FOREIGN MARKETS PORTFOLIO IN INTERNATIONAL AFFAIRS Cover Image

ПОРТФОЛИО ИЗВОЗНИХ ТРЖИШТА У МЕЂУНАРОДНОМ ПОСЛОВАЊУ
FOREIGN MARKETS PORTFOLIO IN INTERNATIONAL AFFAIRS

Author(s): Danilo Dorović
Subject(s): Supranational / Global Economy, Business Economy / Management, Economic development, Financial Markets, Accounting - Business Administration, Human Resources in Economy, Socio-Economic Research
Published by: Економски факултет Универзитета у Бањој Луци
Keywords: Portfolio; foreign markets; average payment days; profitability; margin; buyers; matrix;

Summary/Abstract: The main idea of article is synthetic analysis of strategic elements that are representing the risks of business operations on individual foreign markets related with the main benefit – profit generated from operations on export market. The elements are: the growth of export market, absolute size of the market, market share, share of total profit generated on the individual markets compared with total profit generated in the company, comparison of market shares with share in business revenues of the company, average number of days of payment per different markets. In order to synthesize these various elements the matrix type of analysis is used with the four quadrants with each carrying the message about strategic advantages or weaknesses of the company. Portfolio approach is taken form portfolio of investments on financial markets – compensation of risks in order to achieve higher profit with compensated risks. Previous is used as a base for appraisal of potential developments in the future and strategic response of the company. For the different markets, their characteristics with the impacts on the business activities are defined. In conclusion, the proposal of syntactical matrix that merges relevant dimensions into one portfolio matrix is presented.

  • Issue Year: 6/2008
  • Issue No: 8
  • Page Range: 175-198
  • Page Count: 24
  • Language: Serbian