China Represents A Very Attractive Market Business Essay Example

on telecommunications and investing in GSM. Their efforts paid off with a fivefold increase in turnover, from 6.5 billion to 31 billion Euros. Nigeria witnessed the sale of their billionth phone, the Nokia 1100, in 2005. Additionally, their subscriber base exceeded 2 billion. Consequently, Nokia became the fifth most valued trade name globally. Although facing tough competition in the Smartphone market, especially from eco-friendly French phones and firms promoting phone recycling strategies in emerging markets, Nokia maintains its position as the world's most sustainable technology company. With Stephen Elop leading as CEO, Nokia now faces threats from Apple and Android as competitors but also collaborates with software giants like Microsoft to strengthen its position in the Smartphone industry.

"The industry has transitioned from device competition to a battle of ecosystems." - Stephen Elop, President and CEO, Nokia.

Challenges for China's Position

China is an attractive destination for businesses due to its prosperous economy. However, the country faces various obstacles that need to be addressed. These challenges include financial stability, market conditions for companies, and generating reasonable returns. Several factors contribute to China's struggle in adopting modern technology and management skills:

• Language proficiency barriers: Many Chinese people have difficulty communicating as they lack fluency in English or have challenging pronunciations.
• Rapid population growth: With one of the fastest-growing populations globally, including India and Russia, China now has smaller household sizes compared to previous years. This demographic shift impacts national income indicators like GDP and GNP.
• Low income levels: The low incomes among Chinese individuals hinder their embrace of modern management techniques and technological advancements. Higher incomes are generally associated with increased spending and economic growth.

China is

well-known for its agro-based industries, with around 60% of the population involved in agriculture-related industries. Despite some individuals working in other fields, over 50% still remain engaged in agriculture, which is deeply rooted in tradition. China's underdeveloped state and internal management of industries may hinder significant success, along with challenges such as human resource limitations and societal and cultural barriers to growth. However, since the 1990s, China's economy has experienced substantial growth rates and established itself as a major global power today.

The subsequent section will explore why leading international organizations set up manufacturing operations in China. This highlights how globalization can impact businesses differently due to external factors. Chinese individuals possess expertise in contrary technology and are skilled at refurbishing defective or outdated products into something valuable. This ability reduces costs and generates valuable outcomes for stakeholders. Furthermore, China's large pool of skilled laborers instills confidence among foreign companies investing and conducting business operations within the country.

Skills and proficient cognize-how are crucial. The rewards and salary rate are low-cost, which helps companies like Nokia save costs in countries such as Finland. They have a large land area, allowing stakeholders to rent properties for a fixed period, giving them the freedom to make maximum use of it. Infrastructure facilities, including road networks and geographical range, are advantageous. They have extensive ports, well-built airports, and dedicated cities for various products. For example, Guangzhou is a city known for electronics, Woozan is a place to buy ceramics and bathroom fittings, and Evo is famous for toy products. These industry-specific developments have attracted business people from all over the world to do business, shooting and importing through China.Abundant resources

of natural materials attract global workforce to China due to their affordability. Businesses are able to reduce costs and manage budgets effectively as taxes and duties are reasonable. This advantageous situation allows businesses from around the world to travel to China and purchase natural materials for their operations without worrying about excessive charges or customs issues.

In the globalized world, transnational organizations are influenced by various factors such as political, cultural, legal, technological, and competitive aspects. China offers numerous market opportunities for foreign investments as an emerging economy. However, caution is required due to differences in the political and cultural environment which pose risks and uncertainties for foreign investors.

Political Factors

The communist government in China directly and indirectly shapes the country's growth. It is important to address political issues to ensure stability and reliable governance. Despite this, China has experienced significant economic growth and reforms since 1978 that have greatly improved the lives of millions of Chinese citizens. These improvements include increased social mobility, personal freedom, travel options, employment prospects, educational and cultural pursuits, job choices, as well as access to information.

Economic

China manipulates its currency exchange rate to artificially keep it low.

The currency appreciated 21% against the dollar until July 2008 and then stabilized as the Chinese government was concerned about decreasing exports. The inflation rate, which is the general increase in prices compared to a standard level of purchasing power, saw a decrease of 1.5% from the previous year after initially falling at the beginning of that year. These lower prices resulted in reduced costs for goods and encouraged consumer spending. These changes are unpredictable and can vary, making these factors important.

Religion and other values have

diverse effects on individuals. Nokia, being a multinational corporation, proficiently manages employment regulations, labor laws, and organizational demands. Technological advancements still have room for enhancement, but Nokia is making strides in optimizing their advancement. Overcoming obstacles to progress necessitates efficient administration adopting contemporary management skills. Constant market research and awareness are imperative due to competitive factors from rival organizations or countries. Keeping abreast of pertinent information in this critical realm remains a priority for both the government and the company.

Knowledge and accomplishments necessary for effectively managing people and processes in a global context.

Skills

Vital skills include:

• Effective Communication ; Cooperation: It is essential to integrate and communicate properly among departments, such as sales and marketing. Open-ended communication is crucial to maintain competitiveness.
• Good teamwork: Collaboration among employees is vital. They should be motivated towards business goals, with top management focusing on this aspect as representatives of Adidas.
• Fair assessments: Regular and fair evaluations, recognition, and rewards are necessary to uphold high employee morale.
• Self ; skill development: Both professional and personal growth require training and development to keep employees motivated and in good shape.

