Strategy and Global Finance Report

This report provides a comprehensive analysis of strategy and global finance, focusing on key areas such as investment approaches, risk mitigation techniques, costing methods, and financial analysis. It examines the impact of globalization on investment, evaluates different investment strategies, and reviews global business environment factors. The report also delves into potential investment decisions for business expansion, the impact of strategic decisions on operations, and the financial consequences of these decisions. Furthermore, it explores global risks and risk mitigation techniques, along with investment appraisal techniques and international aspects of financial risk. The report also covers the importance of costing, different costing systems, and appropriate costing methods for organizations. It also discusses the impact of risk factors on business, suitable approaches for overcoming such risks, and techniques for mitigating risk. Finally, the report evaluates tangible and intangible resource allocation, techniques for better resource utilization, and financial ratios for determining financial viability, concluding with financial recommendations for product redevelopment.

Strategy and Global Finance
&
Strategic Financial
Management

Table of Contents
TASK 1a..........................................................................................................................................4
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................5
a. Explanation on the concept of the globalization is linked with investment approaches .......5
b. Evaluation of approaches to investment ................................................................................5
TASK 2............................................................................................................................................6
a. Review two contrasting global business environment factors................................................6
b. Evaluation the impact of each factor on Electro Tech's operations .......................................6
TASK 3............................................................................................................................................6
a. Explanation of potential investment decisions and strategies available to Electro tech's
preposed expansion projects.......................................................................................................6
b. Select and critical evaluation of the optimum strategy...........................................................6
TASK 4............................................................................................................................................7
a. Explanation the potential impact of strategic decisions on the Electro Tech's operations......7
b. Evaluation the potentials financial consequences which strategic decisions may have on the
organisation.................................................................................................................................7
TASK 5............................................................................................................................................8
a. Explanation two global risks that Electro tech might be exposed in business expansion ......8
b. Evaluation two risk mitigation techniques which can applied on business expansion...........8
c. Evaluation of suitability of the two risk mitigation techniques...............................................8
TASK 1b..........................................................................................................................................9
INTRODUCTION ..........................................................................................................................9
TASK 1............................................................................................................................................9
A) Two investment appraisal techniques which are helpful for TESCO ...................................9
B) Usefulness of the these two techniques................................................................................10
C) Two international aspects of financial risk..........................................................................10
D) Cost involves in managing these two aspects ....................................................................11
TASK 2..........................................................................................................................................11
A) Importance of costing to the board......................................................................................11

B) Current costing system used by an organisation .................................................................12
C) Appropriate costing method for an organisation .................................................................13
TASK 3..........................................................................................................................................13
A) Impact of two risk factor on business..................................................................................13
B) Suitable approach for overcoming from such risk factor.....................................................13
C) Two techniques which are helpful in mitigate the risk........................................................13
TASK 4..........................................................................................................................................13
A) Appropriate strategy which is useful to evaluatev the tangible and intangible resources
allocation...................................................................................................................................13
B) Two appropriate techniques for better utilisation of resources............................................13
TASK 5..........................................................................................................................................13
A) Calculation of financial ratios for determine current financial viability .............................13
B) Financial recommendation about the redeveloping of product ...........................................14
CONCLUSION .............................................................................................................................15
REFRENCES ................................................................................................................................16
Online .......................................................................................................................................16

TASK 1a
INTRODUCTION
Most of the companies are having their focus on the business expansion according to the
potentials which are available in the international market (Purce, 2014). Business expansion has
a huge need of the investment so it is essential to us financial management. Financial
management works on the management of the funds which can help to the company to allocate
their budget properly on those points which is essential for them to improve their business. It can
help to an organisation in their business expansion. International market is having a potential to
increase the revenues of the business via increasing and developing the criteria in which they
have to provide their services and product. The present report is based on the Electro Tech which
is a supplier company of telecommunication system. It is an international company which is
working in more than 80 countries and with approx 21,000 employees (Moffett, Stonehill and
Eiteman, 2014). They are committed to develop products based on the latest communication
technology. The company want to expand their business via investing in the Atlantic site
Cornwall. So now it is essential for them to use financial management and take effective

