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Botswana and Diamonds

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Botswana and Diamonds

Table of Contents
Cover Page 1
Table of Contents 2
Executive Summary 3
Global Business Analysis: Market of Botswana and Diamonds 4
Global Business Opportunities 4
Economic and Geographic Environment 4
Social and Cultural Environment 4
Political and Legal Environment 5
International and Local Competition 5
Economic and Geographic Environment 5
Managing International Financial and Business Risks 6
Characteristics of Global Management Information Systems (MIS) 6
Characteristics of Global Human Resources 7
Characteristics of Global Marketing 7
Product Target Market Planning for Foreign Markets 7
Designing a Global Distribution Strategy 8
Selecting an International Pricing Strategy 8
Determining Organizational Financial Results 9
Key Success Factors for Global Business 9
Monitoring and Control 9
Recommendations 10
Conclusion 10
Appendixes 12 Executive Summary This business analysis is in reference to a foreign direct investment into a diamond business within Botswana. This analysis provides the information to determine, if Botswana is a viable country for investment. The pertinent information is in reference to the country’s culture, economy, geography, resources and other factors that will assist with our analysis. In conclusion, a favorable recommendation is given for investment in a diamond mining business in Botswana.
Global Business Analysis: Market of Botswana and Diamonds
Botswana population is over two million people and was primarily an agricultural based economy. In 1967, the country realized they were sitting on a large natural resource of diamonds. The country started mining, which sparked a significant change in its gross domestic product. The huge source of revenue turned the country into one of the first African democracies. This business analysis will evaluate diamond market, government policies, economy, and environmental factors for a foreign direct investment in a diamond business in Botswana.
Global Business Opportunities
Economic and Geographic Environment
Botswana is a centrally located African country, which is about the size of Texas with a strong economy (Background…, 2006). The country is bordered by Namibia, South Africa, and Zimbabwe, whereas it has no coastlines. Botswana won its independence in 1966 from Britain. Botswana has a number of cities and is sparsely populated with deserts and savannas (Background…, 2006). It has subtropical weather, whereas it ranges from semiarid with warm winters and hot summers (World Fact Book, 2000). The country is known for mining, especially diamonds. Botswana’s economy is strong with its natural resources of diamonds, copper, nickel, coal, gold, potash, soda ash, and salt (Botswana Country Report, 2011). The country has a GDP of 8.33 billion dollars. The wealth distribution for Botswana is profoundly uneven. Almost 75% of the population lives in rural areas that are poor, whereas they are dependent on agriculture and cattle farming (Botswana Country Report, 2011). The country is looking to increase its global competitiveness through negotiations for free trade agreements. The country has been prosperous over the years, because of its diamonds and tourism.

