Essay Example on Exploring Expansion to Tajikistan: A Comprehensive Analysis

Introduction

As ShibaChows Group considers expanding to Tajikistan, there is a need to explore its nature followed by comprehensive analysis regarding the possibility of the firm setting up businesses in the manufacture of healthy pet animal food products (Abdullaev & Akbarzadeh, 2010). Tajikistan is a state in Central Asia that is surrounded by Uzbekistan, China, Kyrgyzstan, and Afghanistan. Known for its rugged landscape popular for climbing and hiking, its capital is Dushanbe. Its population is 9.1 million people, with inter-ethnic language being Russian and the official language being Tajiki. Finally, it has an area of 55,300 square miles (Abdullaev & Akbarzadeh, 2010).

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Starting with the overtures of ShibaChows Group expanding to the country, there is a need to set up its pet food-manufacturing center in the capital city of Dushanbe. A factory to manufacture the products will be set up to cater to the demands of the products in the country, unlike exporting them from the United States of America where such costs as shipping and customs duties will be required, making it costly (Int'L, 2015). The production of pet health foods in the country will see to it that only taxes and logistical costs will be incurred, making it cost-effective at the end(International, 2015). In such a case where healthy pet foods are to be manufactured in Tajikistan, various prerequisites need to be considered.

Such prerequisites affect the day-to-day operations of the pet food manufacturing activities, alongside their distribution to clients. Thus, there are legal constraints affecting the opening and running of pet food manufacturing activities. One of them is the need to follow the seven procedures of its establishment, which will be ratified by various Tajikistan government authorities (Int'L, 2015). They include ensuring with the authorities that the company has been legally permitted to use its operating name. It will aid in using a brand name similar to that of another company in the country (International, 2015). Besides, there is a need to register the operations that are to be undertaken, and which surrounds the manufacturing of specified pet food products. Other procedures include the need to incorporate the business by paying the required fees for certification. The form then, it will be legally allowed to launch its manufacturing activities in the country. A tax ID should also be obtained from the governing authorities, a document indicating the tax compliance of the company(Int'L, 2015). With the legal tax compliance ID, it will be filing its tax returns as per the country's specifications. It will then be counted as a taxpayer of the Republic of Tajikistan.

Another legal requirement of the company is that it should learn about the employees and labor relations laws, which govern the rights of workers employed by the firm. It will aid it in avoiding any violation of the law regarding the rights of employees. Furthermore, it should ensure that it has obtained the necessary business permits are dictated by the laws of the land, making it legally present and operational, alongside filing a trademark to ensure that its name and logo are not copied and used by other firms (International, 2015). Finally, it should sign its submission to environmental laws for environmental protection, such as not dumping wastes to the environment.

Moreover, regarding the need to provide healthy pet food products, there is a need for the company to consider the current products offered by competitors, and consider differentiating its products. Of importance is its already differentiated pet food products, including ShibaFeeds, ShibaVits, and ShibaHealth, whose characteristics are not observable in commodities from other firms in the country. Further, the tastes and preferences of pet food buyers in Tajikistan are different from those of the USA, where ShibaChows Group has been in operation, calling on the need to research for it for effective implementation. Hence, will obtain market relevance for its products.

Uzbekistan

Moreover, there is the need to consider Uzbekistan, where ShibaChows Group is poised to expand. It is a central Asian country and a former Soviet republic. It is known for its widespread mosques, Silk Road, mausoleum, the Mediterranean, as well as classical trade routes to China (Lovell-Hoare et al., 2017). Its capital city is Tashkent. It has a population of 32.96 million people (Lovell-Hoare et al., 2017). A president heads it and its points of interest are Registan and Gur- Amir Complex. Its official language is Uzbek and uses a currency referred to as Uzbek soms, with the recognized regional languages being Karakalpak.

As ShibaChows Group considers expanding its businesses to the country, there is a need for it to set up manufacturing firms in the country. The step will ensure that health pet food products will be locally produced ad available, ridding it of the need to import them from the United States of America, where such costs as importation expenses and customs duties will be incurred (International, 2017). However, with the projection of setting up a pet food manufacturing factory in the country, there is a need to consider various legal and environmental policies in force, alongside Food and Drug Act laws to be followed

Starting with the legal constraints available for ShibaChows Group to encounter, one of them is the need to look for a registration and incorporation certificate (Int'L, 2015). All of them are acquired by contacting the sites of the relevant government departments on their websites. It can be established that there is some ease in processing any transition with the government of Uzbekistan (Int'L, 2015). Thus, there is a need to pay the relevant registration and incorporation fees done via the website of government ministries, agencies, and authorities in charge. Further, there is a requirement to check the plan and processes of the firm, by the government agencies, before certification as meeting the required standards of operation required of pet food manufacturing firm (International, 2017). Such will see to it that the firm meets the minimum requirements for the production and distribution of healthy pet foods to its diverse clients across the country.

