Country risk and strategic planning essay

Eudokia Motor Sports Inc.

This approach is appropriate in helping the company recover the losses earned from its slowly growing brand and market share.

Get Full Essay Get access to this section to get all help you need with your essay and educational issues. It may also buy an existing motor firm in order to benefit from using the already established business network and readily developed brands J.

Choice of German Market The main rationale for having selected the German market was that it would serve as an easy access to the other neighboring countries in Western Europe coupled with the fact that the country has a growing population of affluent citizens who fancy sports cars.

This will help in increasing its market share which it really needs to stay in business. It boasts of the membership to the European Union. Other happenings such as terror attacks should also be noted and checked through preventive measures such as proper security system and insurance cover to mitigate in the event of such happenings.

Various risks such as political, exchange and repatriation of funds, competitive, taxation, distribution, environmental, social or cultural and technological risks have to be put into consideration and the necessary measures taken into consideration.

These brands command a large market share and existing brand loyalty. In this strategy, the firm may consider spreading its venture efforts into other new investment options.

One strategy is to buy stakes in traditional German firms and sell the Eudokia brand alongside those brands under a traditional firm. This increases room for market expansion for the product in future.

However, the goal of the company is to enter the market with a sports car specifically designed to meet the challenging roads and speeds of autobahns.

Country Risk and Strategic Planning Analysis Paper - Assignment Example

Given that Eudokia chose to produce locally in the German market as a direct investment, it has to expend with high initial costs such as capital in setting up the manufacturing plant as well as in other awareness creation strategies such as advertisements. It is evident from the above that a business potential exists in Germany specifically in the Automobile industry.

This involves a complete halt in all manufacturing activities in the host county. Eudokia should only resort to this strategy when all the other recovery or turnaround strategies have been exhausted. There is a great need to make the car brand to become as relevant as possible to the German market.

For example, the company may begin manufacturing car tyres for the Motor Sports Industry.

Country Risk and Strategic Planning Analysis Paper Essay Sample

Mergers, Acquisitions and corporate Restructuring. The mode of entry chosen which is Foreign Direct Investment FDI will also enable the firm to enjoy certain benefits such as tax subsidies. Germany is the largest economy in the region.

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Summary In real world, economies are known to be not perfect and the issue of competition has to be present and German market is. Country Risk and Strategic Planning Analysis Paper This paper will analyze the globalization process of opening a communications business in the country of.

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Country risk and strategic planning essay
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