A Global Business Plan
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Determining the financial health of the United Kingdom: According to the CIA World Factbook (2003) The U.K., a leading trading power and financial center, is one of the quarter of trillion dollar economies of Western Europe. Over the past two decades, the government has greatly reduced public ownership and contained the growth of social welfare programs. Agriculture is intensive, highly mechanized, and efficient by European standards, producing about 60% of food needs with only 1% of the labor force. The U.K. has large coal, natural gas, and oil reserves; primary energy production accounts for 10% of GDP, one of the highest shares of any industrial nation. Services, particularly banking, insurance, and business services, account by far for the largest proportion of GDP while industry continues to decline in importance. GDP growth slipped in 2001-03 as the global downturn, the high value of the pound, and the bursting of the "new economy" bubble hurt manufacturing and exports. Still, the economy is one of the strongest in Europe; inflation, interest rates, and unemployment remain low. Gross Domestic Product per capita was estimated at $25,500 in 2002. According to a 1999 survey, the labor force of the U.K., by occupation, can be classified as follows: Services 74%, industry 25%, and Agriculture 1%. The U.K.'s import partners were, according to statistics compiled in 2002, Germany at 12.9% of imports, the United States at 11.9%, France at 7.8%, th
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nother potential source of financing for this project would be foreign banks. Ideally, ABC U.K. will develop a borrowing relationship with the British bank. This would make it easier for ABC to address the working capital needs of the company in the short term.
Still another possibility as a source of financing for this new business venture in the U.K. would involve the sale of stock. This could be a private placement of stock, or it could involve a public stock offering similar to an IPO in the United States. In either scenario, the key is for ABC to do the necessary research and consult with the appropriate experts to ensure that whatever action it takes with regard to the sale of equity in its new superstore venture in the U.K. does not violate the securities laws of the United Kingdom. In addition, if the company does sell stock, it must understand the auditing and reporting requirements under the securities laws of the U.K. and make certain it employs people capable of generating the necessary documents and ensuring that ABC U.K. remains in full compliance with these laws.
3. Determine investment levels within the assumed time frame. Here are the estimated start up costs:
Start-up Expenses
á
*Legal
$20
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Some common words found in the essay are:
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Approximate Word count = 1587
Approximate Pages = 6 (250 words per page)
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