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Global Business Plan

Autor:   •  October 11, 2017  •  6,491 Words (26 Pages)  •  119 Views

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Political Legal Regulatory Risks

Ireland is known to be mostly a Parliamentary Democratic political party, which is somewhat common to the United States. This allows for some ease in understanding the legal issues with International Trading and doing business in Dublin. It is rated to be one of the top places to have many multinational companies due to many of the benefits of trading. Irish locals have viewed some of the political risks to be that parties tend to be found thriving in corrupt officials, who take their donations from those who may gain from making these donations by having certain business legalities overlooked, or loopholes made to allow for special circumstances. (Matheson, 2015). The country has economically done well even in times of financial hardships, which may be seen in part due to some of the political favoritism.

To mitigate any of the risks that are involved with trading on any international level, you must first ensure that business relations and regulations are being followed to the law. This will allow for minimal issues in the future with any questionable circumstances that may occur.

Exchange and Reparation of Funds Risks

Dublin has been rated highly in terms of exchanges and international business trading, partly due to the relaxed terms of the taxations, and duty taxes between countries. It is with this that Ireland keeps businesses choosing Ireland to be a top choice for business ventures; the similar legal systems and financial business give way for understanding how business is expected to be handled. (Dept. of State, 2014)

Mitigation for any exchange is to adhere to standards and policy, and law with business exports and imports. In respecting the laws of other countries and having a clear understanding will keep risks low.

Taxation

Dublin, and as most of Ireland, is seen as a low risk with a tax rate of 12.5% in trading which is fairly low in comparison to many other European countries. The country has seen some decreases in imports and have discussed raising the tax rate upwards to 14%, though this has not been implemented into any action as of yet.(Crooks, 2010). The country also offers some benefits of trading in Ireland such as no limits on volumes for trade although fees may be imposed for extremely high volumes. The VAT or Value Added Tax may be imposed on some trading of goods into the country there is however a benefit of refund after specified amounts reached. These laid back taxations which also have a number of allowances for credits in international business while pose a high competition risk give the taxation risk no threat. (Matheson, 2015) There are several factors in which make Ireland a great place to do business and will continue for some time to come.

Risk Analysis

A major risk that the company is currently facing is competition. Ireland pubs sell numerous of different types of beers. The pubs are made up of locally brewed beers and imported beers. The Competition Law has even been created to help consumers and a trader in fair pricing in services by ensuring pricing does not go out of hand. “Corruption, including cronyism, political patronage, and illegal donations, is in fact a recurring issue” (“Ireland,” 2015).

Ireland is known for the Beer Industry and having one of the highest percentage of drinkers at almost one half of all those who are legal to drink choose beer as the choice of spirits. (Thornton, 2011). The nature of the Irish is to be a happy community who treats everyone fairly. However, the business of beer manufacturing can be very competitive and hold high risks that can cause some successful products to become quickly replaced or not accepted.

To mitigate this high-risk level, it is best to introduce your choices into the countries of your demographic, and market to those areas that are going to best serve your products for profitable gains.

Market Risks

When the Colorado Brewing Company integrates the new spruce beer into the Irish market, it will be critical to consider the market risks or the four P’s. The four P’s include considering price, product, place, and promotion. The company understands that the Irish beer market is competitive, however, with the product that is being introduced into the market, the company feels like remaining relevant will not be difficult. With that said, analyzing the market risk will help identify what steps need to be taken to ensure success and avoid roadblocks.

In considering the four P’s, price of the spruce beer will need to be competitive in the market. The price of beer is regulated nationally, it will be essential for the investors to research and establish a fair price that is fair for company, industry, and consumer. Because the government regulates the beer industry, the price is not a big risk to the success or failure of the spruce beer. However, the investors still find it necessary to investigate a fair price for the beer. In the US, the beer sells for $4.50 a pint, but that does not mean that it could be sold for that price in Ireland.

In regards to product and place, the company feels like the spruce beer is the right product for the Irish beer industry. The beer industry in Ireland produces over 850 million liters of beer each year and supports over 35,000 jobs (IBA, 2015). It is clear that the beer industry is an important part of the Irish economy and has major success due to the culture in Ireland. With that said, there is major risk involved with introducing a new beer into the Irish market because over 90% of beer that is served in Ireland is produced by the Irish Brewing Association (IBA, 2015). This component could make it difficult to build a brand. Colorado Brewing Company intends to sell the unique spruce beer to the public through the hundreds of breweries throughout Ireland.

To promote the new spruce beer, the company must assess the risk in regards to relationships with breweries. There are some big brand beer companies that have ruled the Irish market in the past, and that could affect the promotion and selling of the spruce beer. For example, Guinness beers have been in many pubs throughout the world and have been promoted throughout Ireland. It may be difficult to integrate the spruce beer into the Irish culture without a large promotional budget. To face this risk, the company is going to try a few different types of advertising such as signs, attending brewing festivals throughout the nation, social media, and the news. From there, the company can identify if marketing efforts need to be focused

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