country risk analysis:nepal
Post on 15-Apr-2017
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Country Risk Analysis: NEPALSubmitted by:Nishant HaranFPB1517/007Section-BPGDM-1517
Submitted to:Prof. Rajiv
05/03/2023Property of Indus Business Acadmy. For Academic Purpose Only. 2
Reasons for choosing Nepal
• Raw Material source
• Emerging Market
• Creating opportunities for the people in Nepal
• Neighbouring country
• To build long term relation ship
• To help Nepal natural calamities it faced
05/03/2023Property of Indus Business Acadmy. For Academic Purpose Only. 3
Environmental Analysis(1/2)
Legal factor• Emergency situation• Less Tax• Free market economy• Good relation with India• Less Documentation• No standards required
Ecological Factor• Climate• Land use• No area with ocean and seas• Low reserves• Natural Disasters
Political Factor• Terrorism• Influences in India• Instability• Longer decision making time
05/03/2023Property of Indus Business Acadmy. For Academic Purpose Only. 4
Environmental Analysis(2/2)
Economical• Poor economy• Population growth• Economic growth• Unemployment• Poor infrastructure• Less rural development
Social Factor• Human development• Increased expectancy• Gender discrimination• Rise in educational level• Religion• Nuclear and joint family• Ethical behaviour
Technological• Backdated technology
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Porters Five Diamond Theory
Firm strategy, structure
and rivalry
Demand condition
Related and supporting industries
Factor condition
Economic Growth
Weak Commercial service
No Backward linkage
Poor infrastructure
Raw capital
Cheap labour
Low cost of capital
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Strategies to enter into Business with Nepal(1/2)
Exporting
Advantages Disadvantages
Avoidance of initial high cost
High transportation cost
Gather experience Problem with local distribution network
Joint venture
Advantages Disadvantages
Access to local partners knowledge
Lack of control
Sharing costs Inability to enter into global strategic coordination
Politically acceptable Lack of inefficient technology
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Strategies to enter into Business with Nepal(1/2)
Wholly owned subsidiary
Advantages Disadvantages
Protection of technology High cost
Ability to control High risk
Ability to realize location and experience economics
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Recommendation
Export
Level of risk
Political Instability
Availability of raw materials
Market expansion
Government restrictions
Action plan
Setting up office
Network based distribution
JIT approach
Global product
Research and development
Services
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Conclusion
High growth potential though have economic problems
Satisfactory environmental analysis
Should go for exporting rather than any other form of trade
Following the action plan will lead to the destination
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Country Cluster
• Company entering into the Nepal have advantage of entering into• India
• Sri Lanka
• Pakistan
• Bangladesh
• Afghanistan
05/03/2023Property of Indus Business Acadmy. For Academic Purpose Only. 11
Thank you for your kind patience
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