Smack That Ass like a Pro Mam

Abstract

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.

Questions to the CEO

Pertinent questions to be asked include the following:

What strategy should be taken throughout the expansion effort? What business structure is to be used (i.e. functional based business etc.)? What are the implementation parameters and controls? It should be predetermined to what extent the company will make a commitment to social and economic responsibilities in the new location. A clear picture of what is to be expected from the management that is to be put in place should also be determined prior to actual implementation. Roles and responsibilities should be carefully laid out and policies should be created to guide the efforts of the management team. Concise procedures will be key here as will a good form of managerial accounting to enforce them.

Legal issues.

No matter the actual type of business that is seeking to expand internationally, they all must still follow and abide by the regulations, laws, and bureaucracy currently in place in the country they are targeting for their expansion. This also applies to the US and other countries of a capitalist nature. Certain legal issues will arise as a result of the expansion such as the compliance with restrictions the country's government has placed on the banking industry. Some countries restrict the use of assets that are vital to a business such as the use of buildings by foreigners. Another legal issue would be to make sure that all applicable licenses are granted and