Business Environment Analysis Report. Business & Marketing Essay

Business Environment Analysis Report
Student’s Name
Institution
Executive Summary
This report proposes a move into the UK by Incitec Pivot, an Australian-based multinational firm dealing with the manufacturing and supply of industrial explosives, chemicals, and fertiliser products. The UK has an attractive business environment and the company has a limited presence in Europe. The approximately 65 million people in the UK who primarily speak English will provide market for the company’s products. Other key factors that favour the move include low corporate tax, economic freedom, large economy, and technological readiness. Brexit negotiations, which are still ongoing, offer the biggest challenge for the company’s move to the country. Infrastructure is also a key concern. This report recommends that the company enters the country through foreign direct investment (FDI). This report also recommends that the move into the country should take place after the conclusions of Brexit negations in 2019.
Introduction
Incitec Pivot is an Australian-based multinational firm that manufactures and supplies industrial explosives, chemicals, and fertiliser products (Incitec Pivot, 2018). Its core nitrogen capability is instrumental to its performance both domestically and in the international market. The company supplies industrial supplies as well as blasting services to construction, mining, seismic, and quarrying industries. It is Australia’s largest supplier of fertilisers used in farming industries such as dairy, sugar, pasture, cotton, horticulture, and grain. Incitec Pivot currently owns and operates 20 plants located in Australia, the US, Mexico, Turkey, Indonesia, and Canada in addition to joint ventures in China, Malaysia, South Africa and Australia (Incitec Pivot, 2018). The target country, the UK, is located in Europe and is one of the major economies of the world. This report proposes that Incitec Pivot begins operations in the country. The report begins by explaining the rationale for the selection of the UK as a target country and goes on to analyse the key variables in its business environment. The report also offers an assessment of UK’s attractiveness to Incitec Pivot and provides recommendations for doing business in the country.
Rationale for selection of the UK
There are a number of reasons for selecting the UK as a possible business destination for Incitec Pivot. First, Incitec Pivot has limited operations in Europe with Turkey being the only country in which it operates in. By doing business in the UK, Incitec Pivot will have an easy access to other European countries like Germany, France, Netherlands, Belgium, Russia, and Italy. The company has already cemented its presence in North and South America and Asia and now it is time it focuses on Europe.
Second, the UK was ranked first by Forbes as the best country for business in 2018 (Badenhausen, 2017). Key factors considered in the rankings include taxes, property rights, freedom, corruption, and investor protection. Despite its citizens voting to leave the EU and the subsequent prediction of an economic collapse, the country is still the best for business. Other companies such as Apple and Wells Fargo have made big moves int...