CURRENT

INTERNATION
AL
DEVELOPMEN
T
TARKETT GROUP VERSUS
GHANA

Word Count:
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 Table of Contents

EXECUTIVE SUMMARY.......................................................................................................................2
SECTION 1: INTRODUCTION..............................................................................................................3
SECTION 2: BRIEF COMPANY OVERVIEW.....................................................................................4
2.1 Tarkett Group’s Business Model and the Role of Exchange Rate in Contractual Arrangements 7
SECTION 3: TARKETT GROUP COMPETITIVENESS – UNDERPINING AND EVALUATION
.................................................................................................................................................................... 9
3.1 UNCTAD Revealed Comparative Advantage and Competitiveness in Manufacturing and
Exports in Europe.....................................................................................................................................9
3.2 What Underpins its Exports.............................................................................................................10
3.3 Porter’s National Competitive Advantage diamond.......................................................................12
SECTION 4: COMPARATIVE ANALYSIS OF TARKETT GROUP’S EXPANSION IN GHANA
VERSUS SENEGAL...............................................................................................................................14
4.1 Analysis of Ghana Using the CAGE Framework............................................................................14
4.1.1 Geographic Factors........................................................................................................................14
4.1.2 Administrative Factors...................................................................................................................15
4.1.2.1 Senegal and Ghana’s Overall Place in WTO/ international trade Architecture, and
Economic Integration..............................................................................................................................15
4.1.2.2 Tariff and Non-tariff Barriers to Tarkett’s Potential Exports to Ghana and Senegal...........17
4.1.2.3 Considerations on Foreign Direct Investment (FDI).................................................................17
4.1.2.4 Choice between Exports and FDI for Tarkett...........................................................................18
4.1.3 Economic Factors...........................................................................................................................19
4.1.4 Cultural Factors..............................................................................................................................22
SECTION 5: CONCLUSIONS AND RECOMMENDATIONS..........................................................24
References................................................................................................................................................25

2
 EXECUTIVE SUMMARY

Providing solutions for flooring and sports surfaces is the international company Tarkett.

Laminate, vinyl, linoleum, carpet, and wood flooring are all available flooring alternatives from

Tarkett. The business also provides surfaces and flooring for use in sports through its Tarkett

Sports division. For the internationalization strategies in Ghana versus Senegal, this paper used a

variety of international economics models. It is suggested that Tarkett Sports consider increasing

their presence in Ghana through a combination of exports and FDI, with Ghana being made the

preferred country for internalization.

3
 SECTION 1: INTRODUCTION

Every organization starts from scratch and aspires to break even while continuing to develop

reasonably. Unfortunately, only a small number of businesses have been able to complete this

challenging task as a result of a variety of obstacles, including internal problems with internal

control, ineffective conflict management, inadequate capital availability, and other

considerations. On the other hand, adverse government regulations, erratic market movements,

and other external issues hindered the expansion of many enterprises.

This report for a firm like Tarkett Sports seeks to make an informed decision regarding the

entrance mode it will utilize while using pertinent theories to illustrate the advantages that its

international growth plan will bring to it.

4
 SECTION 2: BRIEF COMPANY OVERVIEW

Tarkett is a global company that provides sports surfaces and flooring for residential,

commercial, and residential applications. The company was founded in 1886, and France serves

as its home base. Tarkett operates in more than a hundred nations and is widely present in

Europe, North America, and Asia (Tarkett, 2021).

Fig. 1: Tarkett’s Business Strategy

https://www.tarkett-group.com/en/tarkett-group/our-strategy/

The international growth strategy of Tarkett Group is consistent with Dunning's OLI framework,

which places an emphasis on ownership, location, and internalization benefits.

