Multinational Business of Big Bazaar, First Solar, and Tata Motors Case Study

Multinational Business of Big Bazaar, First Solar, and Tata Motors - Case Study Example The  Big Bazaar Company is planning to spread into the Middle East countries like Yemen as there is a huge opportunity in this market due to the nonpresence of any global retail chains there and availability of domestic supplier. The location of Yemen is at the southern end of Arabian Peninsula in the Middle East. The Arabian Sea, Red Sea and the Gulf of Aden have made boundaries its southern and western side of the country. Two neighbour countries also bordered i.e. Saudi Arabia in north and Oman in the east. The population of this country is very poor and a large percentage the population is rural people. But in the last decades, it has been large scale urbanization in the country and now near about half of the population lives in town. There is a good incentives scheme by the Yemen government in any large foreign investment project. The purpose of this is to attract potential foreign investors to the prospective sectors of the country by minimising the risk of initial investment . Government also provide free exchange of currency from strong currency to Yemen or vice versa. To start a project in Yemen no need of nationalisation and reservation are required. Foreign investment projects are exempted from paying profit tax up to 7 years which is expandable up to 16 years if it helps to strengthen the sector. There is lack of well-developed commercial business centres in Yemen even in coastal cities; therefore, the country has poorly developed retail market. Most of the shops are in the major cities and maximum of these are family owned. The producers or manufacturer of retail products and goods are only the seller. No professional retail outlets or chains are there who sells by getting supply from producers. This is why the retail market is not at all penetrated even in urban areas of the country. But there is a good demand of retail chains which can provide the finished retail goods across the country and as the per capita income has been increasing and the p urchasing power as well as buying behaviour has been developing since the last decades. Big Bazaar is a India based supermarket chain and it get the supply of retail products from institutional supplier as well as direct from the producers of good branded product and sell those after retail pricing those products according to its profit margin strategy. But in Yemen as there is no such kind of institutional supplier. So the company needs to tie up with the home-based producer of the retail product like garments, food products, and other daily needed products which have a good demand in the urban market. First Solar’s multinational business can be analysed by doing a PESTEL analysis of the international business environment and the potential market analysis. Political: It represents how the government represents the economy and a certain business i.e. the way of representing and the extent. Political factors of a country represented by certain areas like taxation policy, labou r law, trade restrictions, tariffs and govt. stability. So, market attractiveness towards foreign investors will be high if the entire areas of political environment are business-friendly. Economical: Economical factors are influenced and comprised by the economy of a country, and the World economy. These factors are interest rates, inflation, economic growth i.e. exchange rates and currency strength.