In the undermentioned pages I am traveling to show a direction undertaking study sketching the cardinal fiscal resources required for successful execution of internationalisation of a Pakistan based First Women Bank Limited ( FWBL ) with specific mention made on human capital cost etc, besides carried out cost benefit analysis of the undertaking for successful execution of the undertaking.

Internationalization is the procedure whereby an organisation seeks to set about abroad operations. The object of internationalisation is to interrupt new evidences, to seek new chances or two explore new market. Internationalization may be a requirement for endurance or an chance to work an bing competitory advantage in a new market. In the first instance, there is no alternate to internationalization whereas in the 2nd, internationalisation nowadayss itself as an attractive option.

Schemes for execution differ harmonizing to the type of motive behind moves to internationalise. Normally the ‘voluntary ‘ attack allows more clip to develop, trial and implement a scheme, while perceived force per unit area to beef up a company ‘s place internationally may take to quicker determinations and actions.


Successful internationalisation requires a clear scheme.

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Why does the company want to internationalise?

Which merchandises will be launched in the international market?

What is the specific know-how the company relies on in its internationalisation command?

Will the company go international as a whole or merely certain concern division ( s ) ?

Clear replies to these inquiries must be sought. To happen the replies, the company should set about a thorough analysis of possible new markets with the end of set uping the company ‘s competitory advantage in these markets. It is every bit of import to look at the company ‘s work force ; its potency could good turn out to be the most of import plus in the internationalisation procedure.

The development of a scheme must be followed by a comprehensive program sketching in item the fiscal and human resources required. At this phase, support from resource/information centres and authorities can be critical.


First Women Bank Limited is a alone fiscal establishment, a scheduled commercial bank and a development fiscal establishment for socio-economic authorization of adult females. First Women Bank Limited is based in Karachi Pakistan.

First Women Bank Limited was incorporated as a scheduled commercial bank in public sector as public company limited by portions on 21st November 1989 under Companies Ordinance 1984 and commenced its concern on 2nd December 1989 with a paid up capital of Rs.100 million ( now enhanced to 200 million ) , 90 % of which was contributed by five taking populace sector Bankss and 10 % had come from Federal Government.


TO Be THE LEAD BANK FOR WOMEN ; Dynamic, adoptive and antiphonal to their particular economic demands, offering the best fiscal services and the best banking patterns


To be financially sustainable bank with a specialised focal point on advancing economic prosperity and autonomy in adult females of urban rural countries by

transforming the function of adult females

advancing plus ownership

advancing enterpriser through computing machine literacy

easing adult females entree to fiscal services

supplying extended banking preparation through FWBL ‘s Training Institute to adult females


Why Internationalized?

FWBL is a taking bank in Pakistan. Its operations include imparting to concerns run by adult females or in which 50 % interest is owned by adult females. Its operations are presently restricted merely to Pakistan. FWBL has played a important function in the socio-economic development of adult females. Its concern is turning at a important gait. The loan recovery is every bit high as 80 % . This is manner above the other Bankss in Pakistan. Despite the recent fiscal meltdown, FWBL ‘s fiscal place is better every bit compared to other Bankss. The bank ‘s net incomes have shown an upward ascent.

Which merchandises to be launched?

FWBL is chiefly directed towards beef uping the place of the adult females. Therefore, it is contributing for it to get down abroad operations in states where adult females are still financially unhealthy. There is no proper fiscal establishment specifically directed towards the improvement of the adult females in the remainder of the universe. The merchandises which will be launched will take at supplying recognition to adult females for family, concern, and personal demands.

In short the undermentioned merchandises will be launched as portion of internationalisation procedure.

Business Recognition

Car Financing

Personal Finance

Rival Analysis

Rival Analysis is an of import portion of internationalisation attempts. Competitor Analysis has two activities.

Obtaining Information about of import Rivals and

Using that information to foretell Competitor Behaviour

The end of Competitor Analysis is to understand:

With which rivals to vie

Rivals ‘ schemes and planned actions

How rivals might respond to a houses actions

How to act upon Competitor Behaviour to the houses advantage


Traveling international is slippery and really demanding procedure for any organisation and particularly so for a little company based in Pakistan.

