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There is no doubt that global expansion is rather complicated process that requires considerable research and deep analysis. In order to launch business on the external market, it is critically important to develop the analysis of economic, political and social sphere. The strategies used on the external market should be based on the results of the research. The paper is aiming the analysis of prospects of Software Consulting Services Company entering the market of Finland.
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"Country Issues and Opportunities Analysis".
Economic conditions are the core criterion to take into account while entering international market. It gives an opportunity to determine the purchase opportunities of customers on the internal market, level of economic development and stability for the Software Consulting Services Company. Thus, Finland is considered to be rather developed country. The GDP of the country is 204 billion EUR (Focus Economic, 2017). From one side, it is much lower amount the well-developed countries have. However, considering the small population, namely 5.5 million of people, the GDP is rather high (Focus Economic, 2017). It deals with the fact that the amount of GDP per capita is 39,049 EUR which is rather high (Focus Economic, 2017). Thus, the customers on the external market have rather high buying power. They have enough of spare income that can be spent on the services of the company.
One of the core economic criterions is economic growth of Finland. There is a positive annual economic growth which is 1.5% per year (Focus Economic, 2017). It shows that the country is constantly developing economically. The inflation rate is low, namely 0.8 % annually (Focus Economic, 2017). It means that the country has stable economic conditions which are very favorable for the business development in Finland. The negative criterion of economic development in the country is rather high unemployment rate which is 8.8% (Focus Economic, 2017). From one side, it means a gap in economy. However, at the same time, the Software Consulting Services Company will have no problems in employing people on the external market. Thus, Finland has favorable economic conditions for the business launch.
An important element of market analysis is social system. Finland is has well-developed social standards. Considering the fact that Finland is part of EU, it has the same requirements that are applied in all the Union. Thus, the customers are very protected by consumers’ unions. In addition, social system is considerably affected by the trade unions which play considerable role when the employment in Finland. In addition, there is high level of education in Finland which will give an opportunity to hire highly qualified personnel. Thus, the Software Consulting Services Company needs to meet high social standards in order to develop effective and successful business in Finland.
Finland is a European Country. It joined the EU in 1995, consequently, it has stable democratic and beneficial political conditions developed (BBC, 2017). Finland was one of the first countries that declared equal rights of men and women. It shows high standards of liberation and democracy. In addition, the county has rather favorable conditions for doing business. According to the World Bank rate of the ease of doing business, the country is occupying the 13th position among all countries of the world (The World Bank, 2017). Moreover, according to the ease of starting business in Finland, the country is taking the 26th position (The World Bank, 2017). One of the core favorable legal conditions is the level of taxes that have to be paid for business development in the country. Finland is occupying the 12th position which means that business entities are paying rather low taxes (The World Bank, 2017). Thus, the country has rather favorable political and legal conditions for business development in the country.
Considering the external conditions of Finland, the Software Consulting Services Company should use decentralized organization structure. It deals with the fact that the country has many highly qualified workers that are used to work together creating the effect of synergy. All of them need to feel responsible for contributing to the general success of the company. According to decentralized organization structure, all of the workers will work together and feel for the responsible for company’s success.
Polycentric approach as an international staffing strategy needs to be used on Finland human resource market. Considering high economic and social development of the country, there are enough human resource on the internal Finland market in order to ensure high effectiveness of the Software Consulting Services Company. Thus, the company should hire and promote employees who are citizens of Finland. In addition, they known all the peculiarities of the internal market in order to adapt the business policy according to the requirements of Finland customers. They have enough qualification criteria in order to run the company successful on the domestic market.
