Business Proposal in Ghana
Giam’s Clothing:
Business Proposal in Ghana
Company Description
Giam’s Clothing is an apparel manufacturer which produces clothing articles for the American middle class. The company was founded in 1990 by current chief executive officer John Whitehouse. The middle size company has little over one hundred employees and an annual turnover of 1.5 billion dollars. The firm operates through a single location within the United States. This location is composed of two facilities: one for production purposes and one for administrative purposes, containing the offices of the CEO, the CFO and other business departments, including the Finance and Accounting or the Human Resource Department. Twenty people work in the administrative facility and one hundred in the production facility.
The product line includes basically all articles from underwear to winter jackets, sold through company partners and numerous intermediaries. The company has given intense consideration to opening their own stores through which to sell their products. However, this would generate additional costs. Due to the company’s main focus on reducing costs as much as possible, they continue to reach the final customer through intermediaries.
The primary goal to reduce costs is given by the company’s intense desire to offer their customers high quality products at modest prices. All actions commenced by Giam’s Clothing are focused on their primary target market: the American middle class population.
Another major area of interest for the manufacturer is represented by their personnel. The company values their employees and sees them as the means of reaching the overall corporate goals. Company officials see the human resource as Giam’s most valuable asset and constantly invest in developing their skills, motivating them to increase their performances and fairly remunerating them.
The company’s mission statement stands as proof for the attention paid to both customers and employees.
Giam’s Clothing is committed to offering their customers modernly designed apparel which allows them to save money. Company employees play a vital role in achieving this desiderate and are all treated fairly and integrated into the Giam family.
Aside from the customer and employee oriented policies, the company is also focused on finding new ways to reduce costs and finding new financial resources.
Giam’s customers are highly satisfied by the quality of the products and their reduced price. Giam’s Clothing offers them the possibility to stay modern and trendy while not costing them important sums of money. Over the past years, this has generated an increased demand for Giam’s clothing products; but the company has encountered numerous difficulties in satisfying this increased demand. The major impediment is that the current structure of the company is unable to support an increased production, requiring as such an expansion of the company. But an expansion would generate additional costs, namely with finding a new location, hiring more personnel and paying larger taxes to the state budget. All these would be reflected in the final retail price by increasing it.
In order to efficiently resolve this matter, Giam’s Clothing is currently analyzing numerous international destinations which could support the opening of a new facility and would require minimal additional costs. Ghana, an African country, was chosen as a main destination.
3. Country Variables
Giam’s Clothing has decided to open up a new subsidy in Ghana, where they would outsource part of their orders. The new company facility in the African country would be similar in size with the American facility and would be primarily focused on manufacturing apparel products. All investment costs would be paid by the American company, which would either purchase, rent or built a facility.
The new Ghana subsidy would be run by American employees and would hire locals for the manufacturing process. This business strategy would generate benefits for both parties. As such, Giam’s would benefit of cheaper workforce than in the United States and Ghana would receive an international investor that could support the community development and lead to an increased interest from other foreign investors.
3.1 Physical and demographic profile
The physical and demographic variables of Ghana incorporate information about the country’s geographical positioning, its demographics and other information about Ghana’s population, such as workforce characteristics.
Geographical variables
Ghana is an African country located in the western region of the continent, bordering the Gulf of Guinea. In the vicinity of the equator, the country is located on the Greenwich meridian. Ghana is surrounded by Burkina Faso to the north, also known as Upper Volta, by Togo to the east, the Atlantic Ocean to the south and Cote d’Ivoire to the west, best known as the Ivory Coast.
Source: Virtual Explorers, Map of Ghana
The West African location influenced the company’s decision and will continue to influence their actions. As such, compared to other international destinations, initially considered in Asia, the African country poses the advantage of shorter distance to travel, and as such reduced logistics expenditures. Also, when compared to the Asian destinations, Ghana benefits Giam’s Clothing as the population requires lower wages, reducing as such the personnel expenditures. However the Asian population is better skilled and qualified, the cost savings with logistics and lower wages represent a net advantage.
