3-20. Assess the probability that the right to establish the business is going to be denied, regardless

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3-20. Assess the probability that the right to establish the business is going to be denied, regardless of any safeguards you promise to make. Both government and competitors can have a marked impact on the ability of a new business to break into the market. There will be numerous regulatory controls and limitations imposed on a new business by different layers of government. The more complex the government structure, the more permissions and potential delays. At the same time, existing businesses will have a vested interest in preventing, or at least delaying, new potential competitors. They will have distinct advantages from being already established, but will also have existing contacts at various levels of government. If they feel threatened by the prospect of additional competition, they may use their leverage to influence decision-makers.

Problems such as these exist in varying degrees in different countries. As a group, choose either an existing, highly competitive market in your country or pick a business intending to manufacture or distribute products and services that could be conceived as being contentious. A good example would be an alcohol manufacturer in a country that has strict laws (or bans) on alcohol consumption. Alternatively, choose a business type that is concerned about its impact on the environment.

Your group should aim to pick a type of business that is more likely to run into serious opposition, either from the levels of government, the competition or resistance from local communities, activists or other groups

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International Business A Managerial Perspective

ISBN: 9781292018218

8th Global Edition

Authors: Ricky W. Griffin, Michael Pustay

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