Group 7 Presents : | Tayto in Japan |
For the analysis of bringing Tayto into Japan we used three different tools to analyze and conclude on three different levels.
The PEST analysis analysed the country from more of a macro level. From this analysis we learned that the political system is similar to Irelands, but has experienced some recent turmoil. The economic situation is still very strong, but has been in a slow and pretty steady decline caused by the Asian financial crisis and the recession. We learned they are a typical high context culture with strict rules, and long decision times. As well they are a technologically advanced culture with good infrastructure. ...view middle of the document...
(Largo Foods, 2009) They are a privately owned company that purchased the rights to Tayto in 2005. (Largo Foods, 2009) Tayto, a company that produces crips, was established by Joe (Spud) Murphy in 1954, and is now Ireland’s number one selling potato chip. (Largo Foods, 2009) Unfortunately, sales are limited to Ireland, the UK and selective parts of continental Europe. (Largo Foods, 2009) Due to its large success in these specific areas, there is no doubt that Tayto has the ability to penetrate another global market.
Japan is an island resided in Eastern Asia in between the North Pacific Ocean and the Japanese Sea (CIA World Factbook/Japan, 2009). The country is vulnerable to many natural hazards such as volcanoes, tsunamis and typhoons (CIA World Factbook/Japan, 2009). While much of the globe is adopting a “green” oriented environment, one of japans main problems is pollution (CIA World Factbook/Japan, 2009). Pollution from the factories creates acid rain falls which compromise the quality of water and aquatic life (CIA World Factbook/Japan, 2009).
The Japanese population remains at 127,078,679 (as of 2009) which is ranked 10th most populous in the world (CIA World Factbook/Japan, 2009). The largest amount of the population resides between 15 and 64, with 64% of the population (CIA World Factbook/Japan, 2009). Despite this, the country has a rapidly aging population, however, the life span in Japan amazingly high at about 82 years (CIA World Factbook/Japan, 2009).
Japan is reliant on their exports ($746.5 billion 2008) and imports ($708.3 billion 2008) (CIA World Factbook/Japan, 2009).Clearly, they are highly reliant on foreign markets for a prominent share of their economic output. Due to the global financial crisis, the net exports are declining since world exports are also decreasing (MIEPA, 2009).
Overall, Japan consists of a pro-business climate (MIEPA, 2009). The government is highly in favour of creating jobs, and most of the population has high career motivation (MIEPA, 2009). Japan is a powerful technology based industry as they are known to effectively innovate products and services. In fact, many Japanese companies are overseas and are leading companies in the world (MIEPA, 2009). Although there are a number of procedures to start business in Japan, they do have a corporation law that provides incentives. Although this isn’t very favourable for foreigners since there umpteen costs associated with starting a business. In fact, according to doingbusiness.com, Japan is ranked 44th and the USA is ranked 4th in the world for the ease of doing business (Doingbusines.org/Japan, 2009).
Role of the Government
Japan is a democratic country with a constitutional monarchy and parliamentary style government (CIA World Factbook-Japan, 2009).The Emperor of Japan, Akihito, is a symbol of the state and unity of the people (CIA World Factbook-Japan, 2009). The Emperor has little...