Entry into Foreign Country

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Chick-fil-A is an American fast food restaurant chain headquartered in the city of College Park, Georgia, specializing in chicken sandwiches. Founded in May 1946, it operates more than 2,200 restaurants, primarily in the United States.
H-E-B is an American privately held supermarket chain based in San Antonio, Texas, with more than 350 stores primarily throughout the U.S. state of Texas, as well as in northeast Mexico.
Choose either Chick-fil-A or H-E-B and prepare a report for the company’s overall entry strategy into a foreign country. Your report should include

  1. Discuss about the economic and political factors that influence the potential attractiveness of the foreign country you proposed to enter. The table below provides a list of economic and political factors. You can pick several factors (at least three from each category) and discuss them in more detail including what is the selected country’s performance on these factors? Why these factors are important when evaluating the environment of doing business and how do they affect your business in a foreign country?
  2. Select an entry mode from below and explain why you choose this mode to enter the selected country?
    Exporting
    Turnkey Contracts
    Licensing
    Franchising
    Joint Ventures
    Wholly owned subsidiaries
  3. Discuss about the culture of the selected country, and as a manager of your company, provide some advice on doing business in this culture.
    This analysis will be approximately 4 – 6 double-spaced pages excluding the cover page (with complete references and MLA format).
    Political factors Economic factors
    Government stability and likely changes Bureaucracy
    • Corruption level
    • Tax policy (rates and incentives)
    • Freedom of press
    • Regulation/de-regulation
    • Trade control
    • Import restrictions (quality and quantity)
    • Tariffs
    • Competition regulation
    • Government involvement in trade unions and agreements
    • Environmental Law
    • Education Law
    • Anti-trust law
    • Discrimination law
    • Copyright, patents / Intellectual property law
    • Consumer protection and e-commerce
    • Employment law
    • Health and safety law
    • Data protection law
    • Laws regulating environment pollution • Growth rates
    • Market size
    • Inflation rate
    • Interest rates
    • Exchange rates
    • Unemployment trends
    • Labor costs
    • Stage of business cycle
    • Credit availability
    • Trade flows and patterns
    • Level of consumers’ disposable income
    • Monetary policies
    • Fiscal policies
    • Price fluctuations
    • Stock market trends

I strongly recommend you use headings and subheadings to organize your report. For example, when discussing about the political and economic factors, you can have ‘political factors’ as a heading and political factor 1, political factor 2, and political factor 3 as subheadings (shown below). Using proper headings will greatly improve the readability of your report.

  1. Political factors
    2.1 political factor 1 (e.g. Government stability)
    …..
    2.2 Political factor 2
    …..
    2.3 Political factor 3
    …..
    3 Economic factors
    3.1 Economic factor 1 (e.g. Growth rates)
    …..
    3.2 Economic factor 2
    …..
    3.3 Economic factor 3
    …..

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