China And Russia Journal Of Business Ethics -Myassignmenthelp.Com

Quetion: Discuss About The China And Russia Journal Of Business Ethics? Answer: Introduction In this competitive market, global business marketing provides an opportunity for the business organizations to sustain in the competitive market. After a certain time, the domestic market becomes saturated for the business organization thereby, hampering the overall revenue and business. The business organization develops and implements international marketing in order to ensure growth for their company. Global business marketing allows the business organizations to create new market along with increasing their customer base thereby, increasing the annual revenue. This report introduces the PESTLE analysis of Russia, as Ugg Australia aim towards globally expanding their business to Russia. Overview of Ugg Australia Australian Leather Pty Ltd is a footwear manufacturing company that is manufacturing ugg boots since early 1990. The Sydney manufacturer uses sheepskins to manufacture the boots and is estimated to manufacture more than 50,000 pairs of boots annually. An estimated cost of the Australian leather ugg boots is $89 ("Australian Ugg Boots Pty Ltd", 2017). However, the Sydney manufacturer of ugg boots is facing a legal battle with a global American footwear company that is preventing the Sydney manufacturer to use the name ugg (Cormack, 2017). The court has taken legal action against the Sydney ugg boots manufacturer in the favour of the Deckers Corporation partnered American ugg footwear manufacturer. However, the owner of the Sydney ugg boot manufacturer has stated that they are nothing like the American ugg footwear. Due to the clash of the name ugg, the global American Ugg manufacturers have shut down several Australian small manufacturers of ugg boots ("Ugg Boots | Uggs | Australian U GG | Sheepskin Boots ~ Jumbo Ugg", 2017). The Australian Leather Pty Ltd has aimed towards globally expanding their business to Russia, as the Australian market has become saturated due to the rise of various small ugg boot manufacturers. The Ugg Australia predicts competitive advantage and business growth by expanding the business internationally to Russia. PESTLE Analysis of Russia Ugg Australia conducts a PESTLE analysis in order to analyse the external environment of Russia thereby, judging the suitability and predicting the success of the global expansion. The PESTLE analysis of Russia is furnished below: Political Russia is federation of Russia with semi-presidential republic Open foreign relationship strategy Russia had official relationship with 191 countries and 144 embassies until 2009 The political side takes the main role of running the business of the entire country. Economic Russia is greatly dependent on the natural resources, that is, oil and gas. The GDP of Russia ranks 10th in the world economy In respect to agriculture, Russia is considered the 4th largest Constantly growing economy Social Russia is highly affected by HIV and alcohol poisoning Russia is well-known for literature, music, ballet, philosophers, and sports Unevenly distributed population throughout Russia Russias society health is negatively affected due to health conditions, diseases and depressions. Technological Rich in science tradition Russia is the first country to sent people in space Russia has paid more attention to developing advanced technology such as Rosnano and Nanotechnology Russia surprised the entire world by their advanced aerospace engineering. Legal The legal structure facilitates foreign investors Biased courts Judiciary suffers from state interference and corruption Russia ranks 3rd in terms of the pending human rights cases in the European Court Environmental Government has taken initiative to reduce pollution Low water quality along with poor agricultural practices Higher rate of carbon emission Degradation of natural resource base Political: Russia has become the federation of the semi-presidential republic in 12th December 1993. Since Putins president ship in 2000, Russia has encountered several changes in the political system thereby, becoming active on the international stage. Therefore, the legislative and the political power of Russia are centralized and are shared between the Prime Minister and President of the country. The political nature of the country influences opens foreign relationship strategy. As a result, no difference is present between the national and international foreign investors. Until 2009, Russia had an official relationship with 191 countries and 144 embassies that facilitated business. The political department of the country holds the main role thereby, regulating the entire business of the country (Brovkin, 2015). Economic: The economy of Russia is unpredictable and highly volatile. Russia is greatly dependent on the natural resources such as the price of the crude oil. Due to the decline in the oil prices and trade wars between the US and the Europe, Russia encountered recession in 2014 and 