StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Finance International Expansion - Essay Example

Cite this document
Summary
The decision to expand abroad is one of the most important strategic events in the growth and development of your company. It is critical, therefore, that we take a balanced view of the benefits and risks associated with international expansion before taking our first steps abroad.
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER92.6% of users find it useful
Finance International Expansion
Read Text Preview

Extract of sample "Finance International Expansion"

Download file to see previous pages

Major differences exist in the economic, political, socio-cultural, technology, competitive and financial environments of different countries. These need to be taken into account in planning the overseas expansion. Expansion decision has to be made after proper consideration of all strategic and operational issues arising from within international milleu. Decisions need to be made concerning a wider range of both Strategic and Operational Issues. Key Strategic Issues that need to be addressed include assessing our company's readiness to internationalise which includes the suitability of your product or service for overseas markets and the extent of local adaptation required; choosing the most attractive foreign market(s) and the best entry strategy to adopt; international pricing, distribution and promotion strategies; organising and controlling our overseas activities.

Operational issues include export paperwork and documentation; legal and financial issues; finding and managing overseas partners and so on and are ultimately transferrable into financial and legal consultancy fees and travel expenses. Whether the company intend operating through agents/distributors or establish its own overseas sales subsidiary, the burden of control-related activities and costs is heavier than at home making it much more difficult to monitor and control overseas activities.

There are significant financial risks associated with doing business abroad, including the risk of higher indebtness, risk of not getting paid at all and currency fluctuations-related risks. Further, when going international we will need to be sensitive and empathetic to the local political and cultural environments of different countries. That entails higher management and consultancy costs and will unltimately produce to elevation of cross-cultural and political analysis to the level of decision making tool.

The competitive environment may be quite different from what we are used to at home. In whole, as a consequence of the above, international marketing is more costly and time consuming than domestic marketing and you will need to take a long-term view to achieve sustained profitability. The Barriers US Computer Systems companies, especially medium sized enterprises, face a number of barriers or obstacles when going international. These may include: Psychological Barriers including lack of international/global orientation; short-termism; product or technology rather than customer led 'mindset'; lack of commitment to international markets; exporting seen as 'too risky', 'not for us' or 'too much trouble'; the 'fear factor'.

Organisational Barriers including limited resources (financial and managerial); lack of knowledge of foreign markets; lack of international experience; lack of formal training in international marketing; problems in finding suitable overseas partners; ability to compete away from home.Operational Barriers relating to export documentation and paperwork; language problems; payment delays and risks etc.Product/Market Barriers in the sense of overseas market demand particularities, i.e. that product or service may not be suitable for overseas markets without major and costly adaptation; the product or service may not have a unique competitive advantage abroad; further, problems in

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Finance International Expansion Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Finance International Expansion Essay Example | Topics and Well Written Essays - 1000 words. Retrieved from https://studentshare.org/business/1501018-finance-international-expansion
(Finance International Expansion Essay Example | Topics and Well Written Essays - 1000 Words)
Finance International Expansion Essay Example | Topics and Well Written Essays - 1000 Words. https://studentshare.org/business/1501018-finance-international-expansion.
“Finance International Expansion Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/business/1501018-finance-international-expansion.
  • Cited: 0 times

CHECK THESE SAMPLES OF Finance International Expansion

Panama Canal expansion

This report highlights some of the areas that have been considered since the decision to embark on Panama Canal expansion Program was made.... Risk mitigation, high-level risks and insurances and procurement policies followed in carrying out the Panama expansion project.... This report takes an in-depth assessment of the expansion of the Panama Canal which is one of the busiest waterways internationally.... Panama expansion project is also of key interest given that it plays a critical role in maritime trade and brings together international concerns....
12 Pages (3000 words) Essay

Abercrombie and Fitch Entry into the Brazilian Market

International Market expansion: A Case Study of Abercrombie & Fitch Entry into the Brazilian Market Name Institution International Market expansion International Market expansion: A Case Study of Abercrombie & Fitch Entry into the Brazilian Market Introduction Getting into the international market or expanding to other markets in the global economic spectrum is never an easy task for businesses....
6 Pages (1500 words) Research Paper

Corporate Financial Management

Vodafone Group is a British international telecommunications corporation with the headquarters situated in London.... Vodafone Group is a British international telecommunications corporation with the headquarters situated in London.... The corporation also has its enlisted administrative centre in Newbury, Berkshire....
6 Pages (1500 words) Essay

International Expansion of Burger King into France

The author of the present case study "international expansion of Burger King into France" puts forward information for making a decision on new structured implantation of Burger King in France.... The PESTLEmodel allows us to more rapidly adapt to the realities of this market....
9 Pages (2250 words) Case Study

Social Entrepreneurship in the UK

However, the expansion of social enterprises is hindered by financial problems.... The paper "Social Entrepreneurship in the UK" discusses that to assist the social enterprises to generate more revenue and improve the UK social sectors, the Social finance pays the social organizations such as Peterborough prisons that reduce the number of reconvictions by 7.... hellip; To mitigate financial problems, crowdfunding has been adopted as one of the avenues of raising capital, debt and equity finance as well as seeking donations....
1 Pages (250 words) Essay

The Finance Director in Tesco Public Limited Company

During 2005, Tesco Plc's finance Director was Andrew Higginson (Cullen, 2009).... The finance director's primary functions include reducing the financial risks of the company's daily… The other titles of the finance director include Chief Financial Officer and Chief Financial and Operating Officer.... In the United Kingdom, the term finance Director is the more popular term used.... The finance director must contribute to the attainment The finance director, especially Tesco Plc's finance director, has other functions (Brealey, 2011)....
6 Pages (1500 words) Essay

Choice of Appropriate Business Financing for Tesco

Tesco plc is an international grocery and retail chain.... The vision is to be the leading international grocery and retail chain.... This is because finance enables the company to buy and sell stocks of various goods as needed.... There are various sources of finance.... According to (Fields 292) the first source of finance is shareholder contribution.... A company that seeks finance may sell its shares to the public through the initial public offers....
9 Pages (2250 words) Case Study

Health Care Finance in Saudi Arabia

In the paper “Health Care finance in Saudi Arabia” the author analyzes the role of civil charities in Saudi Arabia, which is being enhanced by the government.... hellip; The author states that the government's finance to the health faculty is complemented by finances from civil charity organizations.... The collaboration is mainly advocated for at the subnational level because local governments are in need of an extra source of finance....
7 Pages (1750 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us