financial decisions. The present report contains details up on the concept of globalization and
factors which are making a negative impact on it. So it is essential for the company to take
strategic decisions which can improve their effectiveness on the business expansion.
TASK 1
a. Explanation on the concept of the globalization is linked with investment approaches
Globalization helps in creating platform for many companies at one place where large
number of competitiveness can be seen. It is important for a local company to introduce
themselves at global level (Lasserre, 2012). It helps in increasing their profitability with the help
of this process.
By using this concept investment which is taking place is huge and large amount have to
invested for setting up a company at global level. They have to produce their products according
to international consumers. There are mainly three type of investment approach which can be
used by the electro tech at the time of globalization.
1. Shared investment knowledge
2. Consistently forward thinking
3. Analytical rigour
Company have to invest their money by analysing all factors of market and then they
have to made investment at global level.
b. Evaluation of approaches to investment
Investment approaches are generally used by each and every firm which set up their
business internationally (Hillier, Grinblatt and Titman, 2011). These methods help them to make
their place in that competitive market. Many globalised companies have used these approaches in
their expansion of business and then get success.
MacDonald and Starbucks have use these approaches for their business. When they
expands their business first they analyse number of competitors in market and then they invest
according to that. By using this analysis company use shared ideas of market and get fully aware
about that. All these things help them in their expansion. Same thing can be used by the elctro
tech for their success and survival.

TASK 2
a. Review two contrasting global business environment factors
Business expansion puts an extra pressure on the company which is delivered by the
international market and globalization so it is essential for the Electro Tech to improve their
business by making focus on these factors (Han and et. al., 2010). International economical
changes can make a negative impact on the organisations business which can reduce the
effectiveness of the expansion plan. So Electro tech have to be focus on their on these factors
which can make a negative effect on the business.
b. Evaluation the impact of each factor on Electro Tech's operations
More responsibilities can built a pressure on the Electro Tech which can reduce their
qualitative work and as well as their decisions. As right now they are having a focus on the
business expansion in the Atlantic area so they are working on the resources which can help to
them to find out the solutions. International economical changes can make an influence on the
business and as well as on the expansion plan which can make a compulsion for the company to
revise their plan accordingly.
TASK 3
a. Explanation of potential investment decisions and strategies available to Electro tech's
preposed expansion projects
Company want to expand their business and for this they can use major investment
decision in which they are making for increasing their production. They are thinking about that
this activity is financial viable to them or not. Investment increment helps them in their
production rise.
They can recover their investment with in a year because their expansion is made at
global level where there are large range of customers.
b. Select and critical evaluation of the optimum strategy
Company have to make strategy which are helpful in increasing their productivity of
teletech product. This is their product which is most in demand so, they have to invest more on

the production of this product (Goldin and Vogel, 2010). Their strategy have to be truly focused
on increasing their production related facility by using effective decision of investment.
The production can only be increased if they are investing more in their technology.
Another strategy is based on how this can work. They have to employee such people who are
beneficial for them and help them in producing their key product.
Electro tech have to be used such type of strategy which helps in their production and
another important factor is by maintaining quality of that teletech. This is the basic and important
things which are beneficial for them in higher profit earning. And also helps in expansion of their
business without any issue.
TASK 4
a. Explanation the potential impact of strategic decisions on the Electro Tech's operations
By using strategic decision its impact over on business is positive. Because it is based on
some strategies which are first examine and then management work on that by formulating them
and then implement them. But some times strategies can became negative while not analysing all
the factors properly. It leads in the failure of organisation. So, company have to analysen first all
the factors then they have to take decision.
Atlantic expansion project is suitable and profitable for an organisation because it helps
to a firm in their expansion and growth. Which further helps them to determine their overall
invest as early as possible. Management decisions are taken on some basis which helps in
achieving targets of an organisation.
Their investment can be treated as the one time and its benefits are lifelong for firm.
Effective and good quality product helps in gaining again and again the consumer. This is to be
considered as the one of the important decision by management which help them in their growth
and expansion without and threat because whole decision is based on some strategy which are
only be made for the profit of an organisation.
b. Evaluation the potentials financial consequences which strategic decisions may have on the
organisation
Financial consequences can only be arrived if the cash flow of the company is not
effective and showing loss for a financial year (Erkama and Vaara, 2010). This shows that
company is not able to invest more on any project and can not be able to attain their objectives.

