A Critical Examination of Business Set Up Opportunities in USA from A Company Perspective - Essay Example A number of forces drive organizations into expanding their operations to the foreign markets. Increased competition in the local and foreign markets as well as reduced trade barriers are some of the factors. The international business environment is quite dynamic and a business organization that has to survive in its international operations has to respond to the changes. The strategic business planning to manage this dynamics involves an examination of the bargaining power of the buyers, the bargaining power of the suppliers, the magnitude of rivalry, the other product or service substitutes, or the threats of other new entries into the market. The vending business is not a new practice in the United States, the first machine of this kind being developed as early as the late nineteenth century. The changing patterns are observed in the quality and types of products offered as well as improvement in the vending machines to ensure security and efficiency. Most recently, there have been shifts towards high capacity vending machines that can vend healthy juices, yoghurt, fresh fruits, or vegetables. Investment in the healthy vending machine can be incredible in the contemporary society if proper strategic planning and management is carried out. The vending machine business is quite appealing to many individuals in the contemporary markets. The business has several associated benefits to the investor. It is characterized by immediate cash flows, all-cash business (no debts or accounts receivable), can operate 24 hours a day everyday, and it needs little expertise in business management or sales and marketing . The clients in this industry require quick service and â€˜demand immediate result making fast food too slow. [The] vending machines provide an affordable quick snackâ€™ (Vending Man, 2011b). The clients give more value to healthy vending that produces healthy foods and with no negative long-term effects on the health of the clients. The business is a fun industry that can generate high returns with little investment since it requires few employees (Vending Man, 2011a). An individual can supply and manage millions of these machines at different locations with the little task of putting in food occasionally, after every few weeks. This report focuses on these opportunities and the establishment strategy for vending machine business in the US market. The socio-political and economic factors in the US market as well as the business strategy to be employed in this business are illustrated. The US market- Environmental analysis The factors external to our organization like laws and regulations in another country, the countryâ€™s economic profile, national culture, and market competition affect the decision to establish business in the country (Mead, 2005). Economic analysis The United States is among the countries that suffered the financial crisis and the resulting economic problems that have been experienced globally (Jickling, 2010). Nonetheless, the Federal Reserve and other government agencies like the US Treasury have shown relentless efforts to restore the situation through improving the financial systems (Marshall, 2009). It is then likely that the buying ability of the US citizens will be improved giving hope for a new business opportunity. Socio-cultural influence The socio-cultural factors in the country also favor the investment in food industry with focus on healthy eating habits. The consumption of soft drinks has been high in the United States in the past and yet these foods have negative impacts on the consumer heath (Jacobson, 1999). The soft drinks add unnecessary calories to the diet and
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