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Running Head: VERTICAL GARDENS IN PHILIPPINES

Vertical Gardens in Philippines [Name of Writer] [Name of Institution]

Vertical Gardens in Philippines Executive Summary

The report extensively analyzes the typical factors of the Philippines economy, Vertical Garden Industry of Philippines, cultural factors affecting the business operations, and selection of an entry mode for an Australian based company called Jardin. The report extensively covers: a) Overview of Philippines Economy b) Political Risks in Philippines c) Cultural dimensions in Philippines d) Communication issues in Philippines e) Patterns of Internationalization f) Vertical Garden Industry of Philippines g) Best Entry mode for Jardin The report contains thorough information on the above mentioned topics and also explains as to how Jardin can enter Philippines and expand its operations in to Philippines which is our primary consideration due to the diversity of culture that was integral to understand.

Vertical Gardens in Philippines Vertical Gardens in Philippines Introduction

Straight home gardens are switching into a great way to beautify structures, improve insulating material, and complete a lawn with amazing things even in a small area. The idea has expanded with the reputation of landscape green. So now there are ways to make the set up of an existing wall simpler than ever. Straight gardening is a farming strategy that uses various options to allow vegetation to give in place rather than develop along the exterior of the garden. In some cases, no support shape of any kind is required, as the flower normally develops in place. However, other vegetation such as ivy and some veggies require the use of levels, crates, or trellises in order develop top to bottom. Jardin, is an Australian company involved in vertical gardening, is expanding its business of gardening in other parts of the world as well. It is now considering entering in to Philippines. This report is an attempt to analyze the economy of Philippines and select the best entry mode for Jardin. Discussion Economic Risk Economic risk includes the chances the events, such as economic mismanagement, which will cause serious changes in a nation's environment that negatively impacts the profit and other objectives of a particular company. In other words, Economical risk is the risk that the economic climate could turn against your investment. Philippines have high stages of financial, governmental and economical state danger. The country risk tier of many nations like Philippines in Asia is 3 or 4. The exclusions are Vietnam, where the CRT is 5, and Singapore where it is 1. In 2007, Philippines obtained a GDP rate of development of 7.3 %, the best for the nation in 30 years. This was assigned to the "positive growth" in all areas of the financial climate, especially services. This amazing result carries on the inspiring and positive pattern of the past five years, and shows the Philippines National initiatives on development. It has managed financial self-discipline and lately improved investing in the social industry, farming and other related facilities. If Philippines can sustain the growth pattern, public and worldwide assurance will enhance further and provide assurance to the worldwide traders that there is no economic risk of doing business in Philippines.

Vertical Gardens in Philippines

Clearly the most significant obstacle is to continue to enhance the basic principles of the economic climate to ensure continual high growth that will lead to a continual decrease in hardship. However on the other hand, the economic climate encounters difficulties of employing essential policy changes particularly in areas like tax management, tax income selection, public expenses management, budget performance and visibility. The international crisis would also present an obstacle to Philippines economic climate. On the expenses side, the ongoing development of prices led to lower customer spending at 0.8 % in 2009 from 5.1 % a year ago. Political risk Governmental threats are going higher as a result of adverse effect of increase in grain and other meals costs. Though corruption is a significant problem in many countries of Asia, it is more politicized here in the Philippines than in others. The increase in meals costs possibly creates an even larger obstacle for the government than corruption. It has a lot of experience fending off suggestions of graft, but the need to react to a lot more people who are having problems placing meals on the desk could be especially complicated. Cost demands are likely to drive even more People from the Philippines to depart the nation in search of better shelling out tasks overseas, while at home there will be stress to offer comfort to the poor and always ignored People, which ultimately reveals that the government really cannot manage in financial problems scenarios. Political risk also covers the risk related to mismanagement of a financial commitment to other nation because of government uncertainty that causes the business atmosphere to fail or requires another government to take over and take overseas resources. A deficit of a powerful and reasonable judicial system to use agreements and the danger that a government might avoid or restrict money from being relocated out of the nation to the companies home nation are other illustrations of sovereign threats. Another type of sovereign danger happens when an overseas government fails on debt that it owes to overseas financial institutions or governmentalsponsored organizations such as the Worldwide Financial Finance. The Philippines' bigger budget lack is mainly a result of the failure in business activities, a design that is obvious in other local and international financial systems. Professionals believe that financial growth will be progressively renewed and, along with that, some pick-up in the national financial income efficiency will help contain the extraordinarily large lack. Furthermore, the national objective to freeze financial policy in 2012 and return to a path of financial merging over the method phrase will be crucial for assisting the nation's credit basic principles and for reducing the national debts overhang. Experts believe that the nation's longterm financial perspective would improve with more success in shoring up government earnings, both through stiffened management and the release of new tax actions, several of which are awaiting before the legislature. In addition, while expenses control has improved these days and Treasury debts have been skilful, these actions alone will not ensure financial durability.