Another thing is that it also simplifies that company will not be able to pay to their shareholders,
debenture-holders and stakeholders. Electro tech have good financial condition which can be
seen with the help of cash flow and they have appropriate balance which helps them to start and
invest in any new project.
TASK 5
a. Explanation two global risks that Electro tech might be exposed in business expansion
New Competition and Unfamiliar with Marketplace:
it is very difficult to establish brand in new and unfamiliar marketplace but it is very important
part for the growth of the business for the expansion of business to grow and earn more
productivity as well more profitability for short and long term period. It is very important to
identify barriers in international growth.
Instability: instability is uncertainty caused due to sudden changes in the environment. When an
organisation wants to expand their business so the risk is faced by the business is instability in
the marketplace and investors are also worried about their investment that they made in the
company.
b. Evaluation two risk mitigation techniques which can applied on business expansion
As the above given risks can hamper the action plan of the company to expand their
business so they have to use analysis of the market which can increase the effectiveness of the
company to mitigate the risk of the unknown competition of the markets (Biesbroek and et. al.,
2010). To reduce instability, they can make proper market researches and financial researches by
which company can get proper financial stability.
c. Evaluation of suitability of the two risk mitigation techniques
Market analysis can improve the company's action plan to expand their business in the
Cornwall. It can reduce the errors of the action plan which they are using to expand their
business. Market research can be help full for the company to analyse the available market
rivalries and factors which can make a negative impact on their business expansion plans. So
they have to make proper analyse from their employees.

TASK 1b
INTRODUCTION
Tesco is one of the largest retail outlet in UK which deals in grocery items. They give
quality product to their target customers so, that their customers get satisfied with their products.
Their customer base is so strong because of their quality products. They develop some strategies
which help them in their companies growth along with that their profit margin can also be
increased with the help of that. Board start preparing their cost related techniques which helps
them in their product redevelopment. Some of the risk associated with that are also examined
with this concern. All such factors are included in this report which helps an organisation in
redeveloping or replacement of their product.
TASK 1
A) Two investment appraisal techniques which are helpful for TESCO
Capital investment appraisal can also be named as the capital budgeting which facilitates a firm
to invest their capital at the appropriate place on the appropriate time. Components which are
come under this type of appraisals are R&D projects, equipments, property, plant and new
machinery. The two investment appraisal techniques are as follow which a firm cab adopt so that
their return can be increased(Goldin and Vogel, 2010).
1. Accounting rate of return: This technique helps in comparing the profit that can be earned
by the new project in which TESCO wants to invest to the initial project that is required
got the project. Project which helps in giving higher rate of return will be prefer on the
place of lower rate of return. This is an effective technique which can be used by the firm
so, that they can redevelop their product which gives them benefits and helps in earning
higher profit.
2. Adjusted present value: APV helps in recovering all the shortcoming of the net present
value and evaluate the project on the basis of risk associate to prospective company
undertake the investment(Cetorelli and Goldberg, 2012).
These two techniques are helpful in estimating the amount which is going to be invest in
the company. These methods helps to the cited organisation in redeveloping their product. Also
company can arrange their finance for their project by issuing shares in the market. This also
helps them in arrange appropriate fund for their task.

B) Usefulness of the these two techniques
Both of the techniques are useful for an organisation for starting their redevelopment
project. It helps in their brand name increment along with that also it helps them in increasing
their prices of shares(Erkama,2011). Both of the techniques are useful for an organisation
because they help in estimating all such things which help in gaining higher return as well as also
helps in estimating risk associated with the project. They both have their own advantages on their
places, which are as follow:
1. Accounting rate of return: a) It helps in measuring the current performance of company
so, that firm can take decisions on the basis of their performance. TESCO can estimate
their present market value and then they have to invest in their redeveloping project.
b) It also helps in making comparison of new project with the cost reducing [project and
other competitive projects which helps in survival and growth of an organisation without any
problem.
c) This method helps in satisfying the owners of firm because they want higher rate of
return from new project.
2. Adjusted present value: a) It helps in keeping in view about all such factors which are
going top affect the operations. So, it helps in keeping in mind about the risk which
are associated with new project.
b) It is one of the best method which is generally used by the firms to analyse their
position and performance. Its popularity is increasing day by day so, company have to use this
method to find out the risks with new task.
c) It provides flexibility to an organisation to use their APV on new products which they are
already use on existing project. This helps to an organisation to do not calculate many NPV for
their project(Han,et. al., 2010).
C) Two international aspects of financial risk
Risk are the fear or threats which are associated with every business and with their
projects also. It helps an organisation to maintain strategies which are helpful in getting
overcome from all such issues. International financial risk are changes in interest rate and
exchange rate like every country have different rate of interest. An country accounting standard
are different from international accounting standard which states the different rules of accounting
at global level. Some of the risk are as follow which influence the growth of business.

