Comparable Government Report

The United Arab Emirates (UAE) is known for its lucrative oil exports and came into existence in 197I after being formed as a constitutional federation. The country has a presidential, despotic and federal monarchy. UAE is a federal state and a union as enshrined in Article 1 of the constitution (Ahmed 371). The country has seven emirates which are led by a leader known as Emir with the power to manage resources independently. The seven Emirs join up to form a Federal Supreme Council (FSC) that has the highest executive and legislative powers. FSC Members have the power to elect the President and the cabinet of the country.  The political system is based on a constitution with 152 articles and officially came into law in 1996. UAE’s constitution highlights federal powers in three government branches namely executive, legislative and judicial branches. The essay will address the issue of gun control in both the USA and the UAE. Gun control consists of policies and laws that govern the purchase, possession, and sale of a firearm to individuals. Some countries such as the UAE have a restrictive firearm policy regulating where and how a firearm is used. Gun control policies have been put in place to address the issue of injury and gun mortality that have been on the rise worldwide.

Khalifa bin Zayed Al Nahyan is the President of the UAE and also acts as Abu Dhabi’s Emir. Second in command is Mohammed bin Rashid Al Maktoum who holds two positions as the Vice President and Prime minister. He is also Dubai’s Emir. The UAE does not have any political parties, the election of the President and the Vice president is usually conducted by the FSC after every five years while the public has no say in it. Political involvement and citizen’s engagement has improved significantly over the years. UAE introduced an electoral college in 2006 as a means to modernize its political system. The public is allowed to vote into office 20 members of the FNC 40 members through a secret ballot.  The difference between the USA and UAE is the style of leadership. The US is a federal government that shares powers with its state governments. Its constitution gives power to the President, Congress, and the court system. The US political party system is dominated by two major parties namely Democratic and Republican party while the UAE has no political party. The president is elected by the Electoral College with federal and state laws regulating elections. In UAE, the Electoral College only elects half of the leaders in FSC.

Gun control is a serious issue in the UAE with stern regulations on who is supposed to possess a firearm. The UAE law prohibits individuals from buying or having firearms without a permit or license. It issues licenses to Emirati nationals and prohibits them from producing firearms in public (Dajani). In the UAE gun licenses need to be renewed every three years and the license holder has to be 25 years old and must be certified by the medical authority as being sane. Any person who has previously been convicted of a crime such as terrorism, drug or state security can be denied a firearm license. The UAE has strict laws and penalties for anyone caught importing or possessing an illegal weapon. The culprit is liable for a six months imprisonment or a maximum of ten years depending on the severity of the offense. Although some countries like the USA consider it a right to own a gun, UAE does not consider private gun ownership a right. Ownership of handguns, rifle and automatic weapons by a civilian is regulated by its laws.

In the United States, gun control is a controversial topic eliciting support for and against it. Individuals who want to purchase ammunition, shotgun or rifles must be at least 18 years as mandated in the gun control act. The act prohibits the sale of handguns to people below 21 years old. The US restricts the sale of ammunition to any individual deemed dangerous such as fugitives and people who have been committed to mental institutions. People who have been convicted in prison for one year for felony or misdemeanors are also restricted from purchasing guns. People who have been found guilty of using controlled substances are also barred from possessing firearms.  The restriction is also placed on illegal immigrants, individuals who have renounced their citizenship and military personnel who have been dishonorably discharged.  Proponents of gun control indicate that the Second Amendment gives a mandate for people to bear arms (Rose, Justice and Moon 1). The federal government dictates who has the right to possess guns, while state and local government controls whether residents should carry guns in public. Residents in America are allowed to possess semi-automatic weapons and it is legalized in most states.  Only three states namely California Hawaii and Connecticut require licensing for rifle and shotgun purchases. For instance, California requires its residents to pass a written test and go to a gun safety class to get a purchase permit. UAE has low gun crime rates compared to the United States. The CDC estimates that in 2015 close to 35,000 people died as a result of gun violence in America (Jaffe 2487).

