Contents

• Introduction 2
• Challenges of Globalization 3
• Pan Pacific Hotel 4
• Pan Pacific Hotels & Resorts and its Proposed India Expansion 5
• PESTEL of Indian Markets 6
• Political 7
• Economical 7
• Social 8
• Technological 8
• Environmental 9
• Legal 10
• Porter’s Five Forces 10
• Supplier Power 10
• Buyer power 11
• Threat of new entrants 12
• Threat of Substitutes 12
• Rivalry 12
• Conclusion 13
• References 14

Description

Cross border investments come with their own risks. The first and foremost risk is that of security and political and legal protection of the investments and interests of the company in an alien nation. Expanding into an alien market has its own challenges and factors such as political stability in the host nation, economy of that host nation, regulatory policies if any, social set up, environmental issues et. While government policies such as reduces taxations and charges to foreign investment to attract foreign investments, the companies need to look whether or nor not overall approach of the governmental policies in the alien nation are unbiased towards foreign investors and companies. Apart from fiscal policies the stability of the nation or its economy plays a great role in determining the success and continuance of the business in that alien nation. Some of the indicators of political stability are sound democracy, sound democratic approach towards policy making and an educated and alert populace. On the other hand, if the nation is ruled by dictators, military rulers or if the nation is under the rule of monarchy, the policies can be one sided or subjective to the preferences and approach of the ruler. An investment in such nations needs to be done with great caution. This paper discusses as to how companies determine the stability of a nation and stability and conduciveness of other factors such as economy, environment, technology and society. Apart from discussing the methods to find out the political stability of a nation, the paper discuses the assessment of the nation’s viability to start a business with macro economical framework of PESTLE. The paper uses the example of Pan Pacific Singapore, a chain of 5 star hotels and uses the case of opening up its business in India. The paper also discusses the market forces of Indian market and whether or not the market conditions are conducive to starting up of business in India.