Estimation of the size and the profitability based levels of France
The activities related to the expansion of business operations that are performed by the organizations vary from country to country. The organizations thereby aim at increasing the profitability and the revenues as well. The main aim of the organizations is thereby to increase the awareness based levels in various parts of the world. The investments that are made by the organizations based on expansion related plans also change according to the countries in which they plan to enter. The international is related to the ways by which the company is able to attract customers towards the operations and products (Boasson and Wettestad 2016).
The report will thereby be based on the analysis of expansion related plans that have been made by the Suncorp Bank which has its operations in Australia. The plans related to expansion of the company are related to three different countries which include, Brazil, Korea and France.
Suncorp Bank is an important part of Suncorp Group which has its head office in Brisbane, Australia. The bank has been able to grow its operations in an effective manner with the help of its services and has further acquired the position of the fifth biggest bank in Australia. The operations of the bank had started in the year 1916 with the name of State Accident Insurance Office. The name of the organization was further changed to State Government Insurance Office. This had led to the expansion of the operations into the life insurance based operations. The operations of the company and its growth had increased in an effective manner with the help of different mergers and acquisitions (Suncorp.com.au 2018).
The operations of Suncorp Bank had grown in a huge manner with the help of effective mergers that have been made by Suncorp Bank with two other organizations. A new brand of the organization was launched in the year 1999 which had further helped in the increase of revenues of Suncorp Bank.
The countries that have been considered for the analysis of expansion based plans of Suncorp Bank include, Brazil, Korea and Japan. The environment related to business in these countries will be analysed in the report in detail. The major part of the analysis based related to external factors is based on the financial industry of the countries.
France – The financial market of France is open in nature which is a major advantage based on the expansion related plans of Suncorp Bank in Australia. The lack which has been experienced in the different portfolio based investments in the country have attracted huge number of investments from all over the world. The French market is able to welcome foreign investors easily. The marketplace which has been developed in the country is an effective part of the external business environment (Naqshbandi and Jasimuddin 2018). The standards based international accounting have to be maintained by companies which operate in France.
Considering of the cultural aspects impacts the entry in France
Brazil – The market based on finance that has been developed in Brazil has proved to be quite promising in nature. The different scenarios which have thereby been developed in the financial industry of the country has also changed in last few years. The environment will play an important role in stimulating the growth of the organization in the country. The sector related to investment of Brazil is affected in a huge way by changes that have taken place in financial market (Marcon, de Medeiros and Ribeiro 2017).
Korea – The financial industry and market in Korea quite systematic and organized in nature. The money based markets that are systematic in nature are able to attract huge number of investments from different parts of the world. An important role is played by the direct markets for the organizations which operate in the country. The financial industry that operates in a direct manner is thereby able to affect the companies and financial intermediaries (Kim 2017).
The size of the French market is effective and modern in nature and its size has thereby started increasing in the last few years. The banking related system of France has shown huge levels of development within the year 2008 to 2009. The banks in France have started increasing their health and their assets have thereby amounted to 6.3 million Euros within 2015. The different foreign investors can access various financial instruments in France that include, medium term based facilities, short term based facilities and long term based facilities. The financial environment in France is thereby quite free in nature.
According to Boly, Morel and Camargo (2014), the company can thereby face huge challenges in the financial industry of France based on its operations. The significant challenge that will thereby be faced by Suncorp Bank in the market is related to the effects that have been experienced by France due to the implementation of Brexit. The modification that have occurred in the regulations of European Union will also be able to create major levels of issues for Suncorp Bank in France. The country has acquired 25th position in the world based on facilities that are provided by the country for establishment of new business based organizations (Alden and Aran 2016). Another major issue which can be faced by the company in France is based on the changes that have taken place in the laws.
The trade and investment based relationships of France have been quite strong with the United States. The development of the business based environment in the future is thereby totally based on the ways by which the country is able to welcome the new organizations. The levels of improvements that have thereby taken place in the business environment of France are important for the financial activities in the country. The future growth of the financial industry is expected to be quite high and this helps in attracting more organizations towards the country (Sheehan 2014). The various sectors that exist in France is able to affect levels of growth of France in the future. The major opportunity is thereby provided to an organization like Suncorp Bank from developments that have taken place in the financial sector of the country.
The French government has not been able to place any strict regulations on the ways by which foreign investors are able to operate in the country. The conversion of funds to French currency is thereby considered to be an easy process which is thereby followed by the organizations in an effective manner. Euro is the currency that is used in France and the investors who wish to invest their money in the country are able to convert the currency of their own country quite easily. Suncorp Bank will thereby not face any specific currency based restrictions while operating in France (Hueske, Endrikat and Guenther 2015).
The culture related to business in the country is developed in a unique way. The process of development of European Union is can have immense effects on proper formation of business culture in the country. The developed nature of the neighbouring countries of France are thereby able to affect the culture of the country and the business environment as well. The setting up of effective business related operations in the country is also considered to be an important part of the culture which is followed in France (Hossain and Kauranen 2016).
