The principle aim of this project is to investigate environmental conditions of a country and determine how they affect a new business in the market. The paper analyses various variables in Panama and how they affect the establishment of El Paraiso Resort and Spa Company. These variables include cultural environment, political and legal environment, economic environment, ethical environment, trade, investment and foreign policy profile.
El Paraiso Resort and Spa Company will be Located in Panama. The company will provide features, privilege and pleasure of sheer luxury of your dreams, where families, friends and couples will share the joys of unlimited lavishness. Such features and pleasures include places of historic value, a well-designed manicured setting at the finest beaches, an international hotel and annex serving gourmet fare and limitless premium variety of beverages, and a 24-hour room. There will be spacious rooms for non-smokers equipped with luxurious furniture. Customers will be always assured of enjoying a pristine beach facade site that includes sport and leisure facilities. Furthermore, customers will enjoy surprises, parties, and live evening comedies. On top of that, there is a professional staff that caters for customers’ needs and that makes customers feel like honored visitors.
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Strategy is a scope and direction of a company employed to achieve the company’s long-term goals. The EL Paraiso Resort and Spa Company will employ strategies that will assure the company achieves its main objectives. Additionally, the strategies employed will enable the company to emerge as one of the best companies in Panama. The company has to investigate the environment structure of Panama and suitability of the environment relating to starting a new business. Furthermore, the directors will investigate the other competitive companies in Panama and determine how the company will survive with the competition, and emerge to be the best one.
Organization structure refers to the way a business arranges jobs and people to achieve organizational goals. El Paraiso Resort and Spa organizational structure will include a Chief Executive Officer (CEO), whose main role comprises making vital corporate decisions and enforce high-level schemes. Additionally, he/she will be the chief point of communication amid the corporate procedures and the panel of directors. The next in the hierarchy are: a top manager, a middle manager, a junior manager and staffs. A top manager is responsible for making the long-term goals of the company and checking that principles and regulations are adhered to by the junior staff. A middle manager is accountable for checking the resources of achieving the goals of the company and control whether they are adequately available. Junior managers are given the role of supervising the company staffs, while the role of the staff is to ensure that the needs of the customers are met.
According to the history of America, Panama is a meeting place of the nations of Latin America. Panama is a nation well-known by various traditions and cultures that come together to form an exotic environment and a unique complexity. The country’s cultural diversity is mused by the conventional products, such as pottery and ceremonial mask, woodcarving festivals, and cuisine. Furthermore, its architecture is unique, which is a sign that many groups of people have made their home in Panama. Touring across Panama, where native and European culture is joined together to create attractive places of tourist destinations, amazes people’s senses. For example, such groups as Yugoslavians, Swedish, Kuna Indians, Americans and Germans have founded a unique home irrespective of their culture (La Verne M, 2008).
Panama has nine provinces each of which is enriched with varied cultural ethnicity and folklore that are reflected through its national garments, music, cuisine and dances. Furthermore, Panama has traditional crafts such as Tagua Nut carving, colorful Mola and Wounaan. Therefore, Panama is an attractive country for tourists. It is a place every person will enjoy visiting. Establishing El Paraiso Resort And Spa Company will be of an immense advantage. Customers will frequently visit the company. This is because the cultural environment and traditional ethnicity attract many tourists to the country. The cultural environment offers an opportunity for adventure, relaxation, enjoyment and enables one to access places of relaxation and health care servicesat a moderate cost. Therefore, the establishment of the El Paraiso Resort And Spa Company at Panama will ensure a high growth rate as a result of a suitable cultural background.
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Political and legal framework
Panama is a democratic country with a constitution that has three branches of government, legislative, executive, and judiciary. The country is headed by the president. Panama is characterized by the political stability. The government creates a suitable business environment by enacting laws that favor business. Furthermore, it is a central role of the government to protect the businessmen. The constitution sets rules that must be complied with for any investor who wants to start up a new business.
The government has established Ecological Battalions composed of military women and men, who have been entrusted to defend the innate environment. It is a matter of national and economic security in the protection of the environment. The political stability of the country is a key factor to the startup and the growth of the company. Political stability urges to establish a company at Panama. This is because political stability is one of the imperative components that verify the growth of the economy. Economic growth and development leads to the growth of El Paraiso Resort and Spa Company (Heidi Sarna, 2004).
The rules and regulations set by the constitution may be rigid and they may pose numerous procedures to be followed for the foundation of the company. This will provide solid grounds for a new company to start up a new business in Panama.
