Business Finance
FIN491 Phoenix Cultural & Political Risks of Business in Foreign Country Paper

FIN491

University of Phoenix

Question Description

The purpose of this assignment is to allow students the opportunity to present a business idea supported by strong financial information. The student will be able to identify the possible challenges of doing business in a foreign country and how to approach them.

Assignment Steps

Resources: Microsoft® PowerPoint®, Signature Assignment: Financial Statement Analysis and Firm Performance Template

Prepare a 16- to 20- slide Microsoft® PowerPoint® presentation showing the details of a business you are interested in starting in a foreign country, and for which you need $300,000. The presentation should include the following information:

  • Business name
  • Executive summary
  • Description of the foreign country
  • Business description and structure
  • Market and company analysis
  • Marketing and sales operational plan
  • How you plan to use the $300,000
  • Financial statements forecast (3 years)
  • Business health assessment - using the following ratios:
    • Liquidity ratios
    • Solvency ratios
    • Asset management ratios
    • Profitability ratios
    • Market value ratios

Analyze and calculate the following scenarios in 525 words, including which one would you choose and why, and which financing option is best for your busines:

  • Investor #1 decided to loan you the $300,000, paying all of the interest (8% per year) and principal in one lump sum at the end of 5 years.
  • Investor #2 offers you the $300,000, paying interest at the rate of 8% per year for 4 years and then a final payment of interest and principal at the end of the 5th year.

Discuss in 525 words the challenges and risks you may face in starting a business in a foreign country including the following:

  • Cultural, business, and political risks.
  • How you plan to avoid operational, transaction, and translation exposure.

Format your assignment consistent with APA guidelines.

Unformatted Attachment Preview

Signature Assignment: Financial Statement Analysis and Firm Performance Grading Guide FIN/419 Version 6 Finance for Decision Making Copyright Copyright © 2017, 2016, 2015, 2010 by University of Phoenix. All rights reserved. University of Phoenix® is a registered trademark of Apollo Group, Inc. in the United States and/or other countries. Microsoft®, Windows®, and Windows NT® are registered trademarks of Microsoft Corporation in the United States and/or other countries. All other company and product names are trademarks or registered trademarks of their respective companies. Use of these marks is not intended to imply endorsement, sponsorship, or affiliation. Edited in accordance with University of Phoenix® editorial standards and practices. Signature Assignment: Financial Statement Analysis and Firm Performance Grading Guide FIN/419 Version 6 Individual Assignment: Signature Assignment: Financial Statement Analysis and Firm Performance Purpose of Assignment The purpose of this assignment is to allow students the opportunity to present a business idea supported by strong financial information. The student will be able to identify the possible challenges of doing business in a foreign country and how to approach them. Resources Required Microsoft® PowerPoint® Grading Guide Content The student prepared a 16- to 20- slide Microsoft® PowerPoint® presentation showing the details of a business they are interested in starting in a foreign country, and for which they need $300,000. The presentation included the following: • • • • • • • • • Business name Executive summary Description of the foreign country Business description and structure Market and company analysis Marketing and sales operational plan How you plan to use the $ 300,000. Financial statements forecast (3 years) Business health assessment - using the following ratios: o Liquidity ratios o Solvency ratios o Asset management ratios o Profitability ratios o Market value ratios The student analyzed the following scenarios in 525 words, which one they would choose and why. The student calculated the following scenarios and decided which financing option is best for their business: • Investor #1 decided to loan $300,000, Met Partially Met Not Met Comments: 2 Signature Assignment: Financial Statement Analysis and Firm Performance Grading Guide FIN/419 Version 6 Content Met Partially Met Not Met Total Available Total Earned 5 #/5 Partially Met Not Met Comments: paying all of the interest (8% per year) and principal in one lump sum at the end of 5 years. • Investor #2 offers $300,000, paying interest at the rate of 8% per year for 4 years and then a final payment of interest and principal at the end of the 5th year. The student discussed in 525 words the challenges and risks they may face in starting a business in a foreign country including the following: • Cultural, business, and political risks. • How they plan to avoid operational, transaction, and translation exposure. Presentation Guidelines Organization The tone is appropriate to the content and assignment. The introduction provides a sufficient background on the topic and previews major points. Major points are stated clearly; are supported by specific details, examples, or analysis; and are organized logically. Paragraph transitions are present, logical, and maintain the flow throughout the paper. The conclusion is logical, flows from the body of the paper, and reviews the major points. Mechanics The presentation is laid out with effective use of headings, font styles, font sizes, and white space. Met Comments: 3 Signature Assignment: Financial Statement Analysis and Firm Performance Grading Guide FIN/419 Version 6 Presentation Guidelines Met Partially Met Not Met 3 #/3 8 #/8 Intellectual property is recognized with in-text citations and a reference slide. Sentences are complete, clear, and concise. Rules of grammar and usage are followed including spelling and punctuation. Assignment Total Additional comments: # Comments: 4 Pay all of the interest (8% per year) and principal in one lump sum at the end of 5 years Amount Period (years) Interes rate $ 300,000 5 8% FV= PV × (1 + r)n Answer- Total Payment Interest Paid Refer to the Solved Example 6 on Page 84 of your text. Pay interest at the rate of 8% per year for 4 years and then a final payment of interest and principal at the end of the 5 Amount Period (years) Interes rate $ 300,000 5 8% Answer Annual Interest PaymentYear 5 Payment Total PaymentInterest Paid- Refer to the Solved Example 6 on Page 84 of your text. Scenario #1 Scenario #2 Total Payment $ $ - Interest paid $ $ - Which of the scenarios is the best option? Answer: Refer to the Solved Example 6 on Page 84 of your text. ...
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Final Answer

