Market Entry Opportunities for Commonwealth Bank in France, Korea and Brazil

Running head: INTERNATIONAL BUSINESS
INTERNATIONAL BUSINESS
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Executive Summary
This report highlights the market entry opportunities of the Commonwealth Bank in Australia.
The new markets like France, Korea and Brazil and so on have been considered as the primary
domains for the market expansion. The bank have immense control over the Asian domain and
have more than 10% takes in two public banks of Indonesia. Under the recent presidential rule,
France have also evolved as a feasible market for the financial institutions as financial sector in
France have developed 150% in the last five financial years. This is why, the company can
highly consider the chances of entry in French market. Brazil have immense possibilities of
financial expansion. No potential private financial institutions hold large equity stakes in Brazil
that is why the company can consider funding the micro enterprises and start-ups who
manufactures various products of forest origin. After acquiring the Brazilian market, the
company can also consider expanding in to the Venezuelan and Chilean market also.

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Table of Contents
1. Introduction..................................................................................................................................3
1.1 Company Background............................................................................................................3
1.2 Current Business Scenario in the Australian market (here you will write why the company
is trying to expand to foreign markets)........................................................................................4
2. PESTLE analysis of the three markets........................................................................................5
2.1 France.....................................................................................................................................5
2.1.1 Political factors................................................................................................................5
2.1.2 Economical factors..........................................................................................................7
2.1.3 Social factors...................................................................................................................7
2.1.4 Technological factors......................................................................................................8
2.1.5 Legal factors....................................................................................................................8
2.1.6 Environmental factors.....................................................................................................9
2.2 Brazil......................................................................................................................................9
2.2.1 Political factors..............................................................................................................10
2.2.2 Economical factors........................................................................................................10
2.2.3 Social factors.................................................................................................................11
2.2.4 Technological factors....................................................................................................11
2.5.5 Legal factors..................................................................................................................12
2.2.6 Environmental factors...................................................................................................12

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2.3 Korea....................................................................................................................................12
2.3.1 Political factors..............................................................................................................12
2.3.2 Economical factors........................................................................................................13
2.3.3 Social factors.................................................................................................................13
2.3.4 Technological factors....................................................................................................13
2.3.5 Legal factors..................................................................................................................13
2.3.6 Environmental factors...................................................................................................14
3. Analysis of the future developments of the three markets........................................................14
4. Recommendations......................................................................................................................15
7. Conclusion.................................................................................................................................15
Reference List................................................................................................................................17

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1. Introduction
Australian Commonwealth Bank is one of the famous bank in the Oceania region with its
branches spread across different parts of the world, among them the notable are United States,
United Kingdom, China and so. The central bank stared by Labour Government in the year 1911
evolved as a public bank in the year 1996 and is now hoping to spread their hands in the
countries like Brazil, France and Korea after capturing a notable quantity of market in countries
like New Zealand, Papua New Guinea, China and so on with their digitalised modern banking
and competitive financial services. In this context, this report tends to make an analysis of the
major business prospects that the ACB would enter if they consider entering in to the
1.1 Company Background
The Australian Commonwealth Bank is one of the most renowned bank, having its roots
in the continent of Oceania, which comprises Australia and New Zealand. In spite of coming in
existence since 1911, the bank was declared as a public bank from the year 1991 and was listed
officially in the Stock Exchange of Australia. Since its establishment under the Labour
Government led by the Andrew Fisher, it was the only centralised bank in the continent of
Oceania. Later due to the improper management, the Bank Authority decided to hand over the
Papua New Guinea and Solomon Islands branches to the local governments respectively (Borne
et al. 2018). Again, Andreu, Claver and Quer (2017), informs that in the late 80s and early 90s,
the bank acquired majority of the New Zealand’s ASB Bank and the Victorian State Bank. In the
end of the 90s, the bank became the most valuable and trusted bank in the Australia and New
Zealand region with the help of its banking and financial services.

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1.2 Current Business Scenario in the Australian market (here you will write why the
company is trying to expand to foreign markets)
In the early 90s, the banking giant made itself free from the hands of the Australian
Government and emerged as a public bank, with the government holding some of its shares. As
per Chetty, Ojala and Leppäaho (2015), the bank made huge progression after being emerged as
the largest private bank in the year 1996 with the formation of its own board of directors with
government holding none of its shares. In the starting years of 21st century, the bank first saw
their scope to expand their business in the Asian region and with that objective, their first step
was, acquirement of the full ownership of PT International Bank of Indonesia and renamed the
acquired one as PT Commonwealth Bank. With the objective of further expansion, the bank went
into co-operational agreements with Chinese banks like the Jinan Commercial City Bank and the
Hangzhou Commercial City Bank resulting in their shareholding of 11% and 19.9% in the
respective banks (Pellegrino, Lanzini and Leone 2015). Among their local expansion, they
acquired 50% share in the National Colonial Bank of Fiji. In recent time, the bank is seeing its
hope of expansion in the European and American regions.