Question One
In business, political risks give an implication of the political decisions that could have adverse effects on the goals and profits of businesses operating in the specified country. Objectively, the sources of political risks in many countries are the policies that a country chooses to adopt to control the nature of business that companies operating within its borders have to observe. However, the levels of political competition among politicians and the levels of political tolerance among their supporters also give an indication of the nature of the political risks a company is likely to face when operating in a chosen country (Keegan & Green, 2003). There are two types of political risks that a business operating in a specific country is likely to face – macro risks and micro risks. Macro political risks are adverse actions that the government of the day could take with the potential of affecting all businesses, regardless of their industry of operation (Jha, 2013). On the other hand, micro political risks are actions that can affect businesses in a specific industry or a specific business that operates in that country.
In South Korea, the country that I have chosen to open the Disney store, both macro and micro political risks are likely to influence the operations of my business. For instance, the Disney store’s operations could be affected by micro political risks if the government of the day passes laws that could derail business performance in the country. For instance, the government of the day could decide to increase the tax rates that all businesses pay for operating in the country. However, in South Korea, given the democratic and relatively calm nature of its forms of governance, macro political risks are highly unlikely. On the other hand, the business’ activities could be influenced by micro political risks. In this case, the government could pass laws that make it hard to initiate a children’s product store in South Korea difficult. In this context, such an action can lead to issues like corruption and favoritism, which could push the Disney store business and its operations out of South Korea. However, with proper calculation and strategic market positioning, the store could still perform positively and overcome any eventualities that could arise in the course of operating in the country.
Question Two
E-Commerce has emerged as an innovative way of completing the ordering process and making of payment transactions for various businesses in many countries. Through E-Commerce platforms, it is now possible for businesses to activate an effective customer-based interface from which orders can be placed, paid for and shipping services initiated for bought goods to reach such customers (Lee, 2006). The adoption of e-commerce is associated with many varied benefits when compared to the traditional ways of conducting business, but it requires a set of strategies for its maximum benefits to be realized.
First, the customer-based interface must be versatile enough to accommodate the many and varied needs that different customers have when using them. Secondly, the customers have to be assured of the safety of the sensitive nature of the information that they will give out when using e-Commerce platforms. Recent years have seen a surge in cases of cybercrime involving the theft of information related to e-Commerce platform users (Muthaiyah, Ernest, & Wai, 2011). Therefore, for a company to initiate an effective e-commerce portal, it must ensure that it employs strategies that fully restrict the instances of illegal and unwarranted access of the sensitive information of clients (Schiff, 2013). In conclusion, the involved company should ensure that it employs best practices when operating such a platform.
References
Jha, S. (2013). Analyzing political risks in developing countries: a practical framework for project managers. Business And Politics, 15(1). http://dx.doi.org/10.1515/bap-2012-0025
Keegan, W. & Green, M. (2003). Global marketing. Upper Saddle River, N.J.: Prentice Hall.
Lee, J. (2006). Data engineering issues in e-commerce and services. Berlin: Springer.
Muthaiyah, S., Ernest, J., & Wai, C. (2011). Review Of E-Commerce Issues: Consumers Perception On Security And Privacy. International Business & Economics Research Journal (IBER), 3(9). http://dx.doi.org/10.19030/iber.v3i9.3724
Schiff, J. (2013). 15 Ways to Protect Your Ecommerce Site From Hacking and Fraud. CIO. Retrieved 22 June 2016, from http://www.cio.com/article/2384809/e-commerce/15-ways-to-protect-your-ecommerce-site-from-hacking-and-fraud.html
