Global Business1

GLOBAL BUSINESS

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Global Business

Financial Analysis of OBA Perdesan Company Global Expansion

OBA Perdesan is firm that is planning to expand its operations to global platforms based

on the potential strategies and the overviews of the current financial situation. Financial resource

of a Company is the kit that defines the expansion of a firm from local operations into the global

perspective. The intension of the OBA Perdesan is to grow the business operations based on the

revenue growth and potential of the firm to make more profit. The financial process fort the

company to grow will depend of the production of the two years growth of the financial

resources. The company will apply the availability of financial resources and gain the backups

from financial institutions depending on the assets that OBA Perdesan in the past two years. The

Company will require legal fee for different oversees countries. International advertisement cost

and marketing adoption will require financial input throughout the subsidiaries.

OBA Perdesan Company will also require licensure fees. Accountability and ability to

protect the investment from the potential risks will require insurance fees and OBA Perdesan

should consider this factor sensitive. However, the business management will enquire more

training for overseas staff to maintain the standards of the multiculturalism depending of the

national of the subsidiaries location. The OBA Perdesan Company requires more budgets to

venture into the business with potential to expand the business in case of a threshold market

niche. The manufacturing capital will increase to ensure the production a feed and compensates

the customers’ needs in the global market. Cost for extra raw materials and logistic measures

will ultimately increase by 50% to allow operational manufacturing throughout the marketing

life-cycle. Articulately, the OBA Perdesan Company should focus on the most important factors

of financial security to secure business continuity in case of risk occurrence.

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Furthermore, the Company will require much investment in the human resource

management to ensure employees are paid according to the international standards. The HR will

also require training the overseas employees to meet the overseas standards before expanding the

firm to the global platforms. In the same sense, the Company will need to integrate its systems

based on the current technology especially online marketing systems to embrace e-business

operation. The technology will cost the Company extra revenue to ensure the systems are secure

and up to date. OBA Perdesan Company needs to save capital worth the new technology

according to the current market value of investment of textile products the firm needs to invest in

product development more than the other departments. The investment of OBA Perdesan

Company depends on the focus on the two years plan. Therefore, based on the current global

market of textile industry investment, the OBA Perdesan firm requires heavy financial resources

to achieve then strategic plan of going global.

Two Years Financial Projection

It’s n ultimate requirement for the OBA Perdesan Company to operate under strategic

plan that focuses on two-year capital building and expansion of revenues. Importantly, the

Company will invest a lot on technology to encourage more only on the first stages of the

product life cycle. The best technology involves the advertising systems, online stores, online

shopping systems, online ordering systems, and all linked to trusted financial facilities. The most

important part of venturing into the global operations by OBA Perdesan Company within the two

years is to maximize production and sales volumes. For the two years, the other departments will

require less capital to maximize the product lines in the chains of supply. As an international

corporate, the company will require simple budget for HR and employees within two years and
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increase logistic and risk prevention budget. These aspects will skyrocket the revenue of the

OBA Perdesan Company in various subsidies before it blasts the investment.

Financial Statement Analysis with Two-Year Financial Projection

Investment Capital Budget (USD) Two-Years Projection for

Expansion Capital (USD)

Production 3000,000 6000,000

Technology 250,000 300,000

Human Resources 1000,000 110,000

Operation Capital 500,000 5000

Logistics 200,000 2000

Licensure 200,000 250,000

Fixed cost 4,000 4,000

Expected Revenue 500,000,000 (Current) 1000,000,000

Collection

Table 1: Financial Statement Analysis with Two-Year Financial Projection

The expected return on investment will be perfectly more than 50%. ROI can be attained

for continues enjoying the economics of scale. The reduction of operational expenses and

increase the production level will increase the RIO. Additionally, increasing the quality of

production at low expenses and employees compensation rise the net profit hence promising

appropriate Return on Investment. Based on the formulation of prediction, RIO= Net profit

/Total Investment*100, the form should invest 50% and gat a net profit of 100% to gain Return

on Investment of 50%. The two years operation with this budget the Company will be able to

sustain its fixed cost rates without losses and maximizing revenue in the early stage of product
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life cycle. Therefore, then recommendation of the financial analysis is that the company should

reduce expenses in venturing in the global market and focus on growing the revenue, the net

profit, and Return on Investment (ROI). This is attainable through reducing the expenses of the

running various departments of the Company that can face adverse effects during the early steps

of venturing in international business operations. The OBA Perdesan Company should consider

this as special considerations before that will enable it to attain its financial goals and objectives

within specified time. The fixed cost may also reduce the running cost especially in the operation

cost and application of economics of scale system.

