South Korea is officially named as Republic of Korea and sometimes it is besides known as merely Korea, which is located on the eastern portion of the state and on the southern part of the Korean Peninsula. Korean history was started in the 2333 BC which makes it existence in the ancient history, soon it is a presidential democracy which consists of 16 administrative disposals and is considered as a developed state and has a high criterion of life and has a 4th largest economic system in Asia and 15th in the whole universe. The state is diverged harmonizing to the assorted civilizations such as Economic civilizations, Socio-Economic civilizations, Physical environment and Economic environment which we will be treatment in our farther paragraphs. ( Kim Dae Jung, 2010 )
Environmental factors-
There are assorted environmental factors which plays an of import function every bit good the state ‘s authorities is seeking to continue nature. Many groups are seeking to do decrease in the environmental impact with regard to the issues related with the complex environment for an case planetary heating which is a planetary issue alternatively of an single state, industrial waste which can be considered a major job in any state such as South Korea, ordinance in tightening of risky substances which are presents used in the industrial work which can make a slaughter in at that place. The waste coming from the industries is dumped into the empty land which pollutes the land which is besides considered as Soil Pollution and many of the organisations which are come ining into the market of South Korea has to do certain that they have to care of all the above things as there are many ordinances made against the environment jeopardy ensuing into the creative activity of job for the house.
These were chiefly environment factors which come into drama in South Korea and the company puting into the state has to chiefly take attention of these types of issues.
Physical Environment-
In the beginning 20 old ages of the South Korea ‘s growing rush, there was small attempt made to heighten the environment of the state. The deforestation and ongoing devastation of the wetlands were fundamentally ensuing of the anterior industrialisation and urban development. There are schemes made late to equilibrate the jobs, which includes a large undertaking a authorities run $ 84 billion five twelvemonth green growing undertaking taking at hiking energy efficiency and green engineering.
South Korea have humid Continental clime and sub tropical clime which is by and large affected by the East Asiatic Monsoon with more precipitation during summer and during a short rainy season. Winters could be more kid as the quicksilver drops every bit much as -20 grade Celsius in the inland part of the state. Rainfall is fundamentally concentrated in the months of June and the southern seashore is subjected to the late summer typhoons which brings them with heavy rains and strong air currents and the mean one-year precipitation by and large varies from 1,370 millimeters to 1470 millimeter and the mean January temperature ranges from -7 grade Celsius to 1 grade Celsius and there is by and large increment seen in the month of August which varies from 22 degree Celsius to 30 grade Celsius. Summers are rather hot and humid with the temperature transcending 30 degree Celsius in most of the portion of the state.
Socio-cultural Environment-
As we can detect that from last two decennaries at that place has been increment in the universe ‘s concern environment under influence of globalisation and internationalisation. There are figure of trans-national companies which are steadily increasing and it is really hard to conceive of a powerful company who does non hold waies and chances to spread out in foreign markets in their list. There is a chief commercial tendency traveling around the universe which is international enlargement and if a company has to develop in the other states they have to larn about all the possible cross cultural alterations of the state which can be merely faced during exposure to the outer universe. ( Introduction, 2010 )
Modern South Korea is a good known developed state which is at the brink of intensifying in their economic rise which is supported by the governmental policies and long term political stableness. The connexions between concern constructions and authorities are really strong in South Korea which gets provided by a regular support from the authorities of commercial endeavors includes sponsorship and subsidizing of assorted corporations or whole industries, offer of privileges in recognition or enforcing governmental limitations on assorted types of imports. Cultural composing of South Korea is rather homogeneous which has an exclusion of a little Chinese minority life in the Korean districts and bulk of the state ‘s population who speaks Korean linguistic communication which has a idiom of which are similar with the other individual and ne’er face job while interacting or to understand with the individual from other vicinities which brings strong nationality and trueness among their civilization.
Understanding Local Customer, Culture and Buyer Behavior-
As we are puting in a state so to get down a peculiar concern the survey of market should be done in which Local Customers, Local civilization and purchaser behaviour are the chief things which are to be understood in order to derive the maximal out of the market. We will be taking the local clients foremost as the society in South Korea comprises of an person which belongs from the corporate society background as we all know about it so the schemes and programs of the selling should be harmonizing to it. The merchandise which we are traveling to establish should be in favour of the local clients as it could be find out through executing study before launching of the merchandise which could give the exact composing of the merchandise as it what is needed in it to give it the best touch.
If we talk about the civilization of the South Korea which is wholly a corporate society and consists of a united work force so the merchandise should depend on the nature of the civilization of the work force. The civilization of the South Korea is really rich as in the instance of Art, Literature, culinary art and fundamentally it portions its civilization with North Korea but they have formed different types of civilization since they are divided in the twelvemonth 1945. The civilization which is present should be favourable for the development of the company and should be supportive in order to do farther development in the company.
When a company performs an international concern it fundamentally searches for a purchaser which is local or belongs from that peculiar state where investing is done. Wherever there is more presence of local purchaser it will automatically pull the investors to put in the state ‘s economic system. The presence of the local purchaser and an international market is provided by the South Korea authorities and the combination of both provides a platform where an investor can non defy puting or get downing a concern. So, it is more needful that there should be proper research should be done on local client, civilization and local purchasers before puting in the market of a peculiar state.
