• Cheap and available labor

• Untapped natural resources

• Potential economic growth of Somalia

The benefits of • Gradually stabilized currency
investing in Somalia’s
economy • Favorable policies for investors

• Critical maritime routes

  
• Trade difficulties
 
• Currency reform
 
• Lack of proper infrastructure
 
• Maritime Piracy
Cost of investing in  
Somalia • Power Shortage
 
• Somalia government bureaucracy
 
• Inadequate Channels to send money
 • Unstable Policies
 
• political instability
 
• lack of security
Risks associated with  
investing in Somalia • Availability of Information

• Drought Vulnerability
 
• Corruption
  we think Somalia is a viable location for investment with a
The Final Question huge growth potential.
  Agriculture

 Energy Sector
Sectors to Invest
 Tele-communication Sector

 Tourism Industry

 Fishing Industry
Best Suited Mode of  Partnership
 Joint Venture
Entry
 HSBC
Bangladesh
A case study on a foreign
company operating in
Bangladesh.
 • HSBC obtained license from the central bank
on 17 April 1996 to conduct banking business
and commenced formal banking operations on
3 December 1996 through opening first branch
in Dhaka.

• It has expanded its operations in the country

HSBC in through 9 branches in Dhaka, Chittagong and
Sylhet, 1 offshore banking unit, 27 ATM
booths, and 7 customer services centers. But
Bangladesh they reduced their branches to 7.

• HSBC Bangladesh is rated among the highest

level of rating for any bank or financial
institution in Bangladesh (4th).

• Presently, Mr. Sanjay Prokash is the CEO of

HSBC Bangladesh.
 • A network of businesses connecting the world: HSBC is well
positioned to capture the growing international trade and capital flows.
• HSBC’s global reach and range of services place HSBC in a strong
position to serve clients as they grow from small enterprises into large
multinationals.
• Wealth management and retail with local scale: HSBC can capture
opportunities arising from social mobility and wealth creation in their
Advantages of priority growth markets. HSBC invests in full scale retail businesses only
Operating in markets where they can achieve profitable scale.
Internationally • They can also give some special service and facilities to customer which
local competitors can not provide.
•In pursuing advantage over rivals, they may pursue several
competitive moves. For example- lowering or changing interest rates
in their services, improving features, implementing innovations in
the service etc.
• Operating in a foreign country like Bangladesh gives HSBC the
opportunity to diversify their portfolio.
 • Political Aspects: the company also formulates their own
protection strategies against any governmental restrictions and
limitations.

• Economic Aspects: In spite of many dangers that they encounter in

different parts of the world, the management of HSBC sees to it
Risks of Operating that they would be able to surpass such struggles and strives to
Internationally have a better economic condition.

• Technological Aspects: The company adopts different IT/IS systems

and used internet to reach their customer all over the world and to
know the latest trends in the global business.

• Business Practices and Cultural barriers: They follow a diversified

business model where they strongly emphasis on Bangladeshi
culture, people’s preference, rituals, religion and such issues
 • HSBC is structured according to its consumer groups,
providing a comprehensive range of financial services,
including personal financial services, commercial banking,
corporate banking, investment banking and other activities.

• They claim themselves as “the world’s local bank”They also

Strategies for foreign state that, ‘our goal is not, and has never been, profit at any
Expansion cost. Rather tomorrow’s success depends on the trust we
build today.’ Thus, in HSBC customer satisfaction is
considered an important strategic objective to allow the bank
to continue to be successful in the long term.

• In terms of expanding their market they consider various

needs of customers and classify their products and services
accordingly.
 • The world economy is becoming ever more connected, with
growth in world trade and cross-border capital flows
continuing to outstrip growth in average gross domestic
product. Over the next decade HSBC expects 35 markets to
generate 90 per cent of world trade growth with a similar
Long Term Goals degree of concentration in cross-border capital flows.

• Another Long-Term goal of in HSBC’s is: Benefiting from

demographics and urbanization. By 2050, HSBC expects
Asia-Pacific, Latin America, the Middle East and Africa will
be larger than those of Europe and North America combined.
By 2050, HSBC expect 18 of the 30 largest economies will
be from Asia-Pacific, Latin America or the Middle East and
Africa.
 • HSBC has operated in many countries around the globe and
learned how to use the advantages of globalization while
tackling all the risks that comes with it.

• They have established themselves as a global brand with good

reputation and brand value.
Final Thoughts
• They have done so by aligning their global strategy and
localizing their wide range of products to cater the needs of
their customers.