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Bsuiness In China

Abstract

China is one of the countries in the world with the highest population and a very rich diverse culture as well as a steady civilization process. High population and great technology form the best recipe for an establishment of a successful cell phone company. This is a kind of investment where numbers determines the customer base and technology aids efficient service delivery hence the strength of the company. China has ever had a smooth run since the Civil war of mid 1990s between the Communist Party of China (CPC) and the Chinese National Party (CNP).

The new regime established a social state and the post war period saw China undergo social and economic disruptions. Movements such as the Cultural revolution and the Great Leap forward developed to salvage the situation were of little help, they only worsened the situation by creating an environment that “gagged and suffocated” the business community. The reforms that took place in late 1990s by the CPC witnessed a great turn (Economic revival) by rapid economic growth (Bergsten, C. et al (2007).

Opening a Cell Phone Company in China

The fact that Chinese Language is spoken by a large number of people in the world will make things much

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more cheaper for the cell phone company since they can set the phone configurations only in Chinese and still be sure of attracting a good number of clients. Chinese is reported to be spoken by well over 1 billion people worldwide. The Chinese economy has grown in double digits in the past two decades, this has made people to invest much in technology…cell phones are not excluded.

The concepts of E-Banking and the use of mobile phones to settle various bills are becoming famous in the country. It would therefore be advisable for some serious investor to set up a cell phone company in the Country [Serious because he/she has to be ready to face stiff competition from other potential players].

China s blessed to have an adult improvement in literacy level, thanks to the informal adult education. Reports indicated that almost half of the Chinese adults were illiterate but the figure has since reduced because of the seriousness by which they take the informal education. Improving the literacy level in the country will aid the cell phone industry a great deal. With the promotion of both formal and informal education, the government ensures that at least every Chinese has got that basic education to enable him/her embrace technology, lest they get declared obsolete. With high literacy level among the adults [who form the largest percentage of the population] and since it is the adults who have the capacity to own a cell phone, such a business will definitely thrive.

Another factor that might act against such an investment is the fact that the Chinese society is male dominated and therefore the women folk may be deprived of the ownership of a cell phone. This might reduce the expected customer base of a cell phone company. The reform policy that China adopted has boosted their technological advancements (Bergsten et al, 2007). It has therefore resulted to scientific research and inventions that has gone a long way to position their industrial development at the top in the Globe.

The business agreement pacts that China has signed with the other states to enhance its trade will expand the customer base across the borders. The pact has put China in a position where it enjoys Global influence, hence able to promote global trade liberalization and regional integration. This is the advantage that the up-coming cell phone company will take to establish itself.

Cotton Industry in Africa (Uganda)

Before Dunavant intervened in growing of cotton in the African countries, there was no form of mechanization and production was generally at its lowest. Among all the cash crops, cotton is the most lucrative and coveted but its cultivation process deprived it from enjoying this status until the Dunavant arrived. People who took to agriculture could toil for hours in the field engaging in an activity whose benefits were just like a drop of water in the ocean for their large families. The Dunavant Enterprises has seen the improvement of a lot of things. In only three seasons of cotton growing, people could save more than twice as before, their earnings. A smile could be seen on their faces once more.

To the Dunavant Enterprise, the promotion of the cotton growing has seen them receive more and more cotton as raw materials for their company, putting it at the top of major companies in the world. The effort by Dunavant, Cargill and other players in the sector has seen Africa which though is the world’s poorest continent, become the world’s top exporters of raw cotton.  By helping the people to embrace mechanization, the quality of their products in turn shot up to counter the competitive cotton world market.

The local’s confidence on Dunavant grew many times over; this is reflected by the number of social welfare agencies trying to partner with the company to counter the negative effects of the civil war and the HIV and AIDS victims. They welfare organization believe that with a close tie with the Dunavant Company it will be easier to reach the people (Pascal G. Zachary, 2007, 3-4).

Dunavant have also been running a project that is geared to lend farmers money at the beginning of the farming season to help them jump-start the planting process, the refunds come at harvest time after the farmers have been paid their dues. This program makes it a lot cheaper for the peasant farmers to maintain a continued production with limited resources.

For a company that has an idea to set up an Automobile tires in the country of choice (Uganda), there is not much to be considered apart from the basic factors. First the company has to carry out a study to determine the average number of automobiles in the area and the product quality that can thrive well in the country’s terrain. Next is the Relative ability of the people to buy their products…this will help them to set their prices that are affordable to the people as well as earn them profits.

On selecting the place or location to set their base of operation, it has to be at proximity with the customers and the main source/suppliers as well as in a secure region since we have found out that the rebels pose a great thereat to the foreigners and even the locals. Regarding sales promotion, the company must choose a means that can effectively reach the potential customers. For effective competition, to counter other products, the chosen mode will have to clearly highlight the advantages that the new product has over the others already in the market.

For a production firm in Uganda, one advantage that it will surely have is that of nearness to the raw material, this will ensure that only the finished products are transported for long and not the semi or un-processed goods. This will go a long way to improve the final quality of the product. The processing firm will also be sure of adequate supply of unskilled and semi skilled labor force in abundance. The Ugandan economy has not grown that well and the company will therefore face some slight huddles in its operations.

Political interference will be a major impediment to the company’s growth, there is no political stability in Uganda. The presence of the Lord Resistance Army (LRA) rebels has created an environment that is really suffocating the investors, both local and foreign. Finally is the road network in the country is wanting and will be pose a major difficulty to the up coming  company…the roads are dilapidated and it will be advisable to position the company within the proximity of raw materials and the market to avoid too much destruction on transit. The country is not badly off in terms of water supply and power (electricity), so such should never be a problem.

Porters Diamond of National Advantage

The Porters Diamond allows businesses to be analyzed within a basis of four ingredients namely:- Availability of resources, Decisions by the firm to act on what they prioritize to use the resources on, Goals of different individuals in the company and finally, the pressure of the company to innovate and invest. Under Porters Diamond measure, we consider labor, availability of natural resources, land and the size of the local population to be acting all in favor of Uganda. The country had a great plus when these factors are considered as the unit of measurement. With just a little effort to boost skills, improved technology and  government support, then cotton growing in Uganda and Africa as a whole would be massive success (http://pacific.commerce.ubc.ca/ruckman/diamond.gif.).

Conclusion

Though the idea of the private companies to pay cash on delivery is a great motivator, the fall of world cotton prices, competition from other high value crops and the fact that cotton growing is labor intensive  are acting against the proponents  of improved cotton growing.

References

Bergsten, C. et al (2007). “China: The balance sheet: What the world needs to know about the

            emerging superpower”, London: Perseus Books

http://pacific.commerce.ubc.ca/ruckman/diamond.gif. “The Porters Diamond” Retrieved on 15th

            December 2008.

Pascal G. Zachary. (2007)“Out of Africa: Cotton and Cash”. 1-6

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