Issues Leading to Reduction of Shareholding in Subsidiaries

Topic 

Issues Leading to Reduction of Shareholding in Subsidiaries

Instructions 

Write a project paper on the issues that lead to the reduction of shareholding in Subsidiaries

Answer Preview 

Considering the challenge of continuous change to consumerism at business and personal level at the age of increased internalization level, the purpose of this paper was to explore issues that contributed to Barclays’s decision to withdrawal much of its investments in the African region while examining the implications that came with such decision. On the scope of this project, the central area focus is the banking sector under which Barclays operates its business, as influenced by the political and economic trends its business-ceasing decision from the African continent.

A review of the literature shows that multinationals engaging in internalization face various challenges that may be unique from the ones experienced in the domestic market. Although foreign Direct Investment is usually imperative for the success of multinational enterprises, companies must always consider adjusting their businesses in ways that align with the increasing market changes. Barclays PLC is at the center of this project because of the recent decision of reducing its shareholding from Barclays Africa Group Limited to lose its majority leadership from its subsidiary in the African region.

Word Count: 5500