Global Financial Management Unit 4 DB Peer Responses

Jason Heyland

Global Financial Management: FIN630

Unit 4 Discussion Board 

 

Executive Summary

            Company XYZ is a firm that is located here in the United States that is in the process of expanding the business outside of the US to gain more market share by becoming a Multinational Corporation or MNC.  An MNC is a company that has business operations in at least one other country than its home country (Chen, J. 2022).  To expand, the company has decided that acquiring a company that is within the European Union is in the best interest of company XYZ.  The decision was made to acquire a company within the EU as to take full advantage of the infrastructure and skilled labor that is already in place.   The reasoning and complete list of advantages can be found within the full report. 

The reason for the expansion is the opportunity to grow the business on an international level by diversifying the businesses portfolio to include business within and outside the United States.  The underlying reason and justification for expanding the portfolio is reducing risk and to grow the company simultaneously.

            This decision was made after completing an in-depth amount of research to determine that making an acquisition from within the EU would best position company XYZ for success in a foreign market.  This is largely due to the tremendous footprint the EU currently has in one of the world’s largest markets.  There are also some disadvantages to joining the EU, such as differences in culture.   However, in completing the research company XYZ has determined that the advantages far outweigh any disadvantage the company may face throughout the acquisition. For a complete list of the advantages and disadvantages please refer to the full report. 

            In conclusion, expanding the company’s market into the European Union will be a tremendous benefit to company XYZ in terms of growth, market share, and portfolio diversification.   Thank you for reading this executive summary and please refer to the full report for a more comprehensive understanding of the decisions made to expand.