Interest& Exchange rate : If company take a loan from international banks and interest
rate got fluctuate and got changed then, it is the risk factor for an organisation because it leads to
pay them more. If company is dealing in international market then if other country currency has
more strength then that country from where whole business is managing. It is also be the loss and
risk factor.
Change in accounting standard: International accounting standard are different from
other country AS. Hence, all rules and norms are also different thus it leads as the risk factor
because now company have to follow such AS on the place of their existing accounting standard.
These two aspects influence all the strategy of TESCO management which they want to
maintain for their redeveloping project. In which they want to expand their business and
introduce their products at global level(Grinbla and Titman, 2011).
D) Cost involves in managing these two aspects
Cost is an important factor while performing any business. Any product which is going to
introduce in the market need some cost with the help of that product is produced. If company
want to export their product to another country then they have to involve transportation charges
in the cost of that good.
If they import some raw material from other country then they have to pay all such cost
which is incur at the time of import. These two cost leads to increase the actual price of the
product. Which further leads in reducing the demand.
TASK 2
A) Importance of costing to the board
Price is one of the major factor in determining the pricing strategy of any product as the
positioning of the product is based on the price of the product itself. For instance TESCO PLC,
which is a retailer in grocery, implements Cost-volume-profit analysis to determine the effect of
cost and volume on the operating and net income of the company. It helps in identifying the
relation between revenue, costs and income of a company and also the relation between the cost
incurring and volume to be produced(Lasserre, 2012).
Also cost analysis is important in making marketing decisions as costs of a product is the only
major input for planning the costs related to marketing of the same and and planning and
controlling the costs as well. It also helps in formulating optimal marketing strategies based on

the idea of making maximum profit for the organisation. The company's cost should be divided
into functional categories in order to formulate better marketing strategies. Cost-volume-profit
analysis is advantageous to a firm like TESCO as it helps in analysing the break even point of the
firm and if BEP is known the company can manage its cost and production and also can detect
the upcoming fluctuations in the price of the market and hence resulting in the increase in
profitability of the company(Purce, 2013).
B) Current costing system used by an organisation
Costing system is useful for an organisation as it helps in cutting out the extra costs
which can be minimised up to certain extent. It takes direct labour hours and units to be
produced as input and calculates the costs that can be reduced.
The costing system has two categories:
1. Activity Based Costing System
2. Traditional Costing System
Activity Based Costing System:
The ABC System lays emphasis on the activities and take activities as the base for calculating
costs. It controls the overheads by compiling costs based on activities.
Traditional Costing System:
It does not take activities as a basis for calculating cost rather it depends on volume.
It compiles cost with the every unit of the product being produced, which is a wrong assumption
and lead to the miscalculation of the costs incurred(Brummer ,2015).
Improvements:
4. The implementation of both these systems is expensive and time-consuming, so it should
be improved by breaking down the activities into fragments .
5. The misinterpretation of data should be checked out which can lead to heavy
miscompilation of the costs.
Budgeting Approaches:
1. Incremental Budgeting
2. Zero-Based Budgeting
Incremental Budgeting:
It is a traditional way of budgeting where the budget of current period is taken as a base and

the incremental amount of performance to be added in the new budget(Chandra, 2011).
Zero-Based Budgeting:
In this method the budgeting, it does not take any factor as a basis and it starts with zero.
It allocates resources in an optimally to the part where they are actually required and then
activities of each department are justified by the managers.
C) Appropriate costing method for an organisation
Cost is the factor that company has to be very carefully monitored and managed.
Different types of costing approaches are used by different firms as suitable for them. The
costing approach totally depends upon the nature and size of the business. They are-
1. Job costing
2. Process costing.
3. Batch coasting.
4. Service costing
5. Operation costing
6. Contract costing
7. Multiple costing
Operating costing
This approach of costing is used in those firms where the working does not stop it goes on
continuously.
Service Costing
Service costing approach is applied To those industries who are availing services rather than
production of the products. Here the cost includes the services provides to the customers.
Tesco firm is in retailing of groceries so the services to the customers is very most concerning
part hence Service costing is suitable for the firm(Banalieva and Dhanara, 2013).
TASK 3
A) Impact of two risk factor on business
1. Financial Risk:

