I need your help in constructing Decision Matrix.

This assignment involves us expanding the Canadian company "Big Rock Brewery", to one of the three countries - Mexico, Germany and China. Using the PEST analysis of the three countries, we are required to construct a Decision Matrix with the appropriate scores in order to decide the best country to penetrate. Below are the PEST analysis of the three countries:

PEST ANALYSIS OF CHINA

Political:

• Laws & Regulations Regarding Foreign Franchise Enterprises: China has strict laws and regulations for foreign franchise enterprises, which may include joint ventures, licensing, or wholly foreign-owned enterprises. Companies need to comply with the relevant laws, regulations, and procedures to enter the Chinese market.
• Tariffs Agreements: Tariffs agreements between China and other countries can impact the cost of importing goods into China, including beer and brewing equipment. Companies need to stay informed about any changes in tariffs that could affect their operations.

Economic:

• Disposable Income of Consumers: The disposable income of Chinese consumers has been increasing over the years, which can impact their spending habits, including their willingness to pay for premium beer products.
• Market Size, Market Growth & Competitors: China has a massive beer market, and competition can be fierce. Big Rock Brewery needs to analyze the market size, growth potential, and competitors to determine their market strategy.
• Currency Stability: Currency stability is crucial for companies operating in China as fluctuations in the currency exchange rate can impact their profitability and cost of operations.

Social:

• Social Lifestyle Around Coffee Culture: China is known for its tea culture, but the coffee culture is also growing, especially among younger generations. Big Rock Brewery can take advantage of this trend by offering beer products that cater to the changing social lifestyle of Chinese consumers.
• Attitudes Towards Foreign Companies: Chinese consumers generally have a positive attitude towards foreign companies, but companies still need to take steps to build brand awareness and trust among Chinese consumers.

Technological:

• Technology for Company Operations: Big Rock Brewery needs to consider the technological infrastructure in China, including e-commerce platforms, social media platforms, and mobile payment options, to ensure their operations are up-to-date with the latest technological trends. They also need to consider any technology-related regulations and restrictions in China.

PEST ANALYSIS FOR GERMANY

Political Factors:

Germany is a democratic country with a robust legal and regulatory framework. It has a federal parliamentary republic form of government. Political stability is relatively high in the country. Their strong policies on sustainability practices and environmental protecting strategies are clearly reflected in the Green Party's presence in the government.

Regulations:

Reinheitsgebot does not apply to imported beers in Germany. It would be best for Big Rock Brewery to comply with the Reinheitsgebot for the best promotion and sales for the product. Single-use packaging requires a compulsory deposit and a Package system in German Packaging Act.

Tax objects:

Beer products or non-alcoholic beverages are assessed according to the quantity of the product.

Alcoholic beverages (CN codes 2204, 2205, and 2206 )whose alcohol strength volume exceeds 1.2% but not exceeding 22% are assessed according to the volume of hectolitres of the finished products.

Various tax credits are offered on the basis of delivering the products to another member state for commercial purposes and incorporating the products with the local warehouses in Germany.

Economic Factors:

Germany is the fourth-largest economy in the world considering the fact that it has a highly diversified economy with highly functional manufacturing sectors. Their labor forces are highly skilled and competitive in the world. Their economy is robustly driven by exports and has strong trade surplus.

Sociocultural Factors:

Germany is a sophisticated country with an amazing living standard. They have a rich cultural heritage and a high literacy rate. Germany being a multicultural society, have a high tolerance for diversity and welcomes people from different ethnicities. Their strong social welfare system ensures access to quality education, healthcare, and housing.

Technological Factors:

Germany is a technologically advanced country with a strong R&D sector. Their innovation strategies are well known and have a highly skilled workforce. Being a leader in the renewable industry, Germany has set ambitious goals in reducing greenhouse emissions and urges the world to follow sustainability measures. Germans specialize in the automobile sector, providing home to major players like Mercedes-Benz, BMW, and Volkswagen.

PEST ANALYSIS OF MEXICO

Political:

• Laws & Regulations Regarding Foreign Franchise Enterprises: Mexico has a relatively open policy towards foreign investment, but the country does have specific regulations regarding foreign franchises. Big Rock Brewery should research and comply with the relevant laws and regulations before entering the market.
• Tariffs Agreements: Mexico has free trade agreements with several countries, including the United States and Canada, which could benefit Big Rock Brewery if it chooses to export products to these markets. However, the company should also be aware of any potential tariffs on imports and exports.

