The Raque Food Systems is clearly a fast growing business which wants to grow even bigger. Its aim is to expand its business operations to the many parts of the world but specifically where their operational costs will be lower than its current costs in U.S and U.K. When a business is successful and highly productive but its production costs are very high, then there is always a probability that it will not survive for a long time. Therefore, it is important for every business to ensure that its chances of survival in its current markets are undoubtedly high by finding solutions to their current problems as well as the anticipated challenges (Bryant, 2013). For instance when Raque Food Systems does a research on production costs in different countries, the results showed that Thailand costs were the least compared to others including the U.S and U.K themselves.
The rate of growth of Thailand economy is pretty high which accelerates the growth, development and industrialization of the whole country in general (Bryant, 2013). However, for its economic balance, the exports have always been higher than the imports which means that the national consumption levels are slightly low while the production is high. The World Bank has established the research on Thailand economic growth and found out that it is expected to grow at a rate of 3.2% in 2017 compared to the previous years’ growth rates which were 3.1% and 2.8% for the years 2016 and 2015 respectively. It is evident that the industries that cause more growth and development in the country are the private household consumption, tourism, agriculture, public investments like infrastructure, construction and mining, trade and communications to name just but a few of the sector (Pholphirul, 2012).
Nevertheless, even as the economy grows it faces some challenges every now and then. Some of the challenges include:
Rapid aging rate. This aspect has a lot effect on the economy because it lowers the amount of labor service available for use in the industries. When the labor levels are reduced for a business, then the cost of labor will certainly increase which means increased cost of production in overall, i.e. when labor is scarce, the available employees want more payments for their services which affects the cost of production (Pholphirul, 2010). Also there is more pensions and health care programs for the aging people which costs the country a lot of money.
Factory productivity is decreasing with time. This means that the industries produce less than their normal volumes and qualities. This affects the volumes of products being available to the public for consumption and also the amounts of products to be exported by business men.
Political instability. This relates to the fact that the government has the authority to come up with policies, rules and regulations that can govern a certain country in all fields especially the economic changes. Therefore, when the government becomes unstable or unreliable in making the right decision for the economy, then it will definitely decrease hence no growth and development for the country.
However, the government and the people themselves always look for ways to solve those challenges in every way possible. Considering the fact that the service industry has always been very strong in Thailand, but facing serious challenges (Pholphirul, 2013). The best solution that they have come up with is that the people should be encouraged to open up private professional centers where people can get training and experience on their desired profession. This will certainly increase the productivity level as well as the quality of the services. The economy of Thailand is clearly a growing one despite the challenges.
The graph shows how the economy’s Gross Domestic Product growth rate of Thailand has been growing from the year 2014 to 2017. In January 2014, the growth rate was negative which meant that it had declined very drastically and with a big margin. However, in July the same year, it drastically increased it growth rate to a positive of 0.8 percent which continued to increase until 2015. From 2015, the growth rate has been inflating from year to year but never reaching the negative anymore. This shows that the economy of Thailand is actually a fast growing economy with time and is expected to grow even more as years go by. This graph is certainly a clear confirmation of the information discussed earlier in this essay.
The economy of Thailand is currently one of the top fast growing economies in South-East, Asia which also makes it the largest economy. This makes it a great place for businesses to establish themselves and grow (Thassanabanjong & Miller, 2009). The government of Thailand has contributed to improving the business sector in the country to be able to keep it growing. However, just like any other economy with advantages, the country faces some challenges as well. The following are some of the aspects that will help a business decide whether to establish its business in Thailand or not:
As mentioned earlier, Thailand’s economy is a fast growing economy. Therefore, this gives a pass to the communication, technological and infrastructure development in the country. To be precise, the infrastructure of the country is developed in almost all part of the country which means that public transport is possible all over. Since Raque-Food System is currently having a challenge with product transportation, it means that they will solve that kind of a problem if they establish their business in Thailand.
Thailand government needs to keep the economic status of the country rising as time goes. Therefore, it opts to support the economy by supporting the business establishments, regulating business rules for the better, encouraging both export and import trade among other things. This gives Raque-Food System a go ahead with business establishment because there are higher chances of success than failure.
Thailand government and other authorities have currently reduced the government rules and regulations that governs small business and upcoming companies. The military government have no desire to impose rigid rules like price controls especially on foods, cooking oils and fertilizers. The government has conducted new reforms that encourage and improve regulatory efficiency and labor flexibility. When Raque-Food Systems decides to expand its business in Thailand, its rates are very high and therefore it should.
