BA490 - Course Project - Proposal for Expansion Opportunity Overse.docx

BA490 - Course Project - Proposal for Expansion Opportunity
Oversee
Course Overview
Business Policy and Strategy is the capstone course for business
administration majors. This advanced course is designed to
provide students with a general management perspective of the
total business enterprise. Students learn new strategy
formulation, implementation, and evaluation concepts and
techniques. Students use this new knowledge, coupled with
knowledge acquired from other courses, to chart the future
direction of different types of organizations. The course builds
on previous courses in diverse functional areas to offer insights
and analytical tools which a general manager needs to plan and
implement successful business policies and strategies. The
course emphasizes the practical application of business theory
to business problems.
Project Introduction
Purpose
You will select a company and then identify and analyze a
strategy for its growth into an overseas market.
Course Objectives
· Discuss the nature of strategy formulation, implementation,
and evaluation activities.
· Describe the nature and role of vision and mission statements
in strategic management.
· Discuss ten major external forces that affect organizations:
economic, social, cultural, demographic, environmental,
political, governmental, legal, technological, and competitive.
· Discuss the importance of gathering competitive intelligence.
· Explain how to determine and prioritize a firm’s internal
strengths and weaknesses.
· Explain how to develop a SWOT Matrix, SPACE Matrix, BCG
Matrix, IE Matrix, and QSPM.
· Identify important behavioral, political, ethical, and social

responsibility considerations in strategy analysis and choice.
· Explain market segmentation and product positioning as
strategy implementation tools.
· Discuss the nature and role of research and development in
strategy implementation.
· Explain how computer information systems can determine the
success of strategy implementation efforts.
Project Logistics
There are four parts to the final course project. The first part of
the project is the initial proposal, which will be submitted to the
instructor for approval. The second part is research on
opportunities and cultural challenges in the country you choose
for your company’s expansion. Next, you will conduct a
strategic audit on various areas. Finally, you will put it all
together into a written analysis of your proposed strategic plan.
A final presentation of the proposed plan will be the
culmination of the project.
Deliverables
· Project Part 1: Project Proposal (requires instructor approval)
Assigned: Week 2
· Project Part 2: Cultural Exchange and Marketing Strategy
Assigned: Week 4
· Project Part 3: Strategic Audit
Assigned: Week 6
· Project Part 4: Final Proposal and Presentation
Assigned: Week 8
Project Part 1: Project Proposal
Assignment Requirements:
There are four parts to the final course project. The first part of
the project is the initial proposal, which will be submitted to the
instructor for approval. The first part of the project will identify
the company of choice that will seek an expansion opportunity
to an oversee area of choice. Be sure to identify the country and
mode of entry. In addition, provide and introduction and

overview of selected company along with an initial analysis of
the growth opportunity.
Steps to complete Part 1
Introduction:
Provide an introduction and overview of the selected company
along with an initial analysis of the growth opportunity.
Identify the following:
· Country of choice
· Mode of entry
Submission Requirements:
Submit a two- to three-page Word document using 12-pt. font
and APA format
Project Part 2: Cultural Exchange and Marketing Strategy
Now that you have your approved idea for the project it is time
to begin the second part of the project, which builds on Project
Part 1. Using the same company of choice that is proposing an
expansion opportunity oversee, conduct research on the country.
Specifically focus on the culture and cultural exchange. For the
culture, review the web site http://geert-hofstede.com/ to
compare the cultural differences between the countries. Identify
the cultural differences and consider the cultural exchange. In
addition, research and choose the best distributions method:
Product/Market, Pricing, and Positioning.
Identify the following:
· Cultural differences
· Cultural exchange
· Distribution Methods
and APA format
Project Part 3: Strategic Audit
Now that you have conducted a cultural review along with

developing some marketing strategies for entry into the country,
it is time to begin the third part of the project, which continues
from Project Part 2. Using the same company of choice that is
proposing an expansion opportunity oversea, conduct a strategic
audit on the following areas:
· Internal environment
· External environment
· Strengths
· Problem analysis
· Recommendations and implementation costs
and APA format
Project Part 4: Final Proposal and Presentation
It’s time to finalize your research and put together your final
proposal. Below is the summary of what is required for the final
proposal.
Project Part 4 is the final written analysis of your company’s
strategic plan. Be sure to include:
· Summary
· Executive Summary
Submit all of the previous project parts, incorporating any
feedback received from your instructor.
Required Sections:
Part 1 Introduction
· Introduction and overview of your selected company along
with an initial analysis of the growth opportunity
· Country of Choice
· Mode of Entry
Part 2 Cultural Exchange and Marketing Strategy
· Cultural Differences
· Distributions Methods: Product/Market, Pricing and
Positioning

