FACULTY OF BUSINESS AND MANAGEMENT

FAKULTI PERNIAGAAN DAN PENGURUSAN BBNG3103 INTERNATIONAL BUSINESS
PERNIAGAAN ANTARABANGSA

SEPTEMBER 2010 SEMESTER
SEMESTER SEPTEMBER 2010

Student Particular
Maklumat Pelajar

Name: BALA SIVACEYON @ BALAKRISHNAN A/L SUPPIYAH Matrix No: 590427085887001 Lecturer: SUKRI BIN HARON Submission Date: 18th December 2010

parks and resorts. CASE: Since its founding in 1923. together with its subsidiaries and affiliates. and to present your findings at the forthcoming management meeting. making Disney’s the world's most visited theme park company. Since then. the company's theme parks hosted approximately 119. 1 . The company. Florida to own and operate the company’s theme parks and resorts. The company's objective is to be one of the world's leading producers and providers of entertainment and information. the original Disneyland Park was opened in Anaheim. he came up with the idea of a place where adults and their children could go and have fun together. and to allocate capital toward growth initiatives that will drive long-term shareholder value. services and products. Diane and Sharon. is now a leading international family entertainment and media enterprise with four business segments: media networks. The Walt Disney World Company was established as a subsidiary of the Walt Disney Company based in Lake Buena Vista. In 2009. The concept for Disneyland began when Walt Disney was visiting Griffith Park with his daughters. studio entertainment and consumer products. Its primary financial goals are to maximise earnings and cash flow. using its portfolio of brands to differentiate its content. You have been appointed to carry out a comparative analysis of potental countries considered suitable for the Walt Disney World Company to expand its theme park business. Based on his idea. California in 1955 at a cost of US$17 million.1 million guests. The Walt Disney Company has remained committed to produce unparalleled entertainment experiences based on the rich legacy of quality creative content and exceptional storytelling.BBNG3103: International Business Open University Malaysia Bala Sivaceyon ASSIGNMENT QUESTION PURPOSE: This assignment is designed to provide learners with the opportunity to conduct research and analysis on international markets for the purpose of an international firm’s business expansion. on three continents. While watching his daughters ride the Merry-Go-Round. including some owned or co-owned by independent entities. In 1971. it has grown to five resort locations encompassing 11 theme parks.

select and analyse the suitability of five (5) potential countries where the company can expand into and build new theme parks. Country Choosen: Singapore Australia Argentina Russia South Africa 2 . then give conclusions on the one that holds the highest promise.BBNG3103: International Business Open University Malaysia Bala Sivaceyon REQUIREMENT: Using the Grid Analysis.

201 (July 2010 est.725/female 13.) iv) Age Structured 0-14 years: 25.343. combined with rich tourist potential and cultural heritage * Level of education and human development indicators above Latin America’s average * Comparative advantages in farm and food products (soybeans. energy and mineral resources. subantarctic in southwest iii) Population 41.BBNG3103: International Business Open University Malaysia Bala Sivaceyon Argentina Background: i) Location: Southern South America.819.5% (male 12.265) 65 years and over: 10.800) (2010 est.477/female 5.961. engineering) WEAKNESSES * Some dependence on raw materials * Lack of investment in energy and infrastructure * Relations with the IMF and all foreign creditors have yet to return to normal since the bond debt restructuring in June 2005 * Business environment often affected by unpredictability * Persistence of strong inequality and social unrest 3 . dairy products) and skilled services (information technology. bordering the South Atlantic Ocean.057/female 2.) STRENGTHS * Abundant agricultural.369. meat.6% (male 5.122.260) 15-64 years: 63.611. between Chile and Uruguay ii) Climate: Mostly temperate.8% (male 1. arid in southeast.029.

9% (male 7.329/female 1.975/female 1. tropical in north iii) Population 21.153) (2010 est.743/female 7.306.565.BBNG3103: International Business Open University Malaysia Bala Sivaceyon Australia Background: i) Location: Oceania.754 (July 2010 est.923. continent between the Indian Ocean and the South Pacific Ocean ii) Climate: Generally arid to semiarid.828) 15-64 years: 67.5% (male 1.) STRENGTHS * Mining resources (iron ore.6% (male 2. temperate in south and east.121.318.515.) iv) Age Structured 0-14 years: 18.613) 65 years and over: 13.026. coal) indispensable for global recovery * Close geographic position to the emerging Asian economies * Strong public finances before the crisis * Sound banking system * Immigration continues to boost the labour supply WEAKNESSES * High indebtedness of companies and households * Shortage of qualified labour * Strain on water resources * Difficult annual negotiations in setting raw material prices 4 .

