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 PEST 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. whatsoever company wishing to enter new market should study the macro-environment factors surrounding the country. First consideration is the political analysis that consists of political stability, legal framework for reduce enforcement, trade regulations and tariffs, favored trading partners, anti-trust laws, pricing regulations, taxations tax rates and incentives, wage legislations, mandatory employee benefits, industry safety regulations and product labeling requirements. The political analysis done for Sainsbury showed followers results wiliness restrictions. It will not be difficult for Sainsbury to establish commercial business relations with Qatar because of its existing friendly relationship with U.K. It has an existing Free Trade Agreement that provides benefits to both contracting parties (Pratap, 2011). One of the Qatars policies that makes setting up of large industries possible here are the regional integration, trade liberalization and refinement of market volume, thus encouraging mass production and economies of scale. Tax policy. Benefits owing to tax incentives include the following zero(prenominal)income tax or social bail deductions payable on wages and salaries. No taxation is payable on exports and customs duties start at 5% Foreign investors are permitted full repatriation of uppercase and profits overseas in foreign currency. Corporate tax on foreign companies is 10% Source KMD Consulting Legal. According to SMD (2008), the Foreign Investment natural law No. 13 of 2000 offers foreign ownership up to 100% foreign ownership in sectors of agriculture, manufacturing, he alth, education and tourism. In Feb. 1, 2010, this law has been amended and now includes 100 part ownership in businesses such as consultancy services, information technology (IT), services related to sports, culture and entertainment as well as distribution services. marginal 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 network and this exemption is available upon request (SMD, 2008) Legal. Environment regulations. The current environmental issue that would most likely affect Sainsburys view 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 indispe nsable in determining investment. Qatar, according 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 incumbrance in the free market, comparative advantage of host country, infrastructure