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ACME is a very potential company that has the biggest opportunity of expanding its business in the overseas markets and for this to be attained a critical analysis of the business environment in the countries of a target is mandatory. As one of the probable countries where business is done by ACME can thrive, European Union countries such as Ukraine have some of the very promising conditions for venturing into business by actually having to create opportunities from the conditions that people feel have been threats to their business ventures (Rossi and Blum, 1969). The choice that shall be made by the management team of the organization concerning committing the resources on both long term and short-term basis in Ukraine will give back to the investment returns on the company in abundance. The benefit that shall be accrual to the investment includes the availability of a bigger and extensive market that has a greater percentage of the potential of growth. Ukraine has a un exploited market and as a result, any investment venture into the economy would lead to the realization of the benefits. The market does have the potential of using the company products and the willingness to buy but these products yet they are not available in the market to meet their demands and due to this, if ACME decides to make a venture into Ukraine then it shall have the greatest percentage in returns from it.
According to Joan (1999), ACMA profits and returns on the assets base would be considerable than if they did not expand that business into Ukraine and opted for the other country.
The fact that Ukraine as a country is near Sweden and Europe gives it a wider market segment to rely on. The triangle of the countries does create a free market and the movement of goods within the economies would be an avenue for the growth of ACME Investment Company limited. According to Alex (2007), a free-market base does have the potential of having to create a demand that is long term for the particular products and this would be very encouraging for the future sustainability of the organization. An investment into the market by the company shall be an expansion of its customer base and hence the continuity of business in the present and future shall be certain and predictable. ACME’s choice of Ukraine as the place to commit their resources enables them to realize benefits that are beyond the other non-European countries that were investment choices but left out due to opportunity cost. Ukraine does have a bigger share of the market which is driven by profits and has a cheap workforce readily available. This is a factor that has the competitive advantage to Ukraine against any other country which is not a member state of the European Union. European nations do have the agencies that are held responsible for the welfare of the labor force and due to this the wages and salaries are determined by the body and this is considerable when compared to a nation where the labor force is being fought for by a varied number of organizations. ACME industries limited will be saved the cost of having to conduct recruitments and training of the human resources. Procedures are well stipulated concerning the code of conduct of the organization and staff with each party having responsibilities that are binding legally. If any of the involved members fault is lawfully convicted and forced to compensate the parties that shall have encountered loses. Due to these Ukraine policies on human resources the investor company shall be at a better position when absorbing workforce into the operations and this could not be attained as benefit if their was an option of investing in another region.
Being a member state of the European Union, Ukraine does use the Euro has the primary currency. Being one of the strongest currencies in the financial sector it does give the investors an upper hand whenever they shall be getting into a business deal.
According to Michael (1969), a stronger currency being in operation does raise the returns of the capital base and the valuation of a company in terms of Euro does show the most value of the assets and overall net worth of the unit. Euro does give a competitive advantage to undertaking operation in Ukraine than if the particular company had to choose to do operations in a country that uses any other form of currency, for instance, the dollar because Euro is stronger than it.
The country of preference is a member of the world trade organization and as a result majority of the world business opportunities are available to the nation’s economy. More so if any of the nation’s enterprises are faced with financial crises such that it may be forced out of business then the other partners would be bold enough to bail it out from the pooled risks fund. A nation that has the benefits of being a member of the world trade organization shall have the most qualifications that are fundamental to the start of a business. According to Chris and James (2001), the monitoring of the mode of operations being undertaken makes the establishment work primarily towards the attainment of its goals and aims effectively. Any lack of asking for accountability would lead to misappropriation of the scarce resources and this would not be cost effective and at most this was to happen if the company had made a choice of doing business in any other nation. The cultural perspective of the country of choice regarding the business is also beneficial to the investor than if the other option would have been picked. Ukraine has a well outlined business culture and it does give the right factors that are fundamental for the well being of a business venture. Just the right culture that is needed to lift organization to the limits it requires and this was available in Ukraine at the expense of the other probable country which is not a member of the European Union.
Despite having chosen take their investment efforts to Ukraine some dissatisfaction would be realized from such an action. The most pressing would be the fact that Ukraine ha a lot of indirect specifications concerning the registration of companies and its not stable politically. Any establishment has to adhere and follow to the later the step by step procedures of getting a business into operation. In the less bureaucratic countries such the one not found in the European region, formalities of starting a business are more flexible and do allow room for special treats. Such a place would have been easier to penetrate than getting into Ukraine. The banking sector in European Union and the financial sector as a whole face a lot of taxing that are a mandatory for any business undertaking operations in the region (Chris and James, 2001). In other place s such high taxes are not in place and this would favor any establishment as far as investments are concerned reason being these taxes would make a companies net income remain low and hence minimizing its possibility of growth. This is a very demeaning drawback for the company with it being an entrant in the European economy. Members of staff with the right training and expertise are rare to come by and the cost of acquiring a replacement of the other person would be high.
Having scrutinized the benefits that ACME shall enjoy by choosing to invest in the European based nation and the demerits as well its most appropriate to make the investment. The returns attainable are substantial to enable me recommend the undertaking of the investment into the European Union at the expense of a country that is not a member of the union. The threats that are rampart in other countries are turned into opportunities in the European country and this does give the most appropriate chance of doing well in the market. An investment made into Ukraine by ACME would be the most profitable option of the company.
Reference
Alex.F. (2007) Sharing a Vision for Growth (pp. 383-406). New York: Plenum Press.
Rossi, P. H., & Blum, Z. D. (1969). The Process of Growing Forward. New York: Basic Books.
Joan, P. (1999).Strategies for Building an Organization. New York: Nicholas Brealey Publishing.
Chris, Z. & James, A.(2001)The Living Company: Growth Learning and Longevity in Business.New Yolk: Harvard Business School Press
Michael, N. (1969). Growth Strategies for Companies. New York: Basic Books.
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