How do I complete a external evaluation of Macy’s based from my previous papers utilizing Australia as the country for expansion using the weighted scores from my internal factor evaluation
How do I complete a external evaluation of Macy's based from my previous papers utilizing Australia as the country for expansion using the weighted scores from my internal factor evaluation from my Week 3 and the country competitive profile matrix I completed in Week 5 to guide your decision-making. Briefly explain your decision, and also summarize the internal factors that will influence my external factor evaluation.
Conduct an external factor evaluation (EFE) including at least 10 external factors related to the country or region selected. Refer to your SWOT analysis from Week 3 for the opportunities and threats you identified.
Examine the geopolitical factors related to the expansion considerations.
Examine the economic factors related to the expansion considerations.
Examine the cultural factors related to the expansion considerations.
Explain how the highest weighted scores from your EFE will influence your decision-making related to expanding into that country or region for your organization.
MGT/711 v7
Country Profile Matrix
MGT/711 v7
Page 2 of 2
Country Competitive Profile Matrix
Research 3 countries or regions you are considering for expansion in preparation for your Week 6 assignment.
Describe each factor as it relates to the country or region you are considering.
Add additional rows and factors, as needed. Consider adding a factor unique to each country or region you are considering.
Rate and weight each factor for each country or region. Remember that the weight of all factors for that country must total 1.0.
Format references according to APA guidelines.
Submit your assignment.
|
Country Name India |
Weight |
Rating |
Weighted Score |
Country Name Australia |
Weight |
Rating |
Weighted Score |
Country Name China |
Weight |
Rating |
Weighted Score |
|
|
Population |
India has the second largest population of 1.412 billion. Such a high population offers a large competitive market space for investors (Gordon, 2022).. |
0.20 |
5 |
1.0 |
Australia population of 27.1 million, indicates fewer marketplace prospects for potential investors (Trading Economics.com.2021) |
0.10 |
3 |
0.30 |
China has a population of 1.426 billion. With such a high population, the market is large and thus offers a good environment for competition (Gordon, 2022). |
0.10 |
5 |
0.50 |
|
Culture |
Indians have a high spending habit, meaning the middle-class and upper-class Indians will promote business. growth is reshaping the lifestyle of Indian families (Farrell & Beinhocker, 2007). |
0.05 |
2 |
0.10 |
Australia culture, and the culture of the west are similar. Australian culture places considerable emphasis on egalitarianism, while the U.S places more importance on authoritative and strong leadership styles (dynamic Business.com, 2011). |
0.10 |
5 |
0.50 |
Chinese culture of trustworthiness, hierarchical and reserve is good for business and garners a system of social relations, based on jointly beneficial collaboration, trade and trust, both on personal and business levels (FBA.Help, 2020). |
0.05 |
3 |
0.15 |
|
Economy |
India is expected to become the third largest economy by 2030 in the world. This economy is good for a new or continuing business (World Economic Forum, 2021). |
0.15 |
2 |
0.30 |
Australia has the 12th largest economy; Australian GDP is projected to be 6.7% larger by the end of 2022 meaning businesses are likely to thrive here. (Austrade.gov.au, 2022). |
0.10 |
5 |
0.50 |
China has the fastest-growing economy in the world, meaning that it can promotes and invests in business success and growth (China Briefing.com, 2022) |
0.10 |
5 |
0.50 |
|
Government |
India is a Sovereign Socialist Secular Democratic Republic with a Parliamentary form of government which is federal in structure with unitary features: · Parliamentary System · Constitutional · Federal · Parliamentary Republic (India.gov, 2022). |
0.05 |
2 |
0.10 |
Australia has a democratic form of government that are stable. The government sectors are: · Federal Monarchy · Parliamentary System · Representative Democracy · Constitutional Monarchy (Parliament of Australia, n.d.) |
0.10 |
5 |
0.50 |
China has no democratic government as it is ruled by a one-party communist state (Albert, Maizland & Xu, 2021) |
0.05 |
2 |
0.10 |
|
Legal Environment |
The legal environment is favorable to business, but there is a single common law framework with federal and unitary features (Luthra & Koshy, 2021). |
