Shell Political Risk in Nigeria - 1304 Words

CALUMS Instructor: Jason Gurtovoy Spring 2013 Warut Klamsua Final Exam 1. Political risk and country risk are challenges that must be strategically considered by multinational firms. What is one real-world firm that deals with political and country risk? Answer: Temasek Holdings company In what nation does the risk occur and in what ways? Answer: In South East Asia, Thailand Temasek face Political Risk in Thailand When Singapore s state-run investment arm Temasek Holdings bought Thailand s Shin Corp telecommunications conglomerate in 2006, its 73 billion baht (US$2.2 billion) acquisition of Shin Satellite was a strategic afterthought. Temasek was known to have purchased Shin Corp from†¦show more content†¦The way of assessing the effectiveness of Temasek’s political risk management strategies would be to evaluate gains and losses that may be associated with the political risks which were taken. Temasek investment portfolio and approach expose it to higher political risk. Then Temasek should avoid investments in ‘iconic’ overseas companies, go for minority stakes in future investments, and seek local partners in making acquisitions. Temasek should start to give press interviews. This can be interpreted as part of a targeted public relations campaign that operates on two levels: on a broader, strategic level, to dispel suspicions and rumors on Singapore and on a specific, tactical level, to clarify public doubts on individual investments. Temasek should following the path by many multinationals to win over local communities by building a more visible corporate citizen image like Temasek Foundation which has focus areas including the promotion of exchange programs among different languages/religions/cultures, and support for disaster emergency relief and recovery in Asia And Thai government should improve standard legal and institutional framework, enhancement of good governance and transparency, capacity building, ensuring fair competition, balanced liberalization and sustainable development, full participation of the host economyShow MoreRelatedSWOT Analysis of Shell in Nigeria1364 Words   |  5 PagesOverview of Shell and Operations - Shell is a group of energy and petrochemicals companies, which are operating in more than 140 countries and territories. 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