The document discusses potential problems the Moran Family of Brands could experience if they franchise in Nigeria. These include having to deal with high levels of corruption and bribery in business dealings with the government, as well as challenging government regulations that are not very investor-friendly and make it difficult to do business according to the country's low ranking on ease of doing business. Adapting to bribery as a normal part of business would also be a major hurdle for an American company not used to such practices.
The document discusses potential problems the Moran Family of Brands could experience if they franchise in Nigeria. These include having to deal with high levels of corruption and bribery in business dealings with the government, as well as challenging government regulations that are not very investor-friendly and make it difficult to do business according to the country's low ranking on ease of doing business. Adapting to bribery as a normal part of business would also be a major hurdle for an American company not used to such practices.
The document discusses potential problems the Moran Family of Brands could experience if they franchise in Nigeria. These include having to deal with high levels of corruption and bribery in business dealings with the government, as well as challenging government regulations that are not very investor-friendly and make it difficult to do business according to the country's low ranking on ease of doing business. Adapting to bribery as a normal part of business would also be a major hurdle for an American company not used to such practices.
1) What problems may Moran Family of Brands experience by franchising in Nigeria?
Answer:: Major challenges of doing business in Nigeria:
i) Corruption and bribery:
Nigeria ranks 148 out of 175 countries according to the 2017 Corruption Perception Index reported by Transparency International. This single data is enough evidence to suggest that majority of public agencies demand money for work. There will be bottlenecks at each and every step right from the inception stage and unless the government agencies are paid the work will suffer. American company are not used to bribery, so the first major hurdle or challenges the Moran Family of Brands will face is accepting bribery a new norm of business.
ii) Government regulation:
Government regulation are not investor friendly and Nigeria rank low on the ease of doing business. Though the Nigerian government has replaced the 1990 Act and bought in The Nigerian Companies and Allied Matter Act 2020, with major amendments with a aim to promote transparency, protect owners of business and improve good corporate governance. But it remains to be seen how effective the new act will be in combating corruption and promoting ease of doing business.