Table of Contents
Individual Notes 1.
Individual Notes 2.
2.0 Analysis of domestic market
3.0 Strategy for Ryanair to internationalize in the Australian market
3.0 Environmental analysis.
5.0 Mode of entry, challenges it may find in Australia and possible solutions.
6.0 Leadership qualities of Ryanair that may support the market entry in Australia.
Individual Reflective Essay.
Individual Notes 1
The European Union (EU)
The European Union (EU) has been established for the purpose of unified trade and monetary body and to be more competitive in the international marketplace. This union consists of 27 countries they are Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republican, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden. The open borders ensure the free flow of legal products and individuals (Melendaz, 2019). EU always works to maintaining a balance between the requirements of its autonomous fiscal and political members. The distinct important bodies are involved with governing the EU. National governments are represented through the EU Council. The Parliament is elected through public and the European Commission is considered as the EU staff. They concern to confirm the entire members act always in social policies, rules and regulations, regional and also agricultural (Melendaz, 2019).
What are the pros and cons of the EU?
Europe is considered as one of the most effective communities in Europe having numerous pros and cons. They are described as below:
Effective for making more significant economic block
The integrated economic block is more useful and affluent than the single economic system. EU makes the large economic block that is helpful for creaking improved export and import facilities and chances, free trade opportunities and effective price ranges (Newman, 2019). Same trading currency is also an effective factor to their developed business.
Make suitable balance on the continent
It crates a better understanding and maintains peaceful condition among the counties of EU that helps to reduce the rival and make them friendly to each other to conduct their trade successfully.
Create more job opportunities
EU is the most popular platform for these countries to increase job opportunities. Last year about 10% of expanded job opportunities were directly connected with this union.
Create strong international security
Their mutual protections are provided by NATO. They allow giving the third level of protection that including steady standard data sharing without any difficulties and well-trained arm force they are capable to keep their individual safe that any others union (Newman, 2019).
Currency support needs for steady politics
Some countries like Italy, Germany, and Greece suffered currency problems that are insolvent for Europe including its present management systems and structures that are liable for creating instability in these regions (Webb, 2019).
Transparency is not equally exist
There are some obstacles that exist in the election of the European Commission because they are authorized to exert penalty of influence and power but normal individuals have no right here. It may create a bad impact on the international trading systems (Webb, 2019).
Individual Notes 2
Changes in the domestic markets
Domestic markets have a significant influence in involving financial capital for the internal development of the domestic capital market. By enabling firms to domesticate local currencies domestically, domestic capital markets can also diminish currency disparities for lenders recipients, thereby reducing systemic risk (Walker, 2018). Due to rapid technological development and competitive market strategies domestic markets are changed. These changes are noticed by competition, maturities of the market and other reasons.
Competition is the most important factor that plays the most important role in changing the domestic market. The current business market faces strong competition in both ways domestic and international. Competition makes the product’s price low and creates large varieties. Strong competition in the domestic market helps to alter required labor and resources from low productive domestic-based organizations to export-based productive organizations (Walker, 2018). This can effective for better productivities output from the organizations. The relationship between the competition in the domestic market and productivity is proportional. If high competition exists in the domestic market of the European Union then the market is useful to support the augment of productivity and also expand the labor force and capital (Walker, 2018).
Maturity of the market
Maturity of the market is another key issue for the change of the domestic market. When a market is placed in its balanced position it is called market maturity. While the significant growth is zero and there are not any innovation strategies that worked or existed then the market reaches the equilibrium state (Walker, 2018). Generally, there are four stages of the market maturity noticed such as survival, quality, convenience and customization. Through the market maturity, the productive growth rate falls down to its lowest limit or zero lead to high competition in the domestic market, drop in the price of the product becomes a price war. Market maturity in the domestic market has both positive and negative impacts. The positive sides are it is suitable to continue the reduction in cost and developments of products and manufacture high volume and also improving market share by differentiation (Stevens, 2018). On the other hand, the negative sides are it is helpful for seals volumes to peak, decreasing market share by increasing the difficulties from competitors organizations and also liable for profits start to decrease (Stevens, 2018).
Other reasons related that are playing a significant role to change the global market are governmental fiscal and monetary policies, increasing or decreasing bank interest policies rate, accessibility of the open market. Another important fact is an international transaction that involves the flow of funds among the countries’ economic conditions. Speculation and expectation are also responsible for change the domestic market. The domestic market also can be varied on the supply and demand of the country (Stevens, 2018).
Reasons why MNCs internationalize
Internationalize is a technique that is inspired through an assortment of matters as well as characteristically executed over time. There are various kinds of reasons behind internationalize multinational companies to spread they’re all over the world and make more profits (Harris, 2017). Some models and theories are used to describe the causes of MNCs internationalize like the Uppsala model, Network theory and International Entrepreneurship theory and etc. These particular significant influences are expressed bellow: es and internationalization then do fixed foreign countries to expand their business (Baker, 2017)……………………………………