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Abstract

The company name is Givaudan. It is located in Vernier, Switzerland. Givaudan is a global leader in the fragrance and flavor industry. It has two business sectors: flavor and fragrance. The products of its flavor sector are beverages, sweet foods, and dairy. The fragrance sector, just as the name suggests, produces perfumes. Givaudan holds up to 25% share of the Swiss fragrance market, valued at about 17 billion CHF.

Prospective international market: USA fragrance market

Assuming Givaudan would wish to launch their products into the US perfume market; there are several things that would need to be checked. The US fragrance market, according to Diana Dodson of GCI Magazine, is one of the biggest cosmetics sector globally. It had sales of around $30.5 billion in 2006 alone. Currently, demand for fragrances in the US is forecast to grow to 3.7 percent per year to $5.3 billion in 2012. Clients, more and more, are interested in natural ingredients. This ends up making the perfumes costly than if synthetic ingredients are used.

The US government is operated democratically. There is a principle in the US constitution known as “separation of powers.” It means that power is spread evenly among the three bodies of the state:  the judiciary, legislature, and the executive. The executive executes the laws made by the legislature and performs the role of leading and directing the country. It is involved in creating new policies and tackling the issues affecting the nation. The legislature performs the work of coming up with these laws; the legislators are usually elected into office by the American citizens. The judiciary, on the other hand, is involved in the interpretation and the enforcing of these laws. The entire court system falls here; thus, the judiciary can be said to be the largest government body of the three (King, 2000).

This system of government is effective since the political powers are not centralized at one point, it enables the three government bodies to check each other, so when things are done in a way that is questionable in one body, the other bodies can reprimand that body and demand a correction of the wrong. Fairness is emphasized; thus, entrants into the US market can be confident their interests will be protected.

In the US, the government involves itself considerably in the economy and the private sector. In the early years of America, leaders were hesitant to have the federal government engage the private sector except in transportation and to keep law and order. With the coming of the 19th Century, small businesses and labor unions began requesting the government to intervene on their behalf and perform regulation. It was at that time that most of today’s American regulatory agencies were formed; for example, the Interstate Commerce Commission, the Federal Trade Commission and the Food and Drug Administration. The US chamber of commerce, through these agencies and other forms of regulation, is committed to creating an open market for both local and international products that promote competition through regulation of things like prices, supply of different types of goods, and the market share of individual firms. Thus, it levels the playing field for all market participants (US Department of State).

The way the US legal system is structured for maximum effectiveness. It is impartial. The laws are prepared at the federal and state levels. Congress and state legislatures make laws called "statutes.” The federal and state courts put in force these statutes. They also form laws.

Conclusion

The current political and legal conditions in the USA are safe and conducive for business. Presently, there is no political tension, thus investor confidence is high. Overall, the US fragrance market would be a sound investment option, at the current time. Quality perfumes from international companies are all the rage nowadays. Therefore, Givaudan would not go wrong in investing in this market.

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