Part 3 Strategic Audit
· Internal Environment
· External Environment
· Strengths
· Problem Analysis
· Recommendations and Implementation Costs
In addition, create a 10-15 minute PowerPoint Recorded
presentation in which you describe in detail the key decisions
you made in Project Parts 1, 2, and 3 and the reasons for those
decisions. Include any additional items of your choice to
support the proposal for expansion.
Submit your final written analysis of the company’s strategic
plan for the expansion opportunity oversee. It should be eight to
ten pages in length. Submit the recorded presentation video.
The United States Banking System
Banks are among the oldest enterprises in American history.
The Bank of New York, was founded in the year 1784 and
recently renamed The Bank of New York Melon, celebrated its
225th anniversary in 2009. The banking system is among the
largest, oldest, and most important in the industry. Most
American citizens deal with banks on a fairly regular basis,
however, banking and banks appear to be rather mysterious in
the US. They have been an integral part of the US economy for
a very long time, and the reason is still unknown. Why after all
these years do banks still get into serious trouble and create
severe problems for the country? Banking in the US appears to
be so complicated and confusing that even Americans do not
understand it. The central function of the bank is to lend money
to investors and account holders. These people could use this
money to buy homes, businesses, or even send their children to
college. For international visitors, the system can seem
downright baffling. This article intends to help bring an
understanding of how the US banking system works.
The central function of the bank is to lend money to investors

and account holders, this money can be used to buy homes,
businesses, or to invest in other private investment projects.
When the account holder deposits money into the bank, the
money goes to a larger pool of more deposited by other account
holders, however, the money is deposited and credited to an
individual account. This money is deducted once one makes a
withdrawal, writes a check, or performs a debit card transaction.
Money is also added to the account if you accrue interest or
make additional deposits. Banks create money in the US
economy by making loans. The Federal Reserve sets a reserve
requirement for banks, which determines the amount of money
that banks are permitted to lend. For example, if the bank
receives a $100 deposit, and the reserve set by the Federal
Reserve is 10%, the bank is certified to lend $90 of the amount.
The $90 goes back into the economy. The money could end up
being deposited into another bank that is then able to lend $81
out of the $90. This goes on and on and is the way through
which banks make money.
In the year 1984, Kolb reduced Dewey’s six steps of education
into a cyclical process with four stages. The stages include
concrete experience, followed by reflective observation, then
formation of abstract concepts or abstract conceptualization and
finally, active experimentation.
I work with Woodforest National Bank, which offers account
holders a variety of different products and services. The first
includes checking accounts, which allows account holders to
deposit and withdraw money 24/7 provided they have access to
the various platforms that the bank offers its customers base.
These platforms include online payment systems; automated
teller machines distributed across the country and mobile money
transfer platforms. Checking accounts are an appropriate way to
pay monthly bills. When a client opens a checking account, we
issue them bank cards and checks, which allows them to pay
bills and make purchases. Often there are requirements for a
minimum service fee and monthly balances, which vary by the
type of account an individual opens. The bank also offers

savings accounts, in which the account holders deposit money
and which will earn interest. The interest is earned on the daily
minimum balance maintained in the account. The interest rate,
service fee and minimum balances vary from one bank to
another. The interest also varies with the amount of money that
an individual deposits and maintains. The bank also has
Automated Teller Machines (ATM). Our bank does not charge
an extra fee when an account holder uses the ATM but others
do. In some cases where people use the ATM in stores and other
banks, there is a fee charged for the transaction.
Our bank offers services to everyone including students,
business owners, civil servants, and employees from various
companies. We serve institutions such as hospitals, schools, and
organizations among others. Our bank offers services at friendly
costs, allowing a cost effective solution for customers to save as
much money as they can. The bank has also established a
variety of branches throughout the country to ensure that
customers can readily receive services without traveling long
distances. The bank advises customers to open both savings
account and checking accounts. Encouraging them to save and
plan for the future. The latter ensures that account holders are
liquid at all times and carry out transactions with few
challenges. It is good for individuals with a surplus of money in
their checking accounts to open savings accounts, this allows
them to put their money to good use and not overspend.
The bank also provides different transfer services to customers,
to ensure that clients do not have to withdraw money from their
accounts to send it to another. They simply transfer the money
from the comfort of their own home or office into the account
of the person to whom payment is made. The same applies to all
account holders such as hospitals, companies and schools. The
client is allowed to transfer funds in order to pay for any
service. The bank also has services for international students
who come to study in the United States. We allow the students
to make payment from their home accounts and provide the best

