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Discussion emerging markets gve

Discussion emerging markets gve

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build creatively on the view below by showing in depth intelligent critique of theory or practice,add an international or cultural aspect, show originality in the application of theory and clarify the theory being studied. and provide real examples



Emerging markets/countries are being defined by various sources, for me the best definition of emerging markets/countries is being described as nations or countries with social or business activities in the process of rapid growth and industrialization (Wikipedia, the free encyclopaedia), reading together with Pelle (2007) as the less developed countries who re-structured their economic structures. If we analyse this statement or definition individuals in different sectors of the world will read this definition differently and come to different conclusions, if we look at Wikipedia web page it is clear that there are different lists by different organizations identifying what they see as emerging countries.

The International Monetary Fund (IMF) has twenty four countries on their list as of the 16th July 2012, as of the 31st December 2010 Standard and Poor’s listed twenty countries and as of September 2011 the Dow jones classified twenty two countries as emerging markets. There are eleven organizations with different lists of emerging countries; this is an indication that the term “Emerging Markets/Country” is open for interpretation and debate. My submission is that there are much more emerging markets waiting to be developed, especially in Africa.

Changes in business strategies

One of the criteria for expatriate companies to do business in an Africa country is the social responsibility targets of such an organization. Hahn (2009) cites the Rwalsian principles as the ethical origin of the sustainable development of the Bottom of the Pyramid (BOP). These principles include equal of freedom for all and eradication of social and economic inequalities. Incorporating the above principles into their strategic planning organizations can discover and develop the needs and the wants of the BOP’s, the key word of such a process is the ethical responsibility of the multinational organization towards the BOP’s.

Gollakota (2010) describes factors which encouraged organizations to focus their business interest on the BOP. This is where the focus of goods dominant (G-D) logic organizations and service dominant (S-D) logic organisations will differ, the one will produce and sell the other will buy and produce. I can use our organization (S-D) as an example of the third factor as highlighted by Gollakota (2010), which it is possible for businesses to profitably engage in socially beneficial arenas as a service dominant logic organization. We reached a strategic working relationship with a non-profitable organization that promote and encourage sustainable society. It is not our companies our core business to engage with the local community on a daily basis, but to supply a service to our clients on a specific mining concession. Due to the nature of our business we can place strategic structures in place to develop and support the local community to make sure they are sustainable in their farming, health and social environments. Through reaching a strategic working relationship we can supply Gladys Kashimoto with financial and product support, for her to educate the local vegetable growers to farm more scientific and economical. A grower’s organization is developed to make sure that the growers do not compete against each other but rather to work together to combine their harvest, to make sure they can supply us with sufficient quantity and quality of produce. Establishing the organization they do not compete against each other but supply us with one price which will ensure that they can negotiate the best price for a sustainable future. Our strategic relationship with Gladys and us supporting the local communities gives us a competitive advantage over our competitors when we tender on contracts, to be awarded a mining concession such and company must show community support – this contributes up to 20% of such an allocation. Supporting the local growers we can supply the client with more fresh and quality products.

In the DRC you can notice two of the BRICS countries expanding their business through the three changes in product and customer choices as highlighted by Ghemawat (2010). China and India have made big strides into the DRC by supplying infrastructure and technology. Samsung is a name that you see on nearly all the electronic consumer goods in hotels and camp sites, Lenovo has been establishing themselves as the premium technologic advance product of choice. The average salary of a policeman is $ 25 per month; a government official earns between $ 80 and $ 120, which is why corruption the national sport after soccer. These BOP do not buy cheap products, they buy durable and “status” products to enhance their social position and status in the community. Some will argue that these positions and salaries are not really the BOP, I can assure you that there are a group lower than them who really live from the land and have no spendable income – I will classify them as under the pyramid group, it is really shocking to see this.


In these emerging markets there is a big gap between the rich and the poor, with a small middle class (Pelle, 2007). As Pelle states on page 34 that organizations investing into these emerging markets needs to deal with the authorities like customs and tax officials, this is where these organizations ethics and morals will be tested. Multinational companies need to adhere and change their policies and procedures to the cultural, political and social economic challenges of an emerging country real to understand and meet the wants and the needs of the BOP. Atsmon (2012) research showed that emerging-businesses are growing from a smaller base as their counter parts in developing countries; the average growth was 10.7 percentages against the 7.3 percentage from a base of $ 3 billion and $ 8 billion respectively. Studies showed that the relations between Foreign Direct Investments (FDI) and economic growth is vital for emerging markets, however theses foreign countries need to realize that they are trading in sovereign states with their own cultures and social/political policy and systems (Jadhave, 2012).

Last Updated on February 10, 2019

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