Firstcom Europe (Telesis Ltd):

Introduction:
For the growth of the nation and its sectors, foreign direct investment is important. It infuses
the business with creativity, supports economic growth, and boosts local employment rates.
The research talks about the sorts of FDI and the GDP inflation caused by Brexit. The
examination of Norway FDI for Fastcom investments in international markets is included in
the research. Firstcom Europe is a telecom company . Small UK-based Firsttcom offers
different fiber and telecommunications services to its clients , and the firm is eager to engage
in international markets to expand its operations and boost revenue.

Brexit:
There was a period when all investors desired to relocate to the United Kingdom to do
business. Most of them now want to withdraw their investments or relocate certain activities
to other countries where they can benefit. Borrowing costs are at an all-time high, and
people are losing faith in the economy.
Home scheme to help people in this economy were cut down from two-year scheme to six
months in order to save some budget for the country. Before the Brexit the country had not
changed the finance ministerS most often. Before Brexit only four finance ministers were
appointed in 23 years but in recent time there are four finance ministers appointed in just
four months. So people faith in stability of the economy is now gone. Also the cost of directly
selling to the other EU countries is high after Brexit. So businesses are finding ways to make
cheaper products to sell it to other countries in the European Union. A report by the Deloitte
says that 56% of the people prefer not to take loan for the business because credit risk is
higher. That put people in defensive mode to cut down cost and manage the cash.
many lenders cancelled out their mortgage agreements,value of pound substantially fell and
interest rate on government borrowing is high. the