Hiring New Employees

FWBL is a adult females oriented bank and hence in position of internationalisation attempts it will necessitate to engage new employees. The new employees and directors must be locals, as they are good cognizant of the local civilization and values. They are able to carry on the concern in a better manner.

Sound Credit Policies

There is a stiff and fierce competition in the international fiscal services industry. FWBL needs to hold sound recognition policies designed to carry through the demands of assorted client sections. The involvement rates should be competitory, for it to hold any opportunities of endurance.

Corporate Culture

FWBL needs to hold a healthy corporate civilization. The employees must be inculcated with trust and honestness. They should be taught to follow the norms of the workplace.

Capital Structure ( Financial Leverage )

FWBL needs to hold a strong capital shock absorber. It must hold a capital of at least a billion Pak Rupees in order to safeguard against NPLs ( Non Performing Loans/Bad Debts ) .

Changing the Mentality

The Bank must ship upon a comprehensive plan in order to alter the mentality of the direction. It is an backbreaking undertaking and requires brawny attempts to carry through. The top direction demands to set up developing plans to alter the perceptual experience of the current employees.


FWBL will confront the undermentioned challenges in hereafter:

Developing a competitory border in the new market

Puting up new subdivisions


Customer ‘s satisfaction in the new market

Fiscal Resources Required for Internationalization Project

Internationalization is a long term undertaking and it does non come for free. The equal fiscal resources are required to give the internationalisation of FWBL the needed dimension. Fiscal resources are the financess that help to make full the disagreement that arises between a company ‘s hard currency grosss and hard currency expenses. These fiscal resources are provided by different investors like stockholders, loaners, and debt holders who have vested involvement in the company in exchange for wage in signifier of dividends, involvements, capital additions etc.

In the present epoch, the fiscal markets are going more critical every twenty-four hours. Begg et Al ( 2003 ) suggest that the modern economic system is no longer a credit-based economic system, where bank loans are the prevailing signifier of finance. Today it is instead a capital market economic system, where companies obtain funding straight from investors by publishing portions and bonds. The estimate capital required by FWBL for internationalisation is round about $ 1.5 million.

Therefore the cardinal fiscal resources to carry through the financial demands for the successful launch of FWBL at international degree could be its Shares and Bonds in the international stock markets.


FWBL is a adult females oriented bank and hence in position of internationalisation attempts it will ask to engage new employees. The new employees and directors must be locals, as they are good cognizant of the local civilization and values. Knowledge assets are frequently referred to as rational capital. The general recognized classs of rational capital are:

human capital ;

societal capital ( to include client capital ) ;

procedure capital ; and

Intellectual belongings.

For the intent of this paper the term cognition plus is framed in the class of human capital and refers to each employee of an organisation ( Jackson, 2007 ) .

What is human capital?

In the work of direction bookmans, the term “ human capital ” has been referred to as a cardinal factor that helps bettering an organisation ‘s assets and employees in order to increase productiveness and prolong competitory advantage by agencies of people. The changed nature of human capital in the new economic system requires workers, their directors and executives to possess different and sometimes unconventional features to last. However understanding what it is that drives the cognition economic system and how best people are attracted and attached to employment, what motivates them, the nature of the employment relationship requires a challenge to traditional conceptualisations of human resources ( McGregor et al. , 2004 ) .

The traditional human capital accounting theories identify the undermentioned points of human capital investings:

Formation and acquisition costs at the early phases of development

Formation and acquisition costs of human capital are called human capital acquisition costs. These costs are divided into outsourcing acquisition costs and internal transportation costs. Outsourcing acquisition costs are the direct costs of human capital, i.e. straight related to human capital acquisition costs. They are made up of enlisting, choice, engaging and arrangement costs. Internal transportation costs, on the other manus, areaˆ?expenses and lodging disbursals. They are the indirect costs of human capital. They are incurred for grounds related to human capital but non needfully traced back to any specific event of human capital formation. These may include costs of publicity and transportation within a company.

Learning costs in the in-between phase of development

The acquisition costs of human capital include:

Training costs for current and new employees,

On-the-job preparation ( OJT ) costs, and

The chance costs of trainers ‘ clip.