Marketing Strategies of OBA Perdesan Company

The marketing of the will involve all the aspects that will integrate the communication

across the subsidiaries concerning the products line of textile. The appropriate marketing will

include Integrated Marketing Campaign (IMC) that will be used by OBA Perdesan Company to

launch the products line in the destination countries. According to the nature of the organization,

the OBA Perdesan Company will include the communication network across the marketers to

integrate the product network feedback.

Integrated Marketing Campaign (IMC)

The approach of Integrated Marketing Campaign (IMC) will encourage the awareness of

the product in the available market cache. Additionally, the concept will help the Company to

brand and coordinate the suitable communication its marketing efforts. The Integrated Marketing

Campaign (IMC) will define the plan that can evaluate the strategic roles of markets in the

overseas destinations. The communication will be providing clarification of maximizing impact

of marketing through Integrated Marketing Campaign (IMC). IMC will develop seamless
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concepts of experience to the customers by highlighting various aspects of OBA Perdesan

Company marketing mix.

The reinforcing of brand image to reach and grow faster in the market positing will

depend on the nature of the OBA Perdesan Company’s Integrated Marketing Campaign (IMC).

Additionally, Integrated Marketing Campaign (IMC) will strengthen each marketing

communication channels that work together as universal link across the globe. The Integrated

Marketing Campaign will also determine the optimization of search engine of e-marketing

systems to attract more customers. Importantly, it’s a technique that will improve the potential

touch point between the businesses and the product, which enhances C-B and P-P interactions.

The value proportion is a benefit that Integrated Marketing Campaign (IMC) will develop in the

good attitude and reputation through online shopping of OBA Perdesan Company.

ICM Campaign

OBA Perdesan Company

Utilizing New Technology in Designing Your Interior,

Unique Presentation of One-on-One Exchange with Your Favorite Brands
Technology Reaching All Generation
Our Mission: You Construct We Design for Every Generation

Chart 1: Campaign for the new global Market

Integrated Marketing Campaign (IMC)
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e Flow Chart 1: Integrated Marketing Campaign (IMC) Model

Step 1: Tactical Marketing Plan

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The first and crucial part during the development of the ICM is to integrate the

communication and the coordination of the tactical overview of the market progress potentiality.

The tactical influence of the market is to build the communication approach across the OBA

Perdesan Company. Tactical of ICM in the OBA Perdesan Company will be enabling the simple

connectivity of the subsidiaries to coordinate in the areas of specialization and safeguard the

existing market cache. The use of standard log in every country the OBA Perdesan Company

will enter is a tactical marketing communication for the firm in a tactical manner.

Tactically, the concept will help OBA Perdesan Company model to have direct

marketing, online and direct sales, and social media marketing through the slogan of OBA

Perdesan Company. Corporate color is part of inclusion in this step of ICM model because it will

influence the message sharing through attraction of new customers and increase the look and feel

targets. Therefore, the in international Integrated Marketing Communication Plan, the OBA

Perdesan Company should set tactical communication strategy as the priority for internal

marketing coordination.

Step 2: Redeveloping Marketing Communication Scope

The OBA Perdesan Company should review the marketing scope in terms of

communication plans. The redefining of the marketing plans of communication scope will
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develop a broader touch point of consumer and the firm than the usual tools of communication.

Articulately, the integration of communication marketing strategies in this step is crucial because

it will build a good reputation towards the customer and expose them to the product. The stage

will help OBA Perdesan Company to understand the aware of the customer differentiation styles

of products through research become the target of the market brand. The communication

integration in this stage achieve the best targets through understanding the customer attitude

though ranges of interaction during brand contact an touch points. Therefore, the integration of

the communication of market scope and the marketing strategies will develop touch point

between the OBA Perdesan Company products and the customer.