Financial risk is about the possibility to pay debts, loan and dissatisfaction among the
shareholder to lose their money that they have invested in the company. When shareholder
invests their hard earned money to the company and company goes for redevelopment of product
or making new strategies then fear to face loss if it doesn't goes growth oriented exists.
2. Technical Risk:
Technical risk is related to technical efficiency used in the development of the product.
When a company wants to redevelop and redesign their products to improve their profitability
then it must consider that technology used in new product must be technically sound and fulfil
the demands of the customer(Khanna and Palepu, 2013 ).
Techniques used to evaluate Risk:
1. Diversification:
It is techniques used to risk control, it involves the back up plan to reduce the risk if company
faces financial risk then it gives satisfaction to their shareholder that their money is in safe hand
and may issue security notes to them so that fear to lose money may be reduced.
Techniques that are used in product development as updated technologies, if it does not give
positive impact to the growth of the company then company must keep other back up techniques
through which company may get success in the product development and for growing success of
the company.
2. Learn about investment:
in this company must adopt suitable investment policy so that company not face risk in regard of
investment like to provide satisfaction to their shareholder that their money is in safe hand by
issuing securities to them(Cheng, Ioannou, Serafeim and Talk, 2016).
B) Suitable approach for overcoming from such risk factor
1. Map the strategy:
An organisation must design a strategy to eliminate the risk factor involved in the business when
company goes to redevelopment of their products and also consider financial and social goals.
Financial strategy creates the satisfaction among the shareholder.
2. Identify Risk using strategy Map:
Company must consider customer perspective, process perspective and growth perspective to
achieve best outcomes from the shareholder.
3. Assess Risk:

The risk that company faces must give rank as mitigate risk, avoid risk, transfer and avoid risk.
4. Design Risk management system:
Risk management system must be consider while going for diversification of business as product
development and redesigning of product like Diagnostic control, internal control, external
control system(Cormieret. al., 2010).
C) Two techniques which are helpful in mitigate the risk
Techniques to mitigate the risk:
1. Risk Transfer and contracting:
Risk allocation is to transfer the responsibility of risk to the others. Someone is ready to
take risk in exchange of rewards that one is getting in exchange of risk. If business has risk factor
then it is necessary to divert that risk on to the others so that risk can be reduced and keep the
back up plans to transfer that risk. There are many contractor who are ready to the risk but they
take reward in therm of money or in term of interest in the company.
2. Risk Control:
Risk control is to mitigate and eliminate the risk factor exist in the project so that better
result in term of growth and success can be achieved. There are many factors that are available to
control the risk as internal control,external control, risk avoidance method. Like in Tesco, risk
exist in term of development of new product and redevelopment of product then solution to
accelerate the project must be their to reduce the market risk at considerable cost. Risk can be
control by beating the competition exist in the market. Risk control also covers technological
development in market and to adopt updated technology available in the market(Vaara, 2010).
TASK 4
A) Appropriate strategy which is useful to evaluatev the tangible and intangible resources
allocation
Tangible resources- Land, tools, machines and equipment used for the functioning of the
organisation, shares and bonds all those which has the physical appearance.
Intangible Resources- Those thing which does not have any physical appearance but plays a vital
role in the running of the business. Such as-

Goodwill- It is the intangible part of the firm where the relationship of the business with the
customers and the reputation of it in the market and in the mind of the customers(Werther
and Chandler, 2010). Tesco is a good reputed firm has done many thing which shows the
gesture of the good reputation. It resolve the queries and also reimburse for the intrinsic
value of the product.
Values to organisation- Company has certain values towards itself.
6. It has created such an image that trust by the stale holders are present.
7. Team work and organised work is focused.
8. Customer satisfaction is prior
9. Passion towards the work
10. Different from competitors.
Strategies and tools.
3. Scorecard Method- By this method the resources in Tesco Company is evaluated. Here,
The evaluation are done through generating reports and graphs on certain criteria.
4. Monitoring the performances- Each and every activities are monitored very carefully.
5. Valuation method- What is the value of the product in the market. The products has
positioning in the market in what ratio(Moffett, Stonehill and Eiteman ,2014 ).
B) Two appropriate techniques for better utilisation of resources
Benchmarking- This tool is used for evaluation of the resources used in the organisation.
This tool defies a set of standards and level that has to be fulfilled by the employees and the
related resources used in the organisation. Here the firm draw some levels or standards of work.
Few step are followed by firm such as-
1. Identify the gaps of current working process
2. Set the objectives
3. Do documentation of the current working process.
4. Agree upon the set matrices.
5. It should be in written form.
6. Develop data plan
7. Identify sources of research.
8. Designing

