International and Global Business: Analysis of Suncorp Bank's Expansion Plans in France, Brazil and Korea

This report analyses Suncorp Bank's expansion plans in France, Brazil and Korea, including external factors affecting expansion, potential issues and future developments in each country. The report estimates the size and profitability of each market, examines potential problems and analyses the cultural aspects that influence entry in each country. The subject is International and Global Business, and the course code and college/university are not mentioned.

Running head: INTERNATIONAL AND GLOBAL BUSINESS
INTERNATIONAL AND GLOBAL BUSINESS
Name of the Student
Name of the University
Author Note

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Executive Summary
The discussion in the report is based on the ways by which Suncorp Bank can plan
its global expansion in different countries. The countries that have been considered
for the analysis are Korea, France and Brazil. The different external factors are
thereby analysed in the report which can affect the expansion based operations of
the bank. The foreign exchange and trade factors, profitability and size of the market
and the future developments have been analysed. The issues that can be faced by
the company in the industry are also a part of the analysis. The analysis has
depicted that Korea and France are effective choices for the company. However,
Brazil may not be able to provide an effective environment for business.

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Table of Contents
Introduction........................................................................................................3
About the organization.......................................................................................3
Selection of the three countries.........................................................................3
Understanding variances between structure of the market in three countries..4
Estimation of the size and the profitability based levels of France...................4
Examining the potential problems which can be faced by the firm in France...5
Analysing the future developments in France...................................................5
Consideration of the foreign exchange and trade implications in France.........5
Considering of the cultural aspects impacts the entry in France.......................6
Estimating the size and the profitability in Brazil...............................................6
Analysing the potential issues which can be faced by the company in Brazil. .6
Analysing the future developments in Brazil.....................................................6
Consideration of the foreign exchange and trade implications in Brazil...........7
Analysis of the cultural aspects that influence the entry in Brazil.....................7
Estimation of the profitability and the size of Korean market............................7
Analysing the potential issues which can be faced by the company in Korea..8
Analysis of the future advances in Korea..........................................................8
Considering the trade implications and foreign exchange in Korea..................8
Considering of the cultural aspects impacts the entry in Korea........................8
Conclusion and recommendations....................................................................9
References.......................................................................................................10

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Introduction
The activities related to the expansion of business operations that are
performed by the organizations vary from country to country. The organizations
thereby aim at increasing the profitability and the revenues as well. The main aim of
the organizations is thereby to increase the awareness based levels in various parts
of the world. The investments that are made by the organizations based on
expansion related plans also change according to the countries in which they plan to
enter. The international is related to the ways by which the company is able to attract
customers towards the operations and products (Boasson and Wettestad 2016).
The report will thereby be based on the analysis of expansion related plans
that have been made by the Suncorp Bank which has its operations in Australia. The
plans related to expansion of the company are related to three different countries
which include, Brazil, Korea and France.
About the organization
Suncorp Bank is an important part of Suncorp Group which has its head office
in Brisbane, Australia. The bank has been able to grow its operations in an effective
manner with the help of its services and has further acquired the position of the fifth
biggest bank in Australia. The operations of the bank had started in the year 1916
with the name of State Accident Insurance Office. The name of the organization was
further changed to State Government Insurance Office. This had led to the
expansion of the operations into the life insurance based operations. The operations
of the company and its growth had increased in an effective manner with the help of
different mergers and acquisitions (Suncorp.com.au 2018).
The operations of Suncorp Bank had grown in a huge manner with the help of
effective mergers that have been made by Suncorp Bank with two other
organizations. A new brand of the organization was launched in the year 1999 which
had further helped in the increase of revenues of Suncorp Bank.
Selection of the three countries
The countries that have been considered for the analysis of expansion based
plans of Suncorp Bank include, Brazil, Korea and Japan. The environment related to
business in these countries will be analysed in the report in detail. The major part of

