The Board of Directors of an English company which embarks on direct Essay

The Board of Directors of an English company which embarks on direct investment in a foreign country must contend with the problems of introducing property and - Essay Example Therefore, the liquid soap market seems to have a good fortune in Thailand due to the good number of Thai population, GDP growth, inflation rate and growth rate of soap in Thai market. Accantia Health and Beauty Ltd. is a dynamic, "can do" company, which produces skincare and healthcare products. All head offices functions are based at Alum Rock, Birmingham. Accantia has subsidiaries in South Africa, Australia and New Zealand. The company formed as a result of a leveraged buys out of the consumer business from Smith and Nephew Plc. There are many skin care and skin care product under the Accantia Company, which is Lil-lets, Simple, Simple Skin Define, Cidal, Wrights and retail brands. The highly successful brand of the Accantia Company is Simple, Cidal and Wrights. Our report will emphasize on Simple liquid soap, which is a good quality product at a reasonable price. There are many product lines under Simple brand, which are skin care, oil control, sun care, toiletries, and soap skin defense. As the diagram illustrate above, Thailand GDP continued to increase in 2001-2003 from around $115 to $135, which demonstrates economic recovery in Thailand. Moreover, the goal of Prime Minister Taksin is developing the consumer finance to stimulate spending of the citizens by easy access to cheap credit and mortgage. Private consumption expanded 5.0 percent each year in the third quarter of 2002. In 2002, Thailand is one of the fastest growing economies in Asia, apart from Vietnam and China. The household debt stands at only 17 percent of GDP and 27 percent of disposal income, compare to household debt in South Korea of 69 percent of GDP and 105 percent of disposal income. Having a growing economy would be important for new products to be successful in Thailand. It means there will be a higher flow of money in the economy. 1.2 Inflation Rate Source: http://www.nso.go.th/eng/indicators/core_e.htm Inflation rate in Thailand was decreased between 1997 and 2001 from the highest 8.1% to 1.6%. However, it was estimated that the inflation rate would continue to decrease in year 2003, because it was decreased over 4 years. Furthermore, the forecast indicate that it would remain decreasing for a few years except Thailand is challenged with another economic crisis. Presently, the economy is recovering because of the government policy of keeping the inflation rate low to stimulate the customers' spending. 1.3 Growth in liquid soap market Procter & Gamble (Thailand) Ltd, the local unit of the US-based consumer-product maker, said yesterday that it plans to invest a further Bt5.9 billion to make Thailand its largest production centre in Asia. This company has seen