0.02 |
1 |
0.02 |
Has a national statutory framework that ensures justice to foreign investors and consumers (Austrade.gov.au., 2022) |
0.10 |
4 |
0.40 |
China has a civil law legal system and is tied to the political system and has high corruption. Therefore, they are not very effective protective measures (Santander Trade.com, 2020). |
0.02 |
1 |
0.02 |
|
Regulatory Environment |
India has a better business regulatory environment that seeks to prevent market failure (OECD.org, 2022). |
0.05 |
2 |
0.10 |
Regulatory environment is optimal since there are laws in place to protect businesses (Austrade.gov.au, 2022). |
0.10 |
4 |
0.40 |
The market is extremely regulated, leaving little freedom for American and European investors (Dadush & Weil, 2021). . |
0.03 |
2 |
0.06 |
|
Workforce Characteristics |
India has one of the highest workforces behind China. Although Its labor force is estimated at 509.3 million which covers only 46.2 % of the population India’s youth lack skills necessary to adequately compete (DW.com.,2022) |
0.03 |
1 |
0.03 |
Australia has an exceedingly skilled workforce and most educated, multicultural and multilingual in the world (Austrade.gov.au, 2022) |
0.10 |
4 |
0.40 |
China has a skilled and semi-skilled workforce of over 200 million that is available at lower costs (English.gov.cn, 2021). |
0.10 |
4 |
0.40 |
|
Operational Logistics |
Have low operational logistic capabilities and ranked 47 out of 155 nations because it has less skilled workforce (Bureaus, 2010). |
0.10 |
1 |
0.10 |
Good operational logistics owing to its skilled labor force |
0.05 |
4 |
0.20 |
Chinese operational logistics are developed and translated to better profit margins as there is a large pool of technocrats and professionals (Chu et al., 2022) |
0.10 |
3 |
0.30 |
|
Competitive Environment |
Competition in the market is not transparent as there is a high political impact in businesses |
0.10 |
1 |
0.10 |
Australia has a healthy and competitive environment for foreign investment business. |
0.05 |
3 |
0.15 |
China competitive neutrality framework in which public and private businesses face the same set of rules, and no contact with the state gives competitive advantage to any market participant (Herrero, 2021). |
0.05 |
1 |
0.05 |
|
Technology |
India is ranked at an negative -5.15 in technology compared to China composite score of 0.26 and Australia at 2.97 regarding technological advancement (Global Finance.com, 2022). |
0.10 |
1 |
0.10 |
Australia is hesitant to embraces technology to a greater degree. that new technologies are not being accepted rapidly by Australians (AP, 2020). |
0.05 |
4 |
0.20 |
China embraces innovative technology, and it is third as one of the many countries with advanced technology in every sector of the economy (World Population Review.com, 2022) |
0.20 |
5 |
1.0 |
|
Infrastructure |
India’s infrastructure has a majority of its regions being underdeveloped due to poverty and ranked at number 35 in the logistics performance (India CSR.in, 2018). |
0.05 |
2 |
0.10 |
Australia has developed supportive infrastructure that will support foreign investment into the business environmental infrastructure. Roadways, air, and water conveyance systems in Australia are excellent. |
0.10 |
5 |
0.50 |
The Chinese government has invested profoundly in infrastructure. Therefore, the transport systems, security systems, social services, and supporting business infrastructure is exceptional (China Briefing, 2022) |
0.15 |
5 |
0.75 |
|
1.0 |
2.05 |
1.0 |
4.05 |
1.0 |
3.83 |
Introduction
The Competitive Profile Matrix (CPM) is an approach that provides comparability for the business and its competitors and discloses its comparative strengths and weaknesses (Hanover Research.com, 2022). Corporations frequently utilize the CPM tool to give a guide to comprehend better the external environment and the competition within a particular industry. The profile matrix detects a firm's significant competitors and makes informative comparisons utilizing the industry's critical success factors. The analysis also discloses the corporation's comparative strengths and weaknesses against its competitors. As a result, a business such as Macy's can effortlessly detect the areas it should advance and the areas it should guard. Therefore, this document will highlight relevant points that will determine which country will provide an optimal prospect for entering the foreign marketplace founded on the overall weighted scoring of each country.
