MBA611 International Strategy Report Sample

Sample MBA611 International Strategy Report

Your task

Using the same company that you worked on in the first assessment, individually, you are required to prepare a 1200-word report in which you must identify possible strategies that companies can adopt when considering engaging with international markets. Please note that if you focus on any other company than the one your workshop facilitator provides, your submission will receive a grade of zero.

Assessment Description

The purpose of this assessment is to foster students’ ability to analyse strategic opportunities in an international context and developing skills for analysing the process of ethical decision making upon entry and operations into the international markets.

Assessment Instructions

To complete this assignment, you will have to use the same company you in the first assessment. This report must summarise the strategy you propose the company adopts in the country you’ve identified in the first assessment. The strategy needs to be developed to give the company and its product/service the best chance of success.

The strategy requires you to conduct in-depth research into the country that you have selected and collect information about the following:

a) The average pay rate for staff in entry-level and managerial roles in your chosen compay’s industry

b) The attitudes of local consumers or businesses towards international companies. You can identify this by reading a range of news articles or listening to podcast news about the country.

c) How easy or difficult it is to transfer funds to and from the country with particular emphasis on the ability to repatriate funds back to the home country (Australia)

d) Whether Australian banks have relationships or agreements with banks in that country

e) The number and timing of public holidays in that country or seasons where work may be slower than usual or disrupted.

f) The current GDP, interest rate and inflation rate in that country.

You are required to recommend one of the following strategies (choose one and justify it)

a) Opening a wholly-owned subsidiary of the company in the selected country

b) Buying a local comapny in the chosen country.

The report does not require an executive summary.

The word count does not include the cover sheet or reference list, or any tables you may use.

The assessment must be completed individually.

Please remember that you will need to cite the sources you used, so you are required to reference at least 8 sources of information. These may include corporate websites, government publications, industry reports, census data, journal articles, newspaper articles and textbook material. You must apply Kaplan Harvard Referencing Style to your in-text citations and your reference list in referencing sources.

Solution

Introduction

Strategic expansion can be termed as a synonym for a growth strategy of a firm that aims toward achieving higher success in the competing markets. Concerning this, the expansion strategy that might be adopted by Bendigo and Adelaide Bank in the New York, USA is a wholly own subsidiary strategy. In this context, the report summarizes in-depth research and the benefits of the stated strategy within the markets of the USA. For Assignment Help.

Average pay rate for staff in entry-level and managerial roles in the banking industry

At the entry-level, the average pay rate of a banking staff ranges between of $32,086 to $80,500 (Pay.scale.com, 2021). On the other hand, at entry level, it will be easier to get more customers in the US, and the percentage of loan taking in the USA is higher than the US. On the other hand, per capita income in the US is higher, so it will be more meaningful to expand business in the US rather than the UK.

Figure 1: Showing Average pay rate of a banking personal at the entry-level
(Source: Created by the Learner)

- Managerial Role

A manager in the banking industry is responsible for managing all the duties of the branch office including the hiring of new staff, marketing of banking services, approving loans, and establishing a rapport with the customers of the community. According to Sciencedirect.com (2021), the managerial role of a bank manager also includes developing new policies within the firm.

Attitudes of local consumers or businesses towards international companies

This has been stated by Newsroom. accenture.com (2021), that consumer ethnocentrism is mainly used by foreign companies to understand the attitude of the customer community toward foreign products or first. In terms of GDP ranking in the world, US comes at the first position, and the amount of FDI in the US is higher than the UK. Even per-capita income in the US is higher than the US, so for the US consumers are very comfortable with the foreign investors. Even the government of the US is also very foreign investment friendly, and almost 310000 Australian live in the US, so it will be a huge opportunity for the Australian bank to open their brand in the US (Embassy.gov.au, 2021). As every customer have a different perspective and choices thus service price or quality mix is studied by the customers before purchasing services. In the USA market, consumers prefer global brands due to the association of “high prestige” or because of the ‘elite’ class reflected by the products. However, as per the view of Newsroom. accenture.com (2021), the local brands have a negative attitude toward international companies due to the loss of consumers faced by the brands.

