Global and International Business Contexts – Sm0269 Essay

3879 Words Mar 9th, 2015 16 Pages
Global and International Business Contexts – SM0269


Jack Goddard

Word Count: 3457

Table of Contents

Introduction 3
Part 1: Porter's National Diamond Analysis 3
Part 2: Contemporary Management Issues 7
Part 3: Market Entry Strategy 11
Recommendation to the Board of Directors…………… ……………………………… ….13
Appendices 14
References 15


This report has been written by the Boston Consulting Group and uses Porter’s national diamond analysis model to evaluate the attractiveness of investment opportunities in the Tunisian wine industry. Also discussed are two key management issues that need to be taken
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Salary Per hour rate In Tunisia:
[pic]48-hour workweek: 1.538 DT per hr - Equates to 53p (in British pounds) per hour
[pic]40-hour workweek: 1.584 DT


Demand Conditions

This is the demand for products in the home market which can be influenced by three factors; the mix of customer’s needs, the scope of domestic demand and growth and how the needs of domestic market translate into the global market.

Whilst the annual domestic wine consumption per person in Tunisia is only 8/9 litres compared to an average of 60 litres a year in France, a domestic wine industry is likely to encourage greater levels of demand at home from loyal customers to increasing levels of tourists (Ariaoui, 2007). Also consumer attitudes and behaviour play a role in domestic wine consumption because wine plays a very different role in European culture as compared to American, Australian culture or even Tunisian culture. In Europe wine remains part of everyday life and consumers often drink it along with the daily meal.

Financial incentives offered by the Tunisian authorities have further helped to support the domestic wine industry making it more attractive to foreign investors.

As in new world producers, these investments in the Tunisian wine industry have

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