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            If a multinational corporation has decided to enter the global market, there are various options that will be opened.  These selections may involve the cost, uncertainty and the degree of control that the multinational corporation will encounter.  In entering a global environment, it is valuable that the leaders and management of the multinational corporation must be able to choose a marketing entry approach so as to make the multinational corporation be more competent and profitable. in specific, the main give emphasis of this proposal is to give a marketing entry proposal for Halifax Bank of Scotland (HBOS) as it tries to enter Australia.

The discussion involves the summary of the present condition of Halifax Bank of Scotland.  Additionally, this marketing entry proposal will also try to outline proficient and well-organised approach for market analysis which will facilitate HBOS enter and grow Australian market. Moreover,  probable recommendation and conclusion will be discussed in line with the market entry proposal of Halifax Bank of Scotland entry in Australia.

Overview of the Multinational Corporation

            Halifax Bank of Scotland was a banking corporation which came from a merging corporation Halifax and Bank of Scotland.  After this alliance, the multinational corporation was known as the Halifax Bank of Scotland (HBOS) and was able to reach over 22 million clients.  The multinational corporation has assets of £440 billion and recognised as one of the largest mortgage as well as savings’ multinational corporation in the United Kingdom. Additionally, HBOS was regarded as the major player in line with credit cards and present accounts in the UK market.  Accordingly,, Halifax Bank of Scotland was able to gain around 3 million private shareholders, which have the largest registered shareholders in the UK market.

            In 2004, Halifax Bank of Scotland was able to reach a good volume of growth, development, strong cost manipulation as well as flexible margins which facilitate the multinational corporation to attain additional 20% of their entire income growth and a relatively valuable increase in terms of return on equity (RoE).

            Aforementioned, Halifax Bank of Scotland comes from the merging of two corporations, Halifax and Bank of Scotland respectively.  Each of these corporations offers diverse services in line with financial matters. Correspondingly, financial services offered by Halifax involve current account, insurance, credit cards, holidays estate agency, investments, mortgages, loans, and savings as well as share dealings. Additionally, the multinational corporation has also established their online banking.  Additionally, there are other services in which Halifax offers to the market. These are Halifax Travel Insurance, Balance Transfer Card, , and its Competitive Car Insurance. Halifax provides distinct services like its offer of current account with money back.

            On one hand, Bank of Scotland’s financial services are classified into three categories. These categories consists personal banking, business banking as well as corporate banking. Herein, the multinational corporation offers variety of products and also services to satisfy the needs of their clients. The financial, involves bank accounts, insurance, credit cards, loans, mortgages, investments, savings and ISAs, share dealing as well as travel and global. Furthermore, Bank of Scotland is also involved online banking  which aims to reach more clients through the use of the world wide web.

            Principally, Halifax Bank of Scotland offers financial services which facilitates various clients to buy their homes, insure their uncertainties, safe for retirement and well-organized and proficiently managed their money.  The corporate accountability of the multinational corporation mainly give emphasis on ensuring that their clients get the products in line with their demands. Additionally, the view that money is valuable is also regarded as one of the most essential determinant of the HBOS’ corporate accountability programmes. With this, the leaders and management of the multinational corporation sees to it that their colleagues have a solid support with all their implemented methods and approaches, as well as the employment policies and the products and services.

            Having been known as one of the United Kingdom’s financial multinational corporation, Halifax Bank of Scotland have a huge presence within the society not only through its business portfolio but also by giving jobs for over 60, 000 clients. One of their commitments to the public is to strengthen and add value to the community in which they work and live. Additionally, the multinational corporation is also involved in diverse charitable activities by giving donations  and sponsorships to a local community groups and also sponsoring national projects about the reduction of the multinational corporation’s impact in the environment.

The first three years of Halifax Bank of Scotland have met quick development which can be seen with their market profit and share  Additionally, the multinational corporation was able to attain much developed proficiency and established an increase in shareholder returns.

Overview of Australia

Austral is a country which has more than 20 million individuals composing of 6 states and 2 territories on land mass close to the 3 square miles of the continental United States. The indigenous individuals, the Australian Aborigines, were nearly eliminated (Denoon et al, 2000) as a result of European settlement (as with Native Americans) from the integration of deliberate policy as well as disease.  In this generation, Australia is being known to be a transcultural society whose ethnic structure is similar to the former British colonies of the USA which excludes African-Americans and Canada. Its economy as well as wealth production have all manners depended on the export of primary goods from their effective mines and farms but it has not grown strong manufacturing base.