In conclusion, United Arab Emirates is very strict when it comes to gun control in comparison to the US that is lenient and depends on the States one is living in. Expatriates in the United Arab Emirates are prohibited from buying, possessing and carrying weapons. Although the public in the USA has called for stricter laws gun laws, their efforts have been undermined and no legislative changes have been made. Gun control remains a controversial issue in the country with the weapon industry having its roots in the politics, economy, and entertainment of Americans.

Works Cited

Ahmed, LA Shaho Ghafur. "The Constitutional Structures of the Federalism in the Middle East." Journal of Humanity Sciences 20.3 (2016): 370-394.

Dajani, Haneen. “Abu Dhabi shooting: rare gun incident puts spotlight on strict licensing laws”. The National, 3 Jan 2019, thenational.ae/uae/courts/abu-dhabi-shooting-rare-gun-incident-puts-spotlight-on-strict-licensing-laws-1.809198

Jaffe, Susan. "Gun violence research in the USA: the CDC's impasse." The Lancet 391.10139 (2018): 2487-2488.

Rose, Louis, Social Justice, and Mr C. Moon. "Why Gun Control Will Never Happen In America." Moon (2018).

 

Doing Business in Asia

Question 1: Global Expansion Strategy

Steps of the Global Expansion Strategy

            FamilyMart is a convenience store that was started in the Japanese market. After several years, the company became among the largest stores in Japan. With the convenience store industry in the country approaching saturation, the organization had to develop a strategy for entering the global market. The global expansion strategy involved four steps. First, the company had to carry out market research in order to identify the regions that would be profitable. Since the organization was providing household merchandise and food products, markets with high population were attractive. Secondly, the company formed joint ventures with local companies in order to enter new markets. Forming joint ventures allowed FamilyMart to share risks and profits in the new markets with local businesses. Since the local companies have knowledge and experience in the market, the business is able to adjust its procedures and processes. 

            The next step involved becoming a global group. The company created the FamilyMart Global Group that would enable it to build its brand in the international market. The company’s headquarters and franchisers meet each year to coordinate and discuss policy. During the meetings, they exchange opinions and ideas about how to attain mutual growth and success. Besides, the process allows the group members to develop close relationships that are founded on mutual trust and commitment (Le Nguyen, Larimo, & Wang, 2019). That last step involves building strong relations and cooperation with the parent company. The cooperation has enabled the organization to develop an integrated distribution system that ensures the provision of quality items to consumers.

Analysis and Evaluation of the Global Expansion Strategy

            The global expansion strategy of FamilyMart focuses on increasing the company’s market share and profitability. The company succeeded to become among the largest convenience stores in Japan. However, the profitability of this sector attracted many firms. As the company realized that the convenience store industry in the area was approaching saturation, it started to plan a global expansion strategy. The international expansion strategy involved various aspects that are discussed below.

Choice of Products

            Since competition is inevitable in any sector, businesses must be careful when selecting the products to provide to the market. FamilyMart decided to offer food as the main product, in addition to household merchandise. Food is a basic need for human beings. Thus, the company is able to attract many consumers who need food products. Besides, the organization offered high-quality products at reduced prices. Although the profit margin is low, the company is able to benefit from economies of scale. Product differentiation also enabled the organization to implement its global expansion strategy successfully. Through product differentiation, organizations create value and opportunities for making profits (Zanchettin, & Mukherjee, 2017). FamilyMart provides a wide variety of unique products to the new markets. Product differentiation would attract many customers since the foods are different from those available in the local stores and supermarkets.

Mode of Entry

            FamilyMart entered the international market by forming joint ventures with local businesses. The local organizations provided distribution infrastructure and knowledge about the new markets. With the help of the local firms, FamilyMart is able to market its products and attract many consumers. The well-established distribution systems enable the company to avail products to consumers at the right time without delays. The mode of entry also allows the organization to share risks and profits with the local firms. Thus, business threats will not have a significant impact on the company’s financial performance. The parties involved in this ventures shares ideas and resources needed to achieve long-term success. Local companies have sufficient information about the needs and expectations of consumers. When the businesses share this information with FamilyMart, it becomes possible to design products and services in compliance with customers’ needs.

