Regulation and Management in the Global Community Essay

Regulation and Management in the Global Community - Essay Example Since China will be a new market for the expanding UK restaurant, they have to acclimatize themselves with certain strategies relating to fast-food restaurant in China, these includes; the government policies on foreign investments, the location of the business, and the kind of competition involved. These factors are important for enabling a critical evaluation of the business possibility of succeeding in the foreign country. Unlike in the UK, the fast food that are experienced in the Chinese market are different, for the business to succeed in China then, they have to consider those factors that relates to the type of food that is common or favourite in the Chinese culture. The same taste and preference that is experienced in UK is not the same one that will be experienced in China, for instance when in the UK most restaurants deal in fish and chip, in China the list expands to include fried bread sticks, roast chicken, soybean porridge, porridge, fried stuff buns and so on. As such , the management of the company should be conversant with the factors listed in order to realize success in the foreign investments. Relating to the foreign investment again, the management should be cognizant of the political, economic, and social (cultural) challenges that they are likely to meet while operating the business in China, they are reported below. Political Risks that might face the Management in China Foreign countries are always faced with a number of political risks and the fast-food restaurant is not an exception, as such, it will have its fair share of the risks. One of the most common political risks that will be faced in this relation is the taxation policy; China is a country that boasts of their domestic consumption given their large population. They also give preference to their local businesses first particularly in areas that need no specialized expertise like running a restaurant. The Chinese business policies are designed to support the local business and this is through giving higher taxation to the foreign countries as a way of discouraging them from doing business in China. If the business opt to consider China as their next business zone, they will have to contend with the higher rate of foreign businesses taxation, in other words, the profit margin for the company will be tremendously be reduced owing to the taxation policy. In a bid to control the influx of foreign businesses in china, the government of China has instituted bodies that regulate the extent though which foreign businesses are invading the Chinese market. Most of the regulatory bodies are keen to block those businesses that are dominant in the country, fast-food restaurant is one of the businesses that have dominated the Chinese market for a long time and there are chances that the UK branch investment will not be allowed to operate in the country (Adekola and Bruno 2007, p.34). Before allowing foreign business to operate in their country, China is keen to look i nto the benefits that they will accrue from the business. They have to look for factors such as will it create employment opportunities to the citizens, will it pay taxes, or will it just give unhealthy competition? In this case, starting a fast-food restaurant will be considered to bring unhealthy competition to the local business and chance are that they will not permit it and if they do, it is highly probable that they will have to introduce measures and controls for the business. The Chinese government introduced a policy that