Financial markets that have been developed in Brazil has grown in the last few years in an effective manner. This growth is thereby related to the ways by which various international organizations are attracted towards the country. The amounts of surplus that are present in the country are also able to replace the shortages related to trade in the country in an effective way. The performance which has been depicted by the stock market of Brazil is considered to be a major factor behind the size of the market. The value of currency in the country is quite low which has been able to affect the profitability based levels (da Cruz et al. 2017).
According to Prajogo (2016), the different issues that can be faced by Suncorp Bank in Brazil are based on the ways by which the high levels of growth are depicted by the country. The high levels of corruption in the government has also proved to be a major issue that can be faced by Suncorp in Brazil. The risks relate to credits in the country are also quite high which is considered to be a major reason behind the huge risks. Brazil may also not be able to provide effective infrastructure for the growth of Suncorp Bank in an effective manner.
According to Galina, Carvalho and Costa (2016), the business environment in Brazil is highly complicated in nature and has been able to affect the ways by which international organizations operate in the country. The expectations are however based on the future growth and development of the business based environment of Brazil. Outsourcing related laws are also modified in an effective way so that the global companies can be attracted towards the country. The laws related to employment are also being improved in order to provide effective levels of support to the organizations. The development in the future that is expected in Brazil can thereby play a major role in the ways by which global organizations are able to operate in the country.
The regulations related to trade and policies of foreign exchange in Brazil is highly complicated in nature. The laws related payment of taxes is also considered to be an important factor which can affect the revenues of Suncorp Bank. The development of a supporting environment is considered to be highly important for expansion based plans that have been made by the bank. The other trade related laws in the country are thereby considered to be an important factor (Marcon, de Medeiros and Ribeiro 2017).
The aspects based on culture in Brazil is an important factor that can affect the various operations and parts of global organizations. The main aim of the companies is thereby to develop relationships that are friendly in nature. The people of the country are thereby capable of negotiating in an effective way that needs to be taken into consideration by Suncorp Bank. The levels of interaction which take place in the country are based on the hierarchical culture that has been implemented in the organizations (Sampaio and Costa 2016).
As discussed by Chung and Lee (2015), the number of policies that have been implemented in the financial market of Korea are huge. The size of the market has also started to increase with the effective developments that have taken place in the Korean economy. The steps based on liberalization that have been implemented in the country in an effective manner have played a major role in attracting different foreign investments. The process of stabilization of real estate market is considered to be an important part of the agenda that is followed by the government of Korea. The new regulations and policies which have been implemented in the country are thereby effective in attracting financial organizations like Suncorp Bank.
The different types of issues that are faced by the country are related to the effective levels of growth of Korea. Korea has started becoming a sandwich between the developed and the emerging countries in the world. The high levels of dependence of Korea on the United States and China is considered to be an important part of the environment that has been developed for business in the country. The economic stability of the country is thereby considered to be an important factor based on the effective levels of development of Suncorp Bank in Korea (Kim 2017).
According to Kang and Kang (2014), the country has depicted huge levels of growth in the last few years and is the economy is expected to grow further in an effective manner. The challenges that are thereby faced by the country are quite huge. The activities related to innovation in Korea can have major effects on the operations of global organizations like Suncorp Bank. The culture of the country is further able to provide effective levels of support to the new businesses or start-ups as well. Korea is also considered to be a major part of the Free Trade Agreement that is made with the US.
The investment activities have been liberalized in a huge manner in Korea with respect to different foreign exchange related controls in the country. The investments that are thereby made by the global organizations are based on various terms that are available under Foreign Capital Promotion Act. The rates of exchange in the country have started improving in the country in a huge manner. Suncorp Bank will thereby get the effective advantage of emerging financial sector of the country (Park and Hong 2016).
South Korea has been able to develop itself from an impoverished country to a huge developed economy. The culture that has been developed in the country is thereby important for attracting foreign investments towards Korea. The increase in levels of FDI has been able to play a major role in the effective development which is depicted by the country (Kim and Lee 2014). The attitude and culture that is depicted by people of Korea plays a major role in operations of different organizations in the country. Suncorp Bank needs to develop the culture in such a manner which will be helpful for the profitability of the organization (Choung, Hwang and Song 2014).
Conclusion
The analysis in the report can be concluded by proving that the factors that are based external environment can affect the expansion based plans made by global organizations. The different countries that are analysed in the discussion are able to provide different types of environment for the operations of the bank. The different policies and the culture of the countries can affect the ways by which Suncorp Bank is able to develop its operations.
Recommendations – Suncorp Bank can thereby be recommended that its operations and expansion can be highly successful in Korea and France. The stable conditions of the economy are thereby considered to be a major factor that can affect the operations of Suncorp Bank. However, the unstable conditions in Brazil are not quite suitable for expansion of the bank.
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Suncorp.com.au 2018. Banking. [online] Suncorp. Available at: https://www.suncorp.com.au/banking/ [Accessed 23 Sep. 2018].
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