In today's competitive business environment the banking organizations have to strategically plan for future business prospects, in terms of holding new businesses or new market segment. In this present research paper, we have discussed the strategy formulation for the International expansion of Australia and New Zealand Banking Group Limited(ANZ) in the international market of France, Brazil, and Korea. The company has already attained the reputable position in the Australian and NewZealand market, and now the company is assessing the future prospects in the other international  countries. This report will assess the market attractiveness of each international market and provide suggestions and recommendations to the CEO of the company in terms of market entry which will be beneficial for the organization in the long run. The report will help the company in making market analysis in terms of market attractiveness in other prospect countries in terms of profitability and growth in potential market.

Company profile

The Australian and NewZealand Banking Group Limited known as ANZ is the third largest bank of Australia after the CommonWealth Bank and the Westpac Banking Corporation in terms of retail and commercial banking. (Poon ,2014)The bank is also considered as the largest bank of NewZealand  and is termed as the sustainable bank , with its operations in 34 countries. The bank is also conducting its businesses in other countries like China, Vietnam , Philippines, etc. by making partnership alliances with the major banks of these countries . At present the company has the total of 1337 branches all around the globe. Now the company is moving towards the expansion in the countries like France, Brazil, and Korea by the analysis of market conditions in these countries.

Global business environment in which the banking and financial industry operates

The changes that have been occurred in the global business environment ha play a significant role in the banking industry, in terms of industrial management. The major analysis needs to be done by the organization in expanding its market operations is in the choice of country, mode of entry, a timing for entry and analysis of existing products and services in terms of the international market. (Cascio,2016)For the market entry, the company has to work on the economic and financial trade implications of the country.the analysis need to be done n terms of people and resources , which play a significant role in the strategic implication of the company.

