Last Updated 25 May 2023

Measuring International Business Success

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OfficeMax is the leading company offering office products and services to businesses as well as to retail consumers in the United States. Offering the biggest range of business office supplies demands high expectations for company success efficiency especially in its overseas operations. A base in Europe is expected to gain a high performance rating through engaging a growing market of office procurements. Extending operations in Spain must generate financial benefits both to the company and the Spanish people. Financial and Economic Benefits

Since OfficeMax will locate in an emerging office market, financial benefits will be measured in increased sales in the first year of operations. It is expected that the firm will realize a maximum sales potential for all categories in its range of products, and all items shall be sold out fast. The goal is to produce a Spanish sales base of 50% of U. S. sales figures. The company shall deal give economic benefits to the Spanish market as well, due to the provision of increased diversity in office products and services available in the market.

A diversified procurement market means better consumer choices and increased satisfaction. The financial environment in Spain OfficeMax is set to increase its sales turnover with a great deal due to better availability of capital for expansion. The banking sector is well developed and competitive which is a condition that will foster growth of operations increasing the sales and consequently, profit. Potential economic incentives for investors include financial subsidies, preferential access to credit, bonuses and incentives for living and training workers, low interest loans among others.

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Tax deductions may possibly be offered along with exemption incentives. Political Benefits Spain’s close ties with the European Union will make a viable European headquarters for OfficeMax. The optimum state of foreign relation with many European countries will enable the firm to easily extend influence across the continent and gain penetrative action into other emerging markets. Operation will be greatly favored in Spain due to recent trade policy allowing 100% foreign owned companies to operate in the country. Further liberalization of speculative capital movement in the country has been started and underway.

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