Winning the Local Battle

            For FamilyMart to expand into the international market, it first succeeded in the local or domestic market. The organization developed several stores in the Japanese market that allowed it to build a strong reputation. The company’s name was designed to represent its philosophy of hospitality. The organization is committed to ensuring exceptional customer experience and satisfaction. Besides, the convenience store allowed customers to access a wide range of goods from one chain. The company also focuses on improving customer relations in order to increase its market base. FamilyMart also made acquisitions in Japan to increase its presence in the market. The success of this company in the local market enabled the development of a reputable brand that would easily succeed in other areas.

Choice of Strategy, Markets

            FamilyMart used various strategies to succeed in the international market. First, the organization utilizes the cost leadership strategy to build a competitive advantage in the industry. Cost leadership strategy involves the efforts that aim at reducing the expenses involved in the production (Nasri & Ikra, 2017). With the low cost of production, the company is able to offer quality products to consumers at reduced prices. Besides, the organization understood that different regions have diverse cultural norms and values. As a result, the company formed ventures with local companies that understood the needs and expectations of customers. Joint ventures also allowed the company to have access to already established distribution systems. In addition, the organization identified the markets that presented a high prospect of success. Markets such as China have rapidly growing economies. The Chinese market also had few government regulations and formalities, making it easy for new firms to enter the industry.

Question 2: Failure of Lawson’s Initial Entry into the China Market

            The booming convenience store industry in the Asian market attracted many organizations, among them the Lawson. The high population of Asia presents businesses with many prospective customers. Lawson failed to succeed in implementing its expansions strategy due to communication problems, low store numbers, and competition. As the company introduced stores in Asia, many firms entered the market. With a rise in the number of firms in this industry, the products supplied exceed the quantity that customers demanded. The stiff competition significantly affected the profitability of Lawson. The competitors made efforts to increase their market shares by cutting costs, reducing prices, and enhancing efficiency. Although competition allows consumers to access high-quality commodities at reduced prices, it harms the profitability of businesses (Markgraf, n.d.). Therefore, Lawson was forced to reduce its product prices, leading to low-profit margins.

Besides, the company developed a few stores in the region. With the lack of a well-developed distribution system, consumers would purchase products in supermarkets rather than travel for long hours to reach the convenience stores. The problems associated with a poor distribution system involve customer service and cost (Logistics Bureau, n.d.). With the company having a small number of stores, it was difficult for items to reach customers at the right time. Delivery lead times cause customers to become dissatisfied, forcing them to seek the services of rivals. A poor distribution network might also cause businesses to rush deliveries in attempts to appease consumers. As they rush, employees might forget about some processes that add value to the products. In the end, customers obtain commodities that do not match their needs and expectations. The low number of stores also made Lawson incur high expenses associated with inventory management. The company had to store massive volumes of products in its warehouses in order to meet consumer demand. The organization also incurred high transportation costs due to the distance between the stores and consumers.

Additionally, Lawson experienced communication problems with the local staff. Most of the local employees were Chinese who did not understand or talk English. The language and cultural barriers made it challenging for the management to communicate with local staff. Communication is an essential component that businesses required to ensure success. When language barriers hinder managers from communicating effectively with workers, organizational performance is negatively affected (Brannen, Piekkari, & Tietze, 2017). The organization should have found suitable ways of improving communication and information sharing in the workplace. Effective communication facilitates the transfer of information between managers and employees (Hänninen & Karjaluoto, 2017). The smooth flow of information in an organization allows workers to understand their roles and responsibilities, leading to higher productivity and efficiency. Thus, communication problems, competition, and the low number of stores caused the failure of Lawson in its attempt to enter the Asian market.

Question 3: Challenges Faced by Foreign Companies When Entering China Market

            Foreign companies that attempt to enter the china market face various challenges. First, the local infrastructure is poorly developed that hinders businesses to succeed in the market. Critical infrastructure such as road and rail networks are poorly developed in China. For convenience stores to succeed, they must have extensive systems that allow the distribution of products to the stores on a daily basis (Logistics Bureau, n.d.). The lack of well-established facilities and infrastructure force foreign organizations to develop the distribution system before entering new markets. The organizations must invest a substantial amount of money in the facilities to ensure smooth operations.

