All organisations (public or private) conduct research to plan and implement a b
ID: 434714 • Letter: A
Question
All organisations (public or private) conduct research to plan and implement a business idea. This assignment is designed to provide the foundation for an assessment on the global business environment for a new or existing business opportunity. Each phase of this assignment project is designed to gather information on the global business environment that may influence an existing or proposed new business opportunity. Imagine that your group is a South African apple producer and sells high quality apples through retail stores in South Africa. You consider Ethiopia as a prospective export market. Critically evaluate the elements of CAGE distance that might influence your ability to export apples to Ethiopia.
PHASE 1: Culture – Assessing the social-cultural environment
Critically analyse the social institutional issues, customs, traditions and beliefs influencing the potential business opportunity in Ethiopia.
Explanation / Answer
CAGE Framework involves consideration of the distances in South Africa and Ethiopia Market in terms of Culture, Administrative structure, Geography, Economy.
Culture - Ethiopian Culture is different from culture of South Africa as the living standards, quality of life, level of urbanization is less in Ethiopia compared to South Africa.
Administration - Administration of Ethiopia has indepedent divisions based on ethnicity. In comparison to South Africa, there is less awareness and the administrative processes are not as sophisticated and evolved.
Geography - Ethiopia has a tropical monsoon climate which is diiferent from South Africa,the distance between two countries is also large.
Economy - Economy of Ethiopia is largely based on Agriculture, coffee and wine exports. The economy is less developed compared to South Africa.
The Social structure in Ethiopia is largely based on traditions and common beliefs. The communication is preferred on personal level and personal involvement is important for doing business . It has diverse customs and traditions. For any business opportunity it is important to study the market through an agent, establish contacts and develop local relationships for any further scopes. English is not widely spoken though it is medium of instruction in schools. There are constant efforts for improving economy and it is a politically stable country but in terms of buying power, there is not much capacity in local people.