27
Section 2 – Growth
E X T E N T T O W H I C H T H E F O L L O W I N G F A C T O R S E N C O U R A G E Y O U R O R G A N I S A T I O N T O E N T E R N E W M A R K E T S
E X PA N D I N G D E MA N D O P P O R T U N I T I E S A R E T H E B I G G E S T D R I V E R T O E N T E R N EW MA R K E T S , F O L L OWE D B Y T H E P R E S E N C E O F A FAV O U R A B L E R E G U L AT O RY A N D P O L I T I C A L E N V I R O NM E N T After establishing that a demand opportunity exists, a stable and supportive regulatory and political environment is the primary influencer of new market entry. New markets may also be targeted for more defensive reasons such as offsetting declining demand in existing markets or to compete against competitors entering into new territories. The availability of government incentives is a relatively unimportant factor in expansion decisions – only 17% of General Counsel and 11% of Board Directors believe such incentives encourage entry into new markets.
80 % 84 %
Expanding demand in new markets
49 % 42 %
Favourable regulatory environment
45 % 53 %
Favourable political and security environment
32 % 21 %
Declining demand in existing markets
A K EY F EATUR E OF SUCCE S S I S HAV I NG C LAR I TY OF WHO I S R E S PONS I B L E FOR WHAT: COMP L I ANCE , R I S K AND L EGAL FUNCT I ONS NE ED TO HAVE C LAR I TY ABOUT THE I R PUR POS E AND ROL E . R I S K DEC I S I ONS HAVE TO B E AL I GNED WI TH THE BOARD ’ S P R I OR I T I E S AND THE BOARD SHOULD ALWAYS B E I NC LUDED I N D I S CUS S I ONS .
28 % 11 %
Competitors being active in these new markets
17 % 11 %
Availability of government incentives
Anonymous General Counsel
General Counsel Board
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