Answer To: You are assumed to be a Chief Financial Officer (CFO) of astock market-listed,domestic...
Prince answered on Dec 29 2022
2
Exploring Expansion into the United States: Melstacorp Plc's Corporate Objectives and Country Risk Analysis
Student Name
29th Dec 2022
Table of Contents
Executive Summary 3
About Melstacorp 4
Choosing United States of America as Foreign Country 7
Country Risk Determinants 9
Country Credit Ratings 11
Foreign Direct Investment 11
Conclusion 16
References 17
Executive Summary
Melstacorp is an established industry leader looking to expand its production and business operations into the United States. This report provides a summary of the key corporate objectives of Melstacorp, the internal and external stakeholders, and a thorough justification as to why the United States has been chosen as the ideal location for expansion. Furthermore, the report includes an in-depth discussion of country risk determinants and country credit ratings, as well as the FDI motives for the expansion into the United States.
Melstacorp Plc is a company with a long-standing global presence. The company has identified the United States as the ideal location for their expansion. The United States offers many advantages including a robust infrastructure, skilled labour force, favourable taxation policies, and a large consumer base. Furthermore, there are numerous opportunities for foreign direct investment (FDI) and the country’s credit rating is excellent. The company is motivated to expand into the United States primarily for market access, production potential, and repatriation of profits.
This report concludes that the United States is an ideal location for Melstacorp to expand into. With favourable conditions and a strong credit rating, the company can expect to have positive outcomes from the expansion. Furthermore, numerous FDI opportunities are available in the United States, making it an ideal choice for the company's expansion plans.
About Melstacorp
Melstacorp is a public listed company in Sri Lanka and it is one of the most important corporate entities in the country. The company is owned and managed by the government and operates a variety of businesses in areas such as telecommunications, power and energy, transportation, hospitality, and infrastructure, amongst others. The main objective of the company is to provide the best services and products to its customers and stakeholders (Melstacorp, 2022).
Melstacorp has been in existence for over two decades, and during this time, it has grown to become one of the leading corporate entities in Sri Lanka. As a public-listed company, Melstacorp has a fiduciary responsibility to its shareholders, and it is therefore important for the stakeholders and customers to understand the company’s objectives, the internal and external stakeholders involved in the business, the internal and external influences and pressures to which the company is exposed, and the way in which the corporate environment impacts on the company and its various operations.
Key objectives
The primary objective of Melstacorp is to offer its customers the best products and services in the market. This objective is achieved through a process of continuous improvement, where the company is constantly striving to provide the most reliable, cost-effective, and innovative products and services to its customers. In order to accomplish this, Melstacorp must focus on developing strong relationships with its customers, suppliers, and other stakeholders, while also investing in long-term relationships with new partners and markets.
Furthermore, Melstacorp seeks to provide a safe and secure working environment for its employees, customers and other stakeholders. The company has dedicated itself to providing a friendly and supportive work atmosphere, in which employees are given the opportunity to grow professionally and have their voices heard. This objective is realized through a variety of initiatives such as employee training and development, health and safety initiatives, and customer satisfaction initiatives (Melstacorp, 2022).
The company also seeks to be an active and responsible corporate citizen, and it works to ensure that its operations are undertaken in an environmentally-sustainable manner, and that it supports the local community and economy. Through its initiatives, Melstacorp seeks to make a significant contribution to the economy and society (Looise, 2005).
Stakeholders
The stakeholders of Melstacorp comprise of the government, its customers, suppliers, employees, and the local community. As a public-listed company, Melstacorp is owned by the government and is thus subject to laws, regulations, and other governmental policies. As such, the company must adhere to the legal and regulatory requirements governing its business activities, as well as its own internal corporate policies and procedures.
The customers are a key stakeholder group as they are the end-users of Melstacorp’s products and services. The company must ensure that its products and services meet customer requirements and expectations, in order to ensure customer satisfaction and loyalty. The suppliers are also important stakeholders as they provide the raw materials, components, and services required by Melstacorp in order to produce its products and services. Melstacorp must therefore focus on maintaining and developing strong relationships with its suppliers in order to ensure the availability of quality inputs for its operations.
The employees are one of the most important stakeholder groups for Melstacorp, as they are the people who make the company’s operations possible. The company must ensure that its employees are provided with a safe and secure working environment, where their voices are heard and they are able to develop professionally. Melstacorp must also ensure that it pays fair wages and provides benefits that are in line with industry standards.
Finally, Melstacorp is part of the local community and must therefore make a contribution to the development of the local economy and society. The company should strive to become an active and responsible corporate citizen, and it should be committed to environmental sustainability and to the development of the local community (Wijeratne, 2008).
External influences
As a public-listed company, Melstacorp is exposed to several external influences. As noted earlier, the company is owned by the government and is subject to laws and regulations, such as the Companies Act and other policies of the government. The company must therefore ensure that its activities comply with the relevant legal requirements (Mathews, 2017).
The company is also exposed to the global economic environment, which can have a significant impact on its operations. Political changes, economic downturns, and other global events can affect the company’s operations, and as such, it must be able to anticipate and respond to these changes. Finally, Melstacorp is also exposed to competitive pressures from other companies in the market. As a public-listed company, Melstacorp must strive to stay ahead of the competition and develop innovative methods of delivering its products and services.
Internal influences
In addition to the external influences discussed above, Melstacorp is also subject to several internal influences. The most significant of these influences is the corporate culture, which is formed by the values, beliefs, and attitudes of the employees and other stakeholders. The corporate culture shapes the way in which the company operates, and it is therefore important that...