Reorganizing a Global Company
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order_58168_140067_3.pptx
Angstrom Real-estate
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Expanding operations
Presentation Outline
Company overview
Product Description
Environmental analysis of market.
References
Introduction
Introduction
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International expansion is when a business extends it business operations and activities beyond the borders of its home country.
When expanding internationally, a business needs to do extensive due diligence with regards to :
Cost of growth (Legal costs, capital, labor, overheads, among others)
Legal jurisdiction and requirements of the target country/region
Culture of the locals (Employees and prospective clients
Environment and climate of the target region
Angstrom Real Estate wishes to expand its investment portfolio by entering the equatorial region of Africa.
The UN department of housing and land has established that Africa is one of the various regions facing difficulties and shortage of affordable housing.
By expanding its affordable housing portfolio, Angstrom real estate will be entering a relatively untapped market.
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Company Overview
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Angstrom Real Estate is a US based real estate corporation, concerned with developing, refurbishing and selling buildings and residential houses.
The corporation’s headquarters are based in Washington, DC
The company was created in 2003 with the purpose of developing and providing affordable housing to the middle class population of the American citizens.
Company’s mission: The company envisions a better and decent lifestyle for every American citizen. We work towards our vision by building America brick by brick.
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Product Description
Low Cost Housing
Low cost housing refers to housing units that are affordable to that population whose average annual income is either middle income or below the median for household income.
According to the United Nations, people in Africa face a challenge of affording decent housing because most economies are still third world countries.
Angstrom aims to introduce low cost houses in the equatorial regions of Africa i.e. Uganda, Tanzania and Kenya.
Angstrom will achieve this though:
The use of local materials for construction.
Using the locals for labor instead of importing the workforce.
Building simple homes which do not require a lot of logistics in planning and construction.
Environmental Analysis
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The political environment is quite attractive. The region is experiencing a stable political environment. The countries’ governments are also encouraging the entry of international investors into the market to stimulate economic growth.
Currently, the inflation rate is very high and prices of commodities are very high. This will affect the procurement of raw materials such as cement, timber, roof covering materials among others.
The climate is also very challenging because of the high precipitation rate which may interfere with the construction stage .
However, the competition is quite ow, because of the high cost of housing in the region. Introducing affordable housing to the three countries gives us a competitive edge over the current market players.
The region’s infrastructure is also in a poor state. Transportation of materials may therefore prove to be quite difficult and costly.
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References
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Joshi, Rakesh, M., (2009) International Business, Oxford University Press, ISBN 0-19-568909-7
Mulliner, E,, Smallbone, K., Maliene, V., (2013). An assessment of sustainable housing affordability using a multiple criteria decision making method. Omega. 41 (2): 270–79. doi:10.1016/j.omega.2012.05.002.
Affordable Land and Housing in Africa. UN. Habitat for a better urban future. Retrieved from, https://unhabitat.org/books/affordable-land-and-housing-in-africa/ on 26th May 2017.
Kim, C., Hwang, P., (1992). Global strategy and multinationals' entry mode choice. Journal of International Business Studies, 23(1), 29. Accessed 30 September 2015.
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