Business

Executive Summary
In the existing scenario every countrycompany needs to be punctual in case of corporate sustainability. A person in New Zealand, Japan and Thailand understands the importance of education, social norms and believes, formal and informal institutions, intrinsic and extrinsic values. Even though environmental analysis reveals homogeneity and collectivism but political and economic factors might develop negative perceptions among individuals. Collaboration and integration from global perspective has become compulsory for businesses to perform in this competitive environment. As far as education market is concerned New Zealand is consistently performing for improvement. Therefore the business should opt for the country and use translational strategy as a code of business.

Introduction
This report has been compiled on the basis of thorough research specifically highlighting the demeanor of three major countries which have contributed a lot to the global economy and has worked for the betterment of the society namely New Zealand, Japan and Thailand. The major emphasis is given to education sector. It includes the brief external environment analysis along with the role of formal and informal institutions in an individual country. The education sector being the focal point includes competitive analysis of each of the country. The report incorporates implication of Porters five forces model on the basis of data gathered, academic knowledge and experience. Moreover market entry strategies have been defined for international expansion of the business.

New Zealand
External Environmental Analysis
Goyal, Chakravarthi and Sainath (2009) presented the external environmental analysis as follows
Political and Legal Factors In New Zealand after every three years elections are conducted and a new government is formed which formulates its own rules and regulations. International businesses are faced with low stability and high risk. Similarly labor force is quite expensive in the country however the productivity of one labor force is equivalent to five labor force in Indonesia. The price of money is higher and businesses have to pay more interest which result into decrease into profit. Nevertheless the business freedom is around 99.9 and trade freedom is about 84.6 hence it is a fruitful environment for businesses.

Economic Factors Its per capita income is eight times greater than Indonesia however the population is just one-sixth of the population of Indonesia hence scarcity of resources is not the issue. Moreover the unemployment rate and inflation rate both have remained low due to which resources are available for businesses at the economies of scale. Conversely its growth rate is low ever since government does not focus on developing economic conditions. The country is more appropriate for luxurious goods like Diamond, Car or fast food etc.

Social and Cultural Factors It is the country where majority own Christianity therefore imports of beverages, food and electronic appliances increases during Christmas. Authorities and institutions have focused on education and the government spends 6.2 of the GDP in education sector. One statistic reveals that 99 of the population is literate hence education sector is an opportunity for international businesses.

Environmental Factors The country has a cold climate where most of the region is occupied by land. The major issue is related to the shortage of water which is not good for fishery business because it will incur more cost in case of import.

Role of Institutions
According to Petrie (2002) formal institutions are important for the collaboration of economy, society and politics. Informal institutions prompt in social unity along with well-being and assist formal institutions. Key improvements are being made in making public institutions more transparent and integrated. Along with this emphasis is made towards intrinsic values. The term freedom to agencies is used as an approach to bring strategic change in the development phase. In relation between businesses and institutions social norms are defined on the basis of informal rewards or sanctions which require an appropriate approach for monitoring the behavior of an individual. For reciprocity there are well-defined boundaries of rules for the participants to make decisions. In contrast with these social norms formal institutions collaborate with third parties who have the right to use coercive powers in case of inappropriate management. Major Law enforcers FDC, state-supplied laws and Maori customary law have taken important steps in order to maintain consistency. The government has put efforts in order to improve framing effects. They have chosen both direct and indirect routes for the betterment of wellbeing. New Zealand is placed at the flatter part of the curve as far as social and economic outcomes are considered. According to Transparency Internationals corruption perceptions index, corruption do not exist in New Zealand and in order to further improve the performance government is working on building co-operation between inter groups of the nation. The major issue which prevails is related to right of different groups which results into violence on acts however several attempts like free judiciary and the role of ombudsperson for the betterment have taken place. In addition it requires focusing on the accountability of its spending and the taxation policies.

Education Sector
Carnaby (2006) stated that the education ministry of New Zealand is continuously functioning in order to develop international connections to further improve the educational sector. The ICT advisory committee of New Zealand ministry of education is congruently working with DEST (department of education, science and technology) of Australia and JISC (joint information system committee) of United Kingdom and it has proven fruitful. They are involving MNCs, Communities and agencies for quality results. The major emphasis is being given to research work and four milestones have been formulated which include
National library act 2003 in order to build an electronic domain.
The comprehensive heritage archive for which they had participated with Sun Microsystems and Endeavour information system. The project was funded with 24 million.
Formulation of Digital strategy where they adopted a holistic approach to transform the framework by focusing on 3Cs (content, connected and confidence).
The digital content strategy comprising of formal, informal and business content.
         
