international business environment

By Dana Griffin,2014-11-16 14:04
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international business environment


     In the sake of expansion our company should keep in mind that it needs adequate materials, labour and a strategic plan. BNS Company starts their business in UK. This company specialized in producing chocolate candy which involved a wide range of candy. For example: mainstream, luxury and organic. BNS company get a highly success in UK from this point it’s decide to expand their business overseas in one of developing country especially in Gulf area. The company selects Oman as it has strategic location between two said Arabian Gulf and Indian Ocean. This thing make easy for the company to reach clients in different places. Also, the Company prefers to do their business in country which has low competition in their field. Therefore, they select Oman. In order to develop adequate plan for future investment, the firm has to realize the nature of country, legalization, environment, work condition and competitors. In addition the marketing environment needs to be observed which would give inputs on how to be strong in the market. According to the mentioned points the feasible study will be guided and lead by these points.

    Short overview about the two countries:


    United Kingdom is an island country, located off the north-western coast of continental Europe. It covers an area of 243,000 square kilometres. UK one of developed country and it has gross domestic product (GDP) of US$2,345 billion. Therefore, UK consider as fifth largest economy in the world and second in Europe


    Oman is one of the Gulf countries and considered as a developing country. It has strategic location in the north-east by the Arabian Gulf and south-east by the Arabian Sea. The gross domestic product (GDP) rate is 4.9%$66.87 billion and expected to expand to 5.2% in 2010.

    National business system

    Each country has different national business systems which indicate unique characteristics that affect the businesses. There are three main economic approaches which are: planned economy, mixed economy and market economy.

    UK use mixed economic which involve a combination of both planned and market economic. Also, indicates flexibility as well as government control in such areas. This system tries to maintain fairness in exchange transactions and enforcement of rules. At the same time a large role playing by government in wide range of economic activities. United Kingdom economy consider as fifth largest in the world in terms of market exchange rates. It is come after Germany as second largest economy in Europe.

    Oman economic based on petroleum and natural gas, these are the most important sources of government growth. Its economy seen as planned economy which means the major decision related to service prices, production, distribution and other functions related to business made by government. The most important role in the country's economic development is foreign capital and technology. In addition, Oman becomes the first Arab Gulf State to tap investment resources as it enjoys political and economic stability.

    Foreign investments are welcome to invest in Oman which will be treated as Omani companies paying the same tax rate. The government made it easy and flexible for international firms to expand their business in Oman by submitting some few certified documents. Having in mind all these documents types can be found in the ministry of commerce and industry’s official website (Ministry of Commerce and Industry website).

     For foreign the required documents are:

    ; The application form ( can be founded in website)

    ; Copy of a certified which indicated statute or contract to start the company's main center.

    ; Present a certified letter to bear the main center for work carried out by the branch in the


    ; Provide a certified letter to bear the main center for work carried out by the branch in the


    ; Registration certificate to the company's main center - the home country

    ; Provide a mandate for certified to the branch manager / branch manager, to carry out

    management in the Sultanate by this authorization from headquarters.

    ; Provide a copy of the agreement between the company and the government contracting

    with them or book issued by the government indicate the number of the contract and the

    date of the beginning and end.

    ; Provide copies of the identities of Commissioners.

    ; Provide samples of signatures.(can be found in website)

    ; Required to provide a copy of the Royal Decree that the registration of the company based

    on a contract or agreement especially long Tjaz decree

Analyses cultural conditions

    There are many similarities between countries as well as differences’. The most important factor the country differentiates from other countries is the culture. Culture means the way of living a group of people which indicate behaviors, beliefs and values

     Oman economic and social improvement start enhancement after 1970. Oman economic depend on oil and gas recently have been made diversify in economic by encouraging new and foreign investors to do business in Oman. Therefore, starting business required depth understanding about the nature of culture.

     Here BNS Company realize that Oman consider as safe , secure and one of Islamic country as consequence there are many differences than home country as this religion manage people lives from clothing to what they have to eat. Having in mind that Oman is an Islamic country, BNS should market or sell products that are free of alcohol and pork ADDITIVES. Since BNS is looking for a wide range of customers, so the chocolate type that is intended to be sold in Oman should be suitable for different ages.

Demography and lifestyle

    Demographic issues are also very important for any economy. The population of Oman is 3,418,085. The population growth of country is 3.14% While UK population is 61,113,205 with a growth rate of 0.276 in year 2008. This huge difference can make a huge difference for any industry to survive and prosper.

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