The Valio is a huge food company based in Finland. It is mainly spread in Europe, especially in Scandinavian countries and in Russia. However, the company decided to expand its production to Western

Company research

The Valio is a huge food company based in Finland. It is mainly spread in Europe, especially in Scandinavian countries and in Russia. However, the company decided to expand its production to Western Asia, particularly Armenia. We have conducted research in order to evaluate the site due to different points:

Financial:

The economy relies heavily on investment and support from Armenians abroad. Like other newly independent states of the former Soviet Union, Armenia's economy suffers from the legacy of a centrally planned economy and the breakdown of former Soviet trading patterns. However, nowadays the economy od Armenia is stable and quickly developing. This steady economic progress has earned Armenia increasing support from international institutions,so there aren’t any high ricks of serious economical problems. As the economic situation stabilized and growth resumed, the share of agriculture in GDP dropped to slightly over 20% (2006 data), although the share of agriculture in employment remained more than 40%. The wages are not very high in comparison with Finland. The cost of land is low than average as well.

Political:

Politics of Armenia takes place in a framework of a presidential representative democratic republic. Armenia presently maintains good relations with almost every country in the world, with two major exceptions being its immediate neighbours, Turkey and Azerbaijan. Armenia is a member of more than 40 international organisations, including the United Nations; the Council of Europe; the Asian Development Bank; the Commonwealth of Independent States; the World Trade Organization; World Customs Organization etc. To sum up, since the collapse of the USSR the politics in Armenia is quite stable, most of the citizens support the current government.

Geographic:

The infrastructure is not very well developed because the terrain is mostly mountainous, with fast flowing rivers and few forests. The climate in Armenia is markedly continental. Summers are dry and sunny, lasting from June to mid-September.

Other:

Well-educated,but not very dinamic workforce. Most of the people are traditionally busy in the agriculturian sector. Nevertheless young generation is willing to work in international corporations. Armenian is the only official language in the country. A literacy rate of 100% was reported as early as 1960. Human rights in Armenia are better than those in most former Soviet republics and have drawn closer to acceptable standards^, especially economically. Still, there are several considerable problems. Overall, Armenia's human rights record is similar to that of Georgia. Armenia has been labeled as "partly free" by Freedom House.

To draw the conclusion,we would like to emphasize that Armenia is an ideal choice for the expansion of the company due to all the factors previously mentioned.

Дата добавления: 2015-09-29