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    Topic:

    CRITICALLY EXAMINING THE VARIOUS FACTOR THAT HAVE DETERMINED

    THE GLOBALISATION POTENTIAL OF THESE COMPANIES

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    Table of content

    1. Company Background and Industry Analysis 1

    1.1 What is Quiksilver ... 11.2 History of Quiksilver Company Background... 1

    1.3 SWOT analysis..................................................................... 1

    1.4 Financial Analysis..... 3

    2. Market specific Issues, Challenges and risks.... 4

    2.1 Market specific issues... 4

    2.2 Challenges.. 4

    2.3 Risks 53. Political & Economic Analysis... 6

    3.1 Political Analysis 6

    3.2 Economic Analysis 7

    4. Key Entry Strategy Plan... 9

    4.1 Distribution of products via the Internet 9

    4.2 Collaboration in the implementation and planning of

    the partnership.. 11

    5. Conclusion and Recommendation. 12

    Appendix.. 14

    References.. 18

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    Figure

    Figure 1: SWOT analysis of Quiksilver 2

    Figure 2: Gross margin detail between 2013 and 2014 3

    Figure 3: Thailand GDP between 2005 and 2014 4

    Figure 4: The EF English Proficiency Index 5

    Figure 5: Thailand country/economy fact sheet 7

    Figure 6: The number of tourist in Thailand 9

    Figure 7: The number of internet users in Thailand 10

    Table

    Table 1: Industry information 1

    Table 2: Introduction to political of Thailand 6

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    1. Company & Industry Analysis

    1.1 What is Quiksilver

    Quiksilver is a company that designs products, clothing and accessoriesabout water sports for young-minded people. It illustrates the beach lifestyle and

    response needs of water sports such as boarding, wakeboarding or surfing.

    Quiksilver are manufacturing products about water sports is distributed worldwide.

    There are many branches in many countries that provide authentic retail experience

    for their customers.

    Industry DetailCompany Name Quiksilver

    Company Contact Name Quiksilver, Inc.

    Website UCL http://www.quiksilver.co.ukE-mail Address [email protected]

    Address 15202 Graham StreetCity California

    State/Province Huntington BeachZip Code/Postal Code CA 92649

    Country The United States of AmericaCurrency Type United States dollar

    Table 1: Industry information

    1.2 History of Quiksilver

    Quiksilver was founded by surfer 2 persons. There launched in the market in

    1970 in Australian surf shops and The company successfully with boarding,

    swimsuits, and other surfingso there has huge profits and due to this success, the

    company can produce a wide range to respond the demand of all the customers in

    1980and because sales increasing, the company has expanded its sales channels

    through department stores rather than distribution to small specialty shops. In 1990

    there have developed in many areas such as distribution, increasing the variety of

    products and meet customer needs preciselyand has led the market in early 1990.

    1.3 SWOT analysis

    SWOT analysis illustrates important point of weaknesses, strengths, threats

    and opportunities from the implementation of business strategies. It demonstrates

    the internal and external factors that affect to the business and make business know

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    where a business should to focus and pay attention or realize the flaws of the

    business (Kotler 2005: 58-60).

    SWOT analysis of Quiksilver

    Figure 1: SWOT analysis of Quiksilver

    Strengths

    - Strong financial resource: Strong financial resource represents theeffectiveness, efficiency and ability to operate the business (Lipper 2013).

    Quiksilvers financial position is strengthened by the increased number of turnover

    because of this it demonstrates the company is capable enough to run the business.

    - International business expertise: Quiksilver was launched on the market in

    1970, so the company has been in business for 44 years this means that there have

    experienced in the business for long time it enable the company has a deep

    understanding of the environment of business, markets and customers very well.

    Weaknesses- Lack of global marketing plan: quiksilver has branches in many countries

    such as France,Belgium, UK, Ireland etc., but never released in Asia, so it enable

    cause lack of planning operationsfor obtaining market share.

    - Product portfolio: Quiksilver 's product portfolio is not yet introduced in

    Thailand and the geography and climate including the behavior of customers in

    Thailand are huge difference from the group of foreigners.

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    Opportunities

    - The topography of Thailand: Topography of Thailand, there are many sea

    area and safe in many aspects such as safety from the monsoon or dangerous

    animal.It is also a center of ASEAN and also a high number of tourists so it means a

    good opportunity of performing business in Thailand.- Under China-ASEAN free trade agreements: According to China-ASEAN

    free trade thus making the import or export of goods not subject to tax.For this

    reason, businesses can make a profit and reduce costs in several areas, including

    the opportunity to expand our business to other countries.

