BUSINESS REPORT 10
1
Title
Subtitle
Student’s name
University
Instructor
Location
Date
Contents
1.0 Covering letter 3
2.0 Title 4
3.0 Executive summary 5
4.0 Introduction 6
5.0 Findings 7
6.0 Recommendations 7
7.0 Conclusions 8
8.0 References 9
1.0 Covering letter
The company has seen stagnation in business in recent months, and the necessity of the report is as a result of this and the fact that some enterprises associated with the company want services to be offered out the country (Summers 2016.). It is also an expansion strategy to diversify the reach of the company, making it open retail centers where business can seek services from the company. The report is to present how the company can open retail centers in China. As a result, increase the company revenue. It also seeks to find the best ways to expand the company in the local market and mitigate the losses that have been experienced with the company trying to grow in which the company to some extent experienced lost when companies that were doing business with it ceased to operate without paying for services. Assistance will be needed from the board of directors in approving financing of the project to see it implemented and its fruition. In the future, the company will have to diversify its expansion and seek to open a business in other countries apart from China and also do an analysis to accurately identify the gaps that have been left out in making the company a global brand to lower the risk involved in expanding the business to such scales.
2.0 Title
The project is about the expansion of operations in China through the opening of retail centers where businesses can seek services from the company. It is necessitated by the fact that Chinese and other local companies that operate in China are trying to get services from the company and it is only an excellent strategic move to expand the company’s reach to China. The report will be completed on 13/6/2019 and submitted on the same date. The story is prepared by the CEO seeking to expand the business by addressing the issue the company has been dealing with for some time without success in the area.
3.0 Executive summary
The company is a multinational business which offers financial services business. The company was founded in the United Kingdom in the late 80s, and it specializes in the production of insurance services, trade finance, and services that include; consultative services for companies involved in trading of global commodities. The business does not have retail customers it mainly operates from business to business in that the consulting services it offers are offered by the parent company and it does not have an established retail network where businesses that are not able to access its parent location can come to seek services(Grewal 2017). The goal of the company is to address this problem by exploring ways in which it can set up retail centers, especially in China, where there are producers, buyers, and sellers of commodities.
The Chinese market is vast, and there are a lot of businesses that have been set up there, and as an expansion strategy, the company seeks to open a branch in China and to effectively penetrate the market the company will set up a business where there are producers, sellers, and buyers in large proportions (Ma 2017). It the company will be able to do this then it will have achieved its expansion strategy and o the right track to creating a retail chain to boost the returns of the company. The goal is also to mitigate the risks that have been experienced in the past when the company tried to expand, especially in the.US and the success of the venture in China will hence be implemented in other areas where the business intends to set up retail centers to offer advice to the local community. The company seeks funds to see the venture success through implementation of the strategic business plan necessitated by the developments of the recent past where companies based in Australia have asked for the services of the company for its commodities producer who is mainly in China. Chinese buyers in the London Market has also asked for the services of the company to be rendered to its local businesses who export to China. Similarly, Chinese buyers in its local markets.
4.0 Introduction
The basis of the report is to expand the financial services reach of the company the subject area of performing its business. The company has identified a weakness in its operations spanning the scope of its operations and the necessity of opening retail centers where local markets can be tapped (Moeuf 2016). It has also been due to an increase in uptake of its services from outside countries, and the company has decided to venture into this field starting with the Chinese market to establish a retail chain in the country. The problem is to address the issue of retail centers locally and internationally to address the issue of inadequacy in retail centers and reduce the business to business approach to further tap into the market (Porter 2019). The report resolves the problem the company has had with opening up new centers for business and an analysis of what impact they will bring on the overall return of the market.
The analysis was done around the United Kingdom, and it was established that some companies that had affiliate businesses in China wanted the company to work with their respective companies in the country (Storey 2016). The assumption is that the reception of the company services in China will be above average because of the upper hand recommendations from some of the Chinese companies and London based companies that were ready to work with the company. The limitation of the report is the scope of implementation because the aim is to expand the business globally, but the focus is only in China starting mainly with the companies that had agreed to conduct business with our company.
5.0 Findings
The information gathered after much research is that China is a long- term, global-scale market (Leavy 2016). You also feel that to compete and be taken seriously, you need to be there physically, and culturally this is by setting up a business in the country to tap into the massive market and also because the state has many industries operating and making products on behalf of other companies around the world. It will be an ideal destination for long term business partnership due to a large number of potential customers that exist in the country (Ambler 2016). The estimate the new business will turn over £150 million per annum with net profits at £48 million, and profits, after tax, are £31 million (Frey 2017). The capital requirement for the expansion is in the region of £60 million. Over the past years, the company has seen business stagnate. Many instances have seen companies from Australia ask for services to be provided to Australian commodity business who export to China. There have also been Chinese buyers from London, who asked the company to provide services to its local markets(Fernandez 2016). These findings necessitate the availability of a retail chain for the company because it will boost the earnings of the company.
6.0 Recommendations
Business has been stagnant in the recent times for the company because most of the clients of the company are U.K based and account for 85% of the company’s turn over, In light of the business stagnation the right channel is to open the centers in China to boost the company’s profits (Snow 2017).
As observed, the company does not have a retailer service, and it is something that is in demand, and it is essential to review the business to the business module to embrace the retail idea as it adds revenue for the company. Globalization of the business starting with China will also help boost revenues and extend the grip on the market globally.
The company should also diversify its investment portfolio (Revelli, 2017).
7.0 Conclusions
The finding which indicates the percentage in revenue that the company will get if it decides to invest in the Chinese market shows that it is a wise move to invest their given there has been a stagnation in business for some time. The findings also justify why China will be an ideal destination to open the market because of the projected returns.
8.0 References
Summers, L.H., 2016. The age of secular stagnation: What it is and what to do about it. Foreign Aff., 95, p.2.
Ma, S., 2017. The efficiency of China’s stock market. Routledge.
Moeuf, A., Tamayo, S., Lamouri, S., Pellerin, R. and Lelievre, A., 2016. Strengths and weaknesses of small and medium sized enterprises regarding the implementation of lean manufacturing. IFAC-PapersOnLine, 49(12), pp.71-76.
Storey, D.J., 2016. Understanding the small business sector. Routledge.
Leavy, B., 2016. The next wave of global disruption and the role of China’s entrepreneurs. Strategy & Leadership, 44(3), pp.27-37.
Frey, C.B. and Osborne, M.A., 2017. The future of employment: how susceptible are jobs to computerisation?. Technological forecasting and social change, 114, pp.254-280.
Grewal, D., Roggeveen, A.L. and Nordfält, J., 2017. The future of retailing. Journal of Retailing, 93(1), pp.1-6.
Ambler, T., Witzel, M. and Xi, C., 2016. Doing business in China. Routledge.
Fernandez, R., Hofman, A. and Aalbers, M.B., 2016. London and New York as a safe deposit box for the transnational wealth elite. Environment and Planning A: Economy and Space, 48(12), pp.2443-2461.
Revelli, C., 2017. Socially responsible investing (SRI): From mainstream to margin?. Research in International Business and Finance, 39, pp.711-717.
Snow, E., 2017. Red star over China: The classic account of the birth of Chinese communism. Atlantic Books.
Porter, M.E. and Kramer, M.R., 2019. Creating shared value. In Managing sustainable business (pp. 323-346). Springer, Dordrecht.