Economic Environment-
As we talk about the economic status of South Korea, there is a continue rise of rising prices in the state since December 2007 which is speed uping 3.6 % twelvemonth on twelvemonth which is 3.5 % up from November. The chief ground behind the rise in the gradual pick-up in rising prices since mid-2007 is the lifting oil monetary values combined with demand of robust client. The rising prices in the consumer monetary value in South Korea which has exceeded the upper bound of the bank ‘s medium-term mark scope for the rising prices of one-year headline of 2.5-3.5 % and is now running at the highest rate since October 2004. As we know, core rising prices that strips out energy and nutrient monetary values which remain low at 2.4 % in December. The concern which was earlier mentioned about the belongings monetary value rising prices which was witnessed in the twelvemonth 2006 have retreated as marks of modest house monetary value corrections which has appeared in the twelvemonth 2007. That was all about the current rising prices state of affairs of the South Korea. ( Economic Environment in South Korea, 2010 )
If we talk about South Korea ‘s current economic mentality so there is latest alteration of the Economist Unit ‘s planetary and US economic growing prognosiss, there is increase in the expectance signifier GDP growing to every bit low as 4.4 % in the twelvemonth 2008. In recent old ages a taking ground of the growing was exports of assorted services and goods. The authorities of the state was anticipating growing to slow from the present state of affairs of 11.8 % to 7.5 % before bettering somewhat in the coming old ages to 7.8 % as there is some external demand which improves marginally. The demand growing in the domestic sector is expected to be slowing off in the coming old ages and to retrieve partly in the hereafter old ages. The existent and existent GDP growing will stay at 4.4 % which helps in beef uping of demand in the domestic sector which suck in imports doing diminution in the wholesome part of the external balance to GDP growing.
There are many trade barriers within South Korea as the merchandises can non be easy traded into the state which requires go throughing through many regulations and ordinances as there are many types of hazard included in the state such as hazards related to Politicss, Economic sector, Banking sector and other many types of hazards are at that place to bring forth hinderance in the international concern. If we observe the Economic construction hazard in which there is variegation in the export base which provides a benefit for the South Korea but the lifting importance of the adjacent state as a trading spouse helps to decrease the trust of South Korea. The market size of the South Korea is considered every bit big as there are many other companies which are running their concern rather good and for the new entrants there is a nice competition been observed as the factors are suited for international concern.
State Evaluation-
When there is scheme applied to setup or investing in a peculiar concern in a peculiar state so strengths, failings, Opportunities and Menaces should be observed from the international concern point of position.
SWOT Analysis-
Strengths-
When we talk about the strengths of a peculiar state so the procedure of industrialisation dramas an of import function in it which helps in increase of the GDP growing rate but at a clip in earlier times it has been compared as the lowest in the whole Asia since there is a rapid advancement as integrating of the high engineering development and universe economic system giving rise to the ace corporations for case Hyundai, LG and Samsung. There is a presence of cultural strengths which consists of individualistic society where people are trained to be independent whereas in most of the state there is presence of corporate society where an single looks out for the good of the group.
Weaknesses-
There was a downswing observed in the disbursement of consumers which was offset by rapid growing even though South Korea faced a fiscal crisis in the old ages 1997-98. The end product informations of export and industrial development provided by the economic expert rosiest projections with the 5 per centum growing rate in the twelvemonth 2010 gimmick less attending of the investors. The ordinances are ill-defined, brotherhood reform hazards are being exaggerated and concerns is dominated by opaque kins which are some of the failings which are being faced by the South Korea in their concern sector which should be improved so as to better on their economic portion.
Opportunities-
There are many chances available if there is handiness of the resources to put in the international concern and the state like South Korea is the topographic point with chances as it has cultural strength which develops a difficult working single which comprise of their work force. As South Korea is the 5th largest selling market in the whole universe which comprises of retail sale of one-year $ 2 billion there are many investors who want to put in this environment so as to derive out the upper limit. There are assorted plans running such as Free Ambassador plan as the chief high spot which can have benefits of world-wide organisation and assorted chances available globally. There are many conferences which are being held in the state such as a large one viz. G-20 which provides a platform for assorted states to put in a peculiar state. So these were some of the chances which are available inside and outside the state.
Threats-
When a company decided to put in a peculiar company so there are assorted menaces which are to be faced by the company. Main menace for the new entrants is the competition which exists in the market within companies of different sector and the companies which exists from few clip has a menace of market fluctuation or alteration in market conditions which is hard to make up one’s mind to avoid the impact of the fluctuations in the market and alterations in the demand for end merchandises. The other menace could be natural which comprises of Natural Disasters in which temblors, typhoon and inundations which are beyond the control of a group could badly damage the fabrication installations. The competition as we have mentioned above is the other chief types of menaces which are a major concern for all types of companies in the market.
Country Specific Advantage-
The specific advantages of the state are the alone advantages which are comprised by the state as South Korea is ranked 9th in difficult power resources and have joined OECD and go an of import member of the G 20. Few decennaries before South Korea and Ghana were about at the same degree in footings of economic growing but at present clip there is a huge difference between the two states as South Korea became the universe ‘s 11th largest economic system in the universe with a per capita income of above $ 15000.
Choice of Industry-
The industry which is best suited for the investing could be decided through the nature, civilization, economic growing, fiscal state of affairs, political factors regulations and ordinances and Trade barriers which are the things which are chiefly observed in an investing to be done in a peculiar company. There should be handiness of the resources in a state for suited concern to be started in a state. So as discussed in our whole survey and detecting each and every point, the investing which could be done should be in the sector of electronic points as it is already developed so the new entry or an investor would easy acquire the market to put. There are many companies which already exist in the market such as LG and Samsung which can provides a tough competition which is a major issue but apart from it the Numberss of benefits are more as compared with the figure of disadvantages.
