The example business is a bakery, which operates in the flour-based food industry. It is important to note that economies of scale are achieved through the growth of a business in terms of its operations, size, and output. It is achieved primarily through mass manufacturing, which leads to efficiency and reduction of both labor and material costs.
The industry of the company is the food industry, and specifically, it is a flour-based food industry. The products involve flour-based products for consumption, such as cakes, cookies, pastries, bread, cupcakes, or doughnuts.
Key macroeconomic indicators that will affect the decision making process market entry conditions, product differentiation, buyer and seller concentration of location of interest, local currency volatility, and the overall economic performance (Davidson et al., 2020).
The microeconomic indicators include rent of space, demand in the locational of interest, bakery product prices, raw material costs, and local competitors.
The research and data should be focused on consumer behavior and competition since there are many countries that have relatively stable economies and are permissive of foreign businesses. However, it might not be as evident if a location of interest has a demand for bakery products or is oversaturated with competitors.
The information would allow the company to see whether or not local consumers need or are able to pay for bakery products post-pandemic since many countries were economically burdened by lockdowns. In addition, it will show the cultural and social intricacies of foreign consumer behavior elements because some groups might exhibit a higher degree of interest in bakery products than others. Lastly, competitor analysis will reveal if it is viable to enter the market since oversaturated ones tend to offer less profit due to the lack of the company’s brand image and understanding of local specificities.
Reference
Davidson, L. S., Hauskrecht, A., & Hagen, J. V. (2020). Macroeconomics for business: The manager’s way of understanding the global economy. Cambridge University Press.