There is also a legal aspect regarding its trademark. It should check with the relevant government ministries to ensure that any other firm in the country and across the world does not patent the company name and logo it uses. All of such activities are done online, with any responses from the concerned government departments being obtained within 24 hours, thus an efficient mode of the transaction (Int'L, 2015). In such a scenario, it would be quite easy and convenient for ShibaChows Group to go over its induction, registration, and incorporation into the business and manufacturing community of Uzbekistan.

Furthermore, ShibaChows Group needs to understand the existing labor laws it will apply to its workers, therefore ridding it of any offenses it might cause while dealing with employees, attracting litigations and legal actions against the firm. The government of Uzbekistan aids the firm in the adoption and implementation of such legal matters (Int'L, 2015). The FDA's in existence cover such issues as weights and measures of pet animal food products, ensure that it is not harmful, contain the mentioned nutrients, and any side effects are disclosed to the clients (International, 2017). There are, furthermore, environmental laws such as those restricting pollutions.

For the case of criteria relating to the production of healthy pet food products, there is a need to consider the differentiation of the products offered. It is because of the presence of firms that have already established in the country, where they offer various types of pet foods depending on their nutritional values and health benefits to pets (Int'L, 2015). Therefore, entering the Uzbekistan market, as seen in its pet food products that are different from those in the country, will offer a huge advantage to the firm hence easing its entry into the market.

Recommendation

In the above analyses undertaken for Tajikistan and Uzbekistan, it can be observed that comparatively, it is advisable to venture for ShibaChows Group to venture into Uzbekistan. There are diverse factors that favor the move by the business to set up pet food products factories in Uzbekistan against Tajikistan. They are concerned with the FDA's, legal, and environmental policies aimed that make the business ShibaChows Group enable is optimal operability and efficiency. One of them is the fact that there is an effective mechanism for documenting its registration, incorporations, and certifications. The government of Uzbekistan has devised a tendency whereby any new company wishing to set up shops will be transacting its details with the relevant government agencies on an online basis. It helps in easing the processes of setting up the company, as opposed to the situation in Tajikistan, the activities under all procedures of setting up a factory mush be physically undertaken with the government authorities in their respective locations. It consumes many traveling and other costs and expenses, leave alone wasting time in the visitation of diverse government departments. The time saved in the online registration of ShibaChows Group in Uzbekistan will then be invested in other undertakings related to its launching, operations, and development.

Further, the time taken for validation and ratification of business set up in Uzbekistan is less than 24 hours. It enables the company to review, correct, and address its faults in registration as fast as possible while applying corrective mechanisms aimed at enabling the registration as soon as required. The immediate responses by the government agencies mandated with handling company issues are also an indicator of a supportive government that prioritizes the welfare of operating firms, a positive gesture when it comes to future operations of ShibaChows Group once it has joined its line of production. The government is most likely to address any issues facing it promptly, leading to its booming business, flourishing, growth, and development. Hence, it will operate in a conducive political environment and the present clear labor, FDAs, and environmental policies.

Furthermore, there is an aspect of minimum standards required of any firm setting up in Uzbekistan. In such a case, before incorporation, the government agencies mandated with the task will have to subject the firm to rigorous checking to ratify its requirement of operation, including its unique identifiers: trademark, business name, and logo. The rules for certification, hence, are transparent, accountable, and rational compared to those in Tajikistan. It will enable the company to be in a tiptop condition for full operability, hence getting preference from the market base in Uzbekistan. Therefore, it is recommended that ShibaChows Group expands its operations to Uzbekistan.

Conclusion

Cumulatively, a long process began from the idea of board members: belonging to ShibaChows Group: to select Central Asia as a region to expand. It was followed by the analysis of its two countries: Uzbekistan and Tajikistan. It is evident that the business environment to be encountered in Uzbekistan is much favorable compared to that of Tajikistan; hence the recommendation of the firm consider expanding to the country. There are fast online transactions undertaken with responsive government agencies, strict and transparent certification rules, supportive political climate, clear labor, FDAs, and environmental policies. Following the need by ShibaChows Group to start a pet food-manufacturing factor...