011) 15-64 years: 71.004.644.BBNG3103: International Business Open University Malaysia Bala Sivaceyon Russia Background: i) Location: Northern Asia ii) Climate: Ranges from steppes in the south through humid continental in much of European Russia. winters vary from cool along Black Sea coast to frigid in Siberia.173) (2010 est.) iv) Age Structured 0-14 years: 14.8% (male 10.) STRENGTHS * Abundant natural resources including oil.040/female 52.205 (July 2010 est. summers vary from warm in the steppes to cool along Arctic coast iii) Population 139.095.390. gas.313) 65 years and over: 13.7% (male 5.274. subarctic in Siberia to tundra climate in the polar north.5% (male 48.880.142.833/female 10.877/female 13. because the economy is highly dependent on raw material prices * Excessive private sector foreign debt * Banking sector still very weak * Persistent deficiencies in the business environment 5 . and metals * Skilled labour force * World’s third largest foreign exchange reserves * Infrastructure development opportunities in the framework of the 2014 Winter Olympic Games in Sochi * Reasserted regional and energy power * Political stability WEAKNESSES * Limited economic diversification.

219. at the southern tip of the continent of Africa ii) Area: total: 1.579) 15-64 years: 65. cool night iv) Population 49. consequences of the apartheid education policy).984.) STRENGTHS * 33% of sub-Saharan African GDP * Extensive mining resources * Diversified industry.075.061.424/female 15.9% (male 7. the main obstacle to economic development * Dependence on inflows of volatile capital.109.107 (July 2010 est.BBNG3103: International Business Open University Malaysia Bala Sivaceyon South Africa Background: i) Location: Southern Africa.275. efficient tertiary sector (banks. vulnerable to a crisis of confidence in the markets 6 .) v) Age Structured 0-14 years: 28.562.4% (male 1.090 sq km iii) Climate: Mostly semiarid.860) (2010 est.328/female 7.181) 65 years and over: 5.093.8% (male 16. sunny days. subtropical along east coast.117/female 1. telecommunications) * Public sector finances under control: leeway to resort to foreign debt * Business environment among the most efficient in emerging countries WEAKNESSES * Significant social risk: a degree of income inequality among the highest in the world * Human capital deficit (26% unemployment and 11% AIDS prevalence rates.

415) 65 years and over: 8. political stability and an excellent business environment * Major exporter of capital in Asia via the public holding company Temasek WEAKNESSES * Economy dependent on foreign demand * Shortages of skilled labour * Aging population * Latent social tensions in a context of increasing inequality and growing durable unemployment among the least skilled 7 . islands between Malaysia and Indonesia ii) Climate: Tropical.7% (male 1.) STRENGTHS * Very high quality-competitiveness * Development of high value-added sectors (chemicals.069 (July 2010 est. finance) * Strong FDI inflows thanks to an advantageous tax regime.9% (male 184.Northeastern monsoon (December to March) and Southwestern monsoon (June to September). rainy.833.972/female 1.) iv) Age Structured 0-14 years: 14. pharmaceuticals.393/female 229.050) 15-64 years: 76. hot.737. two distinct monsoon seasons .BBNG3103: International Business Open University Malaysia Bala Sivaceyon Singapore Background: i) Location: Southeastern Asia.701.382/female 324.frequent afternoon and early evening thunderstorms iii) Population 4.4% (male 348.330) (2010 est. humid. inter-monsoon .

BBNG3103: International Business Open University Malaysia Bala Sivaceyon Market Size: Argentina: With a population of 41 million people. the themepark can have brilliant ways of attractional promotion using the cold concept. They are willing to spend in order to get what the expect. so the encoopertated themepark should have a beach related motive in order to attract and compete with other themepark organizers based in Australia. the country progession towards tourism sector is boon for the themepark to be built there. we can forsee good market from the people of Argentina themselves. Australian prefer the beach by majority. Having built one themepark there would attract people from New Zealand and the other ocenia regional countries. Russia: Due to the winter nature of the country. Singapore has developed a high interest in the tourism industry. 8 . either with the ices. Making it built near the Europe would be a boost for the Europian nations to come by for a visit thus creating a vast huge global market right there. Hence with its current government still pron to foreign investments. The population is also very much oriented on the younger generation which can attract them towards visiting this themepark. we can make it into a regional concept themepark. Since the latin americans have their unique and multiple cultures. and with its big new luxurious casinos recently opened. With many tourist attraction on the way. the latin american countries can also come by to Argentina for a Disneyland adventure thempark. Australia: Australians are very financially powerfull peoples. Not only that. Singapore: Being reputated as the fasterst upcoming country among the South East Asian region. South Africa: After recently hosting the world cup 2010. South Africa has a great exposure upon the world. we can settle down in the region pretty well. we can name the theme of the park seasonally with their related cultures. or with the snows. Serving the entire African continent as a spot for Disney Themepark attraction.