Training costs for current and new employees and OJT costs are direct costs of larning costs. However, OJT costs are the costs spent to increase employees ‘ abilities to transport out their current undertakings.

Replacement costs at the concluding phases of development

At the concluding phases of human capital development, the replacing costs include:

Discharge costs,

Inefficiency losingss before discharges, and

The mean costs of recruiting, engaging and developing forces to make full in the vacant places,

The losingss or chance costs incurred during the period when the places remain vacant. These costs are incurred when there is person go forthing the administration and the place needs to be filled up.


By concentrating on and mensurating the cardinal features of human capital costs the administrations are able to:

Link “ human capital ” to their concern consequences

Identify with considerable preciseness the specific facets of the work and larning environment that thrust concern consequences

Switch their focal point from cost cutting to value creative activity.

There is a stiff and fierce competition in the international fiscal services industry. FWBL needs to hold sound recognition policies designed to carry through the demands of assorted client sections. The involvement rates should be competitory, for it to hold any opportunities of endurance. However, it besides needs to execute Cost Benefit Analysis to understand if it is executable to come in an international market. Cost-benefit analysis is typically used by administrations to measure the desirableness of a given undertaking. It is an analysis of the cost effectivity of different options in order to see whether the benefits outweigh the costs ( McGregor et al. , 2004 ) . The steering rule is to name all facets that are affected by the undertaking and topographic point a pecuniary value of the consequence it has on their public assistance as it would be valued by the administration.

Harmonizing to Wikipedia ( 2009 ) , the procedure involves pecuniary value of initial and on-going disbursals vs. expected return. Cost-benefit analysis efforts to set all relevant costs and benefits on a common temporal terms. During cost-benefit analysis, pecuniary values may besides be assigned to less significant effects such as the assorted hazards that could lend to partial or entire undertaking failure, such as:

Loss of repute,

Market incursion, or

Long-run endeavor scheme alliances

Cost-benefit computations typically involve utilizing clip value of money expressions ( Picket, 2005 ) .


The typical costs associated with the launch of merchandises of FWBL include Floor Space, interior, IT systems, Selling costs, human capital costs, public-service corporations. The benefits that are associated with the merchandise include increased gross, higher involvement rates, and net incomes.

Cost Benefit Analysis – Execution of merchandises in international market

( Cost shown are per month and amortized over five old ages )

Purchase/ rental of floor infinite

$ 100,000

Interior ( includes furniture, security system and care )

$ 35,000

Puting up IT System

$ 90,000

Selling Costss

$ 25,000

Human Capital Costss ( Includes wages, enlisting cost and other costs discussed above )

$ 200,000


$ 140,000

Increased gross

$ 400,000

Higher involvement rates

$ 90,000

Net incomes

$ 210,000

Net addition per Month

$ 100,000

The cost benefit analysis shows that the company would derive extra $ 100,000 per month by come ining international market.

TO CONCLUDE, FWBL aims to accomplish international enlargement with limited fiscal stuff and human resources while at the same clip actuating the work force to encompass this alteration. This becomes more hard because of the conservative set of head in Pakistan.

However, the biggest challenge for FWBL remains as envisaged in their vision viz to be the lead bank for the adult females.

* * * * *

Undertaking 3



PROGRESS Monitoring

Understanding the industry and market analysis


Day 1: looked at what is industry, cleavage and public presentation

Day 2: looked at porter ‘s five forces theoretical accounts, industry attraction, tried to see how the five forces theoretical accounts could be used to guarantee the new merchandises that are launched in the international market turn out good for the company.

Day 3: looked at rival analysis, inclinations in rival analysis,



2 yearss

Day 1: Looked at assorted methods within the macro-environment analysis. Understood the legion theoretical accounts within PEST analysis and how they change based on the industry every bit good. Some industries use it as STEP, STEEP, or PESTLE analysis

Day 2: Understood each of the PEST Analysis factors in item. Looking at these facets in item besides helped me to understand why the company needs to look at these facets before it plans to venture into newer markets on the internal sphere.


1 twenty-four hours

Learnt that why stakeholders involvement is necessary before the company goes for internalization, analyzing the interest holders, understood external analysis, how power to accomplish outlooks becomes low, high and non met.