CPM Clarification
Within the business environment, external competition is inevitable. Therefore, to understand the parameter of the relative weaknesses and strengths of businesses, the utilization of the competitive profile matrix (CPM) is an operative method of analyzing marketplace competition and formulating a strategic plan for investment (Capps, Cassidy, Gravois & Warner, 2019).). The above Country Competitive Profile Matrix (CPM) examines the competitive environment for India, Australia, and China, which characterizes economies within the Asia-Pacific region. As indicated above, the weighted scores are 4.05 for Australia, 3.83 for China, and 2.05 for India. The overall score indicates that Australia has a healthier competitive environment than India or China. Australia has the highest weighted score structured on its general legal, optimal workforce characteristics, and government structure developed with an open market for potential foreign investors (Austrade.gov.au., 2022). However, China's fast-growing economy is ranked 32nd for business ventures. Its second placement in scoring and potential for foreign investors is because it lacks a conducive democratic government, therefore suggesting that the business environment may not be as advantageous as in Australia, which has a ranking of 14 (Data. World Bank.org.,2021). As shown in the CPM Matrix, India is considerably less developed regarding skilled workforces, technology, and logistics, as equated to Australia and China prospectively. Additional factors regarding starting a business for foreign investing take 2.5 days in Australia compared to 27 days for India and 33 days in China, thereby giving an advantage to Australia (Nation Master.com, 2013).
Moreover, India's governmental structure is not fully democratic and has four forms of government which may cause further delays for potential investors and weaken investor confidence. However, Australia is slowly accepting new technologies, but this has not become a factor for foreign investment. However, India's high population affords an advantage, which could render investors a considerable market share if investors start a business (Ministry of External Affairs Government of India, 2021). Australia's weighted score of 4.05 indicates an optimal choice for business investors that contemplate foreign investing. The EFE matrix tool aids in a business's potential growth and advantages while recognizing the marketplace's strengths, weaknesses, opportunities, and threats (Strategic Management Insight.com, 2021). Additionally, the (CPM) scoring provides comparability with the competitors. For the corporation to appropriately choose among the three countries while recognizing possible threats, external factors could theoretically destructively affect the business and reduce its market share (Tien et al., 2021). Therefore, choosing the country with the highest weighted score is optimal to render a competitive marketplace entry with better chances of succeeding. The organization is Macy's, which offers high-quality consumer products. These products will appeal to and are affordable for all social class levels within the entry into the global marketplace, followed by China, and India, associated with the ideal sites due heavily in part to the weighted scores from the CPM table. Australia's strengths regarding its healthy and competitive environment for business, democratic form of government, highly-skilled workforce, economy, and culture offered beneficial aspects advantageous to Macy's possible foreign business investment. Therefore, China is a secondary location for the Macy's Inc. subsidiary.
Summary
Comprehending and researching the marketplace with the intention of global expansion requires dutiful research, strategic planning, and comparison. The benefits of expanding the global aspect are interminable, particularly if Macy's approaches it correctly. Nevertheless, there are potential downsides along the way that can hinder progress when the company forgoes investigation and analysis, such as an EFE, IFE, and CPM, that aid the firm when making strategic and data-driven decisions for the brand. According to Sohel, Rahman & Uddin (2014), "Analyzing organizations in this manner is an effective way to evaluate many competitors in one framework to support an effective strategic plan" (p 43). Although CPM is a practical tool for competitor analysis, it also presents limitations in which non-uniformity may transpire regarding weights. Since assigned weights are subjective and assigned by the evaluator and not identified methodically, these weights do not ensure guaranteed returns for the business (Sohel, Rahman & Uddin, 2014).) Therefore, it would be best to utilize additional tools such as SWOT, IFE, and EFE alongside the CPM to deliver empirical research data.