Ownership Advantages: Tarkett has a number of benefits as an owner, including as its well-

known brand, stellar track record for producing high-quality goods, and broad distribution

5
network (Tarkett, 2023). According to its 2021 annual report, the business is well-known as a top

supplier of sports surface and flooring solutions and has a significant global presence. Therefore,

as a result of this advantages in ownership, the company is able to use its name and brand

recognition to penetrate new markets and broaden its product line.

Benefits of Location: Tarkett is well-established in important global markets, such as Europe,

North America, Asia-Pacific, and Latin America. China, Brazil, and Russia (Tarkett, 2023) are

just a few of the nations where Tarkett has production sites, allowing it to effectively serve

regional markets. The advantages of Tarkett's location give the business access to neighborhood

resources like infrastructure which they have used to improve their supply chain processes

(Tarkett Annual Report, 2011), labor (Lavery, 2013), and raw materials - procuring and utilizing

more recycled secondary raw materials, which not only helps significantly lower the carbon

footprint of its goods but also strengthens the company’s ability to overcome supply chain

problems for virgin resources (Tarkett, 2021).

Tarkett possesses internalization benefits, such as its constant increasing production capacity

(Yahoo Finance, 2018), R&D know-how (Allegro, 2022), and supply chain (Tarkett, 2023),

which allow the company to enter new markets effectively. Tarkett's production skills and R&D

know-how enable the company to create new goods and technologies, enabling it to cater to the

particular demands of regional markets. The company's supply system allows Tarkett to easily

distribute its goods around the world.

Locations for the Sports Division: France and Germany's locations for Tarkett's Sports division

have been a key component of its acquisition strategy. Tarkett has been able to broaden its

product selection and boost its production capacity in the market for sports surfaces due to these

locations. Artificial turf, jogging tracks, and multi-sport surfaces are among the products in the

6
Sports segment that have tremendous growth potential in both the residential and commercial

markets (Tarkett Annual Report, 2011).

Fig. 2: The History of Tarkett Group through Acquisition

https://www.tarkett-group.com/en/tarkett-group/

Tarkett's Sports segment brought in about 11% of the company's overall revenue in 2020

(Globenews wire, 2020), followed by the Residential division with 41% and the Commercial

division with 48% (Tarkett, 2020).

In conclusion, Tarkett Group has advantages in ownership, location, and internalization, and its

international expansion strategy is consistent with Dunning's OLI paradigm. Tarkett has used a

variety of entrance strategies, including FDI and exports, to grow internationally. The Sports

section of Tarkett contributes significantly to the company's overall revenue, and its locations in

France and Germany have been a key component of its acquisition strategy.

7
2.1 Tarkett Group’s Business Model and the Role of Exchange Rate in Contractual

Arrangements

According to the company's business plan, projects are delivered by distributors and special

agents who import products made in Europe and export them to other countries. Tarkett

manufactures a variety of flooring products, including vinyl, linoleum, carpet, and wood

flooring, in its manufacturing facilities, which are largely situated in France and Germany.

Thereafter, a network of distributors and agents sells these products on a global scale.

Since currency rate variations can have a substantial impact on a firm's profitability and financial

performance, Tarkett's export-oriented business model exposes the company to foreign exchange

risks. According to a McKinsey & Company analysis, the profitability of the business would

suffer if the euro strengthens versus other currencies in the markets where Tarkett does business.

On the other side, Tarkett might be able to increase its profitability if the euro appreciates against

these currencies by expanding its exports to these markets (McKinsey & Company, 2016).

Tarkett uses a variety of hedging techniques, including currency swaps and options, to reduce

company exposure to foreign exchange risks. In reaction to variations in currency rates, the

corporation also modifies its pricing approach. For instance, Tarkett might raise its prices in that

market if the euro gains value relative to a certain currency in order to preserve its profit

margins. To retain its competitiveness in that market, Tarkett may raise its prices if the euro

appreciates against a certain currency (Reuters, 2021).

