Essay Sample on New Business in Different Countries

Introduction

Anderson Company is a corporation that provides farmers with innovative, reliable and easy to use machinery. Our company operates under the guidance of our motto, 'solution for smarter farms.' The main type of machineries provided include mixers, trailers, wrappers, and bale processors. It is true to say that a large portion of developing countries especially those in Africa depends on agriculture for income generation and economic development of the nation at large. Anderson Company is looking to conduct business abroad in an aim to expand its business, and so far, a country in East Africa by the name Tanzania has attracted us because of the resources, trade agreements, social structure and business environment

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

Resources

Tanzania is a country that has been blessed with a lot of resources starting from natural resources such as fertile land, lakes, rivers, forest, and the ocean. The lands in Tanzania are owned through; Right of Occupancy, public systems, and customary land tenure Lund, J. F. (2007). This communal tenure of land means that the farms have not been subdivided into a small portion. Hence farming can be conducted on a large scale. In the country, a majority of the agricultural land is under the communal or customary tenure and is yet to be surveyed. As of 2013, the country had reached a population of about 50,569,372 and the biggest number being individuals living in rural areas. In such areas (rural areas), the unsustainable use of natural resources is pushing people especially the youths to migrate to towns in search for employment. Our machines will improve the utilization of resources in these rural areas and reduce rural-urban migration.

Trade Agreements

In the year 2008, the United State signed TIFA (Trade and Investment Framework Agreements) with EAC (East African Community) together with COMESA (Common Market for Eastern and Southern Africa) in the year 2001 Lewis, J. D., Robinson, S., & Thierfelder, K. (2003). Our country of interest, Tanzania, happens to be a member of the two regional organization. These two agreements are favorable in terms of imports, exports, and investments by foreign companies such as ours. Also, in 2015, the government of Tanzania vowed to promote science, innovation, and technology in farming as a way to spearhead national development. As stated early, our company provides solutions for smart farmers, and our services and commodities will largely promote the achievement of the Tanzanian government promise to its people. The implementation of our technology in agriculture will lead to the development of the livelihood of the people whose livelihood depend on agriculture. Also, the government of Tanzania has passed a new requirement for all contractors in the country to acquire new knowledge on farming pieces of machinery for efficient work. Our services go beyond providing just machinery to customers. Also, we offer our clients up to date information concerning all the types of machinery we provide.

Social Structure

The Tanzanians live under the concept of 'Ujamaa' in other words, socialism. Everything is communal in terms of ownership. The government is the major owner and shares its resources with the people Jennings, M. (2008). This means that there few major investors in this country as they depend largely on the government's provision. Secondly, a vast number of youths live in urban areas leaving the elderly back in rural areas. The older generation does not engage themselves heavily in labor as their energy is limited. This is a drawback in terms of sales of our machinery in rural Tanzania.

Business Environment

The business environment is affected by some factors, but majorly it is market forces and key trends that affect the performance of businesses. In terms of market forces, there is an impending need and demand for farm machinery in Tanzania, and it is a gap that Anderson Company believe we can close. The key trends in terms of potential competitors and stakeholder, our years of experience in this field will help us penetrate this Tanzanian market freely.

Conclusion

By creating a new business in this foreign country, our firm will definitely achieve an incredible level success because of the favorable conditions present in Tanzania. The market still need some adjustment but a perfect market does not exist.

References

Jennings, M. (2008). Surrogates of the state: NGOs, development, and Ujamaa in Tanzania. Kumarian Press.

Lewis, J. D., Robinson, S., & Thierfelder, K. (2003). Free trade agreements and the SADC economies. Journal of African Economies, 12(2), 156-206.

Lund, J. F. (2007). Is small beautiful? Village level taxation of natural resources in Tanzania. Public Administration and Development: The International Journal of Management Research and Practice, 27(4), 307-318.