What concerns might a CFO deal with when a firm expands into the global markets?

     A chief financial officer (CFO) not only concerns about market, products or competitors, costs of production, financial and banking system, accounting standards, trade agreement or restrictions, employment and tax laws or regulations, currency exchange rates, and government trading policy, but also deals with language barriers, social, cultural, and political issues with different values and beliefs when a company expands into the international markets (Gitman, 2009).  

     For instance, Procter & Gamble (P&G) which is incorporated in 1890 and is located in Cincinnati, Ohio—it is the world’s number one producer and marketer of household products with many billion-dollar brands (e.g., Tide, Gillette, Pampers, Head & Shoulders, Olay, Wella, or Duracell). As it expands into the international markets, the major objectives of its CFO and the organization are: “a) Interface with customers to ensure that marketing plans fully capitalize on local understanding, to seek synergy across programs to leverage corporate scale, and to develop strong programs that change the game in…favor at point-of-purchase; b) provide services and solutions that enable the company to operate efficiently around the world, collaborate effectively with business partners, and help employees become more productive; and c) Ensure that the functional capability integrated into the rest of the company remains on the cutting edge of the industry” (P&G, p.1). All these match the aim and motto of the company: “Think globally and act locally” (P&G, p.1).  In all, increasing the cost efficient and effective, and the values of its stakeholders, and improving the market shares, customer services, and the management and financial excellence are the concerns or apprehensions of a CFO might face as a firm expands into the international markets.

References

Gitman, L. (2009). Principles of managerial finance (12th edition). Boston, MA: 


       Pearson Prentice Hall

P & G. (2009). Corporate info: Structure. Retrieved January 07, 2009, from

       http://www.pg.com/jobs/corporate_structure/four_pillars.shtml