anization to practically evaluate how it can use its strengths and expertise to overcome challenges in order to make a successful entry (Child, 2005).
China is a socialist country with a government which controls everything in the country. The overall involvement of the government into the affairs of firms is relatively higher as new and international firms have to obtain government permissions and follow strict rules to do business in China. ( Jiaxing, 2011 .)
China is the leading economy in the world and has surpassed Japan as the second largest economy, too. With the huge population, size and the increasing level of personal incomes, China’s economy provides a perfect market opportunity for any global firm.
Further, the overall managerial practices and the methods of socializing in China are different from doing the same in UK. Star, therefore, will have to face serious management challenges to ensure effective customer services as well as employee management (Adler and Gundersen, 2008)
Improvement in information technology and presence of leading courier services in the market has relatively made it easier for international firms to start home delivery services in China. Star can actually take benefit of these trends and develop an online portal through which it can actually offer free home delivery services and tap into a growing market which is open to use technology for the purpose of shopping (“Consumer Spending in China”, 2012). .
As discussed above, China is a communist country. therefore, the legal environment is relatively more complex. Though China has become more open to the international companies, rules and regulations are still complicated. Global firms have to follow a strict legal framework in order to work in China. Compliance with regulations can actually increase operational costs and lower the competitive ability of any firm.
Star generally will open its stores on relatively large land spaces and, therefore, can create