Vertical Gardens in Philippines Socio-Cultural Environment The saying, work difficult, perform harder is used in the Philippines seriously. The People from the Philippines are hard-working. Sure, they really like fiestas, Friday-night having a party and even enjoy birthday parties of team, but amongst these parties are times of effort under the warm of an exotic sun.

With this diligent ability in their blood comes an interest for journeys. The Philippines has a daring heart that always needs for new encounters. While it is a well-accepted actuality that People from the Philippines go overseas to generate greater income, one cannot disregard the fact that only brave and daring spirits can find equivalent convenience in locations which is not really their home. Latest remittance information of offshore Philippine employees provide obvious image of how this adventurism is gaining the economic climate. Company lifestyle in the Philippines displays the impacts from various cultures. American, Spanish and China methods have affected the lifestyle of economic discussions over the years. Companies Lifestyles have been especially affected by Chinese Lifestyles which have influenced the networking and cultural relations operating discussions. China is considered an important language in Philippine business practice. Foreign direct Investment FDI is a direct ownership in a country. It includes transfer of all resources including capital, personnel and technology. It provides complete control of business and ability to know the industry and competitors. Though, it requires high level of commitment and resources. Overseas immediate financial commitment are the net inflows to obtain a long lasting control interest (10 percent or more of voting stock) in a business managing in an economic climate other than that of the buyer. It is the sum of value of net inflows, reinvestment of income, other long-term financial commitment, and short-term financial commitment as proven in the stability of expenses. This sequence reveals net outflows of financial commitment from the confirming economic climate to the world and is separated by GDP. Overseas immediate financial commitment, net outflows (% of GDP) in Philippines was 0.24 as of 2010. Its maximum value over the last 17 years was reached in 2007, which was 2.37, while its smallest value was -0.18 in 2001.

Vertical Gardens in Philippines

Vertical Garden Industry of Philippines It is not unexpected that this pattern will find more popularity in more financially innovative countries as the force of ongoing industrialization and development of personal and professional development in these countries will mean less and less space for people to use for vegetation and for farming. There is also greater gratitude in such countries of the part that vegetation can play in the need to quickly reduce around the world as opposed to less developed ones where subsistence continues to be the real picture. However, if we look towards the Asian countries, like Philippines, this industry is not developed much and people are stick with the old methods of farming and vegetation. Hence, there is the great opportunity to tab such an unexplored market, and change the patterns of Lifestyles by adapting vertical garden techniques. Philippines, though becomes politically unstable, but being a developing country, the main occupation of people there is agriculture and gardening, therefore this market had great potential to explore. This would not only favorable for Jardin but it will also help in increasing the supply of vegetation and ultimately will help the economy as well. Further, the current government has also adapted anti corruption strategies which will again help to control the adverse scenarios. Therefore, for Jardin, Philippines can prove to the nice selection.

