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Comprehensive Environmental Analysis Outline

1954 words - 8 pages

In today's day and age, the world is considered an organizations marketing ground. Gone are the days of marketing and targeting consumers in just one geographical area. In order for an organization to take a product or service global, the need for analysis is critical to ensure that the product or service being offered will be successful in the new country. The purpose of this paper is to outline the strategy that is necessary for Gold Diggers International (GDI) to successfully export its mining conveyors to the market of Chile. In order to achieve this, thorough analysis of the business environment in Chile will need to be conducted. This will identify the key variables that need to be taken into consideration when creating a product and service for the market.Country AnalysisChile is located in the continent of South America. 80 percent of its land mass is located in tropical areas and extends into the subantartic. In 1995, the region had a population of over 320 million. The most impressive feature of the South American continent is the Andes Mountains, which is the longest mountain range in the world. This mountain spreads more than 4,200 miles from the northern tip to the southern tip of the region (Centres of Plant Diversity.com, nd).The current government in Chile is republic. The country became independent in 1810. Branches of the government include executive, legislative, and judicial. The political parties are grouped into two large coalitions, the center-left concertacion, and the center-right alliance for Chile. The center-right alliance consists of the National Renewal Party and the Independent Democratic Union (US Department of State, 2007).The constitution of Chile went into affect in 1981, called the national plebiscite. According to the US Department of State (2007), "after Pinochet's defeat in the 1988 plebiscite, the Constitution was amended to ease provisions for future amendments to the Constitution" (p. 1). Elections are held every four years for Deputies and Senators serve an eight-year term. These elections are governed by a binomial system that rewards the coalition states. Each state belonging to the coalition can have two candidates for Senate and two candidates for the Deputy seats. (US Department of State, 2007).According to BBC news.com (2007), "Chile is one of South Americas most stable and prosperous nations" (p. 1). This country has relatively low crime and governmental corruption. To date it is the fastest growing economy and has been able to withstand economic unsteadiness. The economy is primarily dependent on its copper mining and is the largest copper producer in the world.The peso is the currency used in Chile and has been historically weak against the US dollar. Recent years has shown a strong surge in the Chile peso, however, with a trade-weighted exchange rate index of 90 in 2006, up from 76.1 in 2003 (EIU, 2006). Currently, the exchange rate is 545.4 pesos to the one US dollar (EIU, 2006). The peso is...

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