    Threats

    - Corruption: Corruption in Thailand is on the threshold is very high and it is a

    common phenomenon in Thailand it can be wherever such as corruption in an

    endorsements thing,permits and licenses (Suwanmala 2007).For this reason, to run

    business in Thailand may cause to waste money in this field.

    - Political risk is dark spot in Thailand: Management policy of Thailand is also

    insecurityand a lack of support from the government on foreign investment, including

    the lack of credibility in the administration of government (Anon. 2011).

    1.4 Financial Analysis

    Financial Analysis made aware of the financial data of the Company, which is

    one of the indicators of the effectiveness and efficiency of the business and will help

    the company determine the direction in the implementation of the industry as awhole. The financial statements are useful for making decisions about financing and

    expansion of the company. It also helps in planning, marketing, and shows the

    effectiveness of the operations of the company (Gartenstein 2011).

    From the financial information of Quiksilver demonstrate increasing of gross

    margin in the Americas and EMEA, on the other hand, there was a declined slightly

    in the gross margin of the Asia Pacific region. However, the total of gross margin

    remains stable by 50.9% was as follows:

    Figure 2: Gross margin detail between 2013 and 2014

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    2. Market specific issues, Challenges and Risks

    2.1 Market specific issues

    To conduct business in Thailand, it must be an overview of the many aspects

    that is the entrepreneur has to understand all that is to the GDP of the country very

    well. GDP is a measure that represents the things that are produced by people and

    businesses and also, including the wages of the employee or the rate of salary, total

    money value of all services produced and goods in the specified time (Koba 2011).

    According to figure 3 illustrates the GDP of Thailand from 2005 to 2013. The GDP

    increased steadilyfrom 161.34 in 2003 to 365.564 in 2013exceptin 2010 GDP

    dropped from 2009 by 8.868because of flooding in Thailand. All of the above

    demonstrate the economic growth, as well as the attractiveness of doing business in

    Thailand that the development and continued growth.

    Figure 3: Thailand GDP between 2005 and 2014

    2.2 ChallengesThis challenge refers to the challenge of doing business in Thailand because

    Thailand is a country which different from the country of main company in many

    aspects such as geography, language, culture or lifestyle so there is a challenge in

    many forms in this report will discuss the main challenges to be faced for doing

    business in Thailand.

    2.2.1 The shortage of ability workers

    Working with a foreign company, the employees need to have the ability to

    communicate to the employer is there must able to speak, read and write English.

    From the above mentioned, the level of knowledge of the English language can be

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    measured from The EF English Proficiency Index (EF EPI). The EF English

    Proficiency Index (EF EPI) is a measure English proficiency level in each country in

    the form of a report (EF Education First 2013).In addition, from below you can see

    that Thailand ranked at 55, it refers to level of knowledge of English in Thailand is

    very low so, this is the one of major factors of Thailand also it be the one ofdispensable challenges.

    Figure 4: The EF English Proficiency Index

    2.2.2 Piracy issues

    Kelly, Chira-aphakul (2001) the problem of piracy is a problem that has

    existed in Thailand for long timeand Thailand remain in watch list about piracy of

    America since 1994.Because of this, the production and sale of goods in Thailand

    has to face unavoidable with this problem.

    2.3 Risks

    This risk is discussed the quality of the country's key institutions, including the

    financial system, the nodal agency of the Government. There is also corruption in

    different ways. These risks are some of the most difficult for investment in Thailand.

    2.3.1 The corruption in Thailand

    Corruption in Thailand is high intensity with corruption in a multi-step, multi-

    agency and in many areas.From this fraud with Thailand for so long and corruption

    know very well is a corruption of the government in 2001 to 2006 from this cause,

    caused protests in many areas and the economic downturn, all of which impact to

    investment, whether the low ability of customer purchases or the number of tourists.

    2.3.2

    Customer buying behavior risks

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    3.1.1 The decline in business confidence for consumers and investors.

    The high volatility environment of political uncertainty impact on many aspects

    including investment and business operations in Thailand and because of political

    violence, such as revolution, protest or political demands cause many businesses

    damaged or discontinued business operations immediately.

    These things madeinvestors reluctant to invest because it may cause damage to the business and are

    not able to predict that when the violence will be end and many things cannot be

    controlled or no impact on the stability of these things are causing a high risk of

    doing business (Hutchinson 2012).That being said, the impact of political violence

    not only individual investors or new investors, but also affects to the investors who

    have run business for long time, for example Toyota Motor Corp., may be hesitant to

    expand the company due to the political instability of Thailand.

