Question

QUESTION 3

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

The varied worldview is additionally Referred to as OLIN Framework wherein OLIN refers to Ownership, Location, and internalization.

Organizations like Kaspelo 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 a 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 proposed by participating in FDIC. In the of the Kaspelo, 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 refreshment alongside the conventional home grown concentrates offer restorative qualities and adequacy to the enc 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 a 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 poets east and alongside in the west.

Internationalization advantage: The company plays out te worth chain movement in-house rather than through an outer Internationalization. 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 judge and tops. Moreover, the organization utilizes current strategy with the assistance of a profoundly gathering expert stag 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:

Physical Asset Valuation (À):

The business in the international market can have a number of risks associated with the physical assets where it is operating.

* Regulatory changes results in having a physical asset value which is different

* Taxation and depreciation framework in a country in the international market might vary depending on time to time. So, the overall value realization can vary accordingly.

* realization the right value for the physical asset is key as it is determinant of the market value as the benchmark.

Research & Development( R&D) cost

some of the cost elements that has risk to companies operating in the international market include:

* Due to poor goal-setting at the beginning as R&D and further risks of bott that occur during the developing process incurs cost.

*The allocation of a large amount of funding to a promising product but it is either being held up in the test trail or in the regulatory approval stages until cost the company a lot.

* The political risk.