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the analysis based related to external factors is based on the financial industry of the
countries.
Understanding variances between structure of the market in three countries
France – The financial market of France is open in nature which is a major
advantage based on the expansion related plans of Suncorp Bank in Australia. The
lack which has been experienced in the different portfolio based investments in the
country have attracted huge number of investments from all over the world. The
French market is able to welcome foreign investors easily. The marketplace which
has been developed in the country is an effective part of the external business
environment (Naqshbandi and Jasimuddin 2018). The standards based international
accounting have to be maintained by companies which operate in France.
Brazil – The market based on finance that has been developed in Brazil has
proved to be quite promising in nature. The different scenarios which have thereby
been developed in the financial industry of the country has also changed in last few
years. The environment will play an important role in stimulating the growth of the
organization in the country. The sector related to investment of Brazil is affected in a
huge way by changes that have taken place in financial market (Marcon, de
Medeiros and Ribeiro 2017).
Korea – The financial industry and market in Korea quite systematic and
organized in nature. The money based markets that are systematic in nature are
able to attract huge number of investments from different parts of the world. An
important role is played by the direct markets for the organizations which operate in
the country. The financial industry that operates in a direct manner is thereby able to
affect the companies and financial intermediaries (Kim 2017).
Estimation of the size and the profitability based levels of France
The size of the French market is effective and modern in nature and its size
has thereby started increasing in the last few years. The banking related system of
France has shown huge levels of development within the year 2008 to 2009. The
banks in France have started increasing their health and their assets have thereby
amounted to 6.3 million Euros within 2015. The different foreign investors can
access various financial instruments in France that include, medium term based

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facilities, short term based facilities and long term based facilities. The financial
environment in France is thereby quite free in nature.
Examining the potential problems which can be faced by the firm in France
According to Boly, Morel and Camargo (2014), the company can thereby face
huge challenges in the financial industry of France based on its operations. The
significant challenge that will thereby be faced by Suncorp Bank in the market is
related to the effects that have been experienced by France due to the
implementation of Brexit. The modification that have occurred in the regulations of
European Union will also be able to create major levels of issues for Suncorp Bank
in France. The country has acquired 25th position in the world based on facilities that
are provided by the country for establishment of new business based organizations
(Alden and Aran 2016). Another major issue which can be faced by the company in
France is based on the changes that have taken place in the laws.
Analysing the future developments in France
The trade and investment based relationships of France have been quite
strong with the United States. The development of the business based environment
in the future is thereby totally based on the ways by which the country is able to
welcome the new organizations. The levels of improvements that have thereby taken
place in the business environment of France are important for the financial activities
in the country. The future growth of the financial industry is expected to be quite high
and this helps in attracting more organizations towards the country (Sheehan 2014).
The various sectors that exist in France is able to affect levels of growth of France in
the future. The major opportunity is thereby provided to an organization like Suncorp
Bank from developments that have taken place in the financial sector of the country.
Consideration of the foreign exchange and trade implications in France
The French government has not been able to place any strict regulations on
the ways by which foreign investors are able to operate in the country. The
conversion of funds to French currency is thereby considered to be an easy process
which is thereby followed by the organizations in an effective manner. Euro is the
currency that is used in France and the investors who wish to invest their money in
the country are able to convert the currency of their own country quite easily.

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Suncorp Bank will thereby not face any specific currency based restrictions while
operating in France (Hueske, Endrikat and Guenther 2015).
Considering of the cultural aspects impacts the entry in France
The culture related to business in the country is developed in a unique way.
The process of development of European Union is can have immense effects on
proper formation of business culture in the country. The developed nature of the
neighbouring countries of France are thereby able to affect the culture of the country
and the business environment as well. The setting up of effective business related
operations in the country is also considered to be an important part of the culture
which is followed in France (Hossain and Kauranen 2016).
Estimating the size and the profitability in Brazil
Financial markets that have been developed in Brazil has grown in the last
few years in an effective manner. This growth is thereby related to the ways by which
various international organizations are attracted towards the country. The amounts of
surplus that are present in the country are also able to replace the shortages related
to trade in the country in an effective way. The performance which has been
depicted by the stock market of Brazil is considered to be a major factor behind the
size of the market. The value of currency in the country is quite low which has been
able to affect the profitability based levels (da Cruz et al. 2017).
Analysing the potential issues which can be faced by the company in Brazil
According to Prajogo (2016), the different issues that can be faced by
Suncorp Bank in Brazil are based on the ways by which the high levels of growth are
depicted by the country. The high levels of corruption in the government has also
proved to be a major issue that can be faced by Suncorp in Brazil. The risks relate to
credits in the country are also quite high which is considered to be a major reason
behind the huge risks. Brazil may also not be able to provide effective infrastructure
for the growth of Suncorp Bank in an effective manner.
Analysing the future developments in Brazil
According to Galina, Carvalho and Costa (2016), the business environment in
Brazil is highly complicated in nature and has been able to affect the ways by which
international organizations operate in the country. The expectations are however

