Global and International Business Contexts – Sm0269 Essay
3889 Words16 Pages
Global and International Business Contexts – SM0269
Word Count: 3457
Table of Contents
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
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…show more content… (See insert 1.1)
Part 1: Porter’s National Diamond Analysis
Porter’s national diamond analysis model has four main determinants, which are factor conditions, related and supporting industries, demand conditions as well as strategy, structure and rivalry.
Factor conditions are those factors that can be utilised by companies inherently found within a nation which might provide competitive advantage such as human resources, material resources, knowledge resources, capital resources and infrastructure. These factor conditions can be built upon by companies to improve their competitiveness.
Factor conditions could be divided into two resources as home grown resources and highly specialised resources. As Michael Porter described, the home grown resources are important and in the case of Tunisia includes the natural resource of a climate well suited to wine growing, plenty of sunshine, fertile soil as well as limited pollution which all aid the industry of grape planting. Political and historical factors through Tunisia’s history such as the romans, French occupation which resulted in over 600 caves being created for wine aging and a recent flourish in the Tunisian wine industry after the 1980’s has left Tunisia with a number of cooperatives and engineers all with specialist skills in wine production where modern techniques are being used creating innovation, technical progress and competitive advantage.