This paper I am the senior vice president heading up implementation and strategy. The CEO of the bank in which gave me the title has asked me personally to start an investigation on the possible issues that may come about in the expansion of our domestic bank into international territories. The goal is to explain a few of the issues that warrant investigation including what we need to know in regards to the macro environment of the countries we are targeting for expansion. The questions I would present to the CEO in terms of the bank's overall strategy, future structure, implementation parameters, and controls will also be covered. The question of just how far the bank is willing to go on economic and social responsibility in the other locations will be asked, and the role and responsibility of management will be covered as well. In addition, the possible legal issues that may arise will be discussed and reasons for the interest of the CEO in expanding will be reviewed. A bank is different from a manufacturer when it comes to its international strategy and objectives for increased efficiency, managing risks, and learning to adapt, the reasons for this will also be discussed in this paper. In addition, possible sources of competitive advantage for a bank as opposed to a manufacturer will be covered as will the effect of foreign trade issues on profitability for a bank.
The macro environment of the countries of interest.
Whenever you are seeking to expand abroad, you must consider factors such as the overall attitude toward business the country has historically had and how hospitable they are to job creation. You should know what kind of economy the country is running on such as is it a free-market or centrally planned. It would also be advisable to know the country GDP and GNPP to properly gauge the buying power of those in your target market. Other considerations would include knowing the variances between your country's healthcare and education as well as the technology that will be available for the business once it is moved. You should know how well developed the country is and to what extent it has industrialized. The patterns of behavior throughout the country are also important on many levels from buying trends to political stability. They all will have an effect on your business.