The Australian government considers the economy to be modernising and with growth in the 3.5% to 4.5% range they are puzzled by the reaction of the world capital markets. Treasurer Peter Costello pointed out to anyone who will listen, which include the delegates to the WEF, the notion that agriculture, with 4% of the economy, as well as mining at 8%, indicates that Australia has long ago uplift away from its “Old Economy” stereotype and now has 88% of their economic status in manufacturing, tourism, high-tech corporations, and retail sales and has become a major service centre for the Asia Pacific region in line with head offices, insurance, and finance (Moser, 2002).

It has been noted that Australia has one of the strongest economises in the global market and is also characterised to have a competent and profitable, open as well as growing economy. This indicates that Australia has a positive reaction in any international or global corporation who will try to enter the Australian Market.  It can be note also that the high economic performance of the country is attributed from its well-organised economic leaders and management system and the ongoing structural transition. In year 2003 and 2004, the Australian Government reported a budget surplus of $8 billion, which is one% of Gross Domestic Product.


            This market entry proposal is provided to give insightful details on how Halifax Bank of Scotland may productively enter the Australian market. Correspondingly, the discussion will also involve the establishment of SMART objectives for Halifax Bank of Scotland. The following are the objectives:

  • To seek for a proficient approach that can be used to productively enter in the Australian market.
  • To establish a marketing proposal that will serve as a guide for HBOS as it enters global market, specifically in Australia.

Market Entry Approach

In entering a global market or a new market, it is essential that an organisation will be able to choose the market entry approach to ensure success. Market entry into a international or global environment is considered as a complex business activity. It takes cautious analysis and a good approach to make the business successful in that chosen market. A corporation that aims on going global and aims on entering an international or global country where not everyone knows about the multinational corporation faces three major challenges. First is the marketing approach, which countries to initiate market entry, which segment, how to manage and implement marketing effort, how to enter or go through with intermediaries or directly with and what data or information needed. Second is the market sourcing, this involves where to obtain goods and products, make the products or buy the products (Jaffee, 1993). And the last one is the investment and control also known as market entry approach which involves joint venture, global partner and acquisition.

            In initiating and creating a market entry approach, time is a vital element. The structuring of an intelligence system as well as creating an image through promotion takes time, effort as well as money. Brand names do not appear as well as happen in an instant. This requires large marketing investments in promotion campaigns. Transaction costs are also valuable determinant and attributes in establishing a market entry approach and can become a high hindranceto global trade. In addition, costs involve search as well as bargaining costs. Physical distance, logistic costs, language barriers and uncertainty limit the direct monitoring of trade partners. Enforcement of negotiating contracts may be costly as well as weak legal integration between nations makes things more complex (Basche, 1971). These determinant and attributes are critical when considering a market entry approach. Herein, these determinant and attributess may be so costly and uncertainty that governments, rather than private clients, often get involved in commodity structures.

            In line with the Halifax Bank of Scotland, the multinational corporation may consider in a collaborative venture as a market entry approach. This type of collaborative venture is the term utilised when a multinational corporation merged to other multinational corporation for the purpose of entering the global market.  This is a substitute mode of exploiting a specific asset such as retail and potential branch network to form an arrangement with an established supplier of the product. Collaborative ventures which are jointly owned as well as affiliate multinational corporation arrangements are known to be noticeable manners of spreading uncertainties and acquiring access to expertise.  In this regard, the collaborative arrangements with an existing market actors also indicates that the entrant can transfer resources into the multinational corporation without necessary disturbing that multinational corporation’s current competent and profitable structure too much (Ingham & Thompson, 1993).  It is a mutual comprehension between the entrant and the existing corporation to cooperatively work with each other for the expansion of the business range and case of each multinational corporation.

            It can be regarded that collaborative ventures offers a high potentialities for the new market entry to be known easily in the global arena. There are various options of collaborative ventures and collaborative arrangement that a corporation can choose from.  These are manners to get be involved in the global market segments: leaders and management contracts, turnkey operations, consortiums, licensing technology, co-op joint venture, joint venture, alliances, equity joint venture, strategic alliances, equity alliances, franchising as well as contract manufacturing. To collaborate indicates to have a joint approach so as to reach a multinational corporation’s mission and vision. Diverse scholars of global or internationally known business considered that a collaborative venture is not economically justified if there will exist some complementary functions and resources between the actors or the industries (Contractor & Lorange, 1987; Root, 1987).

