into by Sainsbury in Qatar are covered by the Qatari Civil Code. Sainsbury can be exempted from the Qatari Law that stipulates a total local equity of 51% in any commercial company because it falls into the category of distribution service engaged in the retail distribution cyberspace and this exemption is available upon request (SMD, 2008) Legal. Environment regulations. The current environmental issue that would most likely propel Sainsburys entrance to Qatar is its limited natural fresh water resources and its increasing dependence on large-scale desalination process. Political stability. The peace and quiet of a country is vital in determining investment. Qatar, harmonise to Business Monitor International will most likely to remain politically stable as analysts see no threat to al-Thanis family rule (Business Monitor, 2009) Next, we go to the economic factor. Included in this analysis are the type of economic system in countries of operation, government intervention in the free market, relative advantage of host country, infrastructure