            Another common problem that foreign companies face is government regulations and formalities. The Chinese government has strict laws concerning environmental regulations and product safety. The health issues associated with foods from convenience stores have led to the implementation of strict safety policies (Zhou et al., 2020). As a requirement, foreign organizations that wish to start operations in the country must seek the necessary permissions and approvals. When developing facilities and infrastructure, businesses must satisfy the required standards and requirements. Thus, organizations might take a considerable amount of time to understand these requirements before they begin operations. The organizations are also subject to a taxation system that they are not familiar with. Before the businesses understand all the government regulations and formalities, they might find themselves in legal problems. When businesses have problems understanding the formalities, they will experience obstacles when trying to negotiate and communicate with the government.

            Foreign businesses also face challenges when recruiting employees. Since the convenience store as an emerging model in the country, the companies are unable to find workers with the required skills and experience to assist in achieving the expansion goals. Despite the fact that China is a highly populated country, these businesses encounter talent shortages. Besides, cultural and language barriers hinder the training of Chinese workers. With the managers using a different language, they find it challenging to transfer convenience store concepts to workers. The lack of effective communication causes a breakdown in the transfer of information between managers and employees.

Additionally, the rapidly growing economy in China has led to a rise in the rent costs. convenience stores work on the principle of providing low-margin products and services. The rising rent costs cause businesses to risk incurring losses. For organizations to maintain profitability, they might decide to cut expenses by offering less variety of merchandise and limiting the floor area. 

            Organizations also face stiff competition from both foreign and local businesses. The profitability of convenience stores attracts many firms into the industry. The businesses share the market base, leading to reduced profitability (Min, Kim, & Zhan, 2017). More entrants into the sectors translate to increased production. As a result, the market forces would cause product prices to reduce. For foreign companies to maintain a competitive advantage, they must implement various initiatives that aim at attracting many consumers. For example, they might engage in aggressive marketing and product differentiation in order to improve the reputation of their brand. While rivals increase their market share, the other businesses start losing customers, leading to reduce financial performance.

            In summary, FamilyMart works on the philosophy of creating close relationships with stakeholders such as employees, consumers, and supplies. The success of this company in the local market enables it to build a strong reputation. The organization's global expansion strategy is founded on forming joint ventures and maintain its reputation in the convenience store industry. Despite succeeding in many aspects, the company faced challenges in its attempt to enter the China market. Challenges such as communication problems, stiff competition, and lack of infrastructure hinder FamilyMart from achieving its expansion goals.

References

Brannen, M. Y., Piekkari, R., & Tietze, S. (2017). The multifaceted role of language in international business: Unpacking the forms, functions and features of a critical challenge to MNC theory and performance. In Language in international business (pp. 139-162). Palgrave Macmillan, Cham.

Hänninen, N., & Karjaluoto, H. (2017). The effect of marketing communication on business relationship loyalty. Marketing Intelligence & Planning.

Le Nguyen, H., Larimo, J., & Wang, Y. (2019). Control, innovation and international joint venture performance: The moderating role of internal and external environments. International Business Review, 28(6), 101591.

Logistics Bureau. (n.d.). Some Consequences of Poor Distribution Network Design. Retrieved from https://www.logisticsbureau.com/some-consequences-of-poor-distribution-network-design/

Markgraf, B. (n.d.). How new entrants affect business. Retrieved from https://smallbusiness.chron.com/new-entrants-affect-business-69581.html

Min, S., Kim, N., & Zhan, G. (2017). The impact of market size on new market entry: a contingency approach. European Journal of Marketing.

Nasri, R., & Ikra, M. (2017). Application of cost leadership and differentiation strategy to reach a competitive benefit (a case study of “fish streat” culinary business). IMC 2016 Proceedings, 1(1).

Zanchettin, P., & Mukherjee, A. (2017). Vertical integration and product differentiation. International Journal of Industrial Organization, 55, 25-57.

Zhou, S., Cheng, Y., Cheng, L., Wang, D., Li, Q., Liu, Z., & Wang, H. J. (2020). Association between convenience stores near schools and obesity among school-aged children in Beijing, China. BMC Public Health, 20(1), 150.