exchange rates so that they too can save some money. The bank
helps customers choose the account that matches their needs.
We encourage our clients to research and compare fees and rates
of other banks in order to make informed decisions. This is
done by paying close attention to the cost of service and the
monthly charges. Every account must have a minimum balance,
so every client should put this into consideration. They are also
advised on how long it takes for the bank to clear a check that is
the amount of time it takes between the check deposits and
when the account holder is allowed to withdraw or use the
money.
There are several things that people need to open an account
with us, they include: full name, home address, home telephone
number, cell phone number, citizenship ID. Immigrants are
required to have an I-94 card, I-20, I-797 or DS-2019 and an
unexpired passport. Our bank, just like many others in the
United States is going through structural development, a phase
that most countries went through years ago. The American
Constitution allows the state and federal government to make
laws that regulate banking. Our bank, for instance, is a subject
of the state’s legislature and of the federal congress. Our state
does not allow branch banking, so all of the banks within the
state practice unit banking. The initial establishment of many
banks in the US was to provide profitable opportunities for
investment. Our bank was founded during that time, our bank
was built upon those same principles, to satisfy the high demand
for loans and medium exchange. Communication was a major
challenge at the time of the bank being founded and formed. It
was only after the construction of railroads that traffic
expanded.
Banks are expected to hold liquid assets in forms that can easily
be converted to cash. This helps the bank maintain its
customers’ confidence. This confidence is the bank’s basis for
credit. As long as the bank’s promises are honored, it is able to
create credit to be used by its customers. Woodforest National
Bank honors its promises without question and our customers

are confident and trust our ability to continue the banking
legacy. Over the years, these promises have remained
outstanding, I do not remember any time that a customer
questioned the bank for not keeping its promise. The bank’s
promises are seen as claims against it and can be transferred
from one account holder to another. This kind of banking is
known as deposit banking, which is the accepted basis for
commercial banking that is practiced in the contemporary
world. However, deposit banking does not exist when the assets
held by the bank consist of cash lodged by depositors. When the
accounts start to show less cash and more deposits, part of them
represent the loans made by the banker to his clients, which
means the deposits made by the banking system.
The Central Bank of the United States is the Federal Reserve.
The system came to existence in the year 1913 after the
government passed the Federal Reserve Act, in response to the
bank panic of 1907. Since the establishment of the reserve,
Congress has passed additional laws reinforcing or altering the
responsibilities and powers of the Federal Reserve System.
Some of these include the Glass-Steagall Act, the Federal
Reserve Reform Act, the Bank Holding Company Act, the
Dodd-Frank Act, and the Gramm-Leach-Bliley Act. The aim of
the Federal Reserve is to ensure that the banks work within the
required money holding requirements, it has been granted
powers by the Congress to regulate the budgetary wellbeing of
America. The Fed can make changes intended to keep the
economy running easily through instruments such as the fiscal
strategy. Given these forces, the instruments meet the criteria
required to control accounts under the Basel Core Principles
with an intention to regulate establishments that fall under the
administration of the United States.
The Fed is the means by which the US conducts monetary
policies. This takes place under a Federal Reserve body
popularly known as the Federal Open Market Committee
(FOMC). The Fed can alter money supply through free market
operations, which entails the buying and selling of government