Vertical Gardens in Philippines Organizational culture in Philippines Jardin needs to understand the Organizational Culture persist in Philippines in order to tab the market, which will enable the company to think for the safe mode of entry. Trompenaars Cultural Dimensions Universalism versus Particularism

The Philippines society is found to be high in Particularism. People in this culture develop their expectations of others based on their personal relationships with them and their trust in them rather than on rules; focus more on relationships than on rules. Universalist partners tend to focus on detailed contracts, penalty clauses etc, and may forget the importance of relationship work. Particularistic partners, like Philippines, may then feel that they are not trusted, or that mutual understanding and long-term relationships are not possible. Business trips with particularistic companies/cultures should be longer. Companies need to remember to build good relationships with local representatives. Particularistic partners need relationship continuity, so U/P partners should openly discuss ways of doing this. In particular, they should avoid staff turnover in liaison positions. Individualism versus Collectivism The Philippines culture exhibits Collectivism. Employees from a collective culture tend to have a more favorable attitude towards teamwork and they prefer reward systems that provide incentives for group achievement. Inner versus Outer directed The individuals in the Philippines society are found to be Outer directed; People believe in letting things take their own course and that the virtue is located outside of us, i.e., in the nature. The actions of externalist people are Outer-directed- adapted to external circumstances. Specific versus Diffuse culture According to research, Philippines is found to be a Diffuse culture. In a more diffuse culture, the whole person is involved in a business relationship, and there is a real and personal contact. Diffuse-culture people tend to see their lives more as an interwoven, diffuse whole. The whole is more important than the parts. Roles and relationships ow through the different areas of this holistic life, and there are not segmented boxes. Clients can come to family occasions. Colleagues could know neighbors, etc.

Vertical Gardens in Philippines

In a diffuse culture, the relationship is not dened, so you circle around issues and relationships, getting to know the other person, building trust and connection. This takes time, but is also efficient in business, because people do business with those they trust, and with those with whom they have solid relationships. Diffuse cultures take time to assess whether the other person fits, and to invest for the long term. If you build an understanding of each others worldviews, this will prevent incorrect assumptions later on. If you build strong communication channels, this will avoid misunderstandings at a later stage. Monochromic versus Polychromic Time Philippines have a very relaxed attitude to time. The focus on building relationships is highly valued and much time can be spent on this before getting into the business task at hand. For people that come from monochromic cultures this way of doing business can be very frustrating and could cause misunderstandings when doing business in Philippines. Entry Mode for Jardin After analyzing the countrys economical and political scenario, we can analyze that it would be a great opportunity for the company to enter Philippines. However, the company has small amount of capital available for its internationalization to the Philippines, based on its previous success to the value of $750, 000 AUD. Therefore joint venture could be the best mode to enter as making a direct investment by entering a market, or acquiring a market player, need a plenty of investment as well as its the riskiest option. The risk lies in direct investment is that the company might fail to understand the market and could not be proved well because of market pressure. Here joint venture seems a best approach as the company has financial constraints, but moreover, because of joint venture the company would be able to take benefits because of partners knowledge of the Philippines market which will ultimately help the company to grow well. Conclusion After considering all the factors mentioned earlier in the report, such as Philippines economy, taste preferences, consumption patterns, trade ties, etc, going International seems to be a lucrative investment. The cultural dimensions and business etiquettes have made us aware on how to deal with the individuals in Philippines and what sort of reactions and behavior should we expect from them and they expect from us. The best way for Jardin is to enter as a Joint venture, it would be easier for the company to tab the market and gain the profits.

Vertical Gardens in Philippines References Welsh (2009), An analysis of National Culture and Leadership Practices in Philippines Brawijaya University, Journal of Diversity Management Second Quarter 2009, Volume 4, Number 2 Appleyard (2006), Philippines Cultural Dimesions, Lubis (2007) Investment Climate Statement of Philippines, Jonas (2008) The Global Competitiveness of Philippines, Report 2010-2011