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Table of Contents
Case Study
Claudia is a senior manager for a telecommunications company. The company has enjoyed a profitable few years and as a result, has available capital for growth. The senior managers meet and agree on expansion into new markets as one of their key strategic objectives, and task Claudia with making the final decision on which country they should move into next. Claudia delegates the responsibility of researching different markets to her team and asks them to present her with the findings. Her team present the following information to her:- Country A: Politically and economically stable, no time difference, low cost flights available and short travel time, lots of competitors already operating there, similar business culture
- Country B: Politically stable, economically unstable, tax incentives for overseas investors, 2 hour time difference, low cost flights available and short/medium haul, a number of competitors already operating there, similar business culture
- Country C: Politically and economically unstable, tax incentives for overseas investors, frequent natural disasters, high cost flights and long haul, 6 hour time difference, different business culture, government actively seeking telecommunications investment in the country as there are no major competitors operating there
- What would you say are the risks associated with country A, B, and C?
- How could risk management processes help Claudia make her decision?
- Which country would you choose, and why?
It is rare that there is just one way to respond to a scenario or situation, so do not consider that the response you have chosen to this scenario will be judged as right or wrong. Share your scenario with a work colleague and ask them to tell you if they think you have responded appropriately. Ask them to challenge your response if necessary. You do not need to submit this task for assessment unless asked to do so by your tutor.