Executive Summary
This report assesses potential risks and benefits that will be used in establishing the organizational form in which the company will enter Thailand in. Based on the: economy, geography, politics, and socio-cultural risks. On the basis of our risk factors, our company will be entering this market in the form of a joint venture. Thailand has an reasonably risky economic environment due to the fact of low discretionary and disposable income, as a result the majority of the population may have difficulty in budgeting for our product; however not everyone is economically deprived, which can make it difficult to decipher between who can afford our product and who can’t, ultimately if our company gets this incorrect this can create a loss in sales. Geographically Thailand poses minimal risk besides huge transportation gaps; transportation may be costly, and timely, however our company will be shipping via overseas to reduce costs. There is a moderately risky political environment in Thailand since the government is slowly making the transition from monarchy to democracy, but minimal changes will occur because the democratic system is already in play. However since the corruption rate is high this may create future conflict and our organization might find itself paying bribes. Socio-cultural risk in Thailand are also sensibly low the only risks that may pose to our company are language differences in respect to product packaging, other than that literacy levels are exceptional, which can be quite beneficial for the business. In conclusion the most efficient form or organization would be the joint venture since our company is able to minimize risk, and is able to extensively analyze the market based on the host company’s knowledge and expertise; we are abl ...