International running and risk management of AVEVA Group plc Essay

International running and risk management of AVEVA Group plc - Essay Example Meanwhile, within the internal and external business environments of multi-national companies of which AVEVA Group plc is one, there are a number of risks that are faced that tend to hamper the normal direction and progression of the business strategies and ideas that the companies put in place. Without a well structured organisational risk management in place, these risks register their presence so hard on the companies that they affect the way and manner in which the companies can compete effectively against their competitors. This paper therefore looks at the issues of international running and risk management of AVEVA Group plc and how well the company places itself in the international business environment. Main markets and competitive situation Currently, AVEVA Group plc has markets in five major continents with Europe being is major market. The continents are North America, Asia, Europe, Africa and South America. Within these market destinations, the company operates an overal l of 46 offices, which are spread in an uneven proportion across 25 countries. Even though there are market operations in five major continents, the company has four major head offices that manage the operations that take place in the 25 various countries. For instance with a head office in Boston, the office takes care of all markets in North America, while the head office in Rio De Janeiro takes care of all markets in Latin America. The head office in Lumpur is responsible for markets in Asia Pacific, while the office in Sulzbach has been placed in charge of all markets in Europe, Middle East and Africa (Wei, 2012). In terms of holistic market performance, AVEVA is yet to maximise its potential in the United States and BRIC countries as it still seeks to improve market share in those countries (Barisik and Tay, 2010). The competitive situation presented to the company is one that is focused on the provision of engineering design, CAD/CAM software, and information management soluti ons that emphasise on specialised technology consulting services for plant, power and marine industries (Wilkin, 2004). Lately, issues such as marine oil exploration have caused an increase in the number of competitors, putting AVEVA in a highly competitive global market. Financial performance Global finance AVEVA Group plc is one of the listed companies on the London Stock Exchange, and constituting the FTSE 250 Index. This puts the company at a highly globalised financial situation as it serves clients globally. As of the end of 2013, the company had revenue of ?220 million from operating income of ?77.5 million. From this, the company made a net income of ?65 million, which is rated as a fairly impressive market performance (McKellar, 2010). The company currently has a total of 1,600 employees who are responsible for the human resource pool of operations within the company. The company has always made strives to withstand global financing challenges and to ensure that it is finan cially viable among its key competitors. In terms of strategy, the company launched a couple of acquisition interventions as major growth and expansion strategy. This has led to a number of major global acquisitions such as the