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Strategic Risk Analysis

In: Business and Management

Submitted By malice
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Strategic Risk Analysis The current strategic objective of FreshMade Cheese Farms is to further new market opportunities by including international subsidiaries as part of the business strategic plans. The mission of FreshMade Cheese is to be a global leader in the cheese industry. The first step in realizing that mission is to capture 75% market share of the cheese industry in New Zealand. The subject of this analysis examines the New Zealand market expansion risks and opportunities supporting the business mission and objectives.
External Influences and Risks
External influences beyond the control of the business add risk but are a part of the competitive environment and risk analysis (Pearce & Robinson Jr., 2009). This section presents the significant external forces and risks in the New Zealand subsidiary expansion.
Legal and Regulatory Legal and regulatory environments influence businesses and FreshMade Cheese Farms is no different. The Foreign Corrupt Practices Act (FCPA) enacted in 1977 makes bribes of foreign officials, agents, employees, or other similar foreign representatives illegal (Cheeseman, 2010). Many foreign countries have standard practices of accepting bribes or using similar influences to do business in the country. U.S. businesses are not allowed to operate in this fashion under the FCPA (Cheeseman, 2010). One of the main New Zealand laws that FreshMade Cheese must consider is the Overseas Investment Act of 2005. This legislation outlines requirements and restrictions on New Zealand business in owning assets and operating within the country (newzealand.govt.nz, 2011). The emphasis of this act is to restrict and regulate the fishing industry. There is no significant affect for a cheese subsidiary business.
Political
New Zealand has a stable political atmosphere (Fund Investor, n.d.). The government operates under The...

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