Problem Definition and Developing an Approach Report Assignment

Problem Definition and Developing an Approach Report - Assignment Example has managed to expand its business to more than 35 markets on five continents. The sales of Mary Kay products reached $2.5 billion in wholesale sales worldwide in 2009, and its global independent sales force exceeded 2 million (Mary Kay, n.d.). Mary Kay, Inc. is a private company, founded by Mary Kay and her son Richard R. Rogers and lead by the Mr. David B. Holl, Chief Executive Officer and President (Business Week 2011). The company offers a broad range of its products, including anti-aging, cleanser, moisturizer, lip and eye care, body care, sun care products as well as makeup products for eyes, lips, and cheeks, foundations, concealers, powders, compacts and applicators, and facial highlighting pens (Business Week, 2011). These products are produced at manufacturing plants in Dallas, Texas and China, and are sold in worldwide, including Europe, South and North America, Oceania, and Asia (Business Week, 2011). The key success of the company’s products promotion partially re lates to its staff comprised of sales force and Independent Beauty Consultants. The sales force members represent an integral part of the Mary Kay’s advertising strategy; they work either on door-to-door or in home demonstrations (Mary Kay, n.d.). Thus, the global network of Mary Kay’s consultants enables the company not only to sell its products worldwide but also provide personal support and give beauty advices to its customers. A. Environmental Analysis Political Qatar is politically stable country. Strengthening relations between Qatar and The United States help to set Pro-American climate, favorable for doing international business between these two countries (Wallace, n.d.) The legal environment of Qatar provides relatively favorable climate for foreign investors. The key benefits are referred to: no income tax or social security deductions payable on wages and salaries; corporate tax on foreign companies is 10%; no taxation is payable on exports; customs duties start at just 5% (KMD Consulting, n.d.). However, there are imposed import restrictions of cosmetics in Qatar (Country Codes and International Resources, n.d.). Economic Qatar has a strong economy, driven by revenues from oil and natural gas resources (Wallace, n.d.). This country has shown unprecedented economic growth rate during the last few years (Ministry of Business and Trade, n.d.). According to World Economic Forum of 2010, Qatar has topped other Arab and Middle East countries (Ministry of Business and Trade, n.d.). Due to its highly-efficient and well-performing institutional platforms, effective commodities and stable economic environment, Qatar has topped 139 countries included in the Global Competitiveness Report (GCR) (Ministry of Business and Trade, n.d.). Moving to 17th rank out of 139 countries included in this report, Qatar hit a new record of 5.10 points comparing with its performance during the last few years (Ministry of Business and Trade, n.d.). The country is recognized as one of the highest living standard on earth (Ministry of Business and Trade, n.d.). From the economic perspective, Mary Kay Inc. has profound opportunities to expand its business in Qatar with great success. Socio-Cultural Even though Qatar women wear a covering, they also want to look pretty. This desire is expressed through applying of all modern technologies and innovations presented in cosmetology and surgery. The key issue, Mary Kay needs to take into