The purchase of the Australian flooring firm Taubmans by Tarkett demonstrates the company's

willingness to accept foreign direct investment (FDI). With access to regional production

facilities and distribution networks through the acquisition, Tarkett was better able to serve the

Australian market and take on regional rivals. In order to increase its global presence, Tarkett

8
intends to continue exploring strategic acquisitions, according to its 2019 annual report (Tarkett,

2019).

9
 SECTION 3: TARKETT GROUP COMPETITIVENESS – UNDERPINING AND

EVALUATION

3.1 UNCTAD Revealed Comparative Advantage and Competitiveness in Manufacturing

and Exports in Europe

UNCTAD uses the revealed comparative advantage (RCA), which is based on how much of that

product or industry is compared to a country's overall exports, to assess a country's

competitiveness in a particular product or sector. A nation with a high RCA is said to have a

competitive advantage in that industry (Wosiek & Visvizi, 2021).

The industries and product categories that are significant to Tarkett Sports, including as

chemicals, plastics, monofilaments, machinery, and other related industries, are located in

Europe, and France and Germany in particular. This is supported by the Revealed Comparative

Advantage (RCA) analysis for the EU conducted by UNCTAD.

According to the most recent RCA Statistics (2021), France and Germany enjoy a significant

comparative advantage in a number of different products and industries, such as chemical

products, plastics and rubber, machinery and equipment, and other related fields. By comparing a

country or region's proportion of world exports in one industry or product category to its overall

share of global exports, the RCA index calculates the relative advantage of a country or region in

that industry or product category.

France has a significant comparative advantage in this market in 2019 with its RCA index for

chemical products at 1.65. Similarly, Germany had a very significant comparative advantage in

the machinery and equipment sector, as seen by its RCA index of 1.94. These comparative

advantages can be linked to a number of things, including having access to trained people,

10
having modern infrastructure, and having a tradition of technological innovation (UNCTAD,

2021).

Europe's commitment to environmental protection and sustainability, in addition to these other

considerations, has boosted the continent's manufacturing and export competitiveness (United

Nations, 2020). As a result, Tarkett's position in the European market is further strengthened.

Tarkett's dedication to sustainability is in line with this objective.

3.2 What Underpins its Exports

The different economic theories that support international trade can be used to explain the export

performance of Tarkett Group products like artificial turf and floor coverings.

First, according to David Ricardo's comparative advantage theory, nations should focus on

producing things that they can do so more effectively and at a lower opportunity cost than those

produced by other nations (Panagariya, 2014). According to UNCTAD's Revealed Comparative

Advantage statistics, Tarkett's production facilities in France and Germany have a comparative

advantage in producing chemical goods, plastics and rubber, as well as machinery and equipment

(UNCTAD, 2021). They have access to trained manpower, cutting-edge technology, and

abundant natural resources as a result of this.

Second, the Heckscher-Ohlin (H-O) theory of international commerce proposes that nations

should focus on producing items that demand factors of production that they have in large

quantities (Abdul-Aziz, 2016).

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Fig. 3: The H-O Theory

https://www.economicsdiscussion.net/the-heckscher-ohlin-theory/the-heckscher-ohlin-theory-

with-criticisms-international-economics/30795

For instance, a nation with a surplus of labor may have an edge over other nations in producing

items that require a lot of labor. Tarkett's success in exporting floor coverings and other goods

may be attributed to its availability to highly skilled personnel as well as cutting-edge machinery

and equipment, all of which are common throughout Europe.

On the other hand, new trade theory places a strong emphasis on the value of economies of

scale, product differentiation, and innovation in fostering global trade (Algieri, et al., 2022). In

the example of Tarkett, the business profits from internal economies of scale in its manufacturing

facilities, enabling it to create goods at a lower price and of higher quality than rivals. Due to the

clustering and network effects of businesses in this location, it may also profit from external

12
economies of scale, such as access to a trained labor force, supplier networks, and technical

breakthroughs.

