Analysis of Tallink Grupp AS: Business Environment, Growth, and FDI

This report provides an analysis of Tallink Grupp AS, a company operating in cruise vessels and cargo transportation services, with a focus on its potential foreign direct investment in Finland. The report examines the company's background, including its financial performance and operational segments, highlighting a strong revenue in the second quarter of 2017. It then explores the favorable business environment in Finland, considering economic, cultural, political, legal, and financial systems. The analysis further discusses opportunities for Tallink Grupp AS in European markets, emphasizing the need for an analytical approach to achieve stepwise progress and maintain a strong financial position. The conclusion summarizes key issues, such as the need to increase revenue in the Charter of Vessels segment and merchandise sales, while also highlighting the positive impact of Finland's cultural and political systems on operational activities. The report references relevant books, journals, and online resources to support its findings.

REPORT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1. Background to Business Organisation................................................................................1
2. Background to Business Environment...............................................................................1
3. Analysis of business scenario.............................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
Business environment is crucial as it directs company towards fulfilment of goals.
Present report deals with Tallink Grupp AS which operates in cruise vessels and cargo
transportation services. It is planning for foreign direct investment in Finland so as to earn more
growth. Hence, organisation's background, business environment and financial growth of
company is discussed effectively. Thus, overall business scenario is highlighted in a better way.
1. Background to Business Organisation
Tallink Grupp AS is the largest company engaged in operating cruise vessels and hotels.
It offers shipping of cargo, accommodation services and passenger transportation is also
provided. It is headquartered in Tallin, Estonia. On the other hand, financial performance of
company has been good revenue of around EUR 259.9 million in the second quarter with
increase was observed around 35.7 % from first quarter of 2017 (Annual report of Tallink Grupp
AS. 2017). Number of employees in the organisation are 7306 with net income of EUR 44
million in 2016. Other segments of company have also generated good quantum of revenue and
achieved higher growth.
2. Background to Business Environment
The business environment in Finland in terms of economic, cultural, political, legal and
financial systems are favourable which has initiated good amount of growth of company. Finland
is industrialised country as GDP was 181 billion dollars in 2009 and 65.7 % is contributed by
service sector. The social and cultural factor of Finland is different from other countries. In over
5.2 million population, there are nearly 2.7 million forming part of workforce and 2.5 are
employed in various industries and service sector collectively. Finland is welfare state nation
where citizens have full knowledge about their rights provided by welfare state. In relation to
technological sector, it is one of the most energy efficient nation mainly in producing renewable
energy (Commander and Svejnar, 2011).
3. Analysis of business scenario
Tallink Grupp AS has many opportunities in the European markets and it can sell more of
its cargo services and transportation services to many markets. It would be fruitful in earning
profits in the best possible manner. Moreover, it is required that company apply analytical
approach so as to achieve task in a stepwise manner. Analytical approach will be helpful in
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breaking down problem in elements to effectively solve the same (Aterido, Hallward-Driemeier
and Pagés, 2011). This would be beneficial for company in garnering growth and maintain its
financial position in the best possible manner. Moreover, it is required that firm may be able to
carry out operations in wider markets by enhancing its operations in various segments.
CONCLUSION
Hereby it can be concluded that Tallink Grupp AS is performing well in EU markets. The
key issues analysed from the report is that firm needs to increase revenue in Charter of Vessels
segment as it accounts to 2.7 % of total revenue. On the other hand, it is required that
merchandise sales needs to be increased. Furthermore, cultural and political system of Finland is
good which will enhance its operational activities in markets.
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REFERENCES
Books and Journals
Aterido, R., Hallward-Driemeier, M. and Pagés, C., 2011. Big constraints to small firms’
growth? Business environment and employment growth across firms. Economic
Development and Cultural Change. 59(3). pp .609-647.
Commander, S. and Svejnar, J., 2011. Business environment, exports, ownership, and firm
performance. The Review of Economics and Statistics. 93(1). pp .309-337.
Online
Annual report of Tallink Grupp AS. 2017 [Online] Available Through:
<https://www.tallink.com/annual-reports>
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