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Your organization, Sustainable Goods, is U.S. based and privately owned. Sustainable Goods is a big box retailer that specializes in products which are sustainable. Your organization has been cited by the United Nations Conference on Trade and Development (Links to an external site.)Links to an external site. (UNCTAD) as the leading organization for the sales and distribution of sustainable products. You are the newly appointed Chief Operating Officer of the international branch of the organization. Sustainable Goods is considering which countries to expand into first. The President of the organization has tasked you with selecting one developed and one developing country to expand into as a pilot project. Conduct a SWOT analysis for EACH of two countries the United States and Kenya (developed and developing). Your SWOT analysis should be thorough, incorporate scholarly research, and potentially some quantitative analysis (i.e. – a projection of foreign currency exchange rates). Justification should be supported by scholarly evidence (i.e. – peer-reviewed journal articles). For criteria that could include data as evidence, calculations should be incorporated into your analysis write-up (i.e. – you did a Monte Carlo simulation to determine the likelihood that gas prices would rise in the future, and you used this value as a potential threat – results of Monte Carlo simulation should be included in your write-up). You will provide a SWOT analysis for both countries.
SWOT
Analysis: United States
Name
Institutional
Affiliation
SWOT
Analysis
1.0
Introduction
Sustainable
Goods is a retail company that focuses on providing services related to sustainable
products. By basing business operations in marketing and distributing
sustainable products the company got recognized by the United Nations
Conference on Trade and Development (UNCTAD). This recognition has placed
Sustainable Goods on an international stage leading to the development of a
globalized strategy aimed at achieving global success. The expansion plans rely
on the company running a pilot project in one developed and one developing
country. Therefore, to establish a conclusive report, the company will perform
a SWOT analysis on the United States and Kenya.
2.0
SWOT Analysis
In
this report, a SWOT analysis evaluates the competitiveness and investment
prospects of the United States and Kenya. This framework underlines the
strengths, weaknesses, opportunities, and threats that Sustainable Goods will
face when expanding operations into developed and developing countries. For Kwong,
Thompson, and Cheung, (2012) SWOT analysis is an introductory valuation model
that measures what a business can and cannot do while expanding its operations.
Going global is a significant move for Sustainable Goods. Hence, it is
essential for leading management to understand the full impact of investing in
developed and developing countries by performing a SWOT analysis.
2.1
United States
Strengths
The United States
is the most significant economy in the world averaging a GDP of over $14
trillion by the end of 2010 (Maitland & Sammartino, 2015). The country's
economy gets support from its vast population resulting in the development of a
consumer economy. The federal government regulates the private sectors to
control monopolies. The industrial sector makes up to almost 20% of the total
GDP, and agriculture represents slightly over 1% while the service sector
covers the rest amounting to over 79%. The federal government supports business
start-ups by adjusting its policies based on economic needs through
understanding the use of credit control, supply for money, and taxation. Therefore,
the United States is a big player in the global economy; this claim got
substantiated by the World Bank listing the country as the highest OECD income
economy (UNCTAD, 2019).
Weaknesses
The
global market trends are affecting the exchange rates of the American dollar. According
to Milberg and Winkler (2010), the United States is experiencing an increase in
the rate of national debt, which currently covers over 90% of national GDP
meaning that each American owes over $45,000. The country has recorded a low
saving rate among its households; this is despite the nation having a large
fiscal deficit that results from the United States being the biggest debtor in
the world with over $14 trillion worth of debts. According to UNCTAD (2019), even though the
economy is majorly a free market, there are certain areas that the government
controls and influences the process of decision-making. As a result, the
economy is the biggest casualty of the high energy prices that have affected
business operations across all sectors leading to cases of inflation.
Opportunities
For the country to increase the rate of investment, then the Federal Reserve should deduct the rates on interests. These actions get complimented by the same institution introducing measures that provide the opportunity to enhance liquidity levels for various...