3.3 Porter’s National Competitive Advantage diamond

A framework for comprehending the sources of a nation's competitive advantage is provided by

Porter's National Competitive Advantage diamond model. Factor conditions, demand

circumstances, connected and supporting industries, as well as company strategy, structure, and

rivalry, make up the four elements.

Fig. 4: Porter’s Diamond Model

FACTOR CONDITIONS
DEMAND CONDITIONS
- Robust Infrastructures - Heavy Demand for Artificial
- Highly Skille Workforce Grass
- Investment in R&D
Porter's Diamond
Model
CONNECTED AND SUPPORTING FIRM STRUCTURE AND RIVALRY
INDUSTRIES - Fierce Competitive Environment
- Chemicals - Pressure to innovate
- Plastic - Enahnced goods and services
- Equipment

Source: Student’s Research

Both France and Germany have robust infrastructures and highly skilled labor forces in terms of

factor circumstances. In the Global Competitiveness Report 2021 from the World Economic

Forum, France rated ninth and Germany fourth globally for infrastructure, while both nations

13
were in the top 25 for talents. The EU as a whole also makes significant investments in R&D.

According to Eurostat, the EU spent over €306 billion on research and development in 2019

(Eurostat, 2019), with France and Germany among the top four spenders in terms of absolute

amounts.

The European market for Tarkett's goods is robust, and there is a rising global demand for sports

surfaces (Wang, et al., 2014), which is favorable for the company's demand conditions. Around

36% of the world's exports of artificial grass, a crucial product category for Tarkett Sports, were

made in the EU in 2019, according to UN COMTRADE data.

For Tarkett to succeed, connected and supporting sectors are crucial. Chemicals, plastics, and

equipment are three industries with a significant manufacturing base in the EU that are essential

to Tarkett's supply chain. The Revealed Comparative Advantage figures from UNCTAD show

that France and Germany have a significant comparative advantage in several sectors.

Last but not least, Tarkett's competitive advantage is greatly influenced by the firm's strategy,

structure, and rivalry. Tarkett's strategy of producing goods in Europe, selling them abroad,

and utilizing FDI to get over obstacles has helped the business prosper in international markets.

In France and Germany, which have fiercely competitive business environments, Tarkett also

benefits from the pressure to innovate and enhance goods and services.

14
 SECTION 4: COMPARATIVE ANALYSIS OF TARKETT GROUP’S EXPANSION IN

GHANA VERSUS SENEGAL

4.1 Analysis of Ghana Using the CAGE Framework

To examine the differences between two nations or areas and determine whether international

expansion is feasible, the CAGE (Cultural, Administrative, Geographic, and Economic)

Framework will be applied. It is frequently used to determine the difficulties and chances of

conducting business in a foreign market (Rienda, et al., 2021).

4.1.1 Geographic Factors

The gravity model can be used to comprehend the relative trade volumes between Senegal and

Ghana and EU commerce with those nations. Senegal's GDP was about $25 billion in 2020,

while Ghana's GDP was about $70 billion, per the Global Development Indicators published by

the World Bank. Comparatively, Germany's GDP was about $3.9 trillion and France's GDP was

over $2.6 trillion in the same year (World Bank, 2022). These numbers indicate that, due to the

significant difference in the sizes of their respective economies, trade volumes between the EU

and Senegal and Ghana would most likely be lower than those between the EU and France and

Germany. The CAGE framework informs us, however, that factors other than economic size also

matter in influencing trade volumes and obstacles.

Cultural distance, denoted by the letter "G" in the CAGE framework, encompasses elements like

language, religion, values, and social conventions. Cultural barriers to trading with France and

Germany may exist in the case of Ghana due to a number of factors. English, for instance, is the

official language of Ghana. French and German, meanwhile, are the official languages of France

15
and Germany, respectively. This language barrier could make it difficult to communicate and

raise the expense of doing business.

4.1.2 Administrative Factors

The administrative distance, or "A," in the CAGE architecture stands for elements including

colonial links, political relationships, and legal systems.

