Murray National Bank – Strategy and Implementation
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Murray National Bank – Strategy and Implementation
As senior vice president in charge of strategy and implementation, it is my duty to investigate the issues or obstacles involved in expanding our current domestic bank into an international bank. Some of the issues that I will investigate include environmental and legal issues, competition, and the overall aspects of foreign trade.
Macro Environment
No matter what country our institution would venture to do business in, the first order of business is to assess the macro environment. The macro environment consists of all the functions and sources it takes to be an international success.(Phatak, Bhagat, & Kashlak, 2009) I would investigate how the country was run as far as its political stance, economic positioning, land development opportunities, and societal persuasion. It would be useless to try to incorporate an international organization where we did not have the stable infrastructure in place needed to run an optimum level organization.
Banks Strategy, Future Structure, Implementation Parameters, and Controls
Further research would involve finding out what our institutions overall strategy, future structure, implementation parameters, and controls would be. After conversing with the CEO, I might find that the potential for profitability, growth, or transfer of skill and knowledge exists in the pursuit of doing business internationally. I then might find out what value our organization would create for the international country as well as our own entity. The CEO would have to decide if we would be a full service bank or offer services such as a call center. Also, decisions would have to be made on the percentage of International workers able to work within our organization.
The role and responsibility of management when it comes to international business practice can be quite overwhelming. Control of operations in relation to the regional laws and policies, often referred to as global management, requires individuals very knowledgeable and quite experienced in international law. (Gitachu, 1999-2012) Management is responsible for areas such as human resources, finances, accounting, competition, and the implementation of the global strategy.
Legal Issues
When operating an international business, various legal issues may arise. Some legal issues may include trade regulations, employment, termination, and management or marketing of a financial matter. Another issue may include bribery, which may be common practice in various countries.
Expanding Overseas
The CEO of our financial institution would be interested in expanding overseas especially if the U.S. market had become saturated. Expanding internationally would allow growth and profitability to our organization. It would allow for a more competitive market, and allow transference of skills and knowledge between countries.
Differences Between Banking and Manufacturing in Relation to International Strategy and Objectives for Increased Efficiency, Managing Risks, and Learning to Adapt.
There are several differences in the banking industry versus manufacturing industry in relation to international business. Manufacturing would have to deal with factors of transportation such as importing and exporting raw materials and or complete product. Product pricing, high tariffs, and or trade blocs are among the various obstacles that manufacturers would have to overcome. Another factor happens to deal with currency. Currency risk, the possibility of an adverse exchange rate movement, can hurt a domestic company if contracts are not negotiated