Report Essay Example | Topics and Well Written Essays - 1500 words

Report - Essay Example This project discusses the bank’s reasons for establishing itself in the Peruvian economy and the appropriateness of its strategies to do the same. HSBC started operating in Peru as a Greenfield project. The reason to choose Peru for starting the project was that it would be free of any constraints arising from prior activities. It had not operated in this place before. There were also very few other financial service providers. Thus there would be fewer possibilities of restrictions and constraints. The organisation has also undertaken a number of successful Greenfield infrastructure projects since 1997, making investments of more than $15 billion (HSBC-g, 2010, p.2). The strategy was implemented beginning with the opening of Commercial and Global Banking services. In the next year it was followed by opening of the â€Å"Personal Financial Services† (HSBC-b, 2009). The market entry strategy began with the opening of the retail branch network in Peru. The most common st rategies confronting the organisation would be establishing start-ups or joint ventures. However the strategy chosen by HSBC was establishing a start-up retail branch in Peru. This is because the region has very few financial service providers. This method is also preferred because it would allow the organisation to keep control over its foreign venture. On the contrary the company’s major step undertaken in China was in the form of joint ventures. This is because it has operated in the Chinese economy for a long time. This strategy is not recommended for HSBC in Peru because it has minimum expertise with local knowledge which would allow it create maximum benefits for its customers (HSBC-f, 2010). Its strategy is to contribute to the economy and bring tangible benefits in the market in which it operates. The revenue generated would be used to pay dividends to shareholders, make payments to the global suppliers (INCR, 2008, p.5). The following table gives the pre-tax profit g ained by HSBC in 2008 and other geographical regions. Figure 1: Pre-tax profit by HSBC in Latin America and in other geographical region (Source: INCR, 2008, p.5) An important strategic step taken by HSBC in alignment with its objective was to increase the number of customer accounts in Latin America. This was primarily meant to maintain high liquidity levels in the organisation. The amount of loans and advances made to the customers has been presented in the following diagram (HSBC-e, 2010, p.13). Peru has also represented as one of the most liberalized regions for attracting foreign investments. This was the reason for HSBC to establish banking operations in the region. In Peru the MNCs are also protected against discrimination and are provided easy access to every sector in the economy. Moreover, MNCs are also free to remit profits and capital. The banking sector is also regulated and supervised by â€Å"Banking and Insurance Superintendency operating in the retail sector under the category of universal banking† (Yi, n.d., p.8). This provided insurance for opening new establishments in a foreign nation as a step towards global expansion. HSBC decided to establish a retail branch network as an attempt to further expand its franchisees in Latin America. It has also received approval for the same. It has been authorised by â€Å"the superintendent of banking and insurance in Peru† to establish 10 retail branches in Lima. The first step towards

Sports Sponsorship Research Proposal Example | Topics and Well Written Essays - 1000 words

Sports Sponsorship - Research Proposal Example The research also evaluates the economic benefits, as well as, the costs associated with the Philadelphia International Cycling Championship to the city of Philadelphia and the surrounding community. Early January this year, it was announced that the Philadelphia International Cycling Championship would not be held in 2013 (Velo News, 2013). The announcement of the cancellation of the yearly race was a surprise to many people. Among those who were stunned by this announcement are spectators, race participants and citizens of Philadelphia, and the surrounding communities. However, the organizers of the Philadelphia International Cycling Championship race promised to reorganize with new partners to make the yearly race superlative in future. This means that the next Philadelphia International Cycling Championship race will be held next year, if the organizers manage to find sponsors who may be willing to commit their funds towards the preparation of the event. Given that the Philadelph ia International Cycling Championship is among the biggest, special events of Philadelphia, the race had both economic benefits and costs to the city of Philadelphia and surrounding communities. ... This contributes to the revenue of the city. Also, community members benefit because they are the suppliers of the requirements of hosting spectators such as foodstuffs. In addition, people from areas surrounding the city of Philadelphia are employed by various companies that are associated with the organization of the Philadelphia International Cycling Championship race. Other economic benefits include revenue earned from travel of the participants and spectators in throughout the city of Philadelphia and its surrounding communities (Visit Philly, 2012). Therefore, the Philadelphia International Cycling Championship is of significant economic benefit because it earns revenue for the city of Philadelphia, through charging of a flat fee to organizers and participants (Ford, 2013). On the other hand, the Philadelphia International Cycling Championship is associated with the rising city costs (PR Web, 2013). For instance, the city of Philadelphia incurred some costs in preparation of th e event when sponsors could not reach the threshold of the required funds for hosting the Philadelphia International Cycling Championship. This move was taken by the city of Philadelphia because of the economic benefits that the race brought to the city. However, the city of Philadelphia increased the charges to the organizers tremendously in 2009, a time when sponsorship commitment of TD Bank was coming to an end (Ford, 2013). Other costs associated with the Philadelphia International Cycling Championship include lawsuits. For instance, one of the organizers is facing a law suit, whereby he is accused of failing to purchase the remaining share of their joint sporting with one of the participants who died of cancer last year (Ford, 2013). Instead, the organizer had used the