Building on a global industry comparative analysis that I did in a previous project, I am tasked with developing a business plan for your Murphy Oil Corporation to operate in Indonesia. I am to analyze Indonesia first as a site for certain value-chain activities, and second as a market for Murphy Oil’s products. The business plan should include a marketing strategy and an entry strategy. Also take into consideration the requirements of accounting and finance. Develop market share estimates and revenue projections using historical data from Murphy Oil in the United States and my own research into market size, pricing, and unit sales for the industry in the selected country. Estimate the investment required for relocating one or more activities of your organization’s value chain from the United States to the selected country. Also estimate the time needed for your organization to break even. Provide the assumptions behind your projections and assessments of both short-term and long-term risks. I have a previous paper to provide that will give needed background information.
The specific section that I need help with is the financial valuation and strategy implementation. Instructions are below:
7 Evaluate Financial Requirements and Investment Opportunities
As you may recall from your meeting with Gustavo, he wants your estimate of the timeframe needed to break even and implement your strategy. As you continue developing your business plan for entering the new country, assess any financial and accounting challenges by answering the following questions:
• Examine the financial statements of competitors in the country. Are there any differences in terms of language, currency, or the type of statements (income statement, balance sheet, financial statement format, extent of footnote disclosures, and the underlying GAAP [generally accepted accounting principles]) between your organization’s reports in the United States and the reports required by law in the country? Review The Role of Similar Accounting Standards in CrossBorder Mergers and Acquisitions.
• What are the challenges your organization may face in the country because of its accounting standards?
• What is the required investment for relocating your organization’s value-chain activities to the country for years 1, 2, and 3? What are the projected savings, if any, for the same time periods? Provide justification for your estimates.
• What are your estimates of revenue projections for your company in the country for years 1, 2, and 3?
After you have assessed the financial and accounting challenges associated with entering the new country, continue to the next step, where you will address strategy implementation and control measures.
8 Prepare Strategy Implementation Plan
The next step of developing your business plan is to address strategy implementation and control measures by discussing the following components:
• Specify the major factors to be tracked for strategy effectiveness using the four perspectives of the balanced scorecard: learning and growth perspective, business process perspective, customer perspective, and financial perspective.
• Specify how your organization will monitor and report issues with joint-venture partners, subsidiaries, suppliers, and distributors in the country.
When you have addressed strategy implementation and control measures, continue to the next step, where you will make recommendations about your organization’s governance and accountability standards.
9 Address Governance and Accountability Issues
As you continue developing your business plan, next make recommendations about your organization’s governance and accountability standards by answering the following questions:
• How do your organization’s governance and accountability and code of conduct or ethics address risks such as bribery and corruption? Search for Transparency International’s Corruption Perceptions Index online and make recommendations for changes to the code, if needed, for operations in the selected country.
• Do your organization’s corporate social responsibility (CSR) policies address local community interests, stakeholders’ concerns, and supplier relationships? Make recommendations for CSR changes to the program, if needed.