Sample interview questions: How do you assess the potential risks and rewards of strategic international expansion?
Sample answer:
Assessing Risks and Rewards of Strategic International Expansion
1. Market Analysis:
- Conduct thorough due diligence on target markets, including market size, competition, industry dynamics, and regulatory environment.
- Identify potential opportunities for growth and expansion.
- Assess the risk of market saturation or decline.
2. Regulatory and Legal Compliance:
- Research legal frameworks, tax implications, and import-export regulations in target markets.
- Ensure compliance to avoid potential fines, penalties, or reputational damage.
- Consider the risk of political instability or changes in government policies.
3. Operational Considerations:
- Evaluate logistics and supply chain capabilities, including infrastructure, transportation, and distribution channels.
- Assess the availability of skilled labor and the cost of operations.
- Consider potential risks associated with cultural differences, language barriers, and market access.
4. Financial Analysis:
- Forecast potential revenue streams and expenses.
- Estimate startup costs, operating expenses, and return on investment.
- Assess the risk of currency fluctuations, inflation, and interest rate … Read full answer
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