One of the additional achievements in the business direction is the engagement of experts who have previous experience in the same field, encompassing knowledge from manufacturing to packaging.

The improvement of English language skills is crucial due to many Chinese people lacking fluency in speaking, reading, and writing in English. Overcoming communication barriers through this skill is valuable and worth investing effort into.

A potential procedure that can be utilized is franchising, which capitalizes on economies of scale by partnering with local manufacturers or authorized establishments to sell a variety of

products under one brand. Franchising may initially pose challenges but becomes easier as familiarity with the products grows. A franchise example is selling Nokia phones under the Soft Logic brand in Sri Lanka.

Holding strong financial resources is essential for effective decision making and successful business operations. Every business aims for higher profits, proper sales, and establishing a loyal customer base. If a company maintains financial stability, especially when dealing with reputable products like Nokia and Samsung, it can accomplish all these tasks. Another significant aspect involves efficiently managing and maintaining human resources and materials as they are responsible for customer interactions and ensuring smooth execution of plans.

The effectiveness of employees in sales, finance, engineering, and other departments is crucial. To ensure long-term business sustainability and profitability, it is necessary to strengthen and maintain the company using the aforementioned methods. Additionally, obtaining a bank loan will depend on the amount of money earned from the business, emphasizing the need for a reasonable return on profits.

The complexity and application of corporate strategy, global strategic planning, and international trade in multinational organizations are significant topics. International trade holds great importance for any country. The following analysis will focus on its importance for both the related organization and the country.

One major benefit of international trade is its ability to enhance domestic competitiveness. By engaging in competitive international trade, companies are motivated to achieve better results domestically before expanding to the international level. This motivation helps them improve trading between countries and contribute to positive balances of payments by maintaining a favorable flow of cash. Consequently, these companies can create a more competitive environment with their rivals by leveraging the

advantages of positive international trade.Nokia aims to enhance its market presence globally and establish a solid reputation. To achieve this, Nokia will derive a planetary market portion that stimulates greater business activity within the state N and with international markets. It is crucial to maintain a transparent background of operations and ensure strict adherence to sound processes and procedures.

Enhancing potency for the enlargement of your concern is crucial. It will assist Nokia Mobiles to expand their business and engage in trade with other countries, ultimately benefiting economic conditions and political stability. It is important to maintain cost competitiveness in your domestic market. This ensures stability and reasonable pricing for transactions, especially when there is low inflation. However, high inflation may lead to increased costs, reducing customer interest in purchasing products. Offering a greater variety and higher quality of goods benefits consumers. For instance, importing goods from certain countries, such as the Middle East and China, can provide better quality items at affordable prices. This benefits both the country and the company.

The company manufactures a variety of products for different markets worldwide. These products are priced affordably for African countries, while they have higher or moderate prices for Europe. Additionally, the products offer superior quality and durability. The establishment of closer relationships between nations and the exchange of technical knowledge play a crucial role in strengthening ties with other countries, expanding economic and political opportunities, as well as enhancing expertise in specific areas.

Maintaining peaceful relations and understanding each other's actions is essential among countries. Having clear and respectful relationships with other nations is also important. Furthermore, the economic and political stability of a country significantly affects

its balance of payments and exchange rates.

Economic integration and active participation in global markets are vital aspects to consider. As an international company, this company faces minimal challenges in these regards due to its global recognition and strong presence, as mentioned earlier in the company's performance.

Since it is known that international markets are generally less integrated than domestic markets, efforts must be made to build relationships and show interest in fostering these connections. The team responsible for maintaining political and economic stability in the country should take necessary measures. Various policies such as taxation, intellectual property, and employment, as well as the involvement of organizations like the International Monetary Fund and World Bank in providing loans, are crucial for multinational companies like Nokia in China. However, these companies still face advantages and disadvantages due to external factors in the country. International trade and other policies are regulated by law but are vulnerable to risks and procedures.

The International Monetary Fund (IMF) was established for the purpose of reducing trade barriers between countries and stabilizing currencies. It achieves this by overseeing the foreign exchange systems of other nations and providing financial assistance to developing countries. It is important to carefully plan and consider international management strategies and offshoring programs, as they offer a comprehensive understanding of the global business environment and multinational corporations. An example of this is Nokia's manufacturing operations in China, which operate in a highly organized manner with various factors to consider before implementation. China faces challenges in adopting modern management skills and technological advances, but there are also benefits that the country has compared to other nations. It is crucial to analyze external

factors that directly impact businesses, as they have a significant influence on their operations.The text emphasizes that the Chinese may have fewer accomplishments and knowledge compared to other countries when it comes to implementing fabrication or proper direction. This could be due to various valid reasons, such as the need to enhance certain processes and ensure an abundance of essential resources. Additionally, the importance of international trade in transnational corporations is highlighted, along with the role of global strategic planning in their success.

Nokia, as one of the largest mobile manufacturing companies, has multiple production facilities in different countries. One key factor contributing to their significant success is their understanding of the global business environment.