PM606 Advanced Social Science Sample
November 29, 2021
MBA501-A1 Dynamic Strategy and Disruptive Innovation
November 29, 2021Abstract
The current report is based on Brew Dog Company. It is considered as the pub chain in the United Kingdom. The report mainly emphasized various factors that have an influence on the environment of the business. It also includes policies and practices of trade that are governed in countries like the UK and Canada. In addition to this, it has an impact on the business activities at the time of expanding the business into other countries. The policies emphasize regulating the laws that are made by the government to run the organization effectively and efficiently. On the other hand, expansion of business has both positive as well as negative impacts on the firm’s activities.
Introduction
In the modern era, international business is the term that involves trade between two countries at a global level. In general terms, it can be said that buying and selling of goods and services between more two countries. On the other hand, there are certain trade practices that are carried out for effective business operation in the country (Zellmer-Bruhn, Caligiuri and Thomas, 2016). There are different forms in which business can be carried out at a global level such as importing, franchising, joint venture and licensing.
Figure 1: Brewdog Company (Source: the caterer, 2019)
The current report highlights Brew Dog Company. It is a multinational brewery that is based in Scotland, United Kingdom (Brew dog, 2020). It was established in the year 2007. The report includes Hofstede analysis, including different business environment aspects such as economic, political and legal. Furthermore, it also emphasized trade policies and practices between the UK and Canada.
Market attractiveness with relation to a business environment
In the present scenario, international business plays a vital role for companies to expand their business operation with other countries. In addition to this, there are certain changes that can be done for the purpose to enhance productivity and profit within the marketplace. There are various factors that are present in the environment that has a greater impact on the operational activity of the company (López‐Duarte, Vidal‐Suárez and González‐Díaz, 2016).
Political factors
In Canada, parliamentary democracy political system is followed that involve its own political and social institutions. In addition to this, it also has social safety and financial inequities that are taken into consideration within the country (Studynovascotia, 2020). Further, it also entered into a free trade agreement with different nations and it also promote important and export from various nations. It has been analyzed that in 2013 Canada has ranked the 84th percentile in terms of political stability and has the 97th percentile for government effectiveness based on the Worldwide Governance Indicators.
In Canada, political factors involve taxation, trade and tariffs, fiscal policy etc. This depends majorly on the state and federal bodies for advertising, distributing and producing products in the market (Welch and Piekkari, 2017).
Economic factors
Canada has a mixed economy in the country as it constituent both the mix of market and command systems. There are three groups that play a vital role in a mixed economy that include business, government and consumers (Joanne Christie, 2020). All these three elements have a greater influence on the production and consumption of goods and services within the country. In addition to this, government and private ownership both have control over laws and regulations that are governed within the country. A mixed economy comprises both socialism and capitalism. It helps in protecting private property and also helps in allowing freedom to the level of economic for the purpose to use capital. It further involves the interference of government in the economic activities of the country that aims for achieving social aims for the future (Kingsley, Noordewier and Bergh, 2017).
Legal factors
The legal system of Canada is based on the common law that is operated in the British (thecanadaguide, 2020). Here, the rights of the country are governed by the constitution and the Charter of rights and freedoms that are practised within the country. In addition to this, here criminal laws are only managed by the federal government in the country. Further, English common law was applied to the country and in other British colonies as well. Federal laws are also governed in the country that is passed by the parliament of Canada. The Constitution act 1982 was amended in the country that has reformed and indulges by the parliamentary supremacy in Canada.
The legal system of Canada was developed by the British North America Act 1867 that came under the constitution act 1867 (Unimelb, 2020). This act created the federal and provincial governments within the country.
Cultural factors
The culture of Canada is a mixture of British, French and American all these countries cultural aspects are involved in the cultural life of the country. In other words, it can be evaluated that multicultural factors are considered for Canada as it mainly focused on all religions and beliefs that are represented in different communities (Britannica, 2020). It adopted multiculturalism as the official national policy and also involves the federal government these support of different ethnic groups. Further, it has been analyzed that Canada has diverse historical and ethnical as there is no single culture that is followed within the country (Fletcher and et. al 2018). French and English are the official language that reflected the dominant language in Canada.
There are generally four dimensions identified that include power distance, individualism-collectivism, uncertainty avoidance and masculinity-femininity. These can be explained as below:
Power distance:- This provides an insight that all the individuals in the society are not equal as they differ in attitude and culture. In Canada, a different culture is adopted so it has various cultural dimensions as it lacks in distinction among classes in the society. Canada has a low score in this dimension as here people are not providing equal status within the country.
Individualism: – In this case, Canada has the highest score as it characterized individuals as their own culture. In addition to this, here an individual has their own culture so it is easy for Canada to characterize people for the purpose to maintain a degree of interdependence.