    3.1.2 Long term problem of policy administration.

    Due to political disputes in Thailand has resulted in the administration or

    management in Thailand is difficult for example, specific in 2008, Thailand has the

    prime minister's up to 8 people (Thabchumpon 2012).Frequency of changes made

    at the prime minister's policy not to operate, or management problems including

    working with various ministries and due to the short operate time, the government is

    lack of understanding about the problems of the country, thus this allow changing of

    the prime minister's policy.As a result, the Management of Domestic is not

    continuous, and the impact on investment because the government cannot be

    involved in the business planning process.

    3.2 Economic Analysis

    Thailand is an agricultural country and the newly industrialized countries of

    the world. Thailand has exported and imported goods, a lot and including Thailand is

    interest to foreign investors by many factors such as geographical factors, wages, or

    economic growth continues.

    Figure 5: Thailand country/economy fact sheet

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    From above shows the growth of GDP in many aspects such as GDP

    (US$bn) (current prices), GDP PPP, GDP per capita (US$): and GDP per capita

    PPP. From data shows that the economy in Thailand growing steadily and this

    means investing in Thailand are able to grow and generate profits for the company

    because of the GDP increase represents increased demand including the ability ofthe purchase will increase.In this report will demonstrate the impact of the Thailand

    Economics to investmentby follow.

    3.2.1 Reducing the cost of infrastructure sectors, exports and imports, which

    affects the growth of investment in the country.

    Due to the low cost of living in Thailand have resulted in expenditures for

    infrastructure in business operation, low as well, which is good for entrepreneurs

    because they can reduce costs in many aspects when compared to investments in

    other countries, such as the transportation, labor, communications, water and

    electricity (Appendix 1).

    3.2.2Economic growth as a result of the increasing number of tourists in

    Thailand.

    The number of tourists is increasing every year in Thailand directly affect the

    rate of economic growth, and some businesses.From below shows the number of

    tourists is increasing every year as a result cause economic growth, from information

    can be seen that although Thailand is experiencing some problems, such as SARs,

    tsunami, floods and political uncertainty, but the number. Tourism continues to

    increase, resulting in the growth of the economy. From the foregoing, it probably true

    to say that business about travel or about tourists have been affected by the

    increase of tourists and economic growth is an important factor in investing in

    Thailand.

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    Figure 6: The number of tourist in Thailand

    4. Entry Strategy Plan

    Mintzberg, Henry, Quinn and James Brian (1996) discuss Entry Strategy Planis planning to approach or strategy, including strategic which direction to take. In

    addition, Entry Strategy Plan use for guidelines or direction, also including the

    allocation of resources to suit the strategy used to achieve maximum effectiveness

    and efficiency.

    4.1 Distribution of products via the Internet

    Of statistical data shows a significant increase of the use of the Internet and

    caused a rapid increase comes from several factors, including the quality of Internet,

    a convenient way to using the Internet and the number of channels using the Internetincreasing. With all of these reasons, it could be said that the sale of products via the

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    Internet as an important channel to generate a profit and make a company

    successful.

    Figure 7: The number of internet users in Thailand

    4.1.1 Sales and advertising products through social networking.

    The number of Internet users increases, resulting in the advertising and trade

    on the Internet and, in particular, advertising and commerce through Social

    Networking.social networking is a community on the Internet, people can exchange

    information, attitudes, feelings and many things have caused the relationship to each

    other on the Internet (Rouse 2006) and currently there are many Social Network

    such as Facebook, Google+, twitter etc.Social Network, these are so many users as

    a way of selling products or advertising as well as it can to spread the news or

    information quickly and with less cost.

    For the reasons above, Quiksilver, INC. can use this channel to promote,

    provide information and advertising products of Companies, because the company's

    target audience is people between the ages of 17-40 years, which at this age is the

    age that is in use a lot of Social Network, it is consistent to market on SocialNetwork. In addition, costs for advertising or marketing, when comparing between

    Social Network with other forms of advertising can be seen that advertising on the

    Social Network has cost less and better value.

    4.1.2 Sales via the website directlyand delivery.

    Nowadays, shopping online is easy and increasingly popular because of the

    convenience, speed and security, and because shopping online is not limited to the

    purchase through the computer alone anymore but It is available with a mobile

    phone or tablet is also a convenient payment systems such as credit cards orpayment through online banking, which is popular such as PayPal, Paysbuy or

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    GoogleCheckout. These are a factor to generate profits for business and responding

    to the needs of customers.

