International Business- Assessment 03

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Running Head: INTERNATIONAL BUSINESS
International Business- Assessment 03
Name of the Student
Name of the institution

INTERNATIONAL BUSINESS-ASSESSMENT 03 2
Executive Summary
AMP bank ltd has been providing retail financial services since 1998 across Australia and
New Zealand. This report has categorically analyzed and defined the scope of AMP bank in
Canada. Key market entry modes and strategies in terms of business risks, cost, strategies,
political and economic risks and trade barriers for activities in Canada. Expansion to Canada
targeted industrial, small business, insurance and loans and financing services. For proper
business activities conduct in Canada, key considerations are made in terms of the market entry
strategies, competitiveness and survival in the foreign market. Canada economic status, ability
and ease of the environment for bank operations were analyzed. Factors of marketing strategies,
human resource, and product development were analyzed in this report. Key consideration in this
report were the ability to enter the Canada market and survive the competition from the other
banks. Staffing for AMP bank is given higher priority for it is through the adoption of the right
staffs that the business can survive in the foreign market. Two major entry strategies for AMP
bank to enter in Canada are well elaborated in this report. Direct investment and franchising
strategies are the main mode of entry in the Canada market.

INTERNATIONAL BUSINESS-ASSESSMENT 03 3
Introduction
AMP Bank offer banking services in Australia and New Zealand. As explained earlier, the bank
provides banking services for local retail and business customers (Tamura, 2018). AMP
provides loan services to cover various sectors like mortgages, life assurance and consumer
insurance. The bank also provides loan and finances services to the customers with the lowest
interest rates in the Australia market. The bank offers both online and over the counter services.
AMP control a big customer share in Australia having an approximation of more than 1 million
customers majority of them operating personal accounts (Rugman, 2017). The bank also provide
finances and loans to the customers to finance the business activities. AMP is one of the leading
banks that offers finances to the customers with low interests. The bank ease the services to the
customers by providing products and services through convenient means like cell phone as long
the internet services are accessible. This paper provide clear suggested strategies to be adopted
by AMP bank to enter in the Canada market, foreign market.
Company background
AMP Bank started its operation in Sydney. Over the years since 1998 when it was
incorporated it has established branches all across Australia and New Zealand (Verbeke, 2017).
Its head quarter is in Parramatta, Australia. The bank provide premium services to the customers
through the use of accredited means. Recently the bank has adopted internet and mobile banking
services. This has been accepted and widely adopted by the customers who are approximated to
be more than 1 million across Australia. AMP bank use different accounts and products to suit
all the types of customers in the country.

INTERNATIONAL BUSINESS-ASSESSMENT 03 4
AMP bank is proposing to provide the premium banking services to Indonesia. The
major products and services proposed are the personal banking, loan and mortgages, insurance,
business banking and online and mobile banking. These services has been offered in Australia
and the bank over the years has demonstrated high capabilities and potentials of extending this
services oversees. Personal banking targets the high population of the Indonesians who are low
income earners. This target group is accessed through online and mobile banking at the comfort
of the mobile phone that can access internet services.
Canada background
Canada is one of the largest country in North America. The country has a stable and
diverse economy for investment and new business generation (Buranatrakul, 2018). Finance and
bank industry are the major contributors in the stabilization of the economy. Safe banking has
been associated with the proper regulatory measures to govern the finance flow in the country
According to Forbes, Canada is among the richest countries in the world. Its economy is
at position 10 globally. GDP has a growth rate of 4% during the last quarter as per 2017. Overall
growth of 3% was recorded in the country in 2017. This growth has been associated to stronger
investments and net exports through improved global trade. Micro economic policies have
contributed to investment growth reaching to the GDP increase. The government collects little
tax. The inflation rate was recorded to be 1.79% in 2018 (The Statistics Portal, 2018. Canada has
a population of more than 36.8 million this population provide a good opportunity for the
business growth (Lopes and Amal, 2017).