4.1.2.1 Senegal and Ghana’s Overall Place in WTO/ international trade Architecture, and

Economic Integration

Both Senegal and Ghana are participants in the World Trade Organization (WTO), an

international body that establishes guidelines for trade and arbitrates conflicts among its

members (WTO, 2023). They are also a part of the African Continental Free Trade Area

(AfCFTA), a free trade zone founded in 2018 with the objective of fostering trade within Africa

by establishing a single market for goods and services (AfCFTA, 2023).

Senegal and Ghana have engaged in a number of regional and global trade accords in terms of

the structure of international trade. Senegal is a member of ECOWAS, a regional economic

organization that seeks to advance economic integration in West Africa (ECOWAS, 2023). The

West African Economic and Monetary Union (UEMOA), a regional association with the goal of

fostering economic and monetary cooperation among its member states, and ECOWAS are both

regional organizations that Ghana is a member of.

Both Senegal and Ghana have signed several free trade agreements (FTAs) and preferential trade

agreements (PTAs) with other countries and regions. For instance, Ghana has signed a PTA with

the European Union (EU) known as the Ghana-EU Interim Economic Partnership Agreement

(EPA).

16
Fig. 5 Trade Evolution Between the European Union and Ghana

Source: chromeextension://efaidnbmnnnibpcajpcglclefindmkaj/https://trade.ec.europa.eu/

doclib/docs/2020/october/tradoc_158987.pdf

The agreement aims to promote trade and investment between Ghana and the EU by removing

tariffs on most goods traded between the two regions. Similarly, Senegal has signed several

PTAs with other African countries, including the West African Economic Partnership Agreement

(EPA) and the Common Market for Eastern and Southern Africa (COMESA).

Senegal and Ghana both confront difficulties in fully utilizing the advantages of these

agreements, despite being WTO members and taking part in a number of regional and global

trade agreements. Lack of institutional and infrastructure capacity to carry out necessary reforms

and adhere to the rules and regulations of these agreements is one major obstacle (WTO, 2023).

17
Moreover, non-tariff obstacles to trade in both nations, such as onerous rules and administrative

procedures, still exist (World Bank, 2020).

4.1.2.2 Tariff and Non-tariff Barriers to Tarkett’s Potential Exports to Ghana and Senegal.

Taxes on imports that make them more expensive than domestic goods are referred to as tariff

barriers. The most often used tariff rates are between 5% and 20% in Ghana and Senegal. But

some goods—like processed foods and agricultural products—face higher tariffs of 20% to 35%

(World Bank, 2022). Tarkett should take these tariff rates into account when exporting to these

nations as they may have an effect on the business's profitability.

Tarkett could encounter non-tariff trade restrictions in addition to tariff barriers. Technical

obstacles such as product standards, labeling specifications, and licensing rules are among them.

Technical rules and standards have been implemented in both Ghana and Senegal to safeguard

customers and the environment. Before being allowed into the country, these restrictions could

require products to go through inspections and certification (WTO, 2022). To prevent any non-

tariff trade obstacles, Tarkett must make sure that their goods match the technical requirements

set by Ghana and Senegal.

4.1.2.3 Considerations on Foreign Direct Investment (FDI)

The World Bank's Doing Business report assigns rankings to nations based on a number of

factors, including how simple it is to obtain credit, register property, obtain electricity, protect

minority investors, pay taxes, conduct international trade, enforce contracts, and deal with

insolvency (World Bank, 2021). Ghana was ranked 118th out of 190 nations in the most recent

report, while Senegal was ranked 142nd (World Bank, 2021). According to these rankings,

18
Ghana has a slightly more advantageous investment climate than Senegal in terms of how simple

it is to conduct business.

