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Country Risk Analysis for a Chick-fil-A in Russia

I need 500-800 words on the following: Conduct a country risk analysis for opening a Chick-fil-A restaurant in Russia. I have attached a copy of a previous background paper for this effort. Analyze the following risks in your paper:

a. Analyze the following risks in your paper:

1) Political, legal, and regulatory risks
2) Exchange and repatriation of funds risks
3) Competitive risk assessment
4) Taxation and double taxation risks
5) Market risks (4 Ps)
6) Distribution and supply chain risks
7) Physical and environmental challenges to entering and operating in a target market
8) Social and cultural risks
9) Cyber/technology

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a. Analyze the following risks in your paper:

1) Political, legal, and regulatory risks
With Putin as president, the plan for a growing Russia is based on the principles of stable economic growth and a stable legal environment. However, current corrupt government practices often lead to unexpected changes in the rules (i.e. business registration procedure changes, etc...). This presents a hazard for businesses operating there without a government connection, as most rules are usually aimed at robbing the country and the citizens.

2) Exchange and repatriation of funds risks
Although the Russian government prohibited the use of foreign currencies for cash transactions in 1994, the currency exchange process for Chick-fil-A will be favorable, as the rouble has now been made fully convertible for current account transactions, making trading easier there. Moreover, trade on the foreign exchange market can amount to US$ 500 million a day.

3) Competitive risk assessment
The advent of Putin's election has opened the door for different markets that the Russian people value. Also, with restrictions loosening on private sectors, a business like Chick-fil-A is not likely to encounter much competition from that sector. For example, new facilities, such as malls, being built are creating the need for restaurants like Chick-fil-A that offer the non-traditional "on the go" type of convenience.

4) Taxation and double taxation risks
Currently, there are many options available for new businesses planning to venture into the Russian market which include certain tax breaks, tax incentives and bonds. Several financial options are also available to encourage business growth of products and services. They ...

Solution Summary

An in-depth analysis of outsourcing a Chick-fil-A in Russia.

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