International Business For Profile Of Targety: A Study On Canadian Market

Economic Factors

Discuss about the International Business for Profile of Targety.

The purpose of this report is to analyze the company profile of Targety, which is a retail company in Australia. This report will evaluate the business environment of the Canadan market in order to propose international expansion to the selected company. In order to expand in global market, it is highly important to implement an efficient research and development process. In this manner, it would be easy to select the targeted country where the company would be able to conduct sustainable business. Completion of this report would help Targety to expand in the Canadan market in an effective manner. This report will conduct a study in order to evaluate the external market forces, which may affect the business growth of Targety.

Targety is an online retail business in the Australian market. The company has physical stores in the domestic markets. Moreover, Targety has a range of products including clothing, grocery and technical appliances. The aim of the company is to expand in the international market in order to increase business profitability.

In order to conduct this study, appropriate methodology has been selected. In this report, a secondary research approach has been applied in which the data has been gathered from authentic secondary sources such as government database, journal articles and press releases (Hair 2015). However, the methods applied in this study have a set of limitation, which prevents to define accurate study result. The method of secondary study is time consuming and therefore, it would be difficult to assess a range of data. 

The Government of Canada has implemented an approach of competitive business environment. The economic policies of the Canadian government are market-oriented, through which the government has enhanced market competitiveness (Stiftung 2016). It makes the country a better place for the international organizations .The GDP of Canada is 53956.38 USD as on 2013 (Data.worldbank.org 2016). After assessing the GDP trend of Canada, it can be said that the total economic activity of the country has increased over the period of time. In 2008, the GDP of the country was 46398.70 USD and thereafter, the GDP decreased to 40764.12 USD in 2009 (Data.worldbank.org 2016). Therefore, it can be said that GDP of the country is increasing day-by-day, which is eventually increasing competitiveness of the market. As of 2013, per capita income of Canada was 42610 PPP dollars. In 2008, per capita income of Canada was 39500 PPP dollars. Therefore, it can be said that per capita income of the country is gradually increasing, which would be beneficial for Targety. When it comes to the inflation rate and trend, in 2016, inflation rate of Canada is 1.61%, which has been increased by 2.13% in contrast with 2014 report(Media 2016).

Political Factors

In order to improve the business environment of the country, the government of Canada has implemented an efficient legal system. According to the legal policies, international organizations should conduct ethical business and should maintain minimum product or service quality. Various policies have been implemented by the Canadian government in order to protect the intellectual property of business organizations (Dubé, Brunelle and Legros 2016). The government has also ensured international trade by reducing the taxation cost. It helps the international organizations to reduce organizational cost for increasing profitability. Apart from that, the government has implemented an efficient set of employment policy in order to ensure that organizations are giving equal opportunity to the employees.   

Business environment of Canada is attractive and therefore, foreign organizations haveshown interest towards this country. As per World Investment Report 2016, the country is acquiring the 14^th position among 189 countries worldwide. In 2013, FDI Inward Flow of this country was 71753 USD, which has become 48643 USD in 2015. When it comes to the FDI policies, the government of Canada has implemented efficient policies in order to attract foreign organizations (Ferraz et al. 2015). The aim of the government is to make Canada the most attractive regimen for business investment.

In Canada, interest rate of CANARA bank is 5.25% to 8% yearly. Banking sector of Canada is the most renowned public sector. In this country, foreign organizations can get access to the banking benefits in an effective manner. The Federal government and territorial legislatures are solely responsible for implementing taxation rules in Canada (Ariizumi, Hu and Schirle2015). In order to conduct sustainable business in this country, an organization needs to pay all kind of taxes including income tax, consumption tax and wealth tax. 

After evaluating the business environment of Canada, it can be said that Targety would be able to conduct sustainable business in this country. As the business policies of Canada encourage the organizations to conduct ethical business, Targety would be able to increase business profitability by 5% within 5 years. Apart from that, the company would be able to hire efficient workforce, as the country maintain equal opportunity and low discrimination.

Conclusion

While concluding, it can be said that business environment of Canada is attractive for foreign companies. The government of Canada has a range of policies in order to safeguard foreign companies. Moreover, the growing economy of Canada shows that Targety would be able to gain competitive advantages after targeting Canada as the target market. Overall, the Canadian market would help Targety to achieve its vision, which is to be the largest online retail company in global market.

Reference list

Ariizumi, H., Hu, Y. and Schirle, T., 2015. Stand together or alone? Family structure and the business cycle in Canada. Review of Economics of the Household, 13(1), pp.135-161

Carey, D., Lester, J. and Luong, I., 2016. Boosting productivity through greater small business dynamism in Canada

Data.worldbank.org. 2016. GDP per capita growth (annual %) | Data. [online] Available at: https://data.worldbank.org/indicator/NY.GDP.PCAP.KD.ZG [Accessed 2 Sep. 2016]

Dubé, J., Brunelle, C. and Legros, D., 2016. Location Theories and Business Location Decision: A Micro-Spatial Investigation in Canada. The Review of Regional Studies, 46(2), p.143

Ferraz, S.B., Romero, C.B.A., Nogami, V.K.D.C. and Veloso, A.R., 2015. Personal values and green purchase behaviour: a cross-cultural study between Brazil and Canada. Latin American Journal of Management for Sustainable Development, 2(3-4), pp.296-314

Hair, J.F., 2015. Essentials of business research methods. ME Sharpe

Media, T. 2016.Historic inflation Canada – historic CPI inflation Canada. [online] Inflation.eu. Available at: https://www.inflation.eu/inflation-rates/canada/historic-inflation/cpi-inflation-canada.aspx [Accessed 2 Sep. 2016]

Stiftung, B. 2016. SGI 2015 | Canada | Economic Policies. [online] Sgi-network.org. Available at: https://www.sgi-network.org/2015/Canada/Economic_Policies [Accessed 2 Sep. 2016]