Question

Edward Jones (with a currently successful presence in the USA and Canada) is contemplating entering Asia (Singapore) and South America (Uruguay) net fall, for the first time.

Given that Singapore (index of 8) and Uruguay (index 100) rank respectively very low vs very high compared to moderately ranked US (index 46) and Canada (index 48) in terms of uncertainty avoidance, what marketing implications of this classification could you point out to Edward Jones as the company prepares to make its move? Discuss 1 from the 4Ps.

Answer 1

THESE INDICES ( KNOWN AS EASE OF DOING BUSINESS INDEX ) ARE AN INDICATION FOR CORPORATES LOOKING FORWARD TO STARTING A BUSINESS IN DIFFERENT COUNTRIES. WORLD BANK PREPARES THIS TO MAKE CORPORATES INFORMED OF HOW EASE THEY CAN START NEW BUSINESS.

NOW, IN THE GIVEN CONTEXT , EDWARD JONES PANNING TO START BUSINESS IN TWO COUNTRIES RANKED , PERHAPS ,AT EXTREMES. EDWARD CAN START BUSINESS IN SINGAPORE ( INDEX 8 )MUCH EASIER THAN IN URUGUAY (100 ), WHERE STARING A BUSINESS IS DIFFICULT , OBVIOUSLY THAN IN CANADA AND US ( INDEX 46 ). HIGHER THE RANK , EASIER FOR A FIRM TO START BUSINESS.HERE I WILL DISCUSS SOME IMPLICATIONS.

1. IT WOULD BE COSTING AN ARM AND A LEG FOR EDWARD TO OBTAIN PERMIT FOR PROCURING THE REAL ESTATE ,AND MIGHT BE CONSUMING PRETTY MUCH TIME TO COMPLETE ALL REGISTRATION FORMALITIES , OTHER ESSENTIALS IN URUGUAY UNLIKE IN SINGAPORE , WHERE EDWARD  CAN DO THESE THINGS FOR LESS COST AND IN A LITTLE TIME.

2. EDWARD MUST ANALYSE THE CORPORATE TAX STRUCTURE / TAX SLABS BEFORE STARING BUSINESS IN URUGUAY AND SINGAPORE AND JUDICIOUSLY SELECT THE PREFERRED COUNTRY , AS EXORBITANT TAX RATES WILL ERODE EDWARD'S PROFITS IN THE COUNTRY.

3. PROTECTING IT'S INVESTORS SHOULD BE ONE OF IT'S PEIMARY CONCERNS.THERE SHOULD BE MUCH LESS REGULATIONS AND SHOULD BE IN FAVOR THE COMPANY , AS TIMELY ATTRACTING INVESTMENTS IS ESSENTIAL FOR ITS VERY EXISTENCE. ( PROTECTION TO ITS INVESTORS IS ALSO A CONCERN ).INVESTOR PROTECTION AND AVAILABILITY OF CREDIT IS EASIER IN SINGAPORE AS OPPOSED TO URUGUAY.

4. IPR ( INTELLECTUAL PROPERTY RIGHT ) , A LEGAL PROTECTION TO ITs INNOVATIVE PRODUCTS AS AN INCENTIVE , LEVEL OF PROTECTION GIVEN TO ITs PRODUCTS. IPR REGISTERED PRODUCTS OF THE COMPANY CAN YIELD HIGHER (EVEN THOUGH IN SHORT- RUN ) THAN OTHERWISE

5.INSOLVENCY RELATED FACTORS SHOULD ALSO BE CONSIDERED, SUCH AS TIME TO TAKEN TO COMPLETE THE RESOLUTION , AVERAGE RECOVERY RATE ,COST INCURRED FOR SUCH A RESOLUTION. BY LOOKING AT THESE INDICES IT CAN BE SAID THAT ALL THE ABOVE MENTIONED PROCEDURES ARE EASIER IN SINGAPORE THAN IN URUGUAY.

HOPE IT'S ALL CLEAR