The Process of Internationalization - Abu Dhabi Commercial Bank - Example

The paper "The Process of Internationalization - Abu Dhabi Commercial Bank " is an outstanding example of a management capstone project. Internationalization is the process of increasing the firm’s investment in international markets. It is arguably true to claim that, within the frame of economic and business factors, the characteristics of this process influence the pattern and pace of internationalization of firms (Froot,1993). Most banks opt to go international as a way of seeking opportunities for growth through market diversification. In addition, internationalization by banks enable them to earn higher margins and profits; gain new ideas about products, services, and business methods; be closer to supply sources, gain flexibility in the sourcing of products, or benefit from global sourcing advantages; and better serve key customers that are located abroad. By appreciating and understanding different values, beliefs, behaviors and business strategies of different companies within other countries, firms will be able to successfully go international (Froot, 1993). Therefore, internationalization will enable a bank to-among other things-gain access to lower-cost or better-value factors of production. Banks that venture into the international market are definitely expanding their network hence might benefit from a potentially rewarding relationship with a foreign partner. Many banks in the contemporary business environment take the steps to establish themselves abroad.

There are several motives that underlie the process of internationalization (Froot, 1993). Maybe the home market is characterized by saturation, presence in a certain country grants access to strategic resources, or to some extent the firm has identified some opportunities to be exploited (Dana, 2008). Internationalization is a complex process that requires decision-makers to have relevant experience in different situations and consider different motives before venturing into the international market. Most banks start operations domestically with value-adding activities conducted within the borders of the home country only. One of these banks that have mastered the art of internationalization is Abu Dhabi Commercial bank.