The African country is spread on a total area of 239,460 square kilometers, out of which 230,940 square kilometers are land and the remaining 8,520 square kilometers are represented by water. In a comparative presentation, Ghana is only a bit smaller than Oregon. (CIA, 2007)
Ghana possesses 539 kilometers of coastline at the Atlantic Ocean. For the American manufacturer, this means that they will have easy access to the country and will be able to transport all commodities to the country and final products out of the country by sea. Furthermore, the airports in Accra, Ghana’s capital, will also ensure easy access to the country by providing air travel possibilities.
Another geographical variable with influence when analyzing a business opportunity is the country’s climate. Ghana has a tropical climate, “warm and comparatively dry along southeast coast; hot and humid in southwest; hot and dry in north” (CIA, 2006). Therefore, the whether is proper for conducting business and does not pose major threats. However, the hot climate and high temperatures will force Giam’s Clothing to equip the facility with air conditioning and significant water supplies.
Directly deriving from the country’s climate are the natural hazards prone to occur and influence the manufacturing activity. As such, the basic threat generated by the geographical positioning of the country near to the Ecuador is drought. However, this has a positive effect upon the American company. To better explain, a significant proportion of Ghana’s population works in the agricultural sector. But the massive droughts generate losses and force workers to turn to other means of earning an existence. The new American company opened in the region would therefore benefit of numerous individuals who desire to get a job in a sector different from agriculture. In all, this would ensure that Giam’s subsidy is well received by the community and benefits from a wide array of candidates.
However these do not directly influence the activity of Giam’s Clothing in Ghana, the natural resources of the country should be mentioned as they could generate secondary effects. As such, Ghana is most rich in “gold, timber, industrial diamonds, bauxite, manganese, fish, rubber, hydropower, petroleum, silver, salt and limestone” (CIA, 2007).
A final matter of geographical nature that could influence Giam’s activity in Africa refers to environmental issues. Aside from the previous matters which generally offered benefits for Giam’s, environmental concerns could harden the access to the African country. To better explain, during the recent years, Ghana has been subjected to the negative effects of industrialization, including massive deforestations, soil erosion, threats of the natural wildlife, the dumping of waste in the country’s waters and other procedures which basically increase the levels of pollution in the area. From this perspective, Giam’s Clothing could encounter difficulties if they do not respect the environment regulations imposed by the country. To establish these regulations that protect the environment and reduce pollution, Ghana has become an active party on numerous environment international agreements, including the “Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94 and Wetlands” (CIA, 2006).
Demographical characteristics
In 1990, Ghana’s population amounted to a total of 15,000,000 individuals (eBizguides, 2004). By 2006, the country’s population had risen to more than 22 million. The Central Intelligence Agency estimated the total population around 22,931,299 inhabitants and a growth rate of 1.972% for 2007. This represents an opposite tendency within the international community, where the trend is a descendant one. The positive growth rate of the population impacts Giam’s Clothing subsidy in Ghana in the meaning that it creates more workforce in the long run. As such, the American company will have an extended palette of candidates, from which they will be able to choose the most suitable workers.
Other demographical highlights, as revealed by the Central Intelligence Agency, refer to:
Age structure: 38.2% of the population is younger than 14; 58.2% is aged between 15 and 64 and 3.6% is over the age of 65. This affect Giam’s in a positive way as most of the population is properly aged to work
The median age of the population is 20.2 years, with 19.9 years for men and 20.4 years for women
The birth rate is of 29.85 births per 1000 individuals
The death rate is of 9.55 deaths in 1000 individuals
The infant mortality rate is of 53.56 deaths in 1000 live births
The life expectancy at birth is of 59.12 years, with 58.31 in men and 59.95 in women. This affects Giam’s in the meaning that they will have to hire young workers. Furthermore, several personnel features might change simply due to the fact that the life expectancy in Ghana is more than five years shorter than the retirement age in the United States.
