EU bloc
France is under the EU trading bloc and thus ensuring that importation and exportation of goods are not interfered with. It is, therefore, possible for the companies in the nation to export goods to various nations under the EU bloc. In addition, goods are exported and imported to France with reduced tax among the nations that are under the EU. Apart from being France being a member of the EU, it has made agreements with other nations like the United States hence ensuring that the market for the produced goods in the country is expanded.
Legal system
The legal systems in France that ensure the properties are protected are in place, and intellectual property rights are protected under the copyright act. The intellectual property rights in France protect works of creativity like art. The legal system has been put in place to ensure the properties of the citizens are protected and even the works of creativity are also protected. As for the contract, they are given as per the law where the bidding process is done and thus the most qualified bidder among those who showed interest in the contract is awarded the contract. When therefore giving out a contract, the law is followed, thus ensuring that all the interested parties has equal chances of winning the contract depending on their qualifications.
Cultural dimensions of doing business in the country
Major religions, ethnic makeup and languages
The cultural dimensions of a country determine whether the business will do well or not because people buy what their culture accepts and avoid what are discouraged by their culture. The major religious groups in France are Christianity, Islam, Judaism, Buddhism, Hinduism, and Sikhism jut, to mention a few. With different religious groups in a country means that businesses do well because if a religion does not support the use of certain products, then other religions will support their use hence ensuring that all the products produced by different organizations have a ready market. The different ethnic groups in France also provide market to various products produced by the organizations in the nation. Some of the ethnic groups found in France include the Africans, Basque, Jewish, Muslims and Polish.
Major sports, recreation
There are different recreation activities and sports in France that promotes foreigners visiting the country hence increasing the number of customers buying goods within the country. The major sports and recreational activities include in France include cycling, swimming, soccer, skiing, tennis and basketball, among others. Apart from increasing the number of customers buying the products when foreigners visit the country, also, firms producing sports and recreational products can be established in the country.
Major differences in beliefs, values, customs and behaviors, role of family
Different ethnic groups have different beliefs and customs that influence their behaviours, and since there are different ethnic groups in France, then there are different customs. But there are basic similarities in all the ethnic groups that include the role of families. The values and beliefs of most of the families are that the family members help one another by handling different activities at home. Also, when a family has a business enterprise, they operate the business together headed by the head of the family. Also, the older members of the family help the young ones to learn ways of their culture.
Business customs and etiquette
When operating a business in France, one should adhere to all the regulation given by the government regarding business operations in the country. This includes paying of tax as expected and paying employees as per the agreement and respecting their rights as employees. When negotiating with the clients, an entrepreneur should show respect to the clients hence enabling him or her to win more customers. Also, the dress code should be decent even though one is free to dress as he or she pleases, but it is advisable to look presentable since it will ensure that more customers are attracted.
Unique aspects of written, oral and non-verbal communications
The unique aspects of written oral and non-verbal communication in a business environment include proper selection of words to use when communicating with the clients. Communicating effectively helps in the performance of the business, and when an individual fails to choose the terms used in communicating properly, then it might lead to misunderstanding. Irrespective of the method of communication, either written or verbal, proper choice of words to use in communicating is important.
Country’s culture using Hofstede’s model of cultural dimensions
The power distance in France, according to Hofstede’s model is 68, meaning that it is accepted in the country that there is inequality. Inequality begins at home when children are made to depend on their parents, then the teachers while in school and their superiors later in life. In the companies, there are hierarchical levels where a protocol should be observed when addressing different issues within the organization. Also, a male is dominant in France even though there is competition; men are considered to play more responsibilities in society and thus emerging as the dominant gender.
Market Opportunity Analysis
The product that can be produced is in France is a sports’ bicycle because that is one of the famous sports among the citizens. Citizens love bicycles that are ideal for sports, and thus by developing a company producing only sports’ bicycles will be ideal. Currently, the bicycles are bought in large quantities throughout the year because bicycle racing is done for recreation and thus citizens participate through the year. Though there is competition on the product, the company will produce comfortable and quality bicycles, thus ensuring that the customers are attracted to buy the products. The distribution channels for the goods include direct sells to the clients and selling through intermediaries. Selling direct t the clients is important since the entrepreneurs will get an opportunity to interact with the clients. On the other hand, selling the goods via intermediaries ensures that more customers are reached since those who cannot visit the organization to buy the goods can get them from intermediaries.
To advertise the goods, social media is the most commonly used because the majority of the members of the public are in social media. The advertisement of the product, therefore, should be advertised in different social platforms hence ensuring that the majority of members of the public gets the information about the products. The total market for the product is large because the majority of the citizens enjoy participating in bicycle racing. The targeted population is the youths who are between 15- 35 years because they are the group that enjoy bicycle racing.
Market Entry Mode
The ideal market entry of the business to the country is through a joint venture with an organization that is already established in France. This move will ensure that the company will not struggle to acquire a license for operation, among other logistics. The companies that have made the agreement will contribute towards producing the product and thus, it also ensures that funds needed to start the business are available since both organizations will contribute some percentage of the funds needed.
Examples of the companies that entered into a joint venture are vehicle producing companies producing BMW and Toyota to develop vehicles that are friendly to the environment. This joint venture indicates that organizations can work together by having an agreement. So, the company producing bicycles will identify an organization within France and makes an agreement that will enable them to run the business with ease.
Conclusion
Investing in France by foreign companies is not easy because of the challenges that arise as a result of having to adhere to all the government regulations of the country. Though the high population makes France an ideal place to invest, the high tax and high cost of labour hinders foreign investors from investing in the country. But the political stability and the culture of the citizens who are welcoming attract investors. The investors, therefore, opt to invest because there is a ready market for the goods despite the high cost of running a business due to high cost of labour and the heavy taxes imposed on the foreign investments. Having a joint venture helps foreign investors to settle and operate a business in France because they will work with the already established organizations.
The unique thing about France is that almost all the population is literate meaning that all the employees in an organization will be skilled. When skilled employees are employed, the performance of the organization will be outstanding since they know what to do when faced by different challenges while at work. Though these employees are expensive, it is cheap when compared to having to import skilled workforce hence making the country ideal for investment. The investors, therefore, appreciate that the nation has a workforce with skills required by the companies.
(Goyer & Jung, 2011)
(Prendiville, 2019)
(Thoenig, 2006)
( Cruising at different speeds: Similarities and divergences between the German and the French economies, 2019)
(Khan & Ebner, 2018)
(Salvatore, 2019)
(Cole, 2011)
(“France – Culture, entertainment & sports,” n.d., p.)
(Queen, 2011)
(McNett, 2015)