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You are the President of a medium-sized manufacturing firm in the Midwest, making specialized parts for...

You are the President of a medium-sized manufacturing firm in the Midwest, making specialized parts for urban transportation systems. You have established a profitable subsidiary in Bosnia. Approximately 20% of your sales and 35% of your profits are generated by this operation. Now, you see the possibility that Bosnia may be integrated into the EU.           ·
  1. What opportunities present themselves to you if this integration takes place?
  2. What threats will you face if this occurs?
  3. What should you do, as the head of your company, to respond to this proposed integration?
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Answer #1

Opportunities present to the company if Bosnia integrated with the EU is that the company will be having access to the broader market.

Threat for the company is that many companies from EU will be having access to Bosnia which will lead to more competition to the firm and impact its profitability.

As a head of my company I will try to perform the different strategic analysis like SWOT and PESTEL to know about the how integration is going to impact my company. At the same time I would like to look for the opportunity to tie up with other companies to get competitive advantage.

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