Business Performance Assessment
Assessment of performance of existing foreign subsidiaries; tangible recommendations on path towards greater profitability.
Once a company has decided to establish a foreign subsidiary in a given market, it is important to monitor the results of that decision. Doing business in a foreign market is typically an expensive proposition, albeit potentially very profitable if several conditions are met. In the same vein, exiting from a foreign market usually has long-lasting consequences; such decision shouldn’t be taken lightly but might very well be in the best interest of the company.
The assessment includes a long list of considerations, some of which are listed below.
- Long-term strategy
- Baseline: last five years results versus plan
- Country risks: economic environment, attitude towards Foreign Direct Investment, foreign exchange risks
- Potential for growth: market share; market size; organic growth rate; prospects for next five years; sustainable competitive advantages, if any
- Sales and marketing: distribution channels; branding policies; pricing strategy
- Human resources: efficiency of matrix organization; local versus expatriate management
- Field visit(s): what do end-users say about the services?
- Conclusions and recommendations
Examples of Business Performance Assessment Skills
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