The OECD Country Risk Report, on the other hand, assesses the financial, political, and

economic risks involved in making investments in various nations (OECD, 2021). According to

the research, Senegal has a high danger rating, whereas Ghana has a moderate risk rating

(OECD, 2021). These ratings imply that Senegal may present investors with greater risks than

Ghana.

Evaluations and insights on the investment climate and FDI considerations in various nations are

also offered by consultancy firms like PricewaterhouseCoopers, KPMG, and EY. For instance,

the opportunities and difficulties of investing in Africa are discussed in PwC's report on the

subject, which also discusses issues including political unrest, corruption, poor infrastructure,

and intricate rules (PWC, 2020). Investors that are considering making an investment in Ghana

or Senegal might use these insights to assist them decide.

4.1.2.4 Choice between Exports and FDI for Tarkett

For Tarkett, a number of considerations must be taken into account when considering whether to

pursue exports or foreign direct investment, including the degree of market integration,

transportation costs, trade obstacles, and investment risks (Ghemawat & Reiche, 2018).

If market integration between Ghana and Senegal and Tarkett's home nation of France is high,

exports might be a viable possibility. The gravity model of commerce predicts that nations with

greater economic ties and closer geographic linkages will trade more frequently (Helpman,

2008). Moreover, exporting can be a financially advantageous strategy for Tarkett to enter the

Ghanaian and Senegalese markets if transportation costs are low and trade obstacles like tariffs

19
and non-tariff barriers are modest. It's crucial to remember that non-tariff obstacles like difficult

customs processes, product standards, and rules could make it more difficult for Tarkett to sell its

products in these regions (UNCTAD, 2020).

If Tarkett wants to have a bigger presence in the markets of Ghana and Senegal, FDI would be a

preferable alternative. By FDI, Tarkett is able to create a physical presence in these areas, which

can make it easier to connect with local suppliers and consumers and to get around trade

restrictions and administrative barriers (UNCTAD, 2020). In addition, FDI can assist Tarkett in

utilizing local knowledge and skills to modify its goods and marketing plans in accordance with

regional market conditions (Ghemawat & Reiche, 2018). The risks associated with FDI,

especially those related to political unpredictability, economic volatility, and regulatory

uncertainty, must be understood (UNCTAD, 2020).

In light of these elements, Tarkett's entry into the Ghanaian and Senegalese markets may be best

accomplished through a combination of exports and FDI. In order to test the waters and gather

market intelligence, Tarkett can begin by exporting its goods to these markets. It can think about

establishing FDI to increase its market position in these markets once it has built up a clientele

and developed a deeper understanding of the local market circumstances.

4.1.3 Economic Factors

As Tarkett Sports, we examine economic development, stability, and exchange rate volatility

when deciding whether to export to or invest in Ghana and Senegal. Economic expansion plays a

crucial role in determining the prospective demand for our goods and services. A predictable and

supportive corporate environment that allows for better planning and operation is provided by

stable economic conditions, which is another important factor. Also, the volatility of exchange

20
rates should be taken into account because it may affect how profitable our operations in these

nations are.

We can use statistics like the expansion of the gross domestic product (GDP), population growth,

and income growth to evaluate the economic growth in Ghana and Senegal.

Fig. 6: The GDP of Ghana and Senegal at Constant Prices

Source:https://www.imf.org/en/Publications/WEO/weo-database/2021/October/weo-report?

c=652,722,&s=NGDP_R,NGDP,&sy=2019&ey=2026&ssm=0&scsm=1&scc=0&ssd=1&ssc=0

&sic=0&sort=country&ds=.&br=1

GDP growth is a key metric of economic health, and in 2020, Ghana's GDP (at constant prices)

rose by 0.4% and Senegal's GDP increased by 1.5%, according to the World Bank (World Bank,

2021). Ghana's population increased by 2.1% in 2020, whereas Senegal's population increased by

2.4% (World Bank, 2021). These indications point to increased populations and expanding

economies in both countries, which points to potential demand for our goods and services.