Definition and range of international direction

3 yearss

Day 1: looked at facets of international direction which include ( civilization, resources, environment, market and schemes )

Day2 ( civilization ) understood linguistic communication communicating, cultural issues and gustatory sensation difference. Individual state PEST analysis, possible international stigmatization, need for local customizing.

Resources ( understood entree issues including location of production comparative to markets, logistics, promotion/advertising possibilities

Environment ( single state PEST analysis, global/local issues, insight into market,

Market and schemes ( possible international stigmatization, market section and niche chances, need for local customising

Day3: looked at globalisation it besides shows what factors are forcing globalisation, encephalon possible Addition from globalization.

The additions from globalization and international concern in which i personally learnt decreasing costs, differences in demand, increased competition, trade as `engine of growth` , non-economic advantages

Looked at why do concerns travel transnational, globalization and international concern.

Globalization and internationalization concern

1 twenty-four hours

Understood the definition of “ planetary company ” and what factors are forcing globalization it ensured that distance is shriveling, lower cost of communicating, flows of people across boundary lines, authorities reforms, liberalisation of trade and investing flows

Cost-benefit Analysis

1 yearss

Day1 Understood what is cost benefit analysis and why Cost Benefit Analysis is of import and how it helps the company to turn their concern. what are the benefits of it like for illustration ( increase in productiveness, decrease in costs, salvaging clip, touchable and intangible benefits, direct positive consequence ( lessening route congestion ) looked at the general stairss for cost benefit analysis. And how we can make be profit analysis.


2 yearss

Strategic cost direction

4 yearss

Day1: learnt the strategic direction

Value Analysis/Value Engineering

Business Procedure Reengineering

Entire Quality Management ( TQM )

Day 2: Understood that value analysis aims at the assignment mark cost by placing improve merchandise design, extinguishing unneeded maps that increase merchandise cost and for which clients are non willing to pay etc.

Day3: Understood in item, Business procedure reengineering identified analyzing procedure and doing significant alterations, redesign of work is done through activities. The purposes of reengineering are better the key concern procedure, simplification, cost decrease, improved quality and enhanced client satisfaction.

Day 4: Understood that all concern maps are involved in a procedure of uninterrupted quality betterment, TQM is high quality and on clip, earlier belief is that quality additions cost but it has saved many companies because of quality

Marketing planning procedure

Stairss in be aftering procedure

Planing at different degrees


Day 1: learnt about be aftering that market oriented strategic planning is a managerial procedure of keeping a feasible tantrum between the organisation ‘s aims, accomplishments and resources and its changing environment.understood that market planning is the procedure by which concern analyse the environment and their capablenesss, decide upon class of marketing action and implement those determinations, besides understood that marketing be aftering provides the model for the execution a market orientation.

Day2: Understood the stairss in be aftering procedure while analyzing market chances ; by market information services, by marketing environment, by consumer markets, and by expecting rivals

developing market schemes ; by positioning

be aftering selling plane ; by allotment of financess

pull offing the selling attempts ; by feedback and control

day3 ; understood planning at different degree of an administration by corporate planning, division planning, merchandise planning,

Corporate strategic program is a frame work within division and concern unit fix their programs. Corporate and division strategic program entails corporate mission, set up the strategic concern units, delegating resources to each SBU, measuring growing chances

Day 4 ; understood Business unit planning identified. Business mission, SWOT Analysis, end preparation, scheme preparation, plan preparation, execution, feedback and control.

I understood that what the Merchandise Planning is and each merchandise degree must develop a selling program for accomplishing its ends.

Fiscal resource planning-

2 yearss

Day 1: Understood the demand for fiscal resource planning and looked at assorted stairss necessary for implementing strategic program. One of them was fiscal resource planning which involved understanding human capital costs and other fiscal costs associated with the internationalization undertaking.

Day 2: Identified assorted resources needed for successful execution of the internationalization undertaking.

The activities mentioned in the column 3 above were carried out within the college every bit good as at place. Although all these constructs were learned in the timeframe set, it is nevertheless to advert that these timeframes were non back-to-back yearss as I had to trim clip for other units besides.