.
References
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Copyright 2021 by University of Phoenix. All rights reserved.
Copyright 2021 by University of Phoenix. All rights reserved.
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1
Summative Assessment1: Internal Evaluation
Gabrielle A. Miliner
College of Doctoral Studies University of Phoenix
MGT/711: Strategic Opportunities in An Internet-based Global Economy
Dr. Delores Springs
July 11, 2022
Summative Assessment1: Internal Evaluation
At some point, companies within the business arena must be fully aware of their internal and external strengths and weaknesses. To effectively forecast and evaluate the firm's internal environment, an Internal Factor Evaluation (IFE) and SWOT analysis must take place to accurately analyze factors that can determine your strategic standing and limitations within that primary industry (Jurevicius, 2021). This paper will utilize the strategic IFE tool, introduced by a notable scholar named Dr. Fred R. David in 1997, to assess the internal factors of Macy's Inc. and its overall standing within that particular industry. This paper will also utilize a SWOT analysis to assess its strengths, weaknesses, opportunities, and threats that will affect Macy's Inc.
Within the retail industry, Macy's Inc. stands among many other foremost U.S. retail organizations that interact with other entities to create shared value inventiveness (Kramer & Pfitzer, 2016). Within Macy's Inc., holdings are Bloomingdales and specialty stores such as Bluemercury, The Outlet, and Macy's Backstage as of 2022, with over seven hundred U.S. locations and 46 states of products it offers (Macy's Inc.com, 2022). Additionally, Macy's Inc. owns over thirty private brand labels. As of 2021, Macy's Inc.'s global net sales were 24.5 billion, up from about 17.35 billion recorded the previous year and signifies a growth of 43 percent in comparison to 2020 (Smith, 2022). The current management team consists of eleven distinctive leadership members under the direction of Jeff Gennette, who started his career with Macy's in 1983 (Macy's Inc., 2022)
Macy's online mission statement states, "to be a retailer with the ability to see opportunity on the horizon and have a clear path for capitalizing on it. To do so, we are moving faster than ever, employing more technology and concentrating our resources on those elements most important to our core customers" (Comparably.com, 2022). Macy's online vision statement states, "Our vision is to operate Macy's and Bloomingdale's as dynamic national brands, while focusing on the customer offering in each store location (Macy's Inc., 2022)."
Based upon Macy's vision and mission statement, its primary focus is on its patron's requirements, developing its range, and detecting new prospects. Macy's, Inc. has capitalized on authentic and open messaging with its clienteles, workforces, merchants, and stakeholders (Macy's Inc., 2022). Macy's communication strategy affords relevant information to realize its financial objectives through its rising money-making sales. Moreover, Macy's has maintained its profitability rate while exploiting stakeholders' returns and cultivating its return on capital investments (Macy's Inc., 2022). To remain profitable, the company must concentrate on factors impacting its operations and profitability and move forward in the marketplace.
SWOT ANALYSIS
|
Strengths |
Weaknesses |
|
Brand Name Equity Customer Relationship Management Product Variety Effective Marketing Macy’s Popularity Use of Technology Strong-commerce Sales Huge Investment in Automation Household name 21% of Macy’ sales are through e-commerce Gross Margin higher than TJX |
Overdependence on the US Market Use Of Technology Failed Expansion Poor Management Declining Quality of Service Emotional Disconnect Low Presence |
|
Opportunities |
Threats |
|
Technology Strengthen Global Presence Expand e-Commerce Sales: Expansion through Mergers and Acquisition Macy's can provide unconventional goods to customers and can diversify its product offerings Diversification in Products Focus on Emerging Markets Company can focus organic and inorganic growth abroad |
Competition Unfavorable Economic Conditions/Government Policies Increasing competition from bigger retail chains can disrupt its business Global Recession Declining Retail Sector Uncertain times Stiff Competition: Uncertain times |
Macy’s IFE Matrix
|
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