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Analysis and Integration

How Orange Rooster will venture into new market

Before doing business in a foreign market, it is crucial to analysis the environment of that particular country. A country analysis helps the firms to understand factors that will help in doing business, as well as the challenges so that they can look for solutions. Even though market research is crucial before launching products, it is paramount to have a better understanding of a country’s economic, political, legal, social and cultural factors as this will give the firm greater probability of its product succeeding and also reduce the risk of the firm’s profitability and reputation. Also, analysis of the country will help us understand the degree of risk to help determine the mode of entry strategy to that particular country. The Singapore external environment factors such as economic, legal, political and social will be used to create a starting point. The results indicate that external environment for starting a business. However, Orange Rooster will need to hire a Singaporean resident by communicating with locals.

Factors that will help entry

Singapore has an attractive political environment to start a business. Singapore government has addressed this concern, and it is perceived as a corruption free country. In fact, it is one of the top five least corrupt countries globally (Transparency International 2012). This means that Orange Rooster will benefits regarding profit from the political environment as a result of government initiatives concerning transparency in the global chain. The country’s efficient and transparent bureaucracy makes it attractive for business. Furthermore, the government is responsible for setting priorities and regulations using a pro-business approach. It also provides financial and tax incentives, thus lowering the cost of doing business in Singapore.

Singapore has a robust legal system. The anti-corruption laws are well enforced, and thus, Orange Rooster will be able to do their business and won’t be weighted down by bribery. Also, Singapore act by WTO that is aimed at protecting intellectual property rights. Therefore, Orange Rooster business ideas and innovation will be legally protected by Singapore law system.

The literacy rate of the country is 91 percent, and this would enable Orange Rooster to get high quality workforce that can be a competitive advantage. Also, Singapore has an open migration policy, this has allowed the country attract people from all over the world making a global quality workforce. Highly educates employees will provide the best personnel for Orange Rooster.

The economy of Singapore will benefit the food industry due its strong tourism industry providing a huge market. The country has a high level of disposable income; this will be a driver for the food business. The country has a very low unemployment rate of about 2%. The country revenue is high, in facts it is consistently in a surplus and the country has no foreign debt. The country economy has always maintained stability even during the 2007-2008 financial crises. In fact, in 2010 Singapore became the fastest growing economy globally. The key industries that have contributed to the growth of its economy include tourism, export, and financial services. Therefore, Orange Rooster will benefit from Singapore economy due to the tourism industry as it will offer market for food business for different kind of people. The country economy is also growing at a rate of 4.9% with a GDP of $ 318.9 billion. A high GDP and its high growth rate attract food business. Orange Rooster staring a business in Singapore will enjoy its economic strength.


Singapore, like other developed nations, continues to face a significant shortage of labor, and this continues to increase. The majority of Singapore population are expected to be moving out of the workforce in the next 15 years, thus leaving a huge gap in the labor pool. This year the percentage of workforce aged above 50 years is expected to be 29%. Moreover, by 2050, more than 40% of the country’s population will be aged above 60.

Despite the country have no import tax duty on imports; there are legal issues that hinder investments. For instance, the law requires a company to have two directors, one of which should be Singapore residents. Additionally, the firm is also expected two Singaporean residents who will act as representatives of the company in the country. This would create difficulties for Orange Rooster because they need to find assistants in Singapore to create their businesses there. This can require having personal contacts. The Orange Rooster employees should thus work on their social capital by increasing their ability to connect people from other cultures. Widening your social circle will help to meet new people who may eventually help find assistants in Singapore to create their business (Low Kim Cheng 2009).

There is low to moderate threat of communal violence. The violence may affect tourism industry, and so to the food industry. However, the Singapore Government currently strict measures.

Also, there is a strong emphasis on culture in Singapore. The new business will face many cultural challenges because they do not know how to behave. Even though there is a high level of collectivism in Singapore, the country has a higher power distance and avoidance of uncertainty, the manager will have to study their culture to understand them. Cultural dimensions show that Singaporean shy away from an aggressive pursuit of solutions that would require them to take high risks (Hofstede 2001). Even though there comfort in knowing that the decisions that the business is about to take are safe, at times taking calculated risk is beneficial to drive a business forward, and thus, any reluctance by the managers despite the level of uncertainty could lead to similar results that the company was trying to avoid. This is a big challenge for many Singapore-based organizations, and thus Orange Rooster leaders need to consider the impacts of how they set metrics and target, and instead adopt a broader perspective to ensure continuous growth. The employees also do not hasten in decision making, and this may have a negative impact on business performance. Thus, change process should be clearly laid out indicating specific steps to be followed.

References List

Hofstede, G. 2001, Culture’s Consequences. Comparing Values, Behaviors, Institutions and Organizations Across Nation, Second Edition, Thousand Oaks & London & New Delhi : Sage Publications

Low Kim Cheng, P 2009, Corporate culture and values: Perception of corporate leaders of co-operatives in Singapore, VDM-Verlag: Germany.

Transparency International 2012, Corruption Perceptions Index 2012, viewed on <>