Ministry of Education (2008) acknowledged that ECE (early children education programs), schooling and tertiary education play the most important role in sustainable employment. According to labor force survey the unemployment rate for male increased from 6.8 to 8.6 from 2004 to 2007 however the rate reduced for female from 10.6 to 8.6. Moreover the percentage for men holding bachelors degree reduced from 197 to 149 during 1997 and 2007 whereas the percentage increased for women from 132 to 145. Further more income disparity has reduced among those having tertiary education. Moreover the government expenditure on education has increased from 4,817 million to 9,551 million during 1997 and 2008.

Competitive Analysis
According to AEI (2004) the primary objectives of the New Zealand government include
To build international connections
To boost up foreign exchange through foreign students
To provide quality education
         
Within a year from 2000 to 2001 the number of foreign students increased by 36 from 38,753 to 52,700. The government funded 2.3 million to further improve the infrastructure of international education. NZIEMN (New Zealand international education marketing network) comprised of both public and private sector including members from trade, tourism as well. The government spent 3.8 million of NZIEMN which is of worth 850 million today. They had developed a brand by the name of The New World Class which represents the uniform education system of New Zealand competitively. It spent 40 million for promoting overseas market where the major target market was Latin America. They even travelled to Latin America for convincing the government and as well as agencies. They have sent their counselors to Beijing, China since more than 30 of the students come from China and they collaborate with them through their embassies.  

Japan
External Environmental Analysis
Hodgetts, Luthans and Doh (2005) elaborated it as follows
Political and Legal Factors It ranked at the 18th positions in case corruption which are mostly related to bribery. Most often political scandals take place. The government has remained uncompetitive in formulating policies for risk management for major financial institutions. The country has well defined constitutions and laws as far as tangible assets are concerned however there are no proper laws for intangible assets like intellectual property rights.

Economic Factors Japanese MITI (ministry of international trade and industry) is considered as one of the fine institution. Businesses usually operate on the concept of Keiretsu in which different organizations are vertically integrated with each other for the purpose of delivering goods and services to potential customers. The economy has faced the major turmoil due to worldwide recession resulting into the set back of financial institutions which are reluctant to give loans. Moreover due to economic crisis education sector and social services were not given much importance and very limited financial aid was allocated to them. Although there has been economic growth and increase in number of jobs nonetheless infrastructure is not being given much attention. In security measures Japan went through an agreement with United States by the name of treaty of mutual cooperation and security in which United States will participate with Japan in protecting their territories. Other than this the country attained 7th position in advanced military forces known has SDF (self defense forces) which are equipped with state of art of technology.

Social and Cultural Factors The homogeneous Japanese culture prevails throughout the country and within two decades the number of foreigners has increased with a measured rate of 1.9. It is one of the countries which have the lowest mortality rate but recently the decrease in birth rate and ageing factor are under consideration. Employees working in plants are hard working whereas those who work in national railways or municipal offices are not efficient. In addition Japanese managers are not participative and are not loyal to the organizations.  

Role of Institutions
Peng (2008) stated that Japan is accompanied with strong formal institutions which have resulted into positive foreign direct investment. It more often focused of securing domestic competition. More importantly these institutions work for protecting existing long term players from new entrants. During 1960s when Japan was faced with rapid economic growth, its environment quality was further worsened and the government was forced to take realistic measures for the betterment of the society. MEXT (ministry of education, culture, sport, science and technology) act as a formal institution for education sector. It is integrated with other ministries and agencies like METI, NISA, MHLW, and MLIT. Moreover in Japan norms and beliefs prevailing in bureaucratic system as well as among legislations determines socio-economic culture, attitude, behavior etc of the business atmosphere. According to most of the surveys it has been founded that it is practically difficult for the management to change the attitude of individual employees hence top to bottom is used among different sectors. In typology Informal institutions have performed as a complementary of formal institutions as it happened in anti-corruption cases. Furthermore the government opted for a pluralistic change management approach along with research methods for understanding the ethnographic characteristics of individuals.

Education Sector
According to MEXT (2008) informal institutional factors are being given more importance to the education sector. The major tribute is given to Meiji era due to which people are more enthusiastic towards education and diversified parties are performing continuously to build public interest for the social development of the society. The higher level education is recognized worldwide. However the major issues like declining birth rate, ageing factor and decline in the interest of children for education are frequently being faced. Furthermore increasing scandals and crimes among public sectors have made people to think that there prevail unethical norms throughout leadership role. The government prime focus is towards improving sustainability, intrinsic values and harmony among people. According to experts, the country will be facing social shift in the future which will have an impact on the education sector. The government revised the basic act on education in 2006 in which importance was given to the following
Strengthening the industry while embracing morality and sensibility.
Fostering career opportunities
Further enhance the concept of justice, gender equality.
To protect the environment
To contribute to the prosperity and unity worldwide.