The experience of larning this unit was though rather cumbrous yet in the terminal it resulted in doing me cognizant of assorted constructs which were wholly unknown to me. It significantly enhanced my cognition and competency which is noticeable from a direction undertaking study which we were assigned to fix sketching the cardinal fiscal resources required for successful execution of internationalisation with specific mention to be made on human capital cost and cost benefit analysis of the undertaking for successful execution of the undertaking, based on the presentation sing internationalisation. As respect the aforementioned presentation, our group was supposed to take an establishment which had non undertaken any successful launch of a new merchandise or service in international content of spread outing operations overseas, we were required to develop proposals for the successful internationalisation of the organisation. Our group chose to supposedly internationalise First Women Bank Limited ( FWBL ) — a scheduled commercial bank and a development fiscal establishment for socio-economic authorization of adult females is based in Karachi Pakistan.

The following tabular array shows that how I carried out the undertaking and prepared the needed study.


Time Framework

Advancement monitoring

Understanding constructs associated with internationalization

3 yearss

Day 1: looked at what internationalization is all about

Day 2: looked at why companies would wish to travel for internationalization

Day 3: looked at what all factors need to be considered by the company when it wants to travel for internationalization.

Understanding the company

1 twenty-four hours

Looked at information about the company that is looking to travel for internationalization. Understood their vision, mission statement, ends, scheme and planning.

Understanding the merchandises to be launched

1 twenty-four hours

Looked at assorted merchandises that are owned by the company. Then tried to acquire a elaborate apprehension of merchandises that are to be launched in the international market. Looked at importance of SWOT analysis in understanding the merchandise scope that could be successful when used for internationalization.

Understanding factors that impact the procedure of internalisation

2 yearss

Day 1: Understood the demand for internationalization. Tried sorting information so that a determination could be made about whether the full company goes for internationalization or merely a certain concern division.

Day 2: Understood assorted tools that are available for an international director to travel through the procedure of internationalization with fewer jobs. Besides looked at options and job resolution attacks that might be required whenever there is a job with the attack chosen. Though the appraisal required us to look at 3 theoretical accounts I tried to look information on as many theoretical accounts as possible so that it would assist me in future enterprise.

Conceptual apprehension of Competitor and industry analysis

2 yearss

Day 1: Looked at the constructs associated with rival analysis. Understood assorted factors that make rival analysis of import from internationalization position.

Day 2: Looked at the assorted merchandises available across the industry and the market fastness of each of such merchandise classs. Understood the countries of chances in different market scenarios and the right section that is suited for several states.

Conceptual apprehension of tools and actions

& A ;


2 yearss

Day1 ; Traveling international is slippery and really demanding procedure for any organisation and particularly so for a little company based in Pakistan so looked at what tools and actions are to be employed while traveling internationalized.

Day 2: made projection of the challenges which the FWBL might confront after traveling internationalized. Sorted out the likely challenges and selected the most important 1s.

Fiscal Resources required for internationalisation undertaking

3 yearss

Day 1: Understood the demand for fiscal resource planning. Looked at assorted stairss necessary for implementing strategic programs. One of them was fiscal resource planning which involved understanding human capital costs and other fiscal costs associated with the internationalization undertaking.

Day 2: Identified assorted resources needed for successful execution of the internationalization undertaking.

Day 3: took down all the resources and understood in the last two yearss and gave them concluding form.

Cost-benefit Analysis

2 yearss

Day 1: Understood what cost benefit analysis is in the context of Internationalization of the First adult females bank limited and how to transport out in this specific instance.

Day 2: on the footing of what I did the last twenty-four hours I eventually performed the analysis for the internationalization undertaking to understand if the undertaking is executable for the company.


To reason, the acquisition of this unit proved to be really productive for me in footings of understanding assorted constructs, including SWOT analysis, PEST, cost benefit analysis, understanding the industry and market analysis, fiscal resource planning and all other constructs related to the undertaking of internationalisation. I came on practical footings with construct such as internationalization, fiscal resources, successful planning and execution of an internationalization program.

Now I feel in a better place to develop a new vision and mission statement every bit good as puting meaningful and realistic aims while set abouting an internationalization programme. The unit was besides good in footings of other units every bit good such as “ pull offing alteration in administration ” . In short the undertaking proved fruitful for me as a learning experience.


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