securities. When the Federal Reserve desires to increase money
supply in an economy, it goes into the market where it buys
bonds from the banks. The banks are then required to lend the
cash. On the other side, the Fed sells bonds to the banks and
drains money from the country’s economy. The Fed can also
change the banks’ reserve requirements. Since money is tied to
the amount that banks hold as reserves, an increase in the
reserve rates results in a decrease in money supply. Banks may
not always loan out the maximum amount that they are allowed.
Besides, alteration to the reserve requirements is likely to create
instability in the banking sector. Finally, the Fed can impact the
money supply through interest rates. The Fed does not directly
charge how much individual borrowers pay for a new car loan
or a mortgage, but interest rates flow from what the Fed
charges. If the Fed raises rates, they flow down through all the
levels of banking and eventually result in higher lending rates,
as well as less lending activity.
The Fed fiscal policy seeks to facilitate the utilization of
government tax assessment, its spending and acquiring in order
to fulfill macroeconomic objectives. Since the Great
Depression, government spending has increased steadily over
the years. The spending rose as a share of the GD in the years
that followed, calling for the development of the fiscal policy.
The president proposes a budget to the Congress, which
lawmakers consider in several steps. First, they make a decision
concerning the spending level, divide the overall figure in
several steps, and then the congress consider individual bills,
which spells out how the money in each category should be
spent. The fiscal policy has undergone various changes since
the 1930s. This is because the government had viewed it, not
only as a spending regulator, but also as a promoter of the
United States overall growth and development. Politicians
proposed ideas on how to improve the policy since most citizens
did not have the purchasing power to acquire most of the
products that the businesses offered. Major companies had to
close down due to bankruptcy. Soon, the Congress realized that

some ideas did not help improve the state of the economy.
By the 1990s, Congress realized that it would not benefit the
economy to use the fiscal policy to achieve general economic
goal. They sought to reduce taxes on capital gains in order to
increase wealth from the appreciating value of assets such as
stocks and property. The budget shrunk and the Congress sought
to impact the economy through educational training programs in
order to develop a high-skilled, competitive and more
productive labor force.
Interest is the charge for borrowed money, banks are able to
make money from the loans given to account holders. The banks
can do this since the interest charged on loans is greater than
the interest deposited into the customers’ accounts. The specific
interest rates for the bank depend on various factors, which
include the amount of money that the bank has to lend and the
number of people who want to borrow. The amount also depend
upon the reserve requirement that has been set by the Federal
Reserve. The amount may also be dependent on the fund rates,
which are the interest rates which banks charge each other for
short term loans to meet the reserve requirements. Loaning
money, however, can be risky for banks so they charge greater
interest rates for riskier loans.
Throughout history, free markets societies go through boom and
bust cycles. While most people enjoy favorable economic times,
the shocks are very painful. The Fed was created to help reduce
the injuries inflicted upon citizens during such times and holds
some powerful tools, which affect money supply. The Fed has
grown over the years and today, it manages the banks’ growth
and money supply in order to allow stability and expansion of
the economy. The Fed uses three main tools to change ban
reserves, these include: a change in the reserve requirements,
discount rates, and open market operations. The reserve
requirements are the amount of funds that the banks must hold
in reserve against deposits made by the customers. The discount
rate refers to the interest rate used by the bank in Discounted
Cash flow (DCF) analysis to determine the present value of cash

flows in future. The DCF takes into account the time value of
money and the risk of uncertainty in future cashflows. The
greater the uncertainty of future cash flow the higher the
discount rate. Finally, the Open Markets Operations as
mentioned above represents the purchase and selling of
government securities in the open market to expand or contract
the amount of money in the banking system.
As an individual working in the banking system, I think the US
system is not as complicated as many people may perceive it to
be. Money supply is determined by the Federal Reserve, which
is America’s Central Bank. When the amount in circulation is
too low, the Fed is trying to boost the economy and when it is
high, inflation becomes a challenge. It has taken many years to
make the banking system what it is today. The policymakers
have had to try different policies in order to come up with one
that works for the United States. I work in the instore location
of a retail bank. Over the years, I have seen how the bank works
to provide loans as well as service to many customers. When the
Fed was established, the founders did not desire to pursue active
monetary policy in order to stabilize the economy. Besides, the
ideas for an economic stabilization policy were alien at the
time. Instead, the founders viewed the Fed as a means to
prevent money supplies and credit from drying up during
economic downfalls such as the pre-1914 period. I have come to
learn that one of the key ways that the Fed is used to protect
against financial panics was to act as the lender of the last
option. It helps insure citizens against economic shock. When
risky business prospects make banks hesitant to extend new
loans the Fed steps in by lending money to banks, this
stimulates the banks to want to lend more money to customers.

BA490 - Course Project - Proposal for Expansion Opportunity Overse.docx

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