Question

a) Kasapreko Company Limited is a wholly Ghanaian-owned company with branches in Nigeria, South Africa and Germany. With relevant examples, explain the eclectic paradigm that Kasapreko might have fulfilled, before venturing international.

b) Knowing that accounting and reporting laws differ widely around the world thereby posing risks for the international business, briefly explain for each how physical asset valuation (PAV) and research and development (R&D) costs are likely to pose risks?

Answer 1

Part a:-

The varied worldview is additionally refered to as OLI Framework wherein OLI refers to Ownership, Location, and Internalization.

Organizations like Kasapreko was searching for new clients and had seen remote markets like Nigeria, South Africa and Germany as an approach to extend business with a huge scope of portfolio they have and offer more items to produce income. And yet, organizations additionally see approaches to expand proficiency by making economies of scale. Simultaneously, the facts may confirm that the organization looks for approaches to make economies of scale and decrease costs per unit by expanding proficiency by venturing into various market.

Ownership advantage talks focal points that portrays the particular the upper hands that the firm proposals by participating in FDI. In the of the Kasapreko, organization has conceptualized done R&D to deliver experimentally detailed, natural based mixed drink in Ghana and is a first of its sort. The mixed refreshments alongside the conventional home grown concentrates offer restorative qualities and adequacy to the end shopper. The one of a kind incentive offers an upper hand for the organization, this has empowered it to take part in outside creation.

LOCATION ADVANTAGE: The Company has their cutting edge office in Ghana which is obviously appropriate for trade markets like Nigeria and South African and alongside the utilization the utilization of best web/data innovation including on the web stock administration framework offers the organization an interesting situation to deal with the coordinations work. The organization has key providers who supplies chamfered bottle tops with sloped edges that limits impersonation of the item are situated in India and is very much situated to flexibly the crude material. As far as fare to nations like Germany, the organization is very much associated with the two business ports east and Takoradi in the west.

Internationalisation advantage : The Company plays out the worth chain movement in-house rather than through an outer gathering. This has helped the organization to build up an advanced quality control framework and an item improvement lab inside and furthermore executed its own exclusive bespoke jugs and tops. Moreover, the organization utilizes current strategy with the assistance of a profoundly energetic expert staff which is a bit of leeway. In general advantages offered, helps the organization in choosing what to seek after before wandering in the fresher markets.

part b:-