Country Risk And Strategic Planning Essay

3498 words - 14 pages

The purpose of this paper is to inform the reader, of the American Cheese Company who has recently conducted a strategic risk analysis to determine how the company would handle some possible risks for the new global business venture. The research team for American Cheese Company on assessing the country of Ireland as well as other global business ventures reported these risk evaluations. Political systems have a huge impact on today's global business.The American Cheese Company, when considering global expansion must look at all government regulations and laws that must be met in the varied governments of the world market. The democratic society is where individuals who have a voice in making political policies a greater expression of freedom and operating other businesses in a democratic country. Totalitarianism on the other hand restricts the freedom of the citizens in their personal and business pursuits. Regardless of the political climate, many countries need legal systems to protect the rights of their citizenship and the infrastructure of the government. Legal systems and regulatory statutes can vary with each country and a company should make certain that the laws of that country protect patents, copyrights, trademarks and interests of that company. Companies must be advice on regulatory statutes such as environmental regulations, product safety and regulations on safety for their employees. The other risk that the American Cheese Company must take into consideration is the exchange of monies from one country to another.One of the risks is the unpredictability of the exchange rate because of fluctuating prices and inflation. Due to the unpredictability of the exchange rate many companies' initial investments could ultimately become more expensive adding adverse consequences to their profitability. "Many countries" put restrictions on convertibility of currencies such as the "ability of residents and nonresidents to convert the local currency into foreign currency, making international trade and investments more difficult" (International Business, 2004, pg. 21). Governments can allow residents and nonresidents to exchange unlimited amounts of currency, this is said to be freely convertible, and externally convertible allows for only nonresidents to convert currency without any limitations. Non convertibility restricts residents as well as nonresidents to convert to a foreign currency. The other risk factor the American Cheese Company should consider is the competitive risk in the global business strategy.When companies start operating in other countries assessing where their competition is and where their competition could come from are important factors before proceeding with their expansion plans. Will the products or service being brought to a new market be able to with stand other companies brining similar products and services into the same market? How much investment will be needed to make the company a success? Many companies sell...

Find Another Essay On Country Risk and Strategic Planning

Red Bull Inc and the Country Risk/Strategic Planning for Argentina

3652 words - 15 pages Expanding a product into a new market entitles a great deal of preparation, extensive planning, and a large amount of risk assessment. In a perfect world, the product would be introduced, sold, and become very profitable with little or no effort involved. Unfortunately, the real world functions much differently, and several different factors present themselves with a task of this nature. The following will discuss how Red Bull analyses the risks

Country Risk and Strategic Planning Analysis Outline

1574 words - 6 pages Comprehensive Environmental Analysis pg. PAGE 1 BrazilBrazil, the world's fifth largest country in geographical expanse and thelargest nation in Latin America, comprises slightly under half the land mass of the South American continent and shares a border with every South American country except Chile and Ecuador. The size of the continental United States excluding Alaska (Culture of Brazil, 2009).Regional Analysis Alliances:a. Mercosur

Political and Country Risk

688 words - 3 pages 2. Identify common financial factors for an MNC to consider when assessing country risk. Briefly elaborate on how each factor can affect the risk to the MNC. When considering assessing country risk, common financial factors such as interest rate, exchange rate, inflation, industry competition and industry growth are important elements that drive the country risk. Interest rate: as a fact the money could be spent or saved, when interest rates

Strategic Planning and Implementation

3326 words - 13 pages for effective use and integration of the strategic plan into library operations.Avoid using the strategic planning process as a bureaucratic measure; instead use it to encourage innovation and risk taking. Although some evaluative measure should be attached to virtually all initiatives, organizations can benefit from taking risks, even if they only learn from their mistakes. Therefore, care must be taken to establish a "safe" climate for

Strategic Management and Planning

846 words - 3 pages least amount of risk. Four Functions of Management Planning is the first function of the management process, as without effective planning one cannot effectively organize, control or lead the organization. Planning is used as a tool to help identify potential opportunities and threats as well as to reduce long-term risks. Planning is also used to more effectively establish goals and objectives for long-term success and ensure that the organization