Understanding the difference in structure of each market

For the development of business in other markets, it is important for the organization to assess and understand the market structure of the particular country for the expansion of the business . The political and governmental bodies play an important role in the entering the new market , as it helps in the controlling of operations.
Market of France
The market of France is considered as the sixth largest market in the France the governmental initiatives are more for the development of banking services in the country.In the words of Call (2015), the France market is considered as the free market , which helps the organizations for effectively develop the market. The market of France deals in huge export and import business which accounts to 14.9% in Germany. It is difficult to increase the size of the market due to the lack of political reforms, and the rate of unemployment is very high in the French market, so it is easy to develop the business.
Market of Brazil
The market of Brazil is one of the emerging markets. The market structure of the country helps the outside organizations for rapid development. In terms of GDP contribution, the service industry of Brazil contributes to 67.8%. In terms of banking attractiveness the country has strong inflow in terms of foreign investment in comparison to other countries. (Brakman, 2015) The banking industry is having the high rate of interest in comparison with other countries. The Brazilian market adopt the free market structure which helps the outside companies to expand their business in the country.
Market of Korea
The market of Korea is divided into North Korea and South Korea. The market of Korea is seen as the twelfth largest economy of the world.The free market structure has been adopted by South Korea in terms of business developments. (Buch,2015) The country is considered as the most advanced and digitally upgraded in terms of technology. The country is named as the tiger economy in the world due to the rapid growth and development. (Kandilov, 2016)On the other hand, the South Korean market has ample of opportunities in terms of the development of banking industry. It has been concluded that the Korean capital market is comparatively small in term of size but has the huge scope in terms of market expansion. 
Potential size and profitability of each market
ANZ bank is presently trying to enter in the new market for the enhancement of service level of the customers. It has been found that the potential market size of the France is quite big, as the government helps the organizations in expansion of businesses in the market. (Zakaria,,2016)The economic structure of the country is also very strong which helps the ANZ bank for grabbing new customers and selling new policies and loans to the target market customers. This economy also adopt the free market structure, which helps in providing huge profitability to the ANZ bank in the market. (Kerl,2015) On the other hand the Korean market is small in size , but it provides opportunity in terms of market expansion due to the rapid growth and development of the country. And in terms of Brazilian market the scope for the banking industry is quite high in comparison to other countries in terms of flow of foreign investments.
Analysis in terms of potential problems 
In terms of the study of all the countries , it has been found that the market trends of different countries may vary and for that, the organizations have to adopt new marketing strategies for the expansion of business. Mellahi (2015) stated that the differences in cultural behavior act as the strong barrier for the business organizations in the development of business opportunities. In addition to that, the assessment of the potential behavior of the target customers is very difficult for the organizations. 
For ANZ banking group ,in terms of business development in the market of France, no such possible threat is seen in terms of business development. On the other hand, as the Korean market is the free flow market, it is difficult for ANZ to develop the business by market acquisition, as the economic condition of the country is very much strong, and the bank has to sell the policies t a lower rate in order to attract the customers. Whereas in the Brazilian market , the threat is there in terms of market development  due to its free-floating structure. In order to develop the business in three different markets, the ANZ bank has to adopt suitable strategies for acquiring the markets.  
Analysis in terms of future developments
In terms of future development, ANZ bank has to implement new strategies and techniques for the expansion of business possibilities in the new market. For the upcoming development and smooth functioning, the bank has to adopt the new cultural practices by understanding the cultural aspect of the country. (Frynas, 2015) Accordingly to the nature of the market , the bank needs to develop the interest rates and loan policies for the residents of the country. In addition to that, the company also has to access the foreign exchange rates , by the continuous monitoring of market in terms of new strategies. The Australian and New Zealand Bank has to make a focus on the rival banks as well in term of market activities and recent policies that are adopted by them.
Trade and foreign Exchange implications
Trade implications refer to the policies that are adopted by different countries for maintaining the sustainability of the businesses in the global market. (Wolfe,2014) On the other hand exchange rate refers to the ratio in terms of national and international currency. For implementation of strategy, the organization needs to access the rate of exchange for making the new entry in the market. 
       Foreign exchange
          Trade implication
 The country has a fixed exchange rate, and the country has to maintain the national exchan ge rate in terms of US dollar. Presently the risk factor recession is 1 Euro=US$1.15
The French government has created different policies for promoting foreign investment and trade. In addition to that, the government also helps in promoting open market services for the capital flow in the market.
 This country adopts the floating rate of exchange. This type of exchange rates increases the risk factor , which leads to the increase in the capital flow of the country.  Presently 1 Brazilian Real=US$0.25 
The Brazilian government focuses on the fair trade policies in order to develop the overall economy of the country, by the encouragement and implementation of foreign investment policies.
The rate of exchange of Korea is free floating, which means that the value of the currency depends on foreign currency. This type of exchange rate creates difficulties and benefits in terms of overall market conditions.
The government of Korea boosts the improvement in the market by the implementation of trade policy in terms of export promotion.
Consideration of cultural aspects impacting entry
In terms of cultural influence , the organization needs to assess the cultural factors of the target country in order to attain objectives related to the market entry . In the case of ANZ bank, the company is planning to expand its market in three different markets, by the use of acquisition strategy. As the banking industry is dependent on the consumer's expectation and reliability , which ultimately influence the banking organization in terms of brand image . 
In terms of France, the people of France are very particular regarding their nation pride and the government is also adopting the measures for punishing people who are against the country. This adverse behavior of the French People is not suitable in terms of businesses, so ANZ has to face difficulties in entering the French market. (Gosenpud, 2014) On the other hand, the Brazilian people are very polite in terms of communication, and Australian people are speaking louder in terms of business communication. Therefore it is difficult for ANZ to face difficulties in terms of entering. In terms of Koreans, they give value to the long-term relationship in business context. Therefore expansion in this market by the acquisition of domestic company will be harmful to the bank, so the company has to build the global image for capturing the market in Korea. 


For the expansion of business in the international market , the bank (ANZ) has to consider the cultural aspect of the countries. By adopting this the risk factors will be reduced by making collaborations with the target organizations.  The cultural aspects will also help the company in an understanding of governmental policies and procedures of the target countries. (Wong,2015) For the better understanding of business policies of the country , the bank has to make implementation of legislative measures in an effective way , which helps the ANZ bank for building long-term alliances and relationship with the partner countries for the long-term sustainability. 


On concluding the report , it is obtained that the expansion in the international market involves both the positive and negative consequences. For entering in the international market the economical position of the country needs to be analysed. This report finds out that the market of French depends on the fixed exchange rate. On the other hand the Brazilian and the Korean market adopted the free-floating exchange rate which involves risk and opportunities together in these countries. This report showed that ANZ bank needs to consider the needs and demands of the customers by the proper evaluation of market structures of the countries, which helps the organization in monitoring the risk factors that re involved in the market structures of French, Korea and Brazilian market.


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