2015. Though considered as a developed country, Russia has unstable economic parameters such as labour productivity. Russia has the 10th largest economy in the world and the 4th largest agriculture (Malle, 2013). The 2008 recession largely affected the economy and Russia encountered an adverse financial crisis. Reports suggest that the annual GDP growth for Russia in 2008 was 5.24% but declined drastically to -7.281% due to the recession. However, the spontaneous and active actions by the Central Bank and the Government, Russia uplifted the declining economy by 2014. The International Monetary Fund and the Central Bank predicts that Russia will be able to resume the normal GDP by 2017 (Lipman et al., 2012). Social: Russia is well known for its contribution to literature, philosophies, music, ballet, and sports. However, Russia has unevenly distributed population, as the western and the southern part of the country are densely populated. Russia is one of the largest countries in the world covering approximately 16 million square kilometers with different time and climate zones. The Russian population encounters severe health issues due to alcohol poisoning, HIV, heart conditions, and depressions. The average life expectancy in Russia is lower than 70.9 years that is expected to increase due to a healthier lifestyle (Dias, 2013). Technological: Russia is extremely rich in science tradition and culture and is one of the first countries that sent people to space. Russia has greatly emphasized in developing advanced technology such as Rosnano and Nanotechnology and has surprised the world by their advanced aerospace engineering successfully. Russia ranks 62nd among 138 countries in terms of the technological readiness and is ranked 56th in terms of innovations (Wcislo, 2014). Compared to the other OCED countries, 10% of the Russian companies are reported to use technological advancements. Digitalization and extensive use of the internet have changed the traditional way of doing business for Russia. More than 70 million Russian business organizations use internet for business thereby, providing endless opportunity for the companies. However, on the contrary, in terms of using technology in education, Russia has failed to reach the standard of the European countries (Lee, Speight Loyalka, 2014). Legal: The strength and independence of the rule of law are considered poor in Russia compared to other countries in the world. The legal system and judiciary of Russia suffer corruption and state interferences thereby, resulting in biased courts. However, the legal structure of Russia highly facilitates foreign investors. Russia ranks 3rd in terms of the pending human rights cases in the European Court (Epifanova et al., 2015). According to the Constitutional Court of Russia, the decisions of the international court can be overruled if they fail to correspond with the Russian Constitution. Compared to the state agencies, the inter-firm court rulings are much fairer (Boussena Locatelli, 2013). Environmental: As Russia is highly dependent on the natural resources such as oil and gases, it is predicted that the country would exhaust the natural resources completely very soon. Russia has low water quality thereby, resulting in poor agricultural practices. Russia has a higher rate of carbon emission that results in global warming, dangerous weather events. Considering the higher rate of environmental impact, the Government of Russia has developed policies that address climate change, environmental sustainability and issues (Jorgens, 2012). Doing business in Russia After conducting the PESTLE analysis, it can be said that Russia is a suitable country for global market expansion for Ugg Australia. The partnership between World Trade Organization and Russian Federation facilitates business for the foreign investors and companies (Zhao, 2012). The steady recovery of the Russian economy from the hard-hit recession provides many opportunities for Ugg Australia to commence business in the country. Additionally, the suitable political and legal structure of Russia also provides a suitable business opportunity for Ugg Australia, as Russia does not distinguish between national and international business organizations (Cavusgil, Ghauri Akcal, 2012). Additionally, the technological advancements of Russia are also a justified reason for Ugg Australia to expand globally their business in the country. Ugg Australia needs to implement franchising entry mode for entering the Russian market. The franchising entry mode strategy will provide an opportunity for g lobally to minimize the risk of growth and expanding their capital easily (Ardichvili et al., 2012). Conclusion In this report, it can be concluded that Ugg Australia is a Sydney based ugg boot manufacturer that is facing legal issues with the internationally recognized American Ugg footwear. However, the owner of Ugg Australia has claimed that they have no similarity with the American ugg footwear manufacturer. 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