A Profitable Business Venture For The Royal Bank Of Canada

3777 Words Oct 5th, 2014 16 Pages
WILFRID LAURIER UNIVERSITY
MBA Integrated Course
Word Count: 2727

PERU: A PROFITABLE BUSINESS VENTURE FOR THE ROYAL BANK OF CANADA

GOLD 5:
Matthew Darcel - 090542810
Branavaa Devasenathipathy - 145817750
Suyi Ogbeifun - 135825930
Stephanie Ruediger - 135825590
Parvinder Singh - 145808870

October 5, 2014
TABLE OF CONTENTS

1. Executive Summary 3
2. The Macro Environment of Peru 4
3. The Banking and SME Industry 5
4. The Royal Bank of Canada 7
5. Alternative Market Entry Methods 7
6. Recommendation 8
7. Implementation and Long Term Forecasts 10
8. EXHIBIT 1 – GDP GROWTH RATE 11
9. EXHIBIT 2 – INFLATION RATE TREND 11
10. EXHIBIT 3 - SENSITIVITY AND NET INCOME FORECAST 12
11. EXHIBIT 4 – COMPARING MAJOR PERUVIAN COMPETITORS 12
12. EXHIBIT 5 - FINANCIAL REGULATIONS FOR NEW BANKS IN PERU 13
13. EXHIBIT 6 - INCREASE IN PERUVIAN LOANS 13
14. EXHIBIT 7 – OUTLINING POTENTIAL FOR CLIENT LOANS 14
15. EXHIBIT 9 – KEY RATIOS FOR RBC 14
16. EXHIBIT 10 – MODE OF ENTRY vs. VARIABLES COMPARISON 15
17. EXHIBIT 11 – BANCO AZTECA REVENUE VERSUS COMPETITION 15
18. References 16

1. EXECUTIVE SUMMARY
Our goal at RBC is to enter the Peruvian market to maximize profit with as little risk as possible. In line with our current strategy, which is to be the leading provider of select financial services, we have outlined a major opportunity in Peru to focus on small and medium business loans. Currently, Peruvians are not taking out nearly as many loans as other Latin American…

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