Panama is viewed as the gateway to America. It is the chief commercial and shipping terrain in the Caribbean basin. Panama government exempts the tax on the imported goods. Along with tax inducement, Panama is an appealing environment for a wide range of factors. It has the US dollar-based economy, world division free zone, a sophisticated and English-speaking labor force, port facilities and superb communication services. Panama has been categorized as an upper, middle-earners nation with the best rank of infrastructures in Central America. Per capital income is expected to grow at a rate of 6.7 percent this year. This indicates the best performance of economic growth in Latin America according to the IMF.
Panama’s economy is mainly service-oriented, primarily directed towards tourism, commerce banking, private industries and trading due to its fundamental geographical location. The country has been experiencing low inflation. Additionally, Panama City has been experiencing real flourishing of the estate. The country offers some brilliant incentives for overseas companies to move into the marketplace. Panama has available ground for business expansion.
The suitable economic environment of Panama attracts foreign companies to venture into business. Establishment of the El Paraiso Resort and Spa Company will have a constant growth due to the favorable economic environment. Conducive economic environment ensures effortless establishment of new companies. Therefore, the El Paraiso Resort and Spa Company will have market for its services due to economic growth. Tourists and traders often seek a place to take a break. The company will offer the place and the services they require. As the chief shipping place, Panama will enable the company to have an access to the materials at low cost required by the company.
Starting up El Paraiso Resort and Spa Company at Panama perhaps may be costly. The government and the inhabitants are much aware that the nation is attractive to foreign investors. In other words, Panama is an extremely competitive ground for investors. Therefore, the government will issue out licenses at intensely high price. Natives will offer their services at exceedingly high cost. Thus, it will be costly to invest in Panama.
For the two successive years, the Panama Canal Authority (ACP) has been documented by the Ethisphere Institute as one of the worlds’ most Ethical Company. The Panama Canal Authority is responsible for signifying leadership in moral and business practice. According to the Chief Executive Officer of the ACP, the main role of it is to ensure commitment to honesty, transparency and responsibilities to customers, Panamanian people and the environment. These core principles strengthen the enthusiasm to serve customers and provide reliable, safe and efficient services to the transport and maritime companies (Gerald, 2008).
The Ethisphere Institute is a leading worldwide thinking tank dedicated to the progression and didactic of the best practices in corporate social responsibility, business ethics, sustainability, and anti-corruption.
The ethical environment promotes and stimulates the startup of El Paraiso Resort and Spa Company Panama. Honesty and transparency of leaders ensures the growth of the business. This is due to favorable relations among staff. Ethical environment of the business determines where the company will achieve its main objectives.
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The construction of Panama Canal with its exclusive position at the narrowest point between the Pacific and the Atlantic Ocean has had a far-attaining result on the commercial development and world economics. The Canal provides a comparatively short, economical vessel between these bodies of waters. The Canal has promoted the globe trade patterns and spurred development in developed nations. Additionally, the Canal led to economic expansion of remote areas in Panama.
The Panama Canal will enhance development of El Paraiso Resort and Spa Company. The company will use the Canal to import its goods and services. This will be relatively inexpensive for the company to trade with other companies overseas.
Employing Panama Canal vessels as a means of trade with other countries will cause delay of goods and services imported by the company. This is attributed to increase in size and number of the transiting vessels. Therefore, the company will experience a delay of goods and services imported from the other countries.
A number of resorts and spa companies have invested in Panama. Panamanian spas are a rejuvenating and healing combination of customs and modern technologies. Here are some of the spas in panama: Borcas Del Toro, Gamboa Rainforest Resort, Edge Water Beach Resort and the Playa Bonita Resort and Spa. Panama spas take rejuvenation for your body to a whole fresh point. The body indulges and your brainpower practices a harmony of calm and natural beauty.
The investments of other companies in Panama provide people who have the required skills to work at a spa company. Therefore, the new company will not experience a shortage of inexperienced workers. However, investment by the other companies will pose a competition to the El Paraiso Resort and Spa Company. Thus, the company will be required to employ strategies that will counter the competitions, which will be costly. Additionally, the company’s cost of production will be high due to high wages paid to spa worker. This is because there will be high demand of spa workers.
Foreign policy profile
Panama is a founding associate of the Rio Group and affiliate of the Organizational of American States. The common reliance underlies US and Panama overseas procedure and account for supremacy and dependence in mutual associations. The two countries have a diversified interest in secure and efficient commerce across the isthmus. For the US, this descends from its status as the key user of the Panama Canal. For Panama, this is because half of its population lives in the Canal’s banks and the Canal produces economic payback.
The companies in Panama generate economic benefits from both countries. Therefore, the startup of the new company in Panama will grow at a higher rate due the mutual benefits. On the other hand, Panama will depend on America. As a result of dependency, Panama will be forced to follow the rules and regulations established by the Americans.