The government of Thailand has done a lot to improve the market systems in the country. This is simply because it considers trade to one of the most economy aspects that bring more revenue to the country. Therefore, it offers to support the export and import markets and encourage the traders in different ways (Preda, 2013). In that case, it will be reasonable for Raque-Food systems to establish its business in Thailand because it mostly deals with external trade, i.e. exports.
Most the laborers in Thailand are experienced, skilled and specialists in certain fields. There is a lot of expertise involvement in most of the business especially for managers, directors and other high level people in businesses. This is a way of enabling business success without involving the production process but rather using the resources available. Therefore, it will be realistic for Raque Food Systems to implement the idea of establishing a business in Thailand.
In most of the previous years, the political status of Thailand has been volatile. Government shutdowns and military coups have been frequent which causes a lot of disruptions when it comes to policy making. Additionally, the economic status of the country, private investments as well as the public investors are affected by the disruptions (Sriboonlue & Ussahawanitchakit, 2016). Therefore, this brings challenge to the idea of whether a business should establish itself in Thailand or not.
The Thailand and U.S cultures are completely different in a way that:
The US citizens seem always enjoy welcoming and adopting other different and new cultures into their lives. In us there are so many different cultures like the Chinese, Africans, whites, Indians among others. By welcoming these cultures, they get to learn new things like different cooking methods, different types of foods, different clothing lifestyles to name a few things (Knutson, et al., n.d.). However, as for Thailand, there are the Thais and some few Asians living there. They do not entertain so many other cultures into their world and therefore no much development for them.
It is Thais culture to not always visit doctors especially psychologists whenever a problem arises in someone’s life. They always opt to talk to their own family members, friends or just deal with the situation in their own way. However for the US citizens, they prefer seeking help from specialized or professionals like psychiatrics and psychologists.
As for Thais, their main food is usually the Thai traditional Cuisine which has always been the main dish in Thailand. However, for the US culture, there is no specific food type that is main because of the types of foods with different tastes. E.g. the Chinese cuisine, Indian, Italian, American dish among others. This certainly originates from the different cultures of people that live in the US.
Due to the cultural differences, the business faces the risks of not being able to cope with the US culture in case it is situated in US. Especially the business workers may find it difficult to get used to the new cultural change which will definitely affect the productivity of the business (Mujtaba, 2011).
Conclusion
It is realistic for the business to establish itself in Thailand considering Thais economic status. This will definitely help them grow and expand at a faster rate and develop themselves in many other ways.
References
Bryant, J. a. R. P., 2013. The laabour market impacts of immigration to developing Countries: Evidence from a registration campaign in Thailand.. The Journal of Development Studies, Volume 49(6), pp. 785-300.
Bryant, J. a. R. P., 2013. The labor market impacts of immigration to developing countries: Evidence from registration campaign in Thailand.. Journal of Development Studies., Volume 49(6), pp. 785-800.
Bryant, J. a. R. P., n.d. The labour market impacts of immigration to developing countries; Evidence from a registration campaghn in Thailand. The Journal of Development Studies, Volume 49(6), pp. 785-800.
Knutson, T., Komolsevin, R., Datthuyawat, P. & Smith, V. a. K. B., n.d. A Scale to measure Thai rhetorical sensitivity.. 6(1) ed. s.l.:BU Academic Review.
Mujtaba, B. G. a. A. C., 2011. Task and relationaship orientation of Americans: a study of gender, age and work experience.. Journal of Behavioral Studies in Business, Volume 3, p. 1.
Pholphirul, P., 2012. Labour migration and economic sustainability in Thailand: Evidence from Thai manufactures.. Journal of Asian Economics, Volume 24, pp. 1-16.
Pholphirul, P., 2013. Immigration, job vacancies and employment dynamics:evidence from Thai manufactures.. Journal of Asian Economics, Volume 24, pp. 1-16.
Pholphirul, P. a. R. P., 2010. Economic contribution of migration workers to Thailand.. s.l.:International Migration.
Preda, G., 2013. The influence of entrepreneur orientation and market-based organizational learning on the firm’s strategic innovation capability. In: Management &Marketing.. s.l.:s.n., p. 607.
Preda, G., 2013. the influence of intrepreneural Orientation and Market-based Organizational Learning on the Firm’s Strategic Innovation Capability. Management & Marketing;8(4). s.l.:s.n.
Sriboonlue, P. & Ussahawanitchakit, P. a. R. S., 2016. strategic innovation capability and firm sustainability: Evidence from auto parts business in Thailand. Journal of Business Retail Mnagement Research,, Volume 10(2).
Thassanabanjong, K. & Miller, P. a. M. T., 2009. Training in Thai SMEs.. Journal of Small Business and Enterprise Development., Volume 16(4), pp. 678-693.
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