Wednesday, October 9, 2019

Country study (China) Case Example | Topics and Well Written Essays - 750 words

Country (China) - Case Study Example ..6 1. Executive Summary Victory State Bank is a banking organization located in the United States of America in New York. Having expanded considerably, the organization has decided to set up a new shop in China in order expand its market and attract new customers. Therefore, the report examines different factors that will have to be considered in order to establish the viability of the area. The report will also examine the specific details that will be considered while entering the country 2. Introduction A number of factors need to be examined by an organization when it decides to venture a new market. This will especially be when the organization is venturing anew country altogether. Unlike opening a shop in the same country, opening in a different country might require the organization to change some factors in its setting. In this case, factors that will be examined include the mode of entry, the human resources, and the marketing and distribution strategies. Generally, these a re factors that will affect the overall operation of the newly opened shop. 3. Recommendations on how to enter the country 3.0Mode of entry The mode of entry that should be applied is the exporting mode. Exporting the services to the China people will attract them much easier and quicker. In addition, this is a cheap mode of entry since it involves very few expenses and costs. Exporting mode of entry is usually known to attract customers easily because the products or services have been brought closer to the customers’ location and thus, customers can easily access the services or products (Sun,  H., & University of Sydney, 1996). Therefore, this is a method that will require fewer advertisements and promotions as compared to the importing method. However, the method will have a disadvantage of competition. Victory State Bank will have to face stiff competition from the banks that have already been established in China. 3.1 Human Resources Victory State Bank will have to em ploy more staff members that can converse in Chinese fluently (Bailey, 2007). These will help in improving the mode of communication with the new customers. The selected management for the new branch will also have to be made of persons that are fully conversant with the culture and the political environment of the country. Thus, they will know how to solve matters concerning licensing and establishment fees. The organization might also have to employ some people from its country of origin instead of employing all its employees from China (Sun,  H., & University of Sydney, 1996). This will enable the organization to create employment in the country thus, creating a positive image for itself. Therefore, the mode of staffing used will mainly be geocentric, because while some crucial services require employees from the home country, others will use employees from the new country. The payment will still be constant since cases of increases in payments might lead to increased expenses. However, the organization will have to ensure effective training of the employees in order to ensure quality services. 3.2 Marketing The target market of the organization will be mainly business entities dealing with large sums of money, because they demand banking services highly (Beckwith,  1997). However, the organization will also target private individuals that demand banking

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