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based on the future growth and development of the business based environment of
Brazil. Outsourcing related laws are also modified in an effective way so that the
global companies can be attracted towards the country. The laws related to
employment are also being improved in order to provide effective levels of support to
the organizations. The development in the future that is expected in Brazil can
thereby play a major role in the ways by which global organizations are able to
operate in the country.
Consideration of the foreign exchange and trade implications in Brazil
The regulations related to trade and policies of foreign exchange in Brazil is
highly complicated in nature. The laws related payment of taxes is also considered to
be an important factor which can affect the revenues of Suncorp Bank. The
development of a supporting environment is considered to be highly important for
expansion based plans that have been made by the bank. The other trade related
laws in the country are thereby considered to be an important factor (Marcon, de
Medeiros and Ribeiro 2017).
Analysis of the cultural aspects that influence the entry in Brazil
The aspects based on culture in Brazil is an important factor that can affect
the various operations and parts of global organizations. The main aim of the
companies is thereby to develop relationships that are friendly in nature. The people
of the country are thereby capable of negotiating in an effective way that needs to be
taken into consideration by Suncorp Bank. The levels of interaction which take place
in the country are based on the hierarchical culture that has been implemented in the
organizations (Sampaio and Costa 2016).
Estimation of the profitability and the size of Korean market
As discussed by Chung and Lee (2015), the number of policies that have
been implemented in the financial market of Korea are huge. The size of the market
has also started to increase with the effective developments that have taken place in
the Korean economy. The steps based on liberalization that have been implemented
in the country in an effective manner have played a major role in attracting different
foreign investments. The process of stabilization of real estate market is considered
to be an important part of the agenda that is followed by the government of Korea.

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The new regulations and policies which have been implemented in the country are
thereby effective in attracting financial organizations like Suncorp Bank.
Analysing the potential issues which can be faced by the company in Korea
The different types of issues that are faced by the country are related to the
effective levels of growth of Korea. Korea has started becoming a sandwich between
the developed and the emerging countries in the world. The high levels of
dependence of Korea on the United States and China is considered to be an
important part of the environment that has been developed for business in the
country. The economic stability of the country is thereby considered to be an
important factor based on the effective levels of development of Suncorp Bank in
Korea (Kim 2017).
Analysis of the future advances in Korea
According to Kang and Kang (2014), the country has depicted huge levels of
growth in the last few years and is the economy is expected to grow further in an
effective manner. The challenges that are thereby faced by the country are quite
huge. The activities related to innovation in Korea can have major effects on the
operations of global organizations like Suncorp Bank. The culture of the country is
further able to provide effective levels of support to the new businesses or start-ups
as well. Korea is also considered to be a major part of the Free Trade Agreement
that is made with the US.
Considering the trade implications and foreign exchange in Korea
The investment activities have been liberalized in a huge manner in Korea
with respect to different foreign exchange related controls in the country. The
investments that are thereby made by the global organizations are based on various
terms that are available under Foreign Capital Promotion Act. The rates of exchange
in the country have started improving in the country in a huge manner. Suncorp Bank
will thereby get the effective advantage of emerging financial sector of the country
(Park and Hong 2016).
Considering of the cultural aspects impacts the entry in Korea
South Korea has been able to develop itself from an impoverished country to
a huge developed economy. The culture that has been developed in the country is

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thereby important for attracting foreign investments towards Korea. The increase in
levels of FDI has been able to play a major role in the effective development which is
depicted by the country (Kim and Lee 2014). The attitude and culture that is depicted
by people of Korea plays a major role in operations of different organizations in the
country. Suncorp Bank needs to develop the culture in such a manner which will be
helpful for the profitability of the organization (Choung, Hwang and Song 2014).
Conclusion and recommendations
The analysis in the report can be concluded by proving that the factors that
are based external environment can affect the expansion based plans made by
global organizations. The different countries that are analysed in the discussion are
able to provide different types of environment for the operations of the bank. The
different policies and the culture of the countries can affect the ways by which
Suncorp Bank is able to develop its operations.
Recommendations – Suncorp Bank can thereby be recommended that its
operations and expansion can be highly successful in Korea and France. The stable
conditions of the economy are thereby considered to be a major factor that can affect
the operations of Suncorp Bank. However, the unstable conditions in Brazil are not
quite suitable for expansion of the bank.

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