    For this reason, Quiksilverlk limited company able to expand its customer

    base in Thailand more versatile and meet the increasing of requirements to purchaseonline including delivery in Thailand, the cost is low thus company is allowed to be

    created to promote the company by certified delivery to customers within 24 hours.

    From the foregoing, it can be said that the sale of via the Internet as one important

    strategy for success in business today.

    4.2 Collaboration in the implementation and planning of the

    partnership.

    Collaboration is the cooperating or trying to do the same thing to the person or

    group for the purpose or aim to achieve the same communication andsynchronization operations in the same direction may not necessarily work in the

    same place, but must to understand to do together (Rouse 2005).

    4.2.1 Open Book strategies for investment in Thailand

    Open Book costing is the competitive process, which is the cooperation

    between supplier and customer to share about cost information (Lysons and

    Gillingham 2003). In case of using this strategy, trust is the most importance which is

    needed to be concerned. To apply Open Book strategies with Quiksilver, although

    this strategy has some limitation, such as the exchange of information means thatbusiness partners shall know the various aspects of the Company is necessary to

    establish a long term business relationship but the company has no experience in

    several aspects about investment in Thailand, especially the cost in many field of

    processes such as production costs, process of transport and distribution consistent.

    Thus, using this strategy will reduce costs in several stages, including the allocation

    of resources for planning for effectiveness and efficiency operational.

    4.2.2 Cooperation in business with the top of shopping mall in Thailand

    Cooperation in business with the top of shopping mall in Thailand such as TheMall group and Central group (Appendix 2) which have many brunch around

    Thailand. From this partnership enables the company to sell the products through

    branches in different areas of The Mall and Central Group so it can be widely

    distributed to satisfy the needs of our customers instantly. This reason is help

    Quiksilver to reduce risk in investment of open the shop by customer can buy the

    consignment from the department store that is the authorize retail. In the same way,

    it is a cost reduction for extending the size of business and including marketing

    research in Thailand.

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    5. ConclusionQuikSilver company is a manufacturer and distributor of board and swimwear

    including marine equipment for ages. 17-35 years, and the company has experience

    in working in a foreign country for long and has branches in many countries and the

    finances of the company, the company has a good performance continuously thatdemonstrate the performance of business operation that can generate profits for the

    company (Appendix 3).

    Market opening in both hurdles and opportunity are many factors such as

    political factors, economic, social, environmental and technological, so investors

    need to have a deep understanding of these factors and especially the politics and

    economy, these factors have a tremendous impact on investment and business

    operations because of these uncertainties can be devastating to a business such as

    the growth slow-down of economic, the business has been damaged by the political

    protests, and the discontinuous of policy governance.

    These make high risk inbusiness operations of a new investor or entrepreneur who invested a long time.

    However, the growth rate of GDP is still high up continuously so there is a

    opportunity of running a business in Thailand because of the higher GDP reflects the

    economy and demands of the consumer good.

    From the foregoing, Quiksilver can be used of business operation strategy in

    order to compete for market share and generate profits for the company as an

    important strategy is to sell products via the Internet. Due to political instability make

    investing a higher risk, thus selling products online is a channel with the least cost

    and get worthwhile return such sales or marketing on the Social Network or the

    delivery and build websites for direct sales. In addition, another strategy is tocollaborate between partners such as Open Book Costing strategy by applying this

    strategy would able to know the costs in different parts of the partnership enables the

    company to reduce costs in several ways including the allocation of resources to be

    used in the company and one is to cooperate in the distribution of products of a

    shopping mall, which is effective for large distributed to various areas.

    Recommendation

    Business operations in Thailand are different from conducting business in

    foreign countries in many aspects of business, so that Quiksilver will have to study

    these differences well. Including the need to prepare and plan for different scenarios

    that could, for example, as will be discussed below.

    - Considering the climate in the distribution of products in Thailand. Thailand

    has a warm climate almost all year round, with temperatures in the range. 23-

    37 degrees Celsius, making it the dress or appliances to suit the temperature

    of Thailand, so QuikSilver should focus on selecting products to be sold in

    Thailand that is appropriate, such as clothing, jewelry or sports equipment.

    - Selecting product distribution area which is appropriate for the product targetbecause of Quiksilvers product target is focus on beach activity. According to

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    the geography of Thailand that consists of beach area in the East and the

    South. Therefore companies should select a product distribution including

    demand for products in each area.

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    Appendix

    Appendix 1: Cost of living index

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    Appendix 2: The shopping mall in Thailand

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    Appendix 2: The shopping mall in Thailand

    Appendix 3: Results of Operations

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    Appendix 3: Results of Operations

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    Tradingeconomics (2014) THAILAND GDP, Available at:

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