Masculinity:- Here, taking into account it has a high score in case of masculine dimension as here competition will be driven and it supports achievement and success (Hofstede-insights, 2020). On the other hand, it has a low score in the Feminine dimension as there is a low dominant of Feminine in the country.
Uncertainty avoidance: – In this case, Canada has scored 48 as the culture of Canada is uncertainty accepting. The culture of Canada is not considered as rules oriented as it tends to have less emotionally expressive.
Long term orientation: – This is the last dimension of this cultural analysis this provides an understanding related to the challenges that have to be met by the country for maintaining a link with the past. Canada has scored 36 in this segment as it is treated as a normative society and the people that are involved in this society are having a strong concern for developing truth within the country.
Figure 2:Hofstede’s cultural dimension (Source: business-to-you, 2017)
Analysis of trade practices and policies
The trade policy that is governed in the UK is named as UK trade policy observatory (UKTPO) and the aim of this trade policy is to ensure that the new trade policies are developed in such as manner that it provides benefits to the country. This policy emphasized the partnership between Chatham House and the University of Sussex that is working for providing support to the new policies that are governed within the country. This trade policy in the UK provides an analysis of proposals that are considered with of Brexit (chathamhouse, 2019). This involves seven priorities that are important to serve better to the country. It involves monitoring of treatment and the exports and imports between the policy. In addition to this, it also includes training for teams, government and interested parties.
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This policy has a greater impact on the development of the country due to this implementation of trade policy with other countries (Tüselmann, Sinkovics and Pishchulov, 2016). This affects the export and import of other countries from the UK. On the other side, it has a certain positive influence on the trade with other countries as it provides certain benefits that are related to providing training to teams that help in building an effective relationship with other countries.
On the other hand, Canada has a different policy of making a trade with other countries that helps in enhancing free trade in the country (Welch and Piekkari, 2017). The business culture that is followed in the country depends on the region as in Canada the culture depends on the American, British and French tendencies that help in governing values and business environment in the country.
The Labour union of the country was hesitant to provide aspects that help enhance effective trade policy in the country. Moreover, in the UK, there are trade measures that are related to the customs union as it is irrespective of agreements between the UK and EU. The taxation act in the country establishes the custom regime that helps in making a trade with other countries. Further, it builds a new UK tariff as there is a charge on the customs duty on goods.
On the contrary, Canadian foreign policy involves trade with foreign countries that mainly emphasize building railway resources that are carried out by the country. Further, certain legislation emphasizes making foreign trade at a broader level (Beaverstock, Derudder and Faulconbridge, 2016). For the purpose of enhancing the trade policy with countries, Canada provides facilities to people that are living in the country.
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The government procurement agreement (GPA) is the framework that is associated with WTO that aims for providing procurement to the government that emphasizes building certain aspects that evolve into the UK business (Casson and Wadeson, 2018). Here, parliament scrutinizes and approves the terms that depend on the GPA membership in the country. The trade bill is made for the purpose of providing changes that are required for regulating domestic legislation that runs in the UK.
Anti-dumping measures are taken that are implemented at the time of importing of goods from other countries. In addition to this anti-subsidy measures are also imposed on the import of goods that help in contributing towards the foreign government or a public body. In addition to this, safeguard measures are imposed that are based on additional duties or quotas that are used for trading business into the country.
There is some positive as well as a negative impact on Brew Dog Company to expand into Canada as rules and regulations differ from country to country (Kolk, Rivera-Santos and Rufín, 2018). The positive impact of expansion is that new rules and regulation helps in attracting new customers to the company. This helps in increasing the sale of the business and enhances profitability for the future. On the other side, the decrease in sales has had a negative impact on the Brew Dog Company while expanding the business into Canada.
CETA policy
This is the policy that is governed under Canada and the EU as considered as Comprehensive Economic and Trade Agreement. This policy helps in getting rid of 99 per cent of the duties that are paid at the time of Canadian customs. This is further applied for exporting goods and services to the EU. With the help of this policy, customs duties are reduced on the firms and also prices were lower down at the time of payment of European goods (Kingsley, Noordewier and Bergh, 2017).
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This policy has a positive impact on the economy of Canada as this helps in increasing access towards the public procurement with other companies, emphasize geographical indications etc. This helps in building an effective relationship with the EU through this policy. On the other hand, this policy reduces the implementation of intellectual property rights on the prices that are provided to the product and service.
Conclusion
From the study, it can be analyzed that there are certain factors that are taken into consideration for the purpose to evaluate the market attractiveness of Canada. The factors involved such as legal, economic, cultural and political that has a greater influence on the economy of the country. In addition to this, Hofstede analysis is implemented by Canada for evaluating different cultural dimensions within the country. On the other hand, trade policies and practices are governed in UK and Canada for the purpose to enhance business operation at the global level.
References
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