Finance strategies demand that bold moves need to be undertaken to create value such as wise use of investments through cutting down or even not paying dividends to stockholders to be able to use the money to acquire more investments such as equipment, labor, capital, etc. Another financial strategy would be to use funding from external sources such as financing institutions. Funding is necessary for the growth of the company.
Intel makes use of its finances to be able to stay competitive and ahead of its competitors. When it was threatened by less known Advanced Micro Devices when it introduced Athlon, it quickly implemented price cuts to be able to thwart its competition.
The opposite happened to struggling company Kodak. When Fuji, it’s nemesis, aggressively pursued the US market by introducing cheaper cameras, Fuji refused to relent to the price pressure. As a result, losses were incurred. Kodak was forced to face the competition by introducing products with the same price as Fuji.
1. Agree when and how the company will be paid and when and how to compensate brokers and distributors
2. If payment is from a foreign entity, know the credit risk
and how to insure in case of bad credit or non-payment
3. Consider the exchange rates and risks that come with them (Wine Vision, 2003)
Persons must be assigned to handle every step of the exporting process at the company such as: packaging, logistics, sales & marketing, accounting. Surveys reveal that those who designate personnel to overlook the export process have greater chances of attaining success.