Examining the Market Internalization at Busoga Forestry Company (BFC) LTD.
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Date
2023
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Abstract
This study examined the market internationalization at Busoga Forestry Company Ltd. The study was guided by three study objectives which included examining the motivation factors to market internationalization at Busoga Forestry Company Ltd, the challenges encountered during market internationalization at Busoga Forestry Company Ltd and measures that can be put forward to improve market internationalization at Busoga Forestry Company Ltd. The study adopted a cross sectional research design while both qualitative and quantitative approaches. The study targeted 104 participants but 101 managed to respond back. Questionnaire and interview guide were used to collect data from the field. The findings were presented in form of tables with statements, frequencies, percentages, mean, and standard deviation to make meaning of the study findings. Data from interviews were presented in statement that clearly represents the respondents’ views. The study findings revealed that for market internationalization, BFC was motivated by more financial gains from international markets, high technology advancements to meet international standards, availability of knowledge about the foreign markets, high economies of scales in the foreign markets, the need to have access to foreign resources (raw materials) and limited local market. It was revealed that different challenges affected market internationalization and these included high competition in the international markets, unfavorable international trade policies, high taxes charged in the foreign countries, much capital needed to facilitate the internationalization process, increased scrutiny from the host countries, differences in culture, long physical distance between home and host countries and lack of enough knowledge & understanding about the host country’s business. In regard to measures to improve market internationalization, it was revealed that BFC needs to produces products that meet the expected standards in the international market, employ people with right skills, government should exempt taxes on some machinery used in production, develop strong information channels to tap information from the foreign markets, conduct more research international businesses and carryout aggressive marketing on the international platforms. The study recommended that initiatives need to be taken in raising awareness about the trade support services Ministry of Trade offers to companies that internationalize their markets. Furthermore, the government should ensure that the internet is easily accessible to facilitate the retrieval of crucial trading information at both local and international levels. It was also recommended there is imperative for the government to enhance accessibility to financial support, particularly for companies involved in foreign trade. Lastly, it was recommended that companies establish stronger networks in foreign markets, starting with those neighboring countries that have a lower perceived cultural difference, referred to as psychic distance.
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A Dissertation Submitted to Makerere University Business School (Faculty of Graduate Studies and Research) in Partial Fulfilment of the Requirements for the Award of Degree of Master of Business Administration of Makerere University. (PLAN B).
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Moses, K (2023) Examining the Market Internalization at Busoga Forestry Company (BFC) LTD. Unpublished Masters Dissertation Makerere University Business School. Kampala, Uganda.