9. Data collection.
10. Implementing.
11. Evaluating
12. Follow ups
1. Six Sigma- It is a management technique which helps to identify and improve the
efficiency of the work of the firm. This techniques helps in the reduction of errors in the
working and helps in the positive results. It is used widely in many of the firm as Tesco
also follows the strategies to reduces the errors and to grow the efficiency of the
resources.. In improvement methodology t focuses on the following aspects-
1. First and foremost thing is to understand the needs of the customers and managing them.
2. Them framing required thing to fulfil those requirements.
3. Using all the primary and secondary data for minimising the variations
Few criteria of six sigma
 Quality
 Defects
 Process
 Stability
 Variations
Score card-It identifies the error and guides to cover the differences occurring.
TASK 5
A) Calculation of financial ratios for determine current financial viability
It is the process to analyse the financial statements so that better decision can be taken to
eliminate the risk factors and improve the financial viability and performance of the business.
Tesco used income statement, fund flow statement, ratio analysis, cash flow statement. These

techniques are used to analyse the financial health of the business and gives sound report about
the financial viability of the business to the company.
Ratio Analysis is used to describe the companies performance and the future requirement
of the business. It reveals the information about debts, stocks, liquidity, flow of cash,
profitability etc.
Ratios flow in four category:
11. Liquidity Ratio:
It is the ratio used to describe the liquidity of cash in business so that it is used to cover the debts
of the company. It gives the information to the company about the soundness of flow of cash in
business.
Current ratio is used to to describe the ability of company to generate cash to fulfil it financial
requirements. It is also called working capital ratio.
Working capital ratio=Current Assets-Current Liability
Quick ratio is also known as Acid test. It measures the ability of the business to fulfil the
immediate demands.
12. Efficiency Ratio:
It is not calculated on routine basis, but once in 3 to 5 years. It consist of
Inventory turnover ratio gives data regarding the inventory to be sold in the market and in stocks.
Inventory Ratio= Total purchase/Average inventory
Average collection Period is used to provide the data regarding period in which customer may
make payment for the product or services. It gives clear collection procedure and credit policies.
13. Profitability ratio:
Net profit margin covers how much business is earning by selling their products and services and
give data about profit margin as comparison to its competitor.
Return on equity gives information regarding how much business is earning on investment of the
shareholder.
14. Leverage Ratio:
it provides information regarding solvency of the business in long run.
Debt to equity and debt to assets are used to see how the assets are financed whether by loan or
by own investment.

B) Financial recommendation about the redeveloping of product
If tasco wants to redevelop and redesign its product it must consider the following
recommendation that may result in growth of the company.
1. Developing ideas:
6. New product must meet the demand and satisfaction level of the customer so that success
can be achieved.
7. Consider the use and benefits from the new developed products.
8. New product must have design to attract the customer and use best resources to develop
new product.
9. Clear objective behind redevelopment of product and strategies required to be used to
strengthen the plan
2. Match redeveloped product to the market needs:
13. make market research as surveys to focus on the demands and desire of the customer.
14. Consider the product to support the end user of product.
15. Competitor's policies and how competitor's product may affect the new product of Tasco.
16. Market risk involved to launch new product into the market.
3. Pricing of proposed product:
1. pricing of the new designed product so that it may support the needs and wants of the
customer and consider the competitive product price.
2. Channel used for the promotion of the product and consider the cost too.
3. Life cycle of the product.
4. Investment and cost control:
2. consider the future investment of product into the business plan.
3. Consider cost and expenditure on every project.
4. Estimate development cost and expenditure for future development of the product.
5. Use cost effective channel for the advertisement of the product.
CONCLUSION
Hence, it is concluded from the baove report that a fiorm should have to use appropriate
techniques not juust for the expansion of business but also for introducing new product in the
market. They have to use their resources properly so that they can increase their productivity.
Also they have calculate the estimated cost which is going to incur on export and import along

with that on their production also(Sezhiyan, Page and Iskanius, 2011). There are many
approaches which helps them to do so. They also have to analyse the risk factor and by using
convinient method should have to work on those.

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