Table of Contents
Individual Notes 1.
Individual Notes 2.
2.0 Analysis of domestic market
3.0 Strategy for McDonald to internationalize in the Bangladesh market
4.0 Environmental analysis of Bangladesh.
5.0 Mode of entry, challenges it may find in the Bangladesh and possible solutions.
6.0 Leadership qualities of McDonald’s that support the market entry in Bangladesh.
Individual Notes 1
The European Economic Community (EEC)
According to Marzulli et al. (2019), the European Economic Community (EEC) is a regional organization that was established in 1958 by the Treaty of Rome signed in 1957 by Belgium, Luxembourg, the Netherlands, Italy and then West Germany. This name existed as European Community (EC) from 1957 until 1st November 1993 (Gabel, 2020); by name of Common Market, a former association planned to assimilate the European Economies but then named EEC. The term EC also denotes the European Communities which comprised the European Coal and Steel Community, the European Economic Community, and the European Atomic Energy Community (Euratom) (Ipek, 2020).
Then, the three communities were listed under the European Union (EU) in 1993 as the principal part of the EU representing the Common Market (Berry, 2019). The EEC aimed to inaugurate the common prices level for agricultural products in 1962 and tried to remove internal tariffs on certain products between the nations that are members of the EEC in 1968 (Ipek, 2020). Generally, EEC works for free movement of labor and capital, the development of joint and reciprocal policies including labor rights, social welfare, transport, agriculture, and the abolition of trusts and cartels. Finally, EEC is considered as three pillars of EU and comprised for being common foreign and security, police and judicial cooperation in criminal matters.
What are the pros and cons of the EEC?
Tufekci (2020) states, all the countries setting goals for the establishment of security and peace and to gather the other people from Europe having the same intention joined in EU later. But European Council, European Commission but lagged behind to establish proper deeds. Prohibiting entrance freely and due to the recent Corona Virus issue led it to be serious to enter into the UK. To diversify the resources and to preserve utilities and products by the nations and strengthen liberty amongst them, the EEC was established but couldn’t continue the same as targeted.
Individual Notes 2
Changes in the domestic markets
According to Ward (2020), there are seen rapid changes in the domestic market worldwide. Various factors are directly impacting the local business especially globalization. Globalization makes the world more little to find anything of the world like fashion, foods, cosmetics and mostly quested medicines and treatments internationally famous. So as to continue the business the domestic marketers need to cope with the changes in customer’s behaviors, demands, natures, choices, tastes, traditions, cultures and especially religious perspectives (Henderson and Moe, 2020). Trade liberalization is one of the main changes the domestic marketers mention as the decrease of the sales, because this motivates the competitor’s abilities and innovate fundamental drivers of economic growth and strategic plans (Shu and Steinwender, 2020).
According to Shapiro and Hanouna (2020), domestic marketers face competition highly in recent years in their business. Import competition is one of the major competitions the marketers face. When foreign firms arrives Widget Corp.’s domestic production market, they produce import competition, which ambiguously impact on innovation of the strategies by the company. Besides this, export competition also hinders the productions and costs extra revenue by the local marketers. Generally the exporters want to have much more money rather than local government exporting to the foreign markets (Shu and Steinwender, 2020). Access by the foreign firms into the domestic market allows them to interfere with imported intermediate goods for Widget Corp and thus generate competition for domestic suppliers.
Maturity of the market
According to Liberto (2019), the Maturity of the domestic market leads the business to a competitive aspect of business. Maturity of the market generally means the maturity of the economy of the business as well as the locality or country. Mature economy is a term refers to describe a market with a constant population and decelerating economic growth (Berry, 2019). A market may be matured by its different growth like manpower, workforce, stakeholders, franchisees, shareholders, productions, resources, revenues etc. and many things like scales and data related to these components. All these components play a vitally important role in leading the market to an international context. Massive changes or development of the positive influencing factors of the market are caused by these factors. For this, SMEs convert into MNCs. Local business turns into international business (Uri and Gessler, 2020).
There are many others factors of the domestic market changing the size, scopes and opportunity of the business. As Ward (2020), these factors may be summarized as internal and external factors impacting directly or indirectly the business. Internal factors include weaknesses, opportunities, strengths etc. A domestic market changes having great opportunity to open new outlets and segments by the other company cooperation. Strengths of the domestic company vary according to its finance and revenues, its workforce and manpower, stronger HR management. The external factors involve the political atmosphere, social perspectives, technological achievements, scientific improvements, and legal application of the business. Changes of these factors anyhow influence the business and change the flow of the business. And thus the business falls or increases in, or from the international marketplace (Uri and Gessler, 2020)………………………………