MGT/711 v7
Country Profile Matrix
MGT/711 v7
Page 2 of 2
Country Competitive Profile Matrix
Research 3 countries or regions you are considering for expansion in preparation for your Week 6 assignment.
Describe each factor as it relates to the country or region you are considering.
Add additional rows and factors, as needed. Consider adding a factor unique to each country or region you are considering.
Rate and weight each factor for each country or region. Remember that the weight of all factors for that country must total 1.0.
Format references according to APA guidelines.
Submit your assignment.
Factors
Country Name: China
Weight
Rating
Weighted Score
Country Name: India
Weight
Rating
Weighted Score
Country Name: Australia
Weight
Rating
Weighted Score
Population
China has a population of 1.4 billion. With such a high population, the market is large and thus offers a good environment for competition.
0.10
5
0.50
India has a population of 1.38 billion. Such a high population offers a large competitive market space for investors.
0.20
5
1.0
Australia has a smaller population of 25 million, meaning fewer market opportunities for investors.
0.10
3
0.30
Culture
Chinese culture of loyalty and modesty is good for business.
0.05
3
0.15
Indians have a high spending habit, meaning the middle-class and upper-class Indians will promote business
0.05
2
0.20
Australia has a welcoming and Western-like culture
0.10
5
0.50
Economy
China has the fastest-growing economy in the world, meaning that it can promote business success and growth.
0.10
5
0.50
India has the sixth-largest economy in the world. This economy is good for a new or continuing business.
0.15
2
0.20
Australia has the 12th largest economy, meaning businesses are likely to thrive here.
0.10
5
0.50
Government
China has no democratic government as it is ruled by an aristocratic leader under the Community party.
0.05
2
0.10
India’s government is not a fully democratic country.
0.05
2
0.10
Has a democratic government and political stability
0.10
5
0.50
Legal Environment
The legal systems are tied to the political system. Therefore, they are not very effective
0.02
1
0.02
The legal environment is favorable to business, but there is a single court system,
0.02
1
0.02
Has a moderate legal system that can guarantee justice to investors.
0.10
4
0.40
Regulatory Environment
The market is too much regulated, leaving little freedom for investors.
0.03
2
0.06
India has a better business regulatory environment.
0.05
2
0.10
Regulatory environment is the best because there are laws to protect businesses.
0.10
4
0.40
Workforce Characteristics
China has a skilled and semi-skilled workforce that is available at lower costs.
0.10
4
0.40
India lacks an adequate skilled workforce.
0.03
1
0.03
There is skilled workforce in Australia.
0.10
4
0.40
Operational Logistics
Chinese operational logistics are developed as there is a large pool of technocrats and professionals.
0.10
3
0.30
Have low operational logistic capabilities because it has less skilled workforce.
0.10
1
0.10
Good operational logistics owing to its skilled labor force
0.05
4
0.20
Competitive Environment
Competition in China is
0.05
1
0.05
Competition in the market is not transparent as there is political influence in businesses.
0.10
1
0.10
Australia has a healthy and competitive environment for business.
0.05
3
0.15
Technology
China embraces innovative technology, and it is one of the many countries with advanced technology in every sector of the economy
0.20
5
1.0
India does not have advanced technology compared to China and Australia.
0.10
1
0.10
Australia embraces technology to a greater extent.
0.05
4
0.20
Infrastructure
The Chinese government has invested heavily in infrastructure. Therefore, the transport systems, security systems, social amenities, and supporting business infrastructure is excellent.
0.15
5
0.75
India has a majority of its regions being underdeveloped due to poverty.
0.05
2
0.20
Australia has developed supportive infrastructure that will support business. Road, air, and water transport systems in Australia are excellent.
0.10
5
0.50
Religion
Religion is not a priority in China. It is in fact an atheist state
0.05
1
0.05
India’s massive and diverse population practice Hinduism as the main religion. However, there are other small religious sects.
0.05
4
0.20
Most Australians are Catholics but there is a diversity in religious and spiritual beliefs in Australia.
0.05
2
0.1
1.0
4.13
1.0
2.53
1.0
4.15
Explanation
Competition is inevitable in the business world. Therefore, the use of the competitive profile matrix (CPM) is an effective way of analyzing competition in the market and formulating a strategic plan for investment (Sohel, Rahman & Uddin, 2014). The above CPM analyzes the competitive environment for China, India, and Australia, which represents some of the popular economies in the East region. The weighted scores are 4.15 for Australia, 4.13 for China, and 2.53 for India. This means that Australia has a better competitive environment than China and India. Australia has the highest weighted score because it is a developed and open market country with a democratic government. China comes second because it is a developing country but has the advantage of having the fastest-growing economy. However, China lacks a democratic government, so the business environment may not be as favorable as in Australia. On the other hand, India is less developed compared to China and Australia. Additionally, it lacks a proper democratic government that can guarantee investor confidence. However, it has the advantage of a high population, which could mean that it has a huge market for as many investors as possible.
The highest weighted score is Australia, which will definitely be the best choice for an investor. A country with a higher weighted score from external factor evaluation has an attractive business environment. The EFE matrix helps a business identify the strengths, weaknesses, opportunities, and threats in the market (Capps III & Glissmeyer, 2012). On the other, the competitive profile matrix allows the business to compare with the competitors. In this case, the comparison is between the competitions in the three countries. I will choose the country with the highest weighted score because I want a competitive market with better chances of succeeding. My organization is Sony Corporation, which deals with consumer electronic products. These are products that have demand across all social class levels. Therefore, I would choose Australia as the best place to expand, followed closely by China, and India will be the last option. This choice of my preferred locations has been influenced by the weighted scores from the CPM table. Australia’s strengths lie on its democratic government, skilled workforce, Western culture, and strong economy. Therefore, I would choose Australia as the next location for the Sony Corporation subsidiary.
References
Capps III, C. J., & Glissmeyer, M. D. (2012). Extending the competitive profile matrix using internal factor evaluation and external factor evaluation matrix concepts. Journal of Applied Business Research (JABR), 28(5), 1059-1062.
Sohel, S. M., Rahman, A. M. A., & Uddin, M. A. (2014). Competitive profile matrix (CPM) as a competitors’ analysis tool: A theoretical perspective. International Journal of Human Potential Development, 3(3), 40-47.
Copyright 2021 by University of Phoenix. All rights reserved.
Copyright 2021 by University of Phoenix. All rights reserved.
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