MARKETING MANAGEMENT

Global Business Environment

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Global Business Environment

Introduction

The paper is based on Parle G, the brand name given to the biscuit products of Parle Products. Parle Products is based in India which is engaged in the manufacturing of confectionary products. The brand Parle G has almost 40% of the market share of the Indian market and is experiencing increase in its market share ever since its inception. The paper focuses on the expansion of Parle G in the Canadian confectionary market. Parle G will have to consider its decision of expansion in the Canadian market very strictly which stands the second country among the world's largest countries with regard to the geographic area that they cover.

The Canadian Market

The Canadian economy has experienced a major change after the World War II. The Canadian market experienced this change due to the increase in industrialization and urbanization within the economy. The Canadian economy is one which is rich in its natural resources and technological resources. The economy is hence one of the wealthiest economies of the world with vast natural resources and other resources. The country also has vast geographic regions which do not have human populations residing in them and the population density of these regions is very low. Therefore, the businesses need to have very efficient transportation modes to enable the transport of their resources across vast geographic regions of Canada. The business set up in Canada can be easy too for Parle G as the Canadian economy is located between Russia and United States of America and the prospects of the citizens of Canada are also as good as that of the US. The economic system on which the Canadian economy is based is the market oriented system and the production patterns followed in the Canadian industries are very much similar to that of the United States. The technological industry of Canada is also very much similar to that of the US with many technologically advanced systems and production patterns. Moreover, the Canadian economy is also a part of the North American Free Trade Agreement which enables it to have substantial trade with the United States of America and to have substantial resources like human resources from Mexico. Therefore, Parle G can benefit from the cheap human resources which is readily available from the neighboring country Mexico and can also advantage from the trade association in marketing its products to the US and Mexico. The Canadian economy is also rich in the energy resources due to the abundance of natural resources. Parle G can also benefit from the availability of skilled labor and technologically advanced production technologies.

The Canadian economy is also economically very sound for the Indian businesses to enter. The inflation rates prevailing in the economy are very low and the costs associated with the operations of businesses are low too. The economy is also experiencing a steady economic growth and offers great business opportunities to the foreign investors particularly from the Indian ...