Social and Cultural Environment The social and culture of Botswana consists of different languages, religions, and a health epidemic. Over 20 languages exist with English being the official language and Setswana as the national language. Tourists would have to know some Setswana to be understood in the rural areas of Botswana. Different religions are practiced there, which are indigenous beliefs and Christianity (World Fact Book, 2000). There are different ethnicities, which are Batswana, Kalanga, Basarwa, and Kgalagadi. Most of the population is literate at the age of 15, whereas they can read and write. The country is known to have an Aids epidemic, but the country has taken a national role in countering the epidemic with available medical care with the citizens infected. Overall the country has made strides at being an attractive country in reference to their culture.
Political and Legal Environment Botswana’s government structure is a multiparty constitutional democracy (Botswana County Report, 2011). It is an open political system and elections are held every five years. The president has executive power and is assisted by a vice president and other cabinet officers. There is a National Assembly, which has 57 elected and the elections are done every 10 years. The local government consists of nine district councils and five town councils. The roots of the democracy in Botswana are based on Setswana traditions. The legal environment is based on British based legal system. The legal system consists of an advisory House of Chiefs, which represents eight principal subgroups of the Batswana tribe. Chiefs and other leaders preside over traditional courts, which are based on customs and laws. Botswana does have a high court in place as well. The country has a good human rights record (Botswana County Report, 2011).
International and Local Competition Botswana is looking for ways to improve its international and local competition. Diamonds are Botswana’s biggest product. The country is looking at the advantages of multinational enterprises, which are the ability to arbitrage factor or intermediate product, reaping economies of scale, diversify country risks, and exploiting better gains of the common governance (Van Wyk, 2010). In order for Botswana to stay competitive on a national and international basis, they will need the companies and the government to continue to invest in trade.
Managing International Financial and Business Risks
The major financial and business risk to Botswana remains that they are heavily dependent on diamond mining as their main source of economic growth. The government needs to diversify their economy with the introduction of non-mining/ diamond markets. However, Botswana has limited ability to diversify their economy because of the lack of education and limited employment opportunities. Another risk to diamond industry, Botswana faces issues with how international cultures view the country and this negative image can impact exports.
Characteristics of Global Management Information Systems (MIS)
Prior to mining, Botswana was one of the poorest countries in the world and depended on agricultural. With the discovery of the largest diamond mine in the world, agricultural has declined but is still a business in Botswana. Due to the mining of diamonds, Botswana’s economy has exploded in the last three decades. With the injection of new money related to the mining business, the government has started focusing on the development of new Management Information Systems (MIS) in geospatial assets. Botswana created a Geographic Information System (GIS) to digital record the land in a digital format to assist the country develop. This system can help with new businesses in mining as well as agricultural activities. This system also helps in managing location of citizens and property ownership.
Characteristics of Global Human Resources
Botswana huge economic growth enabled the country to invest in new human resource programs. These new investments will be implemented by the ministry of education. The agency will be supported by the Tertiary Education Council (TEC). These agencies create and manage many human resource programs. Despite being prosperous in the economy, the health care system in Botswana has been challenged over the past several years by HIV/AIDS epidemic. Botswana is committed to develop the country and to progressively tackle these health care challenges. The development of Botswana has been guided by several policies, in particular, Vision 2016 and National Development Plan Nine (NDP9). These policies sets out the attained by 2016 an educated, informed nation; a prosperous, productive and innovative nation; a compassionate, just and caring nation; a safe and secure nation; an open, democratic and accountable nation; a moral and tolerant nation; and a united and proud nation. The policies have several aspects that raise the quality of living in the country ultimately making more citizens employable.
Characteristics of Global Marketing
Product Target Market Planning for Foreign Markets Product target marketing planning for diamonds in Botswana is being able to market global with their product; their target marketing planning is to be provide product & services to the U.S. Diamonds plays a very critical role in the economics of South Africa, Russia and small amount in Australia and Canada. In Botswana which is 29% of the world’s diamond productions, and contributes 33% of gross national product, and 65% of their state income and 75% in them experts is very important that the diamond market is carefully controlled and confidence in diamond quality is maintain to ensure steady growth.
Designing a Global Distribution Strategy
According to Dr. Richie Moalosi Botswana has a number of strategies that they have set up to accomplish and follow through by the private-and public sector of the corporations in Botswana to build a culture of creativity and innovation. They have set up innovation hubs that will bring value to the manufacturing through multiple projects. With the ongoing technology and innovation policy, there will be some concerns that the bias will be geared towards science and will leave few capable of moving towards a wider innovation schedule at a national level. Also being part of the integrated studies about transport there was a assessment of freights being part of the distribution going through Botswana.
Planning a Global Promotion Strategy
Promotion strategy is based on Key success factor that is driven base on what is valuable in today’s market. Botswana practices excellent so a strategy for the economic diversification, sustainable growth and their action plan can be successful. According to the action plan this action contains a strategy that will implement a strategy that is aimed towards driving diversification and growth. This will help with the building the relationship need so when opening the lines of doing business whether it’s on the internet promotion or by business with other countries
Selecting an International Pricing Strategy
When Selecting an International Pricing Strategy it comes with watching the Market, even when the market seem to be at a steady rate keeping your research on pricing is very important to the business growth and balance in products.” According to Botswana economy records they keep up with the (GDP) at current market prices increased to P39.39 billion in 2002/2003.” By 2008 the GDP had only grown by 3%. This is when you know that watching the way the international pricing scale in the market on how to be able to manage your pricing analysis.
Determining Organizational Financial Results
When Selecting an International Pricing Strategy it comes with watching the Market, even when the market seem to be at a steady rate keeping your research on pricing is very important to the business growth and balance in products.” According to Botswana economy records they keep up with the (GDP) at current market prices increased to P39.39 billion in 2002/2003.” By 2008 the GDP had only grown by 3%. This is when you know that watching the way the international pricing scale in the market on how to be able to manage your pricing analysis.
Key Success Factors for Global Business
Botswana needs to have a good knowledge of the countries that they export to and be fluent in their language and culture. Botswana also needs to keep up with the economic growth in the diamond market as well as other markets. Botswana needs to use strategic pricing to stay competitive in the global marketplace. These practices should be monitored on at least an annual basis, to determine their effectiveness
Monitoring and Control
Monitor the market in other countries. Control the diamond quality that is shipped to other countries. Monitor the expansion of diversity in the economy.

Recommendations
Botswana should become more diversified to grow in the global economy. Mining, especially for diamonds, makes up nearly all of the country’s GDP. Botswana also needs to increase free trade agreements, giving them more opportunity to sell diamonds to more countries. This can be achieved by expanding goods and services offered through diversity. They need to monitor their country’s’ growth as well as the economic status of the market in other countries
Conclusion
Botswana is in a position for global expansion. It has a lot to offer to the international economy in general. The country is looking for ways to improve its global trading, which would be a positive move for the country in general. The country is addressing internal issues, such as the aids epidemic and the need to make them more attractive globally. This country has a lot of potential in the future.

References
Background Note: Botswana. (cover story). (2006), Background Notes on Countries of the

World: Republic of Botswana, 1.

Botswana. (2011). Political Risk Yearbook: Botswana Country Report, PRI-1-17.

CIA: The World Factbook 2000: Botswana. (2000). CIA World Fact Book, 146.

Mining Technology, Debswana Diamond Mines, Botswana found on http://www.mining-technology.com/projects/debswana/ Parsons, N. (1999). University of Botswana History Department. Retrieved from: www.thuto.org (2014). Botswana Diamonds P.L.C. Powered by TMO Retrieved from: http://www.botswanadiamonds.co.uk/ (2010). Senior lecturer Industrial Design & Technology Department, University of Botswana.
Retrieved from: www.ub.bw
Van Wyk, J. (2010). Double Diamonds, Real Diamonds: Botswana’s National Competitiveness.
Academy of Marketing Studies Journal, 14(2), 55-76.…...

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