Global Banking Operations and Strategy Essay Example | Topics and Well Written Essays - 1250 words

Global Banking Operations and Strategy - Essay Example The following ratios are calculated to evaluate the capital adequacy of RBS (Refer to Appendix 1 for the calculation of ratios) (Bhayani, 2006) From the above figure it is evident that the CAR of RBS has been fluctuating over the years. The highest CAR has been 15% (in 2008 and 2012). The capital resources of RBS comprise Tier 1 and Tier 2. Thus, it can be inferred that 15% of capital (Tiers) of RBS is needed for protecting its risk weighted assets in 2012 ( Hilbers, Krueger and Moretti, 2000). From the above figure it can analysed that the debt equity ratio of the bank has decreased over the years from 2008 to 2012. It can be noticed that RBS has been aggressive in 2008 regarding financing. However, the decrease in the debt equity ratio reflects the fact that RBS has become more conservative in financing its capital through debt (Grier, 2007). The asset quality is a vital factor for gauging the strength of a bank (Pastory and Mutaju, 2013). The main aim is to ensure the component of non-performing asset as percentage of total asset (Refer to Appendix 2 for the calculation of ratios). The ratio gauges the efficiency of the bank for assessing its credit risk and debt recovery (Wagner and Knaup, 2008). NNPA refers to the loans that are about to become default once the borrower fails to make the interest payment (Godlewski, 2003). From the above figure it is evident that the net performing asset has decreased over the year which means the numbers of customers who are not able to pay the interest have decreased. This reflects the fact that RBS has been performing well over the 5 years (Hoshi, Kashyap. and Scharfstein, 2009). From the above figure it is evident that the bank has concentrated in investing their assets over the years so that they can earn profitable return out of it. However, according to the graph, the total investment has reduced over the years. The decrease in total assets may be predicted as the increase in liabilities for

Starbucks international business Assignment Example | Topics and Well Written Essays - 1250 words

Starbucks international business - Assignment Example The rise of business opportunity in different markets is creating a strong appeal in terms of market attractiveness to the firms located in the global markets. The factor of market attractiveness is resulting in the entry of firms in to new geographical locations. It is important to highlight that the entry of the firms in different foreign markets around the world is continuously raising the level of competition in the marketplaces. This assignment focuses on the international business aspects of Starbucks. In a more elaborate manner, it can be said that this assignment focuses on analyzing the international business activities of Starbucks as well as understanding the challenges that they face for being present in an international business. This assignment also aims to evaluate the business stage of Starbucks and make necessary recommendations. Analysis of international business activities Starbucks is a widely popular beverage brand of the United States, which has presence in mult iple markets around the world. ... In the current times, the company produces and sources its highly specific Arabica coffee from various international markets like Latin America, Africa as well as Asia (Pashman, â€Å"Do You Know Where Your Coffee Beans Come From?†). While analyzing the international business activities of Starbucks, the factor of international expansion of Starbucks also has to be taken into account. The highly popular news site Forbes has reported that under the leadership of President and CEO, Howard Schultz, the company has designed some very ambitious international expansion plans. The international expansion plans are highly organic in nature and focuses largely on penetrating in the emerging markets of the east like India and China. The company has plans of opening around 1300 stores in various markets around the world, out of which around 600 stores will be opened in the market of China (Loeb, â€Å"Starbucks: Global Coffee Giant Has New Growth Plans†). Talking in regards to the long term expansion plans of the company, it can be stated that the current management aims to open around 1500 stores in China by the close of the year 2015 (Trefis Team, â€Å"Starbucks U.S. Growth Will Remain Solid While Overseas Expansion Continues†). Challenges for Starbucks as an International Corporation While analyzing the challenges that exist for Starbucks, focus has to be given to the fact that Starbucks is an international brand which enjoys presence in multiple global markets. The most important challenge for Starbucks is the level of competition. Since the main offering of Starbucks is beverage, hence the brand faces competition of both primary and secondary nature. The primary competition of Starbucks arises from the multiple