Economic:

• Disposable Income of Consumers:The disposable income of consumers in Mexico varies widely across the country. Big Rock Brewery should consider pricing its products appropriately for the local market.
• Market Size, Market Growth & Competitors:Mexico has a large and growing beer market, but it is also highly competitive, with several local and international brands vying for market share. Big Rock Brewery should conduct thorough market research to identify opportunities and challenges in the market.
• Currency Stability: Mexico has experienced some currency instability in recent years, which could impact the cost of imports and exports for Big Rock Brewery.

Social:

• Social Lifestyle Around Coffee Culture: While coffee culture is not directly related to beer, Big Rock Brewery should be aware of any potential cultural trends that could impact consumer behavior and preferences.
• Attitudes Towards Foreign Companies: Mexican consumers generally have a positive attitude towards foreign brands, but Big Rock Brewery should be aware of any potential cultural or political sensitivities that could impact its brand image.

Technological:

• Technology for Company Operations:Mexico has a developed telecommunications infrastructure, which could benefit Big Rock Brewery if it chooses to conduct business operations remotely. However, the company should also consider any potential technology-related challenges in the market, such as internet connectivity or cybersecurity concerns.

Based on the above info, I need your help to construct a Decision Matrix.

Below is an example of a decision matrix.

Recommendations & Conclusion

The following decision matrix will be used to summarize the determining factor from each criterion and provide a recommendation to Second Cup Coffee Co. for the best country to penetrate.

Decision Matrix
1 = Low Impact 5 = High Impact
Criteria	South Korea	Germany	Japan
Political (25%)	4*0.25= 1 Politically Korea is relatively stable and has been demonstrating positive growth over the years in the political stability index. With the introduction of coffee, Korea has started to adopt more western practices in business environments. Canada has great relations with Korea and ease of doing business is ranked extremely high at 5.	4*0.25 = 1 Politically Germany has been stable for the past several decades. Also, although there are no franchising laws in Germany, the number of franchising companies continues to grow. That is due to the developed marketing standard and the simple process of starting a foreign business in Germany.	2*.25= .5 Business operations in Japanese society are much different from those in western society, with domestic representatives having more say in the decisions.
Economic (25%)	4*0.25=1 Korea's coffee market has been performing extremely well, even with high domestic competition, Foreign brands such as Starbucks maintain hia gh preference rates. The caf industryis projectedt to reach an all-time high by 2023. Therefore, Second Cup can exp ct be to be profitable due to rising demand and foreipremiumsium.	5*0.25=1.25 The German coffee industry ranked among the strongest in the world. Projections indicate that the industry will keep growing by at least 5% per year for the next five years. Also, the German market is becoming more familiar with the food franchise industry, and the industry is expected to rise rapidly within the next five years.	2*0.25= 0.5 The coffee industry has been demonstrating a positive trend. With an expected growth of 7.7% over the next 5 years. However, the caf industry has been significantly declining over the years and the number of caf shop has also been decreasing at a considerable rate.
Social (40%)	5*0.4= 2 Coffee is an indicator of class differentiation among Koreans and with a desire to base things oonsocioeconomic class, it is not difficult for Second Cup to establish a strong brand image and reputation in torean society.	4*0.4= 1.6 Coffee culture is common in Germany; Germans drink coffee daily. Also, even though German customers prefer local products, they tend to be open to trying international products. That can create an opportunity for Second Cup to enter the German market and succeed.	1*0.4= 0.4 Coffee and cafe culture has a significant presence ie Japanese society and although it has adapadopted ern styles, the catering is more towards the Japa Culture. Making it difficult for Second Cup to adapt.
Technology (10%)	5*0.1= 0.5 Korea is very advanced when it comes to technology, the use of NFC technology was acceptry early on by businesses and society while the ICT sector was primarily the success factor in increasing the country's overall GDP.	5*0.1= 0.5 In terms of technology and development, Germany is one of the leading counties in the world. Germany offers many opportunities to enhance the coffee shop business operation and marketing strategies using technological innovation.	5*0.1= 0.5 A central hub for technology development and innovation. Implementation oan f affordable cloud-based platform and headed towards a new human evaluation.
Total	4.5	4.35	1.9

Your work will not be submitted as my own and no Honor Code would be violated. This is purely for our reference in order to move forward with the project.