Microsoft Word - Document1 The most popular way for international expansion is for a local firm to acquire foreign companies. One...

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Microsoft Word - Document1 The most popular way for international expansion is for a local firm to acquire foreign companies. One  of the most benefits for international expansion is global distribution capability that helps expanding the  market share.  There are different implications of running a company that is within or outside of the European Union. If  you were the head of a firm based in the United States, please answer the following questions, providing  the rationale behind your answers in 6 pages:  1. Would you seek to acquire a company within the European Union or outside of it? Why?  a) Yes I want to acquire Deutsche Post DHL Group Germany (commonly referred to as  DHL).  b) Need a SWOT analysis on DHL as well please.    2. Describe the advantages and disadvantages of the choice you made.  3. Describe the advantages and disadvantages inherent in the option you did not choose.  4. Explain why an MNC may invest funds in a financial market outside its own country.  5. Explain why some financial institutions prefer to provide credit in financial markets outside their  own country.
Answered 3 days AfterJun 02, 2021

Answer To: Microsoft Word - Document1...

Neha answered on Jun 05 2021
142 Votes
Question 1
Expansion decision is a very critical design for any company. It either can lead to a great opportunity and a turn point for the company in a new market or can end the reputation in the very market. When it comes to expanding a US company in the European Union I
will not consider doing the same. Acquiring a company in the current scenario in the European Union does not seem to be a right decison. Following are the reasons for the same.
After corona, European Union has faced a lot of economy and financial slow down. IT is facing financial crisis. Expanding in the European Union in these scenarios may not be very profitable for the company. It may also end the reputation and future plans for the company in the area and market.
Due to economic and financial slowdown, Government is facing a lot of pressure. Due to this pressure there have been a lot of changes in the policies. The government is also facing a lot of unpredictability. Expanding in the market which itself is facing so much of issues won’t be a good decision.
To make a company work one needs assets. Since the European market is not very well. The assets of the company do not seem to be in a position where they are secured.
There are not just restrictions with regards to the assets and cash and bank transactions. But the operations are also something that cannot be conducted in the normal manner for the companies. This is probable to create a lot of unfavorable conditions for the business to work.
There are medical necessities and debt s being faced by the company. Hence, it is not advisable to expand in the European Union.
Deutsche Post DHL Group Germany SWOT Analysis:-
Deutsche Post is a operating in mail and logistics industry. Its major operations cover:
· express;
· global forwarding,
· freight; and
· Supply chain.
· ecommerce-parcel;
Deutsche Post was founded in 1490 and is headquartered in Germany.
    Strength
· Large Network
· Innovation
· Equity (Brand)
· Developing countries
· Financial
    Weakness
· Market Share
· Investment
· Dependency
· Regulatory
· Marketing
    Opportunities
· Emerging Markets
· Growth
· E-commerce
    Threats
· Competition
· Economic Slowdown
· Traditional
· Local competition
The company is present in around 200+ countries. The network helps the company for the kind of growth it has achieved. The company though was founded in 1490. It has made sure to walk with the technology. With research and development and various series to the customer, the company has been able to work even in the technology driven environment. The brand is valued at $6500 million. The other company has grown in various other countries and has been able to be successful in diverse environments and...
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