Past researches proved that MNEs are those key elements that create the path for the firms to move into globalization arena. Firms that contain the ability to compete into the market can only build its stronger position in the globalization process. Dealing with environmental susceptibility is most important for the firms in today’s era but sometimes they fail to understand the strategies they could use in order to deal with the consequences that might occur. The dissertation of this research primarily focused on the Pakistani environment and its market.
Pakistani market is the huge market where it could be easy for the MNEs to penetrate into their market but due to the diversified segments it is difficult for the marketers to understand the perception of customers on massive level. Customers are trend seekers but on the other hand some set trends onto their own wills and interests whereas the huge conflict is on the religious and cultural practices that are completely designed on eastern terms. But conversely there is a large group that follows western trends too.
This shows that there is a huge variation in the customer’s requirement and this variation creates lots of barriers for the multinational firms to understand the market. On external level it is also observe that firms in the past and even today are facing difficulties to enter into Pakistani market due to the unstable political and economical conditions. 1. 2 Purpose of the study The purpose of this study is to understand the difficulties and conflicts MNEs are facing in Pakistani market due to the environmental threats and various factors like economical, political and cultural environment.
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The question touches to two important and obviously interrelated issues, that of the need and form of corporate control and that of the role of the financial system in resource allocation. During the last two decades the Modigliani - Miller proposition which stated that there is no relationship between corporate capital structure and the real performance of firms, has been increasingly disputed as ...
In order to understand the environment, it is important for the MNCs to understand the approach they want to pursue in going global especially to the place like Pakistan. According to Fombrun and Wally 1993 (cited in Newlands & Hooper, 2009, p. 20) “There is complexity for the multinational firms when they move into international market and these complexities are articulated into the forces like global infrastructure understanding, socio-economic structure of the local market and the superstructure of that respective market”.
It means that when firms establish their businesses into some local market of global segment then the complexity arises due to the practices of that respective local market. In Pakistani market it is now difficult for the MNEs to deal with the emerging challenges of political and the economical changes. Firms are more alert in entering into this market due to the terrorism issues and various consequences related to this.
It also hugely affected the economy of this country and created a big question for the investors that either it is useful for them to invest here or is it risk for them in investing into this market. This study will focus on the key issues that MNEs faces while they enter into Pakistan for the purpose of expanding their business. It will also focus on the gap of communication between the MNEs and the consumer of Pakistan. This will also highlight the core issues related to the environmental changes that occurred in this region due to the various religious influences and cultural practices of the people of Pakistan.
Firms in this market are more worried about the political stability and law and order situation because it is difficult for the MNEs to execute their businesses in the environment where the masses are effective buyers but the environmental conditions doesn’t support their activities and the condition is unpredictable. Therefore it is important for multinational firms to fully analyze the local market and just to penetrate into any market they should be clear with their mission and vision.
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Ans. Pakistan economy is growing steadily. This growth demands higher energy utilization and accordingly putting high pressure on countries economy. Pakistan mainly depends upon oil and gas resources to fulfill energy necessities. Native resources of Oil are not enough to put out energy thirst of the growing economy. As a result Pakistan has to import large quantity of oil and oil based products ...
They should know the type of procedures and practices they are going to follow with the intention of building strong relationships with the customers and environmental factors of the local market (Newlands & Hooper, 2009, p. 22).
1. 3 Rationale of the Study The rationale of this study is to examine environmental condition of Pakistan in order to observe the issues that MNEs are facing in this market. The hypothesis of this research states “The role of environmental factors of Pakistan in order to maintain the growth for Multinational Enterprises (MNEs).
” The variables that are to be studied are * Environmental Factors Growth * Multinational Enterprises Pakistan is that part of eastern world which is among those countries that are highly populated and the customers are now more advance in making right choices for themselves. But the environmental condition of this region doesn’t support the MNEs as well as the customer’s preferences. Few decades before this market was not occupied by the multinational firms due to the lack of educational skills and societal traditional practices but now with the passage of time these differences are removed and customers seek opportunities that could bring advancement into their lifestyles.
As currently Pakistan is going to a very crucial phase where they are dealing with the emerging terrorism challenges and firms from all over the world are worried about the investments they want to make in this region. Political stability is also absent and there is no unity among parties. Due to this political polarization, economic condition of Pakistan is immensely disturbed. MNEs raise a question that either they should make direct investments or indirect investment in order to secure the whole business setup but if they don’t make direct investment even then they couldn’t predict that what will be their future in this market.
The dissertation of the study highlighted the factors that MNEs are likely to face issues in order to execute businesses. It will also describe the competitive benefits that MNEs could get if they fully analyze the environment and utilize the resources of this place. 1. 4 Recent Crisis: Pakistan is one of those countries that have its rich culture and strong agriculture into its foundation. This culture and heritage can bring a very positive impact on the societies by the MNEs if they utilize these resources.
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1. 0 Executive Summary The proposals that we are going to depose are a planning of continuous action in order to confront the challenges, which BT confronts. The most important factor is considered to be the fact that the marketing environment changed rapidly after the deregulation of the telephone industry. Up to then BT was operating as a monopoly, ignoring the competition and ways to face it. ...
On the other hand the agriculture of this country is vigorous where farmers are hard working in order to make their fields more productive. To execute all these activities the major party that is involve are the citizens of this country who are polite and kind to welcome anyone from all over the world in order to perform business activities. But there are certain variables that are involve in creating barriers for the firms to establish their businesses in this region. These variables include political, economical, cultural and climatic factors that are more negatively affecting the stability of this region.
Since the establishment of Pakistan the restructuring of businesses is going on and firms are facing continuous ups and downs in this market. Since 1970s it is observed that the import and exports of Pakistani market is now greatly involve in exporting their goods to the other market whereas, the firms outside Pakistan also send their good into this region which has enormously affected the economy. Businesses are now more liberal to supply products all over the world in order to direct themselves for growth (Ahmed, Alam & Butt, 2003, Introduction).
According to international trade and development theory its is stated that when any country start buying and selling good to the foreign market then the GDP of the country improves and also create better opportunities for the local customers to maintain their living standards (Ahmed, Alam & Butt, 2003, Introduction).
But if we apply this theory on current crises that Pakistan is facing, we observe that the foreign investors are now moving back form investing in Pakistan due to the unstable law and order situation.
MNEs know that there is always risk involve in the performing businesses internationally but the rate of risk is however unpredictable. Now if we talk about Pakistani market the risk rate is higher due to the past conditions that MNEs faced or still facing. Due to the emerging challenges faced by this region firms are more cautious for the investment they want to make in this area and the neighboring countries also seems to be the threat for Pakistan because this region is surrounded by the world powers and these places are more productive that could easily take over any foreign investment.
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Introduction To evaluate and analyse a "professionally made" marketing plan requires the evaluator, to very critically and closely point out the strengths of the plan, yet also point out parts of the plan that are irrelevant or are in need of improvement (weaknesses). Of course, as this is a professionally written marketing plan, the positive aspects of the plan will vastly out-number the negative ...
