Owning a business requires careful consideration of all the aspects that could either positively or negatively affect its success. One of the most important facets that should be carefully examined by a businessman is the factor of production costs. In order to lower manufacturing expanses, the owners from developed countries tend to move factories to locations that would provide adequate financial return in relation to outlay. The purpose of this paper is to identify the most cost-effective nation for the production of sunglasses as well as to discuss challenges that might occur on an international level while leading business activities in foreign environment.
According to Shenoy et al. (2009), the Republic of Singapore, located in Southeast Asia, is one of the most organized nations in business conduct. It is located strategically to attract international factories and industries. In addition, the nation is inviting and is rated one of the most convenient countries to conduct globalized business activities. Moreover, Singapore has double taxation avoidance, free trade, and investment guarantee agreements. Therefore, Singapore was approved to be the most cost-effective nation to establish the sunglasses factory in an attempt to lower the production costs.
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In respect to PESTLE analysis, there are internal and external factors that might affect business move to another country. This analysis covers political, economic, social, technological, legal, and environmental marketing components. Currently, within the economic environment, there are emerging issues that directly affect business activities. For instance, such problems as labor deficiency, rapidly increasing labor costs, and tremendous reduction in productivity are, to name a few, widespread elements largely modifying business prosperity. Concerning social environment, there are boundless possibilities of business growth, whereas labor provision is limited to blue-collar tasks. Technology development in Singapore is progressing, in this way enabling forward movement of online business activities that greatly impact economy balance. This advancement is vital in reducing the cost incurred and period taken to create awareness of international business within the entire country. Concerning legal principles of marketing, there are electronic commerce policies that govern business in Singapore. These legal strategies include Acts such as taxation and intellectual property rights that influence the profits our company will gain after a certain period of time. The double tax avoidance, however, favors the growth of business in the nation. Besides, there are strict environmental policies that have been advocated to control pollution within the country. The sunglasses factory is one of the industries that emit pollutant gasses during production. Therefore, controlling this emission is another vital task to take into consideration in the business environment. Finally, in accordance with political principle of PESTLE analysis, despite speech restriction strategy, political environment in Singapore is rather stable, the fact of which encourages new investors to expand their businesses around the country. Thus, our sunglasses company would face no challenges related to politics in general (Shenoy et al., 2009).
In spite of the fact that Singapore is amongst the best nations to conduct business activities, there are obstacles faced by international investors. One of the barriers is that Singaporean business is strongly woven around the culture. Therefore, any new enterprise requires a lot of extra time to incorporate its business activities in cultural values of the nation. This beliefs and norms usually decline the rapid growth of business in the destination country. Another obstacle for the factory to straightforwardly adjust to international business environment is the fact that there are several requirements to meet in order to become a registered trader in Singapore. In our case, the sunglasses factory would have to wait for online name register and other registration prerequisites to be assigned directly in order to start the process of business conduct (Han et al., 2006). In addition, to receive a construction permit, an investor in Singapore must follow up to 11 procedural steps that require both time and efforts. The permit must be signed by local authorities for clearance of business activities. Regarding energy supplies, the sunglasses factory would naturally use electricity in order to transmit lighting as well as powering appliances to its location site. However, as a new investor in Singapore, one would have to wait up to 36 days for electric power to be circulated to business premises. Last but not least, a long period of time would be spent on registering factory properties in Singapore, since any international company must be approved by several authorities for to be successfully cleared and registered according to Singaporean rules (Culpan, 2010).
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On the subject of company management within foreign environment, there are certain principles to follow in order to successfully undertake business activities. As a foreign investor, I have to comply with exclusively Singaporean legal requirements for business conduct. As a result, our business factory would be a corruption-free establishment abiding by the Foreign Corrupt Practices Act as well as corruption acts of Republic of Singapore. This strategy eliminates the risks involved in conducting a corrupted business. In addition, our company would provide pre-deployment education to assist employees who engage themselves in risky activities such as transportation of products. Moreover, the company will survey work environment before the commencement of the business process to ensure that healthcare as well as medical requirements are under control. Thus, factory employees will be injected relevant medical vaccines as well as covered with substantial medical plans. Medical professional, who will take care of employees in case of emergencies, is also a part of human resources of the company. Another managing factor to consider is the location of the establishment itself. The business premises will be situated in crime-free zones of the destination country. In this way, the company will ensure maximum security for its employees on the business premises. In addition, for me, as a leading manager, who is competent in business culture, it is necessary to maintain good relationship between administration and the employees. Therefore, since foreign environment is different from the national one, it is important to provide transferred employees with even more support regarding such human factors as culture shock and nostalgia. Consequently, constant communication would enhance cohesion amongst personnel resulting in high productivity and greater profits (Han et al., 2006).
There are a number of challenges a factory owner might face while managing new workforce. Screening recently hired employees is a difficult task for most business organizations. Concerning our company, new workers are required to be trained in order to gain knowledge about manufacturing process of sunglasses as well as understanding of the policies that govern business activities. Most employees, however, tend to slowly adapt to a new working environment, thus decelerating expected growth of the business. Organization of convenient environment might also be a challenge since various employees have different preferences and meeting their needs in equal measure requires certain adjustments. Moreover, for me, as a manager, there is a need to learn and understand each of the employees separately in order to serve them appropriately. In some scenarios, however, learning and coping with new employees might be lead to decline in production process. Consequently, new employees need time to adapt to their new working stations. The business organization, therefore, has to stagnate because of inconveniences caused by the employees due to unfamiliarity with company processes. Last but not least, another challenge with regard to managing employees is the fact that business might undergo workforce losses during the transition process to a different country (Culpan, 2010).
In conclusion, Singapore is the most convenient country of destination for our sunglasses company. It possesses powerful intellectual property laws that attract international businessmen to establish their companies in this cost-effective location. In addition, Singaporean foreign registration requirements have been simplified compared to other nations for enterprisers to invest in countries economy on the whole. It avails all kinds of business environments that favor ventures depending on the requirements of investors. Moreover, there is fairly cheap labor force in Singapore; trained employees can be acquired either online or through registered labor agencies around the state. Besides, governmental bodies assist foreign investors in ensuring that they accomplish business goals in Singapore. Nonetheless, there are laws and regulations that govern business activities in this nation creating some challenges that need to be faces by foreign investors.