Easy or difficult it is to transfer funds to and from the country with particular emphasis on the ability to repatriate funds back to Australia

The international money transfer (IMT) services help in repatriating the funds from one country to the other using bank account to bank account transfers. As such kind of fund transformation directly allows in sending of cash thus help companies in repatriating funds back to the parent country (Westernunion.com, 2021).
Existing relationship or agreements with the bank in the USA

As per the reports, the governments between Australia and the United States are also connected and focusing on the banking terms they have not agreed to any of the relationships and agreements (Nemati et al. 2019, p 435). The Bendigo and Adelaide Bank in Australia is willing to make the expansion in the international market and that is why they have chosen the United States as in the analysis it has resulted that New York is a better option in exploring the financial business compared to London, the United Kingdom (Sinaga et al. 2018, p 2).

Timing and holidays in the USA with low work pressure

According to the reports and survey it has been seen that the United States has 11 public holidays and otherwise the people are very much efficient in terms of providing services. According to the analysis, 62% of the people in the United States are engaged in the private sector and that is why they have to work more except Sunday and Saturday (Iacoviello, and Navarro, 2019, p 232).

Current GDP, interest rate, and an inflation rate of the United States

Table 1: GDP growth rate
(Source: Iacoviello, and Navarro, 2019, p 232)

In the year 2019, the GDP rate of the country was 2.16%, after the counts get hit by the Covid 19 the GDP rate has been -3.51% and in this year the government has worked very hard on their business functions and operations to make the GDP rate 6.39%. Every investor looks for a stable market with stable economic condition, that is why US has been selected over the UK, as it is more stable in terms of the economic conditions.

Figure 2: Inflation Rate graph
(Source: Tidwell, 2017, p 184)

The interest rate is also changing with the time in the banks of the United States and focusing on that it has been analyzing that a 1.50% interest rate is currently provided by the banks (Tidwell, 2017, p 184).

Recommendation

As the US will be the new market, according to the Theory of Marketing 7Ps, it is very necessary to analyse the local market. So the buying one or more than one small companies will be more beneficial for the Australian bank. It is very required to analyse the external market, and information about the consumer behaviour, and about the consumer demand can be extracted from the small companies, and their business network can be utilized in proper way. On the other hand, opening a subsidiaries company or companies will be more costly for the Bendigo and Adelaide Bank Limited. In the geo-political equation Australia is one of the ally countries of the USA. That is why, the cooperation between this two countries has become so close, and so many USA companies are entering Australian market, and Australian companies are also getting the opportunities to enter the US market. In the US there is a heavy industry and is contributing a big part in the GDP of the country, so the opportunities in the US is wider and more open.

As a recommendation, it also can be said that Bendigo and Adelaide Bank Limited will be able to utilize this expansion as a strategic decision to spread over the whole North America continent. On the other the presence in the New York will also help them to reach to the farthest point of the US, so selection of the location will also provide them so many benefits over the competitors. A large percentage of the US population work in the private industries, so Bendigo and Adelaide Bank Limited needs to tie up with private industries by offering healthy interest percentage for the salary account and for savings account. Bendigo and Adelaide Bank Limited needs to target those students coming every year in the US for study and for research purpose, they will be very easy clicking customers, so the market analysis for Bendigo and Adelaide Bank Limited and strategic decision making will be very crucial pat here.

Conclusion

From the above discussion, it can be concluded in this report that the average pay rate of the banking staff at the entry-level is quite decent and attractive for new employment. As the bank managers are responsible for hiring effective staff thus have the responsibility of fixing the salary of the employees. Further, it can be concluded that consumer ethnocentrism helps to study their behaviour in the markets. Lastly, it can be concluded in this report that the USA has banking agreements with Australian banks that help in transferring companies’ funds to the home country.

References

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Sample MBA611 International Strategy Report

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