Business plan - how a bank can penetrate Bulgaria's market Research Paper

Business plan - how a bank can penetrate Bulgaria's market - Research Paper Example Bulgaria has been able to attract a significant level of Foreign Direct Investment (FDI) from the year 2001. The financial Crisis that hit Bulgaria market in the year 2007-2010 marked an economic decline of up to 5.5% in the year 2009. Fortunately, the country regained a positive growth of close to 0.2 % in the year 2010, contrary to the rest of Balkan Countries (Lapteacru, 85). The country operates using one of the most stable currencies in Eastern Europe the Lev termed Leva when in plural form. The currency is pegged with the Euro with a prevailing rate of 1.95583in every Euro. Bulgarian strongest sectors include the energy, metallurgy, machine building, mining, agriculture and tourism. The primary exports from the industries include steel and iron, machinery and refined fuel, and clothing. The major obstacles towards foreign investment and economic growth involve inadequate R&D funding coupled with the development policies with unclear definition. The European and international ma rkets also experiences lower levels of competition and productivity. In the year 2012, the Bulgarian GDP attained a nominal of $ 50.78 billion, with $ 103.15 billion (PPP) in the same year. This marked a growth of 0.8% with a nominal of $ 6, 903. The GD per capita ranked at $ 14, 020 (PPP) with 5.6% in Agriculture, 31.1% in Industry and 63.2% in service. In the year 2012, inflation rate was experienced at 3%, with a population of 215 living under the poverty line by the year 2011. The Gini Co efficient ranked 28.2 in the year 2007 (Bulgarian - American Credit Bank AD 1200). The sources of wealth Top company profiles by name, revenue/profit, and ownership Lukoil Neftochim Bourgas locates at B urgas, Bulgaria. Lukoil acts as the chief oil refinery company in Bulgaria and South East Europe. The ownership of the company lies under Russian Oil giant LUKOIL. The refinery accounts for close to 7% of Bulgaria’s GDP, AND 25% in revenue to the state budget. LNB remains the chief produc er and supplier handling liquid fuel and related materials including petrochemicals and polymers in the country, and remains the leading company in the line of petroleum related products in Europe. The company provides a minimum of 8,500 Bulgarians with employment opportunities (Elenkov and Petkova 4). SWOT more geared towards Bulgarian economy as a whole rather than Private Wealth market Strengths A better part of the Bulgarian communist period concentrated on heavy industry despite the fact that biochemical and computer products came in play as valuable products in the year 1980. Since Bulgarian market relied on the Soviet market, the culmination soviet market coupled with the Warsaw Pact resulted into a major crisis that hit the country in the year 1990s. The first growth noted in the year 2000 has seen gradual but progressive growth the early 2000. Individual manufacturing industries’ performance appears uneven. The industry that experienced loss and has not been able to catch up with the Western Europe market includes food and tobacco processing companies. The textile industries experienced a decline in the mid-1990s, but since the year 2000 the clothing exports has experienced a steady growth (Erd?nc 78). The Bulgarian economy has experienced stability in the macroeconomic environment with low direct taxes over the years. The fiscal policy of the country also tends to have a significant element of