While examining economic indicators, stability is also essential. Political and economic unrest

may have a negative effect on our business activities there. Indicators like inflation,

unemployment, and political stability can be used to evaluate the stability of Ghana and Senegal.

21
Fig. 7: Inflation Rate in Ghana and Senegal for 2020

Source: https://data.worldbank.org/indicator/FP.CPI.TOTL.ZG?locations=SN-GH

Ghana had an inflation rate of 9.9% in 2020, while Senegal had an inflation rate of 2.5%,

according to the World Bank (World Bank, 2021). Ghana and Senegal are typically regarded as

stable democracies with relatively tranquil political settings in terms of their ability to maintain

political stability (Freedom House, 2021).

When exporting to or making investments in Ghana and Senegal, one must also take exchange

rate volatility into account. Pricing and revenue streams can be more secure with a steady

exchange rate. A fluctuating currency rate, however, might hurt profitability. We can examine

variables like exchange rate stability and the balance of trade to gauge exchange rate volatility.

22
The World Bank reports that while Senegal's exchange rate has experienced considerable

fluctuation, Ghana's exchange rate has been largely stable in recent years, with a modest fall in

2020 (World Bank, 2021). Both Ghana and Senegal have a negative trade balance, which

indicates that they import more than they export (World Bank, 2021).

Economic indicators that are interconnected include inflation, interest rates, and currency rates.

Two ideas help to explain the relationship between these indicators: the international Fisher

effect and the interest rate parity condition. According to the interest rate parity criterion, the

difference in interest rates between two nations must match the anticipated change in their

respective exchange rates. On the other hand, according to the international Fisher effect, the

variation in nominal interest rates between two nations is equal to the anticipated shift in the

exchange rate after inflation.

Examining the current economic climate and the monetary policies of Ghana and Senegal can

help us determine expectations for interest rates, inflation, and growth in the near future. Ghana

had an inflation rate of 9.9% in 2020, whereas Senegal had a rate of 2.5%, according to the

World Bank (2021). The central banks of both nations have set 8% inflation goals. Senegal's

central bank has maintained its policy rate at 2.5% since March 2020, while Ghana's central bank

reduced its policy rate to 14.5% in March 2021 (Trading Economics, 2021).

4.1.4 Cultural Factors

Due to their membership in the European Union, Germany and France both scored similarly on

the majority of the cultural characteristics. France ranks well on the power distance measure in

Hofstede's cultural dimensions, indicating that French society has a hierarchical structure.

23
Germany, on the other hand, has a low power distance index score, indicating that the

organizational structure is rather flat (Hofstede Insights, 2022).

Both France and Germany rank relatively low on the individualism scale as compared to

collectivism (Hofstede Insights, 2022), indicating that they place a high value on teamwork and

group cohesion. Both nations rank relatively high on the masculinity scale when compared to

femininity, which indicates that they favor aggressiveness, competitiveness, and achievement.

Ghana and Senegal, in contrast, have a lower power distance index score (Hofstede Insights,

2022), indicating a flatter organizational structure. They perform better on the collectivism scale,

indicating that they place more value on community and group harmony. Both Ghana and

Senegal rank lower on the masculine scale when compared to femininity (Hofstede Insights,

2022), a sign that their emphasis is more on relationships, quality of life, and caring for others.

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 SECTION 5: CONCLUSIONS AND RECOMMENDATIONS

Based on our findings, it is advised that Tarkett Sports think about using a combination of

exports and FDI to increase their presence in Ghana. With a stable political climate, improved

economic conditions, and rising demand for sports flooring, Ghana offers a comparatively

favorable business environment. The nation's participation in a number of trade agreements, such

as the African Continental Free Trade Area (AfCFTA), also makes it a desirable market for

exporters.

Even while Senegal has potential for Tarkett Sports, it is less advantageous than Ghana due to its

greater political and economic concerns as well as its relatively smaller market.

25
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