International business finance Case Study Example | Topics and Well Written Essays - 3000 words

International business finance - Case Study suitThe report comprehensively analyses the strategies at hand for the XP PLC multinational alliance and consequently recommends the best strategy/option to be adopted on the basis of monetary facts.The XP plc Companys strengths include diversified business operations in a number of countries. The company has a holding company situated in France. However, it has a number of subsidiaries operating in foreign countries such as in Germany, Australia, Monaco, and Poland. Additionally, the firm has immutable sales revenue of over 60 million Euros. This is a clear indication that the company made superior products that are tailored for its customers, hence gaining customer loyalty. The customer loyalty comes about due to the mirth of the customers preferences and choices. For a company to continue operating in a business environment, it must be in a position to yield profits to run for company expenses, financing activities, investment pur poses and maximizing the companys value. Since the firm is trading at a net profit of 8%, it has a stable future operation in the economy. A business organisation that is incapable of financing its business activities using internal funds such as faithfulness is compelled to borrow from external sources available. Among the external sources of funds is the debt that increases the firms financial leverage. Since the proportion of the debt is smaller as compared to the equity, the financial risk is reduced hence a strength to the company that could otherwise be a threat had the debt outweighed the equity capital.The multinational company suffers from a stiff competition in the service industry. This has caused the company to at least diversify its operation worldwide to increase its products and services delivery. The company uses bureaucratic kind of management make it difficulty in making decisions faster.XP plc being a multinational company, it has a chance for diversity. The fir m has