Competitive Analysis
It is consistently performing to transform into a knowledge-based society as competition is getting more and more intensive. It was the first time in 2006 when basic act on education was revised and it started to promote the education sector internationally. The government has devised a promotion plan for the period of 2008-2012 to compete globally. Japan elementary level of education is considered similar to United States. The country major focus is towards higher education when enrollment of female seems much lower as compare to male. Contrary to above research Riew (2007) acknowledged that in Japan the annual spending per student from primary to tertiary level is much lower than Australia, United States, Switzerland and Nordic countries. The spending on pre-primary child is about half as compare to United States and United Kingdom.

Thailand
External Environmental Analysis
Political and Legal Factors According to SIIA (2009) political situations has just improved after three consecutive years of setback. It has opposing parties belonging to democratic and dictatorship rules. The ASEAN6 summits were also affected due to the performance and legitimacy of Thailand government.  

Economic Factors Business Week highlighted that for the past one year, inflation has increased at the rate of 4. The consumer confidence index is about 69.1 and to further improve it the government spent about 1 trillion in transportation services, logistics, education and health care. The country was badly affected by the recession of 1997 but it recovered. The prime reasons for the rapid growth include policy reforms, low wages, proper economic management and exchange rates. The agriculture sector transformed into an industrialized nation and due to proper economic policies Thailand banks got massive amount of loans from the overseas market however due to improper check and balance procedures it was again faced with economic downturn. In 2001 the per capita income was 1,940 and still today there exist income disparities. A survey reveals that there is a significant increase in the income of the richest class as compare to the poor class and the government has decided to adopt tight monitory policy.

Social and Culture Factors The people dwelling in Thailand are optimistic and believe in unity. Majority explicit kindness and respect towards others. However there prevails the hierarchy system but even then they believe in collectivism.

Role of Institutions
Informal institutions are highly influential in the economy where people believe in collectivism and unity. Formal institutions do hold strong believe therefore it could not develop proper policies related to trade, education and tourism.

Education Sector
According to British Council (2008) the number of students has declined as compare to past year and it has been argued that institutions do not have enough resources to manage more number of students. Moreover as compare to private universities people prefer public universities as they provide wide variety of options. There are several reasons along with economic crisis due to which the preference for education has been reduced by the public like security and political climate which had a destructive impact on the industry. Still today about 68 of the population is dominated by rural area.

Competitor Analysis
Most experts believe that the industry is facing severe competition globally and it could not cope up with the changing needs of the economy which is one of the primary reasons for the decrease in the number of students. The government needs to understand the economic and social shift along with the consumer behavior for the betterment. The major competition comes from New Zealand, Australia, United States and Canada. The TIECA (Thailand international education consultant association) comprises of 70 different agencies worldwide. The government believes that the sector can become competitive by focusing on three areas including tourism, hospitality and technology. Thailand is basically considered as a post graduate and ELT market.

Implication of Porters Five Forces Model
The model has been implemented on the basis of experience, data gathered and academic knowledge
Entry In New Zealand there are low entry barriers whereas in Japan it is high and average in Thailand.
Suppliers In case of suppliers the industry mainly depends on formal institutions. Moreover there exists supplier power in Japan whereas it is low in Thailand and New Zealand.

Buyers In Thailand buyers have more power whereas in New Zealand it is low and in Japan it is average.

Rivalry International competition has become more broadened and it has affected all of these countries. Thailand faced the setback and it could not sustain it however New Zealand has considered it as an opportunity. In Japan rivalry is low because they have formulated policies for the protection of the domestic sector.

Substitutes There are lots of substitutes in Japan however due to collaborative efforts and integration has not affected the industry in New Zealand whereas substitutes have increased within a year in Thailand.

Mode of Entry and Justification of Strategy
New Zealand seems the better market place for international expansion of the business. The business should adopt translational strategy because New Zealand also wants to develop its core competencies in integrating globally. Major emphasis should be towards virtual learning with shared identities to achieve the business objectives.

Conclusion
After analyzing three different economies it can be concluded that New Zealand is giving more emphasis towards the advancement in education sector through collaboration with other institutions worldwide. However Japan is continuously neglecting the sector and paying more attention towards exports because its exports are continuously reducing for the past two years and it does not want the net export to be negative. Thailand which faced the rapid growth could not sustain due to economic crisis and the educational sector also faced the consequences.