there might be some difficulties with the policies of the government on allowing a US based company to do business there. South Africa: South Africa do not posses any threat to the political and infrastrutural factors as well. Hence with interest from the foreign investors. Singapore: Singapore has an added advantage for tourist related development and also the infrastucture are state of the art facilities.BBNG3103: International Business Open University Malaysia Bala Sivaceyon Infrastucture and Operation Stability Argentina: The Argentinian government are recovering from the recession that hit the countries economic badly this recent years. the infrastuctures need more endurance level to withstand the temperature fluxuations. Russia: Due to the communist aspect of the country. Infrastructure aren’t a issue since Argentinians do have industries that use related raw material for a themepark. the government should be giving out their welcoming hand to receive aid from other countries in order to boost up their economic level. 9 . As well as the extreme cold climate. The infrastuctural capabilities aren’t an issue as well. Australia: Australia is a stable country with no threat or whatsoever to the stability of operations.

7 1 3 4.5 0 0 5.6 4 3 1 26.1 0 0 5.BBNG3103: International Business Open University Malaysia Bala Sivaceyon Grid Analysis Factors to look about: Market Size Domestic Foreign Infrastructure Operation Stability Source infrastructure and cost Bureaucracy TOTAL Risk of investment i) risk ii) iii) iv) Competition risk Political risk Financial risk TOTAL Allowance of 100% equity hold Uncertainty and 0-5 0-7 0-5 0-5 3 4.5 1 2 5 3 2 12 1 Current Future Current Future 0-5 0-5 0-5 0-5 0-7 0-5 0-5 0-5 3 3 4 4 3.3 4 3 14.6 5 4 5 36.5 3 2 3 25.6 Leverage Argentina Australia Russia Singapore South Africa 10 .6 3 0 3 17.7 1 2 9.2 1 2 2 3 3.1 3 3 13.6 3 3 4 4 4.3 1 1 5.5 2 3 3 3 5.6 5 5 2 4 6.2 5 3 2 26.

Singapore also is comparatively a better country compare to the other countries chosen in term of legal matters. With ultra big and efficient port. we can see that Singapore has the best opportunities and advantages with minimal risk factors. where the pie chart are mostly consist of South East Asians. 11 . time spent establishing business is really less. but with proactive marketing strategies. In 2009 alone. Despite that selling product at higher prices doesn’t see any changes in shopping rate of Singaporeans people as money just comes in since the globalization of financial markets . Singapore also has a number of emerging markets especially of the tourism industry. The competition at the Singaporean market is big. It is a good way to secure a country from an economical crisis. with many Eurasian tourist as well. we can import materials needed for building this theme park really fast. Singapore receive 9million tourist.BBNG3103: International Business Open University Malaysia Bala Sivaceyon From the grid analysis. the infrastructures in Singapore compared to the other country are state of the art technologies. As a reason of it is because the country with a small base land has a greater profits than some other countries. Besides that. Hence with all the reason stated. a very big number for such a small country.Singapore also have a number of services for the home market. Many tourist like to come to Singapore especially during the winter season because of his tropical climate and clean country. Singapore certainly prevails itself as the most outstanding country for the building of Disney Theme Park. we can attract many tourists to come to this theme park.

html https://www. The Global Competitive Report 2010-2011.edu/countries/singapore/risk/ http://www.msu.cia. Geneva.org/docs/WEF_GlobalCompetitivenessReport_2010-11.msu.cia.weforum.msu. from http://www3.gov/library/publications/the-world-factbook/geos/sf.org/policy_research/surveys_indices/cpi/2010/results Professor Klaus Schwab (2010).edu/countries/australia/risk/ http://globaledge.pdf 12 .gov/library/publications/the-world-factbook/geos/rs.msu.gov/library/publications/the-world-factbook/geos/ar.cia.html http://globaledge. Retrieved 4th December 2010.transparency.html https://www.html https://www.edu/countries/argentina/risk/ http://globaledge.cia.gov/library/publications/the-world-factbook/geos/sn.gov/library/publications/the-world-factbook/geos/as.html https://www.BBNG3103: International Business Open University Malaysia Bala Sivaceyon References: https://www. World Economic Forum.edu/countries/south-africa/risk/ http://globaledge.cia.edu/countries/russia/risk/ http://globaledge.msu.

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