Essay Sample on Global Trade: A Vital Indicator of the International Economy

Introduction

Since the early 1980s, global trade has developed and grown tremendously. Global trade remains a vital indicator of the international economy. Tang et al., (2018) argued that business and companies going global understand the essence of globalization of the economy in which entails increased cross-border commerce activities of products and services, rapid technological spread, and constant flow of global capital. Ever since the early 80s, businesses, and companies undertaking cross border have seen increased revenue, accessibility to export financing, long product lifespan, better risk management, and profiting from currency exchanges (Digumber et al., 2017). For the past decade, Starbucks has achieved significant advancement in its expansion strategies. The company has a presence across America, Asia, and Europe. With increasing prospects of improved economic fortunes of countries in Sub-Saharan Africa, the country sets forth to try its coffee-making venture in the fast-moving region. The paper outlines a draft business plan in which it establishes Starbuck's entry and expansion into Mauritius, a fast developing country in Sub-Saharan Africa.

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Marketing Plan

A marketing plan entails a critical aspect of a business strategy (Digumber et al., 2017). The document outlines key features of a company's marketing and advertising efforts in addition to its business engagement, activities, and approach towards accomplishing its goals. With its outstanding diversity, Mauritius offers an incredible market considering its development prospect, religion, culture, and language. The best marketing approach for Starbucks entail acting local but thinking global while establishing itself in Mauritius. One of the primary challenges of establishing in Mauritius involves encouraging the locals to try out new services and products(Tang et al., 2018). Even though the Mauritius locals prefer foreign-based products, from the start, the strategy may prove an uphill task. Thus, Starbucks needs to identify itself with the locals, while implementing global standard in its practices. With its target of the middle and upper class, the company needs to identify its practices with the local's habits, practices, and culture.

Digumber et al. (2017) maintained that Africa remains one of the country's that prefer outdoor engagement and socialization. With this in mind, Starbucks needs to identify with the corporate class, the middle class, and city dwellers that prefer the contemporary and hip lifestyle. These entail women and men aged 20 to 45 who engage in socializing in classy and well-respected coffee places. Starbucks needs first to understand the group's lifestyle, practices, build trust with them, and create an engaging message. By using social media, the company can talk, share, and focus on the target's needs.

Competitive Analysis

Phoenix Beverages attributes its success in Mauritius to three main factors. They include preparation and patience, partnering with local entities, and focusing on the country's culture and customs. Of the three elements, the company maintained that concentrate on the country's culture, traditions, and ways of life that enabled it to succeed and find a local bearing. As a developing county, Mauritius banks on both domestic and foreign companies to boost its key industries. The central government has put in place lucrative and flexible strategies to enabled businesses establish their operation with ease and flexibility (Tang et al., 2018). For example, the use of online registration continues giving business entities comfort of establishment, a feat that continues to encourage new companies to establish in the country. Thus, companies only need to enact and develop strategic maneuvers that will enable it to gain good ground in the country.

Companies such as Omnicane, Mauritius Post, MauBank, LUX Resorts and Hotels attribute their continued success to favorable environment, supportive government initiatives and policies, and positive economic prospects. The first banking institutions in the country attributed its success to the country's convenient and hospitable business ecosystem. Foreign-based companies such as Essar Energy affirm that Mauritius has a prime geographical location with an upbeat market for diverse investment.

With the country focus on education, the market remains ready and up-beat with new business concepts, products, and services. With over 90 percent of the country's population skilled and bilingual, businesses have a favorable and ready market with businesses understanding that their business interests, products, and services have a ready market (Tang et al., 2018). Foreign companies in Mauritius acknowledge that Mauritius remains an economic springboard in the wider Sub-Saharan region. At the same time, companies such as Ireland Blyth Limited, ENL Group, and La Sentinelle attribute that the country's appetite for commitment, innovation, and secure business ecosystem, educated locals make the country an intravenous investment region. For example, since 2017, La Sentilelle has undertaken a strategic expansion exercise that will see its fortune in the printing, media, and distribution increase twofold. The company approximates that by the year 2030, it will have increased its revenues by over 50 percent. Such proves that Mauritius remains one of the most promising investment destinations in the Sub-Saharan region.

