The Great Lakes Energy Company’s Business in Rwanda
With the expanding ramified financial changes and growing utilization of business on global level, various organizations have been enhancing their business on international level. These levels of international business have increased the overall foreign direct investment and direct arrangement by organization in the international financial market. The FDI can be put resources into vitality, tourism and new innovation. In this essay, The Great Lakes Energy company has been undertaken to make effective use of resources on domestic an international level. There are a few nations who have utilized these FDI strategies reinforce their remote trade and esteeming their cash supply adequately.
The FDI in Rwanda has been increasing throughout the time. It is evaluated that The Great Lakes Energy company has entered into strategic alliance with other organizations to establish its business units in Rwanda. There are others numerous huge organizations, for example, GE capital, Wesfarmers, BHP Billiton and Coal that have taken their business international in Rwanda. With a view to grow their business around the world, the remote financial specialist who needs to put resources into the nation can contribute as much sum they need to put resources into specific organization. There are several internal and external factors which The Great Lakes Energy Company faced when they take their business on international level in Special economic zone of Rwanda such as international policies, tariff and traits and social and cultural challenges.
After evaluating the various secondary data it is endeavored The Great Lakes Energy company has faced various internal and external factors while taking their business on international level. In addition to this, the media transmission, vitality and tourism are those segments which exceptionally created time to time development rate of this continually in high position in international business functioning The Great Lakes Energy company has constantly built up its segment of business enterprises in Rwanda and furthermore enhance their business chain activities on international level. However, while taking it business on international level, it has faced various internal and external issues which are given as below (Epstein and Buhovac, 2014).
The Great Lakes Energy company has shown that company has faced high amount of problems while changing its value chain activities while customizing its products and services. The Great Lakes Energy company has to install new cyber computing enterprises resources planning to establish effective communication. The Great Lakes Energy company has to infuse high capital in its business to manage the business in determined approach. It has to change its organizational culture and policies to improve its production level by adopting new rules regulation. The main rivals of The Great Lakes Energy company is GE capital and LG in Rwanda who operate their international business. The main challenge would be related to organization value, belief and culture with the changed business environment.
The Energy lack company has to adopt new financial budgetary system to reduce its external tax implication. However, the policies and program reduces its tax payment by entering into double taxation avoidance agreement with the Rwanda government. However, The Great Lakes Energy company has followed the accounting and reporting policies while reporting its consolidated financial statement with the reporting authority.
Internal and External Factors Faced by The Great Lakes Energy Company on International Level
The improvement development of the numerous advancements sheets of The Great Lakes Energy company is set up on international level is done by undertaking strategic alliance with other organizations in Rwanda. These sorts of board of The Great Lakes Energy company give the better chance to the financial specialist. There might be a few obstacles or troubles in understanding the strategy outside direct investment plans and organizational strategy in Rwanda which is followed The great energy lack company to increase the international market share (Cui, Griffith and Cavusgil, 2013). It has shown that the great energy lack company has adopted effective international organizational practice (Johnson, 2017). For instance, CSR practice of The Great Lakes Energy Company on international has been designed in way to provide best benefits to society and environment in Rwanda. In addition to this, company has also followed proper suitability policies and rules to after investing in the special economic zones of Rwanda. Sustainability policies and theory adopted by The Great Lakes Energy Company not only consider the use of scarcity of resource in effective manner but also cover all the triple bottom line factors of Rwanda. The Great Lakes Energy company on international level has inclined towards the following comprehend procedure of remote direct speculation for injecting its capital to develop its business in Rwanda special economic zones. These activities may help the financial specialist of organization to teach himself international business perspective. The enthusiasm of business in other nation to extend the business or making great benefit may lead business enterprises to outside direct venture or establishment of strategic alliance. The more extensive advantage which The Great Lakes Energy company are getting from international business would be related to foreign direct investment or grasping international investors (Zahra, Newey and Li, 2014).
