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International Business Strategy With Simulation : Assignment

   

Added on  2020-10-04

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INTERNATIONAL BUSINESS STRATEGY WITH SIMULATION

Executive summeryMoscow stock is a fast growing stock exchange established 7 years ago and become a premiere stock exchange of Russia. It is able to extract more investors in Europe due to less fluctuation in market as well as many small and large investors are able to invest in this stock exchange. In this we have taken example of Sberbank and discussed strategies it uses for its growth and expansion in market place. Apart from it for sustaining in competitive market it is essential to identify and make stratifies to overcome those capability gap , here capability gap and opportunities have being discussed in comparison with London stock exchange and New York stock exchange. Like other stock exchange Moscow stock exchange also have growth and expansion strategies like fetching more investors, enhancing capability of their employee and acquiring new markets and ventures.

INTRODUCTION Stock exchange is a type of exchange where traders and stock brokers can sell and buy their shares, securities and bonds. Apart from it they provide faculties like reduction of securities, issue of shares and other capital events including payment and settlements of dividendand shares. Moscow stock exchange provides securities on stocks issued by derivatives, pooled investors, unit trusts, bonds and listed companies(Burritt, 2014). Moscow exchange is a “continuous auction” market where trading activities keeps on commenting on trading floor. It is considered as a largest stock exchange market in Russia(Giroux, 2011). It was founded and established in 2011 by merging Moscow exchanges, Russia trading system and Moscow interbank currency exchange They are having 57% free floating shares and other major shareholders are like central bank of Russia (11.75%), Sberbank (9.9%) and Vnesheconombank(8.4%). Russia in current scenario has targeted to become an international financial hub. TASK 1P1 Macro environment of Moscow Exchange, growth of Sberbank in next 10 years and strategies It is an important factor to observe external environment of as organisation so PESTAL is a suitable tool to analyse any environment. PESTAL analysis involves political, economic, social, technological, environmental and legal factor for analysis as considered as a very effective tool in observation of external environment(Kunc, 2011).PESTAL analyse of Moscow exchangePolitical factor – Russian government is a federal semi-presidential republic with president is a head of state so all the factor related to business and future investment scope of company are dependent on its decisions. So companies dependent on policies for making investments in Moscow stock exchanges. Moscow must ensure that all they must aware all investors about country's policies to safeguard their values.

Economical- Economic factor have epochal on organisation which guide organisation to do their business and gain profit from market structure. They include several factors including interest rates, infatuation, disposable incomes, economic growth and businesses. A company while investing in Moscow stock exchange helps them to fetch maximum profit from stock exchange. Social factors – It gives details about social- cultural parameters and attitudes, behaviour and belief of an organisation. They directly influence mind of investors e.g. for bank it is important to observe the cost of living of people which will help in planning better in business environment. Technological factor- It deals with technological factors. Like in all over Russia they arewell known form manufacturing of arms and dealings and keep on developing new techniques for up gradations. So many companies related to services and assisting technology are growing by investing in market place. Moscow enchained must study buying and selling of arms like bigger arms dealing between countries and its effect on social environment.Environmental factors- These factors includes natural climate of a region. In Russia there is very cold climate and harsh conditions, there are scarcity of raw materials, foods and adequate resources in some region so it is important to observe environment and do business. Fordoing business successfully they must have a better planning about their marketing strategies.Legal factors – These factors includes government policies include equal opportunities, consumer rights and product safety. While investing in Stock Exchange Company must ensure that they have information about legal policies of stock exchange and current and future planningof Russian government. Moscow exchange must provide transparency among their investors. Burbank and its growth strategy in next 10 yearsIt is a state- Owned bank operating in different European countries as well as post-Sovietcountries. It is a largest bank in Eastern Europe and Russia with share prices of 9.9% in Moscowexchange. Burbank have separated their vision of development for next 10 years. In initial phase they have a vision 2020(Johnson, 2016). where they emphasis on some basic factors first for making a good base in stock market and then plan to invest in stocks and share market they must focus on both internal and external factors for sustaining in market place

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