Strategic Management and Planning

762 words - 3 pages This paper will discuss the strategy planning management must go through when opening up an insurance agency. It will identify the strategic plan and the critical information that must be defined and analyzed by management. It will then discuss the importance of a solid strategic management plan. Lastly, it will identify the four functions of management and explain how they are relative to creating and implementing a strategic management

Country Risk Analysis: India and Brazil

3098 words - 12 pages IntroductionWhen making the decision to invest in a foreign country there are several measures that need to be taken and perhaps the most important measure is the risk analysis. By conducting a risk analysis the investor is able to predict future cash flows and earning potentials as well as make smart investment decisions based on the country's current state. In this case the US based manufacturing firm is trying to decide whether to build

Risk Assessment and Planning in IT Projects

3600 words - 14 pages IntroductionThis report outlines risk management in general and considers risks within the early stages of a development lifecycle in relation to IT projects. Different Risk methods are analysed and then conclusions on risks within the early stages of a project are made. Planning within the context of IT projects is considered with reference to development models and hard and soft systems methodologies. Then criticisms of methodologies are

Chief Financial Officers and Strategic Planning

2356 words - 10 pages making money or losing it, he has to go through the different departments of the company that deal with the finances such as the sales, finance and accounting departments. Depending on the size of the company, the CFO will have varied scope of responsibilities and range of departments which he supervises to make sure that he will be able to give a transparent, precise and truthful report of the company’s financial status. Strategic planning is a

Is Strategic Planning and Information Systems Strategic Planning Relevant to all Organisations?

3664 words - 15 pages methodological preference (Robson, 1997). The above definition is an example of Porters stance on what a strategy is.Strategic planningStrategic management is concerned with deciding on strategy and planning on how that strategy is to be put in to effect via:·Strategic Analysis·Strategic Choice·Strategic executionThe above definition of strategic management is by Johnson and Scholes(1993) and essentially outlines that strategies are

Strategic Planning: Short-Term and Long-Term Goals

968 words - 4 pages Strategic health care management is becoming the primary focus as it is crucial to deal with today’s changing health care landscape. The increasingly growing competitiveness and challenging health care legislative mandate collaborative leadership approaches that synchronize and involve all stakeholders in strategic planning. This is particularly important when determining both long-term and short-term strategic goals. As an example of successful

Similar Essays

Country Risk And Strategic Planning Analysis

1775 words - 7 pages look at when considering taking ones business into another country. Learning the best way of how to manage these risks and having a strategic planning process is all necessary to thrive in Chile.ReferencesAgriculture Department. (). Corporate document repository. Retrieved March 31, 2007, from http://www.fao.org/docrep/W5973E/w5973e0b.htmBNET. (2003). Marketing Mix. Retrieved March 31, 2007 from http://jobfunctions.bnet.com/whitepaper.aspx?docid

Country Risk And Strategic Planning Analysis Paper

2896 words - 12 pages IntroductionSuccessful businesses venturing into foreign markets establish a Country Risk and Strategic Planning outline to ensure potential problems are addressed to prevent such failures. In our paper, we discuss the country risk analysis of Canada. We expect O2 Inc. to grow into a global business. O2 Inc. will offer fresh oxygen for customers to relax and help improve their health. The paper analyzes how we will break down risks for

Hanes, Country Risk And Strategic Planning

1693 words - 7 pages Economic and political risk for Hanes has always been a major factor in the international commerce based on the inescapable differences between policies, laws and customs of the governments in which business is being performed. Hanes, as an outsider going into a new market/country often faces lack of knowledge about the local market, the culture and often has to relay on outside sources to forecast. Hanes frequently characterizes the political

Country Risk And Strategic Planning Analysis Paper: Target

2136 words - 9 pages Many U.S. company's are looking to become part of the global market by either building in foreign countries or purchasing existing companies and then changing it to the U.S. company name. To do this the company must do an analysis of the risks involved in the chosen country and develop a strategic plan that will work for everyone involved as an acquisition progresses. This paper will look at the risks and assessment of Target, Inc opening a