Attached.

Quick fast food
restaurant
Get food delivered to your Door

Executive summary
• This is a plan for a business to be setup knows as quick fast food restaurant. It is to
be setup in a foreign country known as Kenya. The country has a growing economy
which is attractive to foreign investors and tourists. The total amount of capital
required for the business is $300,000. The main business activities will be to make
and deliver food to customers or they may consume at the store. The net profit
margin for the business is around 33% . The area is a suitable location for he
business since most of the customers will be the locals who are medium income
earners and also the country has a small growing populations. Being an agricultural
economic country it is expected that the business will grow rapidly.

Foreign country
• I would like to establish the business in a foreign country known as Kenya.
Kenya is a country in East Africa which is economically growing. It is an
attraction to many tourists from many parts of the world. Most of the wild
animals found are rhinos, elephants and lions. It contains the savannah, great
rift valley, mountain highlands and the Lakelands. The country has a coast
line in the Indian ocean. Major manufactured products are brought from
china. Hence they are well receptive to foreign investments.

Business description
• The business that I would like to start a business known as Quick fast food
restaurant. This business is going to deal wit the sale of already cooked food.
There will be various type of food that will be made. The delivery of food
will be directly to the customer in their houses. Some of the customers will
also be having their meals in the store. The business will be done both
physically, online or through call. A customer can order for a type of food
online and get the food delivered. The menu will be displayed in the business
website.

Image view of restaurant

Business structure
• The form of business structure to begin will be the sole proprietorship.
Because I am less familiar with the country, I might require a proficient
manager who is familiar with the environment.

• The manager will help in getting around with some for the activities that
goes around in the country.

• I will get a number of employees to work in the restaurant. The employees
will range from those preparing the food to those who deliver the food to
the customers.

Levels of management
Manager

Delivery
supervisor
Delivery
agent

Delivery
agent

Hotel
supervisor

Accountant

Waitress

Cooking
stuff

Market analysis
Industry description and outlook
• Fast food industry in Kenya grew by double in the year 2014. The sector is one of
the growing sector in the country and also the world. As of the year 2016 the
industry had grown bigger. This is due to the entrance of major chain store such as
Java, KFC and etc. Many other international branches have opened up in the
country.
Target market
• The major market that is available in the country is from the ...

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