Step 3: Integration of Information Technology Assets and Marketing Strategies

Importantly, the ICM model will assist the Company to integrate communication

marketing strategic systems through information technology assets to improve the product

advertising plans. The overall approach of integrating the information technology and marketing

strategies will influence communication of OBA Perdesan Company through data and

information sharing among the detonations subsidiaries. The Firm will be able to generate and

share marketing information through distribution channels to extend the suppliers and retailer

online partners. The information will enable OBA Perdesan Company to define the scope of the

marketing through data analysis. Exemplary, the application of the information technology will

enable the Company to track the banking database of customer to understand the progress for

credit qualification. Effectively, the integration of the information technology and the product

marketing strategies will overview clientele progress to entice the market channels

communication. The marketing is more important to consider the technology as the only ways to
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connect the strategies and communication plans among the employees, customers, and the

Company.

Step 4: Financial and Business Model Integration

The business process will ensure all the business models and financial systems are

integrated and ready for market. The fourth stage will involve the evaluation of financial systems

and the potential of company to grow according to its resources. Technology will be the final an

aspect to consider for the future expansion of OBA Perdesan Company. Additionally, the

financial and Business model integration will focus on the overall market functionalities in the

international phases of business model. The consideration of the strategically and financial

stability situation of the OBA Perdesan Company, the market integration plan will essentially

communicate from lower to the top levels of the market model. Moreover, this stage influences

the top levels of the marketing strategic plan and feeds back the management through marketing

system appropriately. In this stage, the corporation will communicate effectively to the both

marketing strategies and plans to evaluate the potential risks that the Company may incur or

affect the market share in the future. Therefore, OBA Perdesan Company will use the fourth

stage in the ICM model in marketing metrics to improve the products.

Corporate Social Responsibility/Environment Sustainability

Corporate social responsibility entails a firm stepping forward to show the act of good

will and positive concern to the environment from which it operates. Corporate social campaign

would entail the company clearly explaining the impacts their products would have on the

community involved. OBA Perdesan Company should engage its locals from the host country on

possible side effects that could arise with either production or consumption of their products. The
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company should a well elaborated plan on how it would handle the hazards to the environment or

its customers should any arise.

Environmental Sustainability

The company should introduce the ingredients of their products and the processes

involved in production. The use of recycled products in the environment is a value addition to

the company in that it helps reduce the production cost. Through collection of waste material that

are no longer in use and recycling them back the company helping  in maintaining a clean

environment free of waste.

The use of wood products gives a new approach to standards of living. Products made out

of wood and recycled plastic are in a cheaper and more fashionable to the customers.

Specifically, the Truwood product which just resembles the blinds made of wood is more

effective and more affordable. This makes it easy to sell to the outside market and realize more

returns hence highly profitable to the company. OBA Perdesan Company should effectively

educate their customers and develop effective mechanisms to dispose and recycle their products

after use. Provision of proper after use guidelines would help avoid unnecessary dumping.

Recycling plants for the zinc products should be set up. Additionally, the recycling plants should

be environment friendly in that they won’t expose their host country to air pollution.

The introduction of the new products to the outside market would help create new

employment opportunities to the citizens of the host country. This aspect greatly helps the

company to positively engage the citizens in the newfound ventures. Employed citizens are

motivated and feel a sense of shared responsibility and this improves their commitment towards

their job. Engaging the locals as stakeholders in the business creates a friendly environment for

the company making it easy for the company to thrive. Earnings made by the employees from
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the business in the host country help improve their living standards and consequently the gross

domestic product for the country.  

Value Adding-Technology

OBA Perdesan Company will embrace the use of technology to effectively manage its

cost and maximize the production outcome. Online selling platforms will be developed to help

the customers shop easily and at their own convenience. As a result, the initiative will help in

cost cutting and reaching wide markets. The platform would make more accessible the business

products to the customers and less engaging saving on time. Therefore, application of technology

will empower the firm to add value in their product.

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Reference List