Course: Risk Management in International Business
Coordinator: Katja Zajc Kejžar, Ph. D.
School year: 2011/2012
»Managing exposure to country-specific risks:
The case of FDI project of
Mikrografija d.o.o. in Romania«
Ljubljana, March 2012
TABLE OF CONTENTS
PRESENTATION OF MIKROGRAFIJA D.O.O
PRESENTATION OF ROMANIA
MACRO RISK: ASSESSMENT OF COUNTRY-SPECIFIC RISK
Government and Political Conditions
Doing Business in Romania
IT Services Industry
Foreign Direct Investments in Romania
Mikrografija d.o.o. in Romania
Why Mikrografija Should Invest in R?
What Else May Attract Mikrografija to Invest in R?
Openness and Barriers
MANAGING EXPOSURE TO RISKS
Slovenia is a small country with a small market, so if Slovenian company wants to grow bigger and be more successful, it is often necessary that the same company does FDI or enters to a foreign market. Internationalization of companies is becoming more and more important in today's globalized world.
In this paper we try to systematically analyze the entrance of Slovenian company Mikrografija d.o.o. to Romanian market, particularly the Romanian market of IT service industry. Through the project we try to analyze various external and internal risks that company could face while entering Romanian market and in the end we propose how company could manage to avoid or minimize some of those risks.
Firstly, we briefly present the company and their services. Then we continue with presentation of Romania. Secondly, we do a macro analysis with analyzing economic, financial, political and currency risk. Furthermore, we continue with analysis of micro risk, which means description of Romanian IT service industry, potential competitors and FDI in Romania. Moreover, we focus on Mikrografija d.o.o. and why company should invest in Romanian market and which potential legal barriers could face while entering. In the end we propose how company could manage its exposure to certain risks.
In this paper, we used secondary data sources. A great help to us were various reports and web pages and other reliable sources.
PRESENTATION OF MIKROGRAFIJA D.O.O
The company offers information systems for editing and archiving documents. Besides the integrated solutions for archiving and document management they provide you also with accompanying services (archive organization, batch scanning, drafting internal regulations, optical character recognition, archiving of electronic documents, microfilm digitalisation, document disposal) at their customer’s site or in one of their four perfectly secured and equipped locations. The company is flexible and can make quick decisions.
Director and the 100 percent owner is Boštjan Gaberc. He established the company when he was 22 years old. They are also present in Germany, Austria, Bosnia and Herzegovina and Serbia. The company is also operating in the e-health, which include e-health business: e-Prescribing, ordering over the phone and so on (Dnevnik, 2011).
In foreign countries where they face the global competition, company is competing with their knowledge, specialization and flexibility, which is achieved through outstanding personnel, constantly seeking new opportunities in products and marketing channels.
In recent years, they are working on organization, document management and content management. This is an area that is particularly actual in firms that are decentralized, with operations in several countries,...
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