Foreign direct investment is the amount of money invested by external investors in particular country. There are many advances are taken by the legislature to enhance the venture strategy in the nation. There ought to be some obligation forces to the enterprises which can lead their business to wrong route or on unlawful way (Morschett, Schramm-Klein and Zentes, 2015). The examination by the administration on the working of the outside organization ought to be refreshed time to time. This sort of activity can give better usage of Foreign Direct Investment in Rwanda. The financial development of The Great Lakes Energy company could give the advantage of remote direct speculation its FDI in Rwanda. The financial specialist of The Great Lakes Energy company puts resources into the Rwanda business units by entering into strategic alliance with the distributors and other rivals in market (Wild, Wild, and Han, 2014). It is evaluated that if The great energy lack company could raise FDI from the market then it will not only increase the brand image of company but also increase the overall sustainability of business.
It is evaluated that manager of The Great Lakes Energy company needs to evaluate the strategic compliance of company and alliance with the business organizations in Rwanda. The GDP of Rwanda has increased by 20% since last average five years. In addition to this, investment in Rwanda will not only increase the overall capital value but also increase the value of stakeholders. The Great Lakes Energy company has undertaken this strategy to increase the overall capital value of its investment.
International Organizational Practices Adopted by The Great Lakes Energy Company
Management department of The Great Lakes Energy Company has evaluated all the internal and external factors of business on international level. Company has adopted international policies such as double taxation avoidance agreement, strategic alliance and board regulations of Rwanda to increase the overall capital of company. Company has adopted cyber computing enterprises resources planning in its value chain activities to increase the communication effectiveness and adopt automation in its business (Hill, 2008).
The Great Lakes Energy company board assumes a critical part with respect to the outside speculation strategy in the nation of Rwanda. The good thing of arrangements of the great energy lack company is that there is equivalent treatment for every one of the organizations and no arrangement of prejudice is going in the improvement board after entering into strategic alliance with other organizations. The ordinary required endorsement must be benefit and the specific testament in regards to such endorsement gave to the financial managers to increase the productivity of company on international level of business units set in Rwanda for exports and imports. This sort of approaches and controls of The Great Lakes Energy company is made for the development of the global business extension. There is no hard contrast in treatment amongst outside and local organization aside from beginning funding to enroll the business. The outside trade strategy of The Great Lakes Energy Company is additionally created to the remote direct venture on international level. There is numerous trade support exchange offices are accessible like Western Union which give the better and minimal effort office of reserve exchange to The great energy lack company to promote its business in Rwanda. Company could also undertake installments and business values that likewise exchange and can be dispatched through calendar business banks. FDI policies and investment proposal of company has expanded because of expanded business working on international level and customization of its products and services as per the client’s requirements and needs.
Now in the end, it could be inferred that management department of company needs to undertake all the international management practice to maintain effective business on international level. There are various issues such as ethical consideration, cultural program and international business problem. These issues could be mitigated by board of directors by undertaking effective strategic program such as strategic alliance and developing international market leadership while operating its business on Rwanda.
References
Cui, A.S., Griffith, D.A. and Cavusgil, S.T., 2013, May. The influence of competitive intensity and market dynamism on knowledge management capabilities of multinational corporation subsidiaries. American Marketing Association.
Epstein, M.J. and Buhovac, A.R., 2014. Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Berrett-Koehler Publishers
Falkner, R., 2017. Business power and conflict in international environmental politics. Springer.
Hill, C., 2008. International business: Competing in the global market place. Strategic Direction, 24(9).
Johnson, G., 2017. Exploring strategy: text and cases. Pearson.
Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. Strategic international management. Springer.
Wild, J.J., Wild, K.L. and Han, J.C., 2014. International business. Pearson Education Limited.
Zahra, S.A., Newey, L.R. and Li, Y., 2014. On the frontiers: The implications of social entrepreneurship for international entrepreneurship. Entrepreneurship Theory and Practice, 38(1), pp.137-158.
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