Case Assignment: Bertos Manufacturing Corporation
Question 1 Identify the key criteria and considerations that need to be taken into account in evaluating BFSI entry in the proposed foreign markets.
In this case, Bertos Financial Services Inc. seeks to expand abroad via the direct investment to support the sales of the company. The investment in the foreign market for Bertos Manufacturing Corporation supports the company in the three foreign subsidiaries. The foreign direct investment enables the strategy of internalization by integrating the competitive positioning in light of the value chain in the company. One of the considerations while evaluating the BFSI entry into the prospective foreign market is the foreign subsidiaries in Mexico, the United Kingdom, and Canada. On the same note, the selection criterion used a pool of ten countries to determine the ones that are suitable for the proposed BFSI subsidiary. Victoria oversees the project that identifies the requirements and considerations for evaluating the BFSI entry into the proposed foreign market. While assessing the BFSI entry into the proposed foreign market, the company considers the structure of its internal operations to align with the subsidiary organizational form. The banking regulations and structure, customer profile, as well as the tax considerations, constitute some of the key criteria taken into account in the evaluation of BFSI entry into the proposed foreign markets. The other critical considerations include trade balance, payment balance, foreign reserves, and the primary source of exports based on the exposition to political risks for Bertos Manufacturing Corporation. Most importantly, the evaluation should discuss the risks involved in financing terrorism as well as money laundering to highlight the failures of financial institutions as BFSI enters the proposed foreign markets.