Question
CASE SITUATION Your firm has been successful in retail operations in Australia and is looking to expand its operations and is currently considering commencing operations
CASE SITUATION Your firm has been successful in retail operations in Australia and is looking to expand its operations and is currently considering commencing operations in Vietnam which is encouraging firms commencing operations in its country. It is expected that it will cost $25million Aussie dollars to start operations in Vietnam which includes purchasing property to operate from, fitting out the stores, buying necessary inventory and equipment and machinery. Your company intends to commence operations as a retailer in Vietnam six months after you purchase the property and the above $25 million Aussie dollars budget is only expected to last for the six months. Required: (A)Based on your knowledge from this and previous subjects advise which type of company structure/investment structure would be most suitable to carry out this investment?
(B)Explain, giving reasons, what would be the best /most appropriate forms of financing to use for its purpose of setting up an operation in Vietnam?
(C)Explain what is the best funding mix considering the availability/cost of funds /risk to enable the firm to have sufficient funds to commence operations in six months? In this situation assume the entity will need to raise a substantial portion of funds. Where should the firm obtain funds from? Domestic/international market?
(D) What political and country risk factors is your firm likely to face?
(E)If there are complications in commencing operations and the likely commencement is going to be three or months later than the original six months proposed what will your firm do to overcome these risks?
(F)Are there any other risk factors that need to be considered? You need to address these factors in a report of between 1500 -2500 words. The assignment may be done individually or in a group
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