Analysis Of Strategy Of Gddc

1663 words - 7 pages

Analysis about foreign markets for GDDC

Introduction
The Golden Dragon Dumplings Company (GDDC) is a Shanghai-based seller of takeaway and snack foods. It diversified into the packaged food market in 2000. At present the company has 455 restaurants across eastern and southern China and some packaged food divisions in four different provinces. Its main focus of production is dumplings. Besides, its new factory being built would be capable of producing a range of pre-prepared noodle and rice dishes for sale in supermarkets. With profits continuing to rise, GDDC has begun to consider the possibility of international expansion of both the restaurant chain and packaged food division.
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No significant advantages of population distribution among them. But the whole number of population Australian has an advantage. Place is important need to be considered, and if GDDC choose delivery products from China, Malaysian and Singaporean is more closely that save transport fee compare with Australian.

Economic
In term of economy, all of the three countries are keeping a stable growth. However, there is no doubt that Australia is the most advanced among them now. Its average growth rate of gross domestic product (GDP) is 3.6% in the current decade, which makes Australia’s GDP rank the 14th in the world and the 11th in the OECD in 2005. In the same year, its per capita GDP was $34757, which was the highest in three countries. Moreover, these years, Australia always keeps low inflation and interest rate while it also owns plentiful professional labours. All of these data indicate Australian market not only has strong purchase power but also provides adequate labour. Though at present Australia is the best of all the countries, Malaysia shows greater potential. Malaysian government is developing agriculture and driving tour. With the rapid development of tour, food market was influenced positively and increased 8.1% in 2007. Obviously, this is favorable news for GDDC. Furthermore, Malaysian economic growth rate was 5.5% and per capita GDP was $5630 in 2006. The government expected that its average economic growth rate could reach 6.3% in next 15 years and it could achieve the level of a developed country in 2020. This great ambition also offers the company a good chance to enter. Compared with the other two countries, as the financial centre in South East Asia, Singaporean economy is mainly focus on business, including entrepot trade, processing export and so forth. Last year its economic growth rate was 8% and per capita GDP was over $30000. Above information reveals Singapore may not be as good as the others whereas strong purchase power should not be ignored.

Political-legal
There are distinct policies and legal regulations on foreign investment among three countries. Malaysia adopts constitutional monarchy. The most attractive regulation Malaysia has made is that foreign companies can withdraw their investment and profits they made in Malaysia without any restriction. This both reduces the barriers to exist and makes flow of capital more convenient. However, there are some disadvantages in Malaysian market. Here is an example. The local government regulates a foreign company owns at most 30% of share in a joint venture. Apparently, this is a bad news because the foreign company cannot control joint venture corporation completely, which may lead to management problems and affect its global strategies. Make a comparison, Singapore may have a more free system. Singapore adopts cabinet system and emphasizes how to attract foreign investment all the time. The government offers various industrial policies and tax concession such as...

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