The company has made the choice to expand to another country. It could be because the market in the country is saturated, the product or service is highly sought after, or because strategic-wise you can get a step ahead of the competition in that particular RC (Region or Country). No matter what the need be, choose the RC that is most likely going to optimize and secure your company's future. I consider this the toughest decision a company has to make especially if there is competition out there and stockholders want to make money now and pressure management into what is called the attractiveness of a country without considering the risk you take. This is why a balance between attractiveness and risk must be fully accepted by the stockholders so that you are able to take the best decision; but for the stockholder to buy into it, that is another discussion. As a reminder, the stockholders have a valid and positive intention in this process. Stockholders are looking to make money fast while getting the largest ROI (Return on Interest).
First, you need to consider the factors of attractiveness of the RC. Those factors are: current demand, growth of demand, membership in trading bloc "expanding abilities from RC", strategic importance of that particular RC and Rate each factor from 1 to 10. Once completed you can weigh the importance of each and then multiple each by the rating you gave each factor. Accordingly, the same is done with the factors of risk of the RC. Those factors are: cultural distance, administrative and political distance, geographic distance, and economic distance. When both are completed and summed up these points can be plotted on an x and y-axis map to evaluate and prioritize your expansion strategy.
If stockholders are really pursuing for a change, leveraging the weigh scale and prioritizing to fit more of their needs can help in balancing the long-term goals of the company and the short-term goals of the stockholders.
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