            In this market entry, plausible issues might occur.  One of each is the tendency that the clients may not be attracted with the products as well as services offered by HBOS.  With this the plausible solution is to have a comprehensive promotion approach to make the clients be aware of the distinctiveness of the products as well as services offered by HBOS compared to the products of domestic banking corporation presently operates in Australia.

I.              Approximate Costing for HBOS

The multinational corporation had chosen to operate the Australian market, as part of their market entry, the multinational corporation must be able to know how much capital needed to start up a company or firm in Australia. Having total assets of £440 billion as well as a total profit of £4.6 billion in their annual report,  the multinational corporation may use even one fourth of its financial assets to enter the market place.  The Australian government are open for foreign investments, specifically its finance department’s regulations.  The Federal Government of Australia has launched the Invest Australia in 1997, to be able to assist global corporations in sustaining growth and development while investing in the nation. Thus, to be able to maximise the cost that the HBOS will give to be able to start the banking and financial business in Australia, the multinational corporation must cooperate with Invest Australia

Indication of Market Share and Potential Market

Banking and financial corporations in Australia are regarded to dominate the entire market. In this regard, HBOS has a great capability and potentiality to attract more clients to avail their banking and financial products and services. With the multinational corporation’s strengths in line with providing quality products and services, which are demanded by individuals locally as well as globally, the multinational corporation may have the bigger chances and opportunities to have a competent position in the Australian market. Market segmentation for HBOS involves individual as well as corporate clients. As of February 2005, the Australian Trade Finance Market has grown from both the corporate and commercial and business market.


The above discussion presents the marketing entry proposal of the Halifax Bank of Scotland for entering market of Australia.  In the involvement of marketing entry into a international or global market, it is valuable that HBOS must be able to conduct a market research which will investigate the potentiality and feasibility of the acceptance of the products as well as services they are offerings. Investigation must consider evaluation of the host country that the multinational corporation will operate. It is recommended that HBOS must conduct a comprehensive market evaluation and must classify the best market entry approach to be used to ensure that they will meet the corporation goal of business expansion and to be able to stay in the competition for banking and financial institution. 

Additionally, it is also valuable that the HBOS must try to investigate the plausible uncertainties, issues and conflicts that the multinational corporation may face as it enters the Australian Market. Above all, the multinational corporation must develop a proficient advertising and promotion campaign to make the clients at Australia to be more aware of the products as well as services offered by HBOS and how these products meet the needs of the clients from Australia in terms financial matters.


            HBOS is regarded as a major player in line with providing financial and banking products as well as services. Because of its potentialities and capabilities in the UK market, the multinational corporation may also have a tendency to enter and expand in the  global market.  And since Australia is known to be one of the nations that have greater economic stability, there is a potentiality that HBOS may also be successful in the Australian market. To be able to ensure marketing entry success, the multinational corporation was able to formulate a marketing entry proposal as well as market investigation to gather all the plausible information needed for entering international or global market.   And lastly, it can be said that if HBOS will follow their strategic proposal and market planning, then the multinational corporation will be sure that they can be able to fight all the barriers in entering the Australian market.


Basche, J.R. Jr.  (1971). Export Marketing Services and Costs. New York: The Conference Board, p4.


Burgelman, R.A., Maidique, M.A., Wheelwright, S.C. (2000). Strategic Management of Technology and Innovation. 3rd Edition.  New York: McGraw-Hill.


Contractor, F.J. & Lorange, P (1987). ‘Why should firms cooperate? The Strategy and economic basis for cooperate ventures.’ In F. J. Contractor & P. Lorange (Editions). Cooperative strategies in international business. Lexington, Mass.: Lexington Books.


Denoon, D. et al. (2000). A History of Australia, New Zealand and the Pacific. Oxford: Oxford University Press.


D’Cruz, C.A. (2005). Strategic Analysis Tools for High Tech Marketing.  Florida: Xodus, Business & Technology Solutions, Inc.


Halifax Bank of Scotland (2005).  Available at []. Access on [09/06/05].


Ingham, H. & Thompson, S. (1993).  Structural Deregulation and Market Entry:  The Case of Financial Services.  Fiscal Studies, 14(1): 15-41.


Jaffee S.  (1993). Exporting High Value Food Commodities. World Bank Discussion Paper, pp 198.


Moser, D. (2002). Australia: Recreational Society. Westport, CT: Praeger.


Root, F.R. (1987). Entry strategies for international markets. Lexington, Mass.: D.C. Heath.









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