The high mortalities among both adults and infants, as well as the short life expectancy at birth are generally due to numerous infectious diseases, improperly treated. Among these, the most relevant one is HIV, or the virus responsible for AIDS. In 2003, 350,000 people in Ghana tested positive for HIV and 30,000 died during that year. Other infectious diseases common in Ghana include bacterial or protozoal diarrhea, hepatitis a, typhoid fever, malaria, yellow fever, schistosomiasis and meningococcal meningitis. The risk of contracting an infection while in Ghana is highly increased. (CIA, 2007)
The numerous diseases in Ghana, combined with the high levels of contagion pose major threats upon the proper conducting of business by Giam’s Clothing. Company officials that must move to Ghana in order to coordinate the activities within the new subsidy must be well tested and treated before entering the country. They must be given numerous vaccines, but even these vaccines do not protect them entirely from the risks of contracting a disease.
Furthermore, aside the risks posed on the company members, a more sever question arises. Given the fact that the manufactured products are designed to be sold onto the United States market, is it possible that the cloths carry diseases with them? The company must clearly answer this question, based on informed opinions from specialists. But even if the answer is a definite no, the American population might still feel reticent to purchasing clothing made in a country with such high risks of infections. The American customers could be convinced by the 18 years of experience in the area of clothing and could consider Giam’s reputation as a promise of safety and protection of health.
3.2 Socio-cultural background
Ghana has an impressive history and the contemporaneous features represent a mixture of all significant times in the development of the region. Ghana was the first African country to become independent. “Ghanaians are comprised of different ethnic elements, diverse in their personality, cultural and historic backgrounds, welded effectively into a unitary state. The reason for this diversity is most likely due to the migration of ethic groups from other places to settle on the land.” (eBizguides, 2004) This has limited effects upon the American company and it basically points out that the company officials in charge with the hiring process will have to choose from a wide variety of individuals. However, the hiring process must be fair and unbiased by any cultural preference; no sign of discrimination must be allowed.
In addition, once Giam’s Clothing commences their activity in the African country, they must promote fair treatment of all employees and must embrace and value their diversity. This should not be a problem for Giam’s, moreover when they are committed to satisfying the needs of their employees and have proven this along their 18 years of existence in the United States.
Another social aspect of Ghana’s population with effects upon Giam’s Clothing is represented by the social structures. In this order of ideas, until recently, most of Ghana inhabitants were living in rural areas. However today, with the industrial advancements in the country, the urban communities are beginning to develop. “The essential characteristic of the Ghanaian social system is its dual but interrelated nature. Even though the majority of the population still lives almost entirely in rural areas and observes ancestral customs and practices, the process of modernization associated with urban life has, nonetheless, affected all Ghanaians’ social behaviour and values.” (Country Data) This social feature will affect the American company in the meaning that it will create a more open-minded labor force; it will make it more eager to work within industrialized companies and it will aid it increase its adaptability to change. On the other hand however, it will professionally educate employees and stimulate them towards increasing their demands. This is however a situation prone to occur only on the long-term.
The official language in Ghana is English and the major languages spoken are Twi, Fante, Ga, Hausa, Dagbani, Ewe and Nzema (African Guide, 1996). The fact that the official language is English eases Giam’s Clothing’s communication with the community. In this sense, by speaking the same language, the representatives of the American company will be best able to communicate with the country’s authorities, the candidates and the employees. The official English language breaks any language barriers which might have been encountered in other international locations, particularly in the Asian countries.
Also common with the United States is the country’s religion. As such, 60% of the entire population belongs to Christianity, 15% are Muslims and the remaining 25% belong to traditional African religions (Africa Guide, 1996). The Christian majority is an advantage to the American company as it breaks down and cultural barriers doe to appurtenance to different religions.
Finally, another socio-cultural variable with effect upon Giam’s Clothing is the actual culture of the country. Rich in traditions, customs and festivals, Ghana attracts numerous tourists each year. These tourists sustain the development of national communities and could generate an improvement in the living standards, increase investors’ interest in the region and finally lead to increased demands from the Ghanaian workers.
3.3 Legal and political affairs
The Republic of Ghana is ruled as a constitutional democracy and implements numerous laws and regulations for both national and international parties. The country is divided into ten administrative regions as follows: Ashanti, Brong-Ahafo, Central, Eastern, Greater Accra, Northern, Upper East, Upper West, Volta and Western. Ghana’s current constitution is based on the English common law and customary law model and it was adopted on April 1992 (CIA, 2007).
All laws and regulations are developed to protect the people of Ghana but also to encourage international investors to take interest in the region. Increased attention is now given to maintaining stability and implementing regulations that support the development of the country. The judiciary power within the country is represented by the Supreme Court.
In the international context, Ghana implements the same regulations established by the international organizations to which it belongs to. These organizations are: ACP, AfDB, AU, C, ECOWAS, FAO, G-24, G-77, IAEA, IBRD, ICAO, ICC, ICCt, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, MIGA, MINURSO, MONUC, NAM, OAS (observer), OIF, ONUB, OPCW, UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNIFIL, UNITAR, UNMEE, UNMIL, UNOCI, UNWTO, UPU, WCL, WCO, WFTU, WHO, WIPO, WMO, WTO (CIA, 2007). The adherence or simple participation is some cases, to the international organizations ensures Giam’s Clothing that while on the territory of Ghana, they will be subjected to fair regulations, established by international organizations.
The recent tendency towards increasing the levels of education of the population and improving the educational systems has also been reflected in the legal compartment of Ghana. As such, numerous students are being sent abroad to study on national scholarships and return to the country as specialists. These specialists then offer consultancy to international investors and introduce them to the regulations imposed by the country’s officials. Among the institutions that offer legal consultancy, one could point out Acquah Samson and Associates, Awodnow Law Consult, Global Legal Consultancy, Council for law report or Law Reform Commission (eBizguides, 2004). The existence of these institutions supports the activity of Giam’s Clothing in Ghana as it offers them the chance to constantly benefit from specialized assistance. This will aid them better understand the policies and regulations they must obey and also assess any situation in which they feel their rights might have been broken.
3.4 Economic variables
Being that it was the first African country to become independent in 1957, Ghana has managed to come before other neighbors in numerous ways. “Well endowed with natural resources, Ghana has roughly twice the per capita output of the poorest countries in West Africa. Even so, Ghana remains heavily dependent on international financial and technical assistance. Gold, timber, and cocoa production are major sources of foreign exchange. The domestic economy continues to revolve around subsistence agriculture, which accounts for 37% of GDP and employs 60% of the workforce, mainly small landholders. Ghana opted for debt relief under the Heavily Indebted Poor Country (HIPC) program in 2002, but was included in a G-8 debt relief program decided upon at the Gleneagles Summit in July 2005. Priorities under its current $38 million Poverty Reduction and Growth Facility (PRGF) include tighter monetary and fiscal policies, accelerated privatization, and improvement of social services. Receipts from the gold sector helped sustain GDP growth in 2006 along with record high prices for Ghana’s largest cocoa crop to date. Ghana received a Millennium Challenge Corporation (MCC) grant in 2006, which aims to assist in transforming Ghana’s agricultural export sector” (CIA, 2007).
These particular features of the Ghanaian economy must be taken into consideration by the American company moreover when they could influence the activity conducted by Giam’s Clothing in Ghana. In this order of ideas, the increased focus on the commercialization of the products deriving from the country’s natural resources implies that the population is specialized on working the land. This will pose the difficulty of unskilled and untrained personnel, unable to properly function within an American corporation. However, this problem could easily be solved through preparation courses which teach employees how to work with the given materials and how to make the clothes. These courses, or training programs, would imply additional costs for the American company. However, the costs could be limited if the courses were thought by a Giam’s employee.
The economic highlights of Ghana are presented next, as they derive from the studies conducted by the Central Intelligence Agency:
The gross domestic product (purchasing power parity) was of $60 billion in 2006, registering a 6% increase as compared to the previous year
The gross domestic product per capita was of $2,700
Investments accounted for 30.9% of the country’s gross domestic product
The country’s budget is divided into $3.457 billion of revenues and $4.323 billion costs
The public debt represents 48% of the country’s gross domestic product
The main industries are “mining, lumbering, light manufacturing, aluminium smelting, food processing, cement and small commercial ship building” (CIA, 2007)
Ghana mainly exports gold, cocoa, timber, tuna, bauxite, aluminum and diamonds to Netherlands, England, United States, Spain and Belgium
The main imports are accounted by capital equipment, petroleum and food products brought from Nigeria, China, England, Belgium, United States, South Africa and France
There are 11,07 million people in the labor force, representing half of the entire Ghanaian population
The structure of the labor force by occupation: 60% in agriculture, 15% in industry and 25% in services
The unemployment rate is of 20% and 31.4% of the population is living below the poverty line
The inflation rate was measured at 10.9% in 2006 (CIA, 2007).
Labor force
In 2007, the total labor force of Ghana was composed of 11.07 million individuals, accounting for about half of the entire population. The unemployment rate was estimated at 20% in 1997 and in 1992, more than one third of the population was living below the poverty line (CIA, 2007).
The largest majority of the labor force is concentrated in the agricultural sector. The estimates of 1999 show that 60% of the entire labor force was conducting agricultural activities, 15% was centered around industrial activities and 25% was working in the service sector (CIA, 2007).
This distribution of the workforce influences Giam’s Clothing from two different perspectives. First of all, and the most important influence, is given by the intense concentration around agricultural activities. The combination of the high risks of drought and the fact that agricultural products only offer the basic subsidies would stimulate numerous Ghanaians to seek other jobs, embracing as such the activities conducted by the new American investor. Secondly, the existence of the service and industrial sectors points out increased interest towards the development of the community and an increase in exports, which could in the future lead to increased living standards and prices, therefore increasing the manufacturer’s expenditures. However, this situation is only a future concept with simple theoretical statements and reduced practical applicability. For now at least.
Despite the revival of the export sector, most Ghanaians continued to find employment with the government or to rely on informal employment for their livelihood. An increasing number of Ghanaians also turned to smuggling or to crime to earn a living. Reductions in the number of government workers had not been absorbed in the export sector by the early 1990s. At the same time, wages had not kept up with the cost of living. The government also sought to reform the education system, because increased education often led to better jobs and higher wages. However, because students were expected to bear an increasing portion of the cost of their education, it was unlikely that the poorest Ghanaians would be able to take full advantage of the school system.” (Country Data, 1994)
3.5 Communications
Despite the general belief that the communication system is poor in Ghana, it has been met with significant improvements during the past years. However, compared to other civilized countries, it remains outdated. The Central Intelligence Agency highlights the following in regard to the communication methods available in Ghana:
In 2006, there were 356,400 main lines of telephone
In 2006, the total number of mobile phones reached 5.207 million
In 2001, radio signals were available through three broadcasts: AM, FM and shortwave
In 2001, 10 television stations were airing
In 2007, the number of internet hosts had reached a total of 2,899
In 2006, the total number of internet users has risen to 609,800 (CIA, 2007).
The most frequent means of telecommunication used in Ghana is the telephone, both fixed and mobile. The market of fixed telephones is basically run by Ghana Telecom, which offers their users rather stable and reliable services. The first mobile phone operator to launch its services onto the Ghanaian market was Mobitel Ghana, which sold during the first year alone 19,000 devices (Ghana Web, 2008).
The outdated system of communications might harden the activity of Giam’s Clothing in the meaning that it could raise difficulties in supporting proper communication between the Ghanaian subsidy and the American headquarters. Take for instance the situation of a misunderstanding leading to errors of production. The Ghanaian subsidy must at once cease their activity and request further information from the American company, which could be delayed due to the poor communication network.
However modern telecommunication methods, such as teleconferences or video telephones, are quite limited in Ghana, the American managers are able to use fixed and mobile telephones to communicate with their supervisors in the United States.
3.6 Transportations
Similar to the communication systems, the transportation network is rather outdated and inadequate to support intense traffic. Among the most relevant transportation features which must be highlighted, one could point out the following:
Ghana owns 12 airports, out of which 7 airports contain paved runways and five do not. The most important airports in Ghana are Kumasi Airport, Tamale Airport, Alitalia, American Airlines and British Airways (eBizguides, 2004).
Two major ports and harbors – Takoradi and Tema ships of 1,000 or more, totaling up to a cargo capacity of 13,484 GRT (18,583 DWT), out of which two are petroleum tankers and four are for refrigerated cargo
The 953 kilometers of railway are in poor condition and constantly under major rehabilitation
Ghana has a total of 39,409 kilometers of highway, out of which 11,653 kilometers are paved and the remaining 27,756 kilometers are unpaved (University Scholars Programme, 2000).
Transportation within the country is ensured by cars generally, in all their forms, including personal cars, rented cars, taxis and even buses. Ghana offers tourists the possibility to rent a car. However, when driving on the Ghanaian territory, drivers must possess a valid drivers’ license, approved by the state. “A foreign license may be used for a period of three months, after this period a Ghanaian license must be obtained which has to be renewed every two years. On request, an international driving license can be obtained which is valid for one year only.” (eBizguides, 2004)
The main roads are in rather poor condition and the industrial activities are being blamed for this situation as they used them excessively. In addition, even these poor roads are only present in the most populated regions of the country, leaving other parts completely isolated. “The deterioration of the country’s transportation and communications networks has been blamed for impeding the distribution of economic inputs and food as well as the transport of crucial exports. Consequently, the first priority of the ERP was to repair physical infrastructure. Under the program’s first phase (1983-86), the government allocated U.S.$1.5 billion, or 36% of total investment, for that purpose and an additional U.S.$222 million in 1987 for road and rail rehabilitation. In 1991 the Ghanaian government allocated 27% of its budget for various road schemes.” (Coutsoukis, 2004)
The transportation network in Ghana might influence the activities conducted by Giam’s Clothing subsidy in the primary meaning that the American executives delegated in the country will have to get new driving licenses. Also, the rather poor quality of the railroads might harden the transportation of commodities in the country and the transportation of the final product outside the country. Given that most railroads are centered on highly populated areas, it would make better sense for Giam’s to open up their subsidy is such an area. In addition, the existence of ports and airports should ease the logistics process and pose no major difficulties upon the American manufacturer.
4. Strategic Recommendation and Implementation
In order to develop and implement the most suitable strategy, Giam’s Clothing must first analyze the advantages and disadvantages of opening a subsidy in Ghana, as they result from the presentation of the Ghanaian environment. These ups and downs can be summarized as follows:
Advantages:
Suitable location which can be easily accessed by air or sea
Cheap and plenty labor force from which the company can choose the best candidates
Lack of major cultural barriers as most of the population speaks English and is Christian
Warm and favorable climate
Industrialization of the region and the population’s shifting interest from agriculture to other sectors, due also the drought
Ghana is a constitutional democracy
Subscription to international organizations which protect the rights of international investors
Legal and political consultancy from Ghanaian specialists
Disadvantages:
Warm and sometimes hot climate which requires air conditioning and significant water supplies, generating increased costs
Increased attention on environmental issues which also generates additional costs
High risk of contracting diseases, high mortality rate and low life expectancy
Rich culture which attracts numerous tourists and could lead to community development and increase of prices, including the labor force costs
Unskilled labor force, accustomed to working in agriculture, which would require training and therefore additional expenditures
Outdated communication system and transportations network, but, as established before, the American delegates will be able to communicate through telephones and the internet.
The disadvantages presented are not meant to stop Giam’s Clothing from opening a subsidy in Ghana, but are merely reminders of several matters which must be taken into consideration, such as the administration of vaccines prior to visiting Ghana. And compared with the advantages offered by the Ghanaian environment, the American producer should without a doubt open their new production facility in Ghana.
Several steps must be taken in implementing this strategy for international expansion. These steps include:
Compare the supply and demand for Giam’s apparel and establish with certainty the need for a new manufacturing facility
Select the American representatives in charge of the new project; test their health and vaccinate them before sending them to Ghana
Discuss the business proposition with the Ghanaian authorities in order to get their opinion and approval
Identify and allocate sufficient financial resources for the new business venture
Identify a suitable location in Ghana. As a recommendation, the location should be chosen in a rural and highly populated area, as these regions possess better communication and transportation networks
Rent, buy or built the new manufacturing facility
Equip the facility with proper machines and other necessary equipments, such as air conditioning devices and refrigerators where to keep the water supplies
Clearly establish the logistics system; identify tertiary parties to handle the safe transport of the commodities to Ghana and the final products to the United States
Advertise the opening of the facility in Ghana and present it as an opportunity to work for an American company and earn better money than in agriculture
Select and recruit the candidates based on their skills, capabilities and desires to work. Due to the short life expectancy, Giam’s should prefer younger candidates; however, they must not discriminate based on age characteristics
Hire the most suitable candidates
Train the employees and integrate within the company’s values of high quality, respect towards customers, the community, the colleagues and the company
Commence the manufacturing activities of Giam’s clothing pieces. These products must meet the same quality requirements as the products manufactured in the American facility
The American representatives in Ghana must maintain continuous communication with Giam’s headquarters.
All these actions must be implemented while keeping in mind at all times that the company is activating in a new market, in a foreign country with specific regulations. Therefore, Giam’s representatives must constantly align the corporate actions with the Ghanaian laws and regulations.
Another important recommendation derives from the specific characteristics of the Ghanaian environment. However the African country is far from reaching a development level similar to the civilized states, they are increasing their efforts in this direction. Today, the labor force is still cheap and unskilled and the communication and transport networks are still outdated, but the situation might easily change in the future. The numerous political and economic policies are aimed to generate a sustainable growth, in a stable economy. This will in the end increase investors’ interest in the region, the living standards of the population and the demands of the workforce. Not to let this future trend become an impediment, Giam’s Clothing must constantly reevaluate their position in Ghana and offer more advantages to their employees and the Ghanaian community.
References
Coutsoukis, Photius, 2004, Ghana – Economy Index, http://www.photius.com/countries/ghana/economy/index.html, last accessed on January 15, 2008
Pellechio, Anthony; Zanforlin, Luisa; Begashaw, Girma and Fabrizio, Stefania, 2000, Ghana: Economic Development in a Democratic Environment, 2007, Ghana, Central Intelligence Agency, the World Factbook, https://www.cia.gov/library/publications/the-world-factbook/geos/gh.html, last accessed on January 14, 2008
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2004, Ghana, the Premier Guidebook for Business Globe Trotters, eBizguides
2000, Transportation in Ghana, University Scholars Programme, http://www.usp.nus.edu.sg/post/africa/ghana/economics/trans.html#top, last accessed on January 15, 2008
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http://www.virtualexplorers.org/ghana/map.htm, last accessed on January 14, 2008