Human Resources

According to Sambajee (2016) Mauritius' education system comprise of one of the best and robust arrangements in Africa. The country has a robust code of ethics in its places of work that mainly focus on respect, courtesy, integrity, and working in the best of their abilities (Cervigni & Scandizzo, 2017). With its British based Education System, the country has in place well-skilled and capable personnel driven by values, dedication, and loyalty. The worker's work engagement entails deep engagement in the STEM ideology that involves filling its skill gaps by a robust and effective system-based workforce (Tang et al., 2018). Through this, the workforce can offer effective and efficient services that play a critical role in profit-making. Although a new forging based company may need expatriate management, the best strategy entails, including local personnel in the overall management of the process activities.

Personnel Plan

A personnel plan helps in deciding on the best employees to hire. Most personnel hired will primarily engage in the service delivery, processing, and preparation of the daily activities that will align with the company's organizational culture. The most important thing for Starbucks will include hiring more of the local personnel to give the establishment a local face and foundation. Through this, the company will find it easy in its market plan, especially in targeting its market.

According to Tang et al. (2018) the minimum wage for unskilled workers is from MRU8, 600 to MRU10, 000 as of November 2019. For skilled workers, the minimum wage is from MRU20, 000 to MRU100, 000 (Tang et al., 2018). Some earn more than the above-stated values and often depend on the rank, company, and contract agreement. Although the country has a low employment rate, Starbucks can still get competent and reliable personnel for its management and overall operations. For a start, Starbucks will require approximately 20 employees to engage with in terms of operations, daily engagements, and management (Tang et al., 2018). For example, local managers will include 3 Mauritians and two expatriate managers. The others will form the operation team. Management issues such as holidays, leaves, and shifts will form part of the broader operation plan management. Still, they will entail a great deal of the overall management strategy adapted and used.

EXIM Strategy

Although in 2017, Cervigni and Scandizzo (2017) maintained that Mauritius registered a negative trade balance of approximately $3.18B, it remains a stable and robust economy for global business. In 2018 alone, the county had a total export of $2 billion from around the globe (Cervigni & Scandizzo, 2017). Starbucks will have to put into practice its integrated supply chain to ensure that it has the right cup of coffee for its customers. Mauritius reportedly has one of the best guides to import products, raw materials, and goods into the country. Together with its integrated supply chain system, Starbucks can enhance its production and meet its coffee production goals.

Conclusion

Mauritius remains one of the most robust economics in Sub-Saharan Africa. With its unique style of operation and management, Starbucks can take advantage of Mauritius' favorable business ecosystem to launch one of the most successful coffee chain outlets within Sub-Saharan Africa. The most critical aspect for Starbucks to consider is to understand the local's culture, ethical values, and business practices.

References

Cervigni, R., &Scandizzo, P. L. (2017). The Ocean Economy in Mauritius: Making It Happen, Making It Last. World Bank.

Digumber, S., Soondram, H., & Jugurnath, B. (2017). Tax policy and foreign direct investment: Empirical evidence from Mauritius. International Business Research, 10(3), 42-56. https://pdfs.semanticscholar.org/a45c/402393f2a29002c968cf010a4638cd0cbac8.pdf

Sambajee, P. (2016). The dynamics of language and ethnicity in Mauritius. International Journal of Cross Cultural Management, 16(2), 215-229. https://strathprints.strath.ac.uk/55212/1/Sambajee_IJCCM_2015_The_dynamics_of_language_and_ethnicity.pdf.

Tang, V. T., Shaw, T. M., & Holden, M. G. (Eds.). (2018). Development and sustainable growth of Mauritius. Springer.