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Avis South Africa Essay

2664 words - 11 pages

Avis South Africa

Man 6937: Global Environment of Management
Professor Mantha Mehallis
Spring 2014

Table of Contents
Introduction 3

United States Political & Economic Environment 3

South Africa’s Political & Economic Environment 5

United States Social & Cultural Environment 6

South Africa’s Social & Cultural Environment 7

Potential Competitors …………………………………………………………………………... 8

South Africa’s Currency and Trade Issues with the United States …………………………….. 8 Conclusion …………………………………………………………………………………….. 9 ...view middle of the document...

The discussion will elaborate on the economic, social, political and cultural characteristics of South Africa that might directly affect the progress of Avis South Africa. The discussion concludes with an overview of whether Avis should expand its operations in South Africa and offers recommendations of adaptations that would make Avis more successful in South Africa.
United States Political and Economic Environment
Economic advancement is mostly successful when a nation is politically and financially stable. Although international companies can still operate profitably within politically unstable environments, corporate strategies can be compromised. The United States functions as an economic system where both the government and private sector direct the economy (American Political Culture, 2014). The Avis brand has had tremendous success in the United States economy. Its strength lies in its ability to cater to the evolving values of the American customer (Avis Corporate Facts, 2014). The Avis management team in the United States focuses on fulfilling customer expectations. Avis has maintained high customer loyalty by being attentive to small details that make a difference to a customer’s rental experience.
Political Environment
American political culture places emphasis on hard work and promises opportunities and success regardless of background. Americans generally believe in equal opportunity and free choices whilst observing mutual respect. A fairly elected government is accountable to its people, and citizens are encouraged to pursue personal interests responsibly. Despite disagreements in political views, Americans are generally patriotic and take pride in their country (American Political Culture, 2014).
Economic Environment
According to the Central Intelligence Agency (2014), the United States has the largest and most technologically advanced economy in the world. Being a free enterprise economy, individuals and private companies make most of the decisions with minimal government intervention. United States companies have greater flexibility than the rest of the world in determining business strategy decisions. Despite economic success, household income has generally been stagnant since 1975 with most of the income gains benefiting the top 20% of households (Zimmermann, 2013). The United States faces its own share of problems including a rising budget deficit, lack of investment in deteriorating infrastructure, energy sources depletion, an aging population, and rising medical expenses. The prospect of employment opportunities in the United States has attracted millions of immigrants from around the world making the net migration rate amongst the highest in the world. A significant factor contributing to Avis’ success in the United States is that the U.S. economy is rated highly on the Ease of Doing Business Index and the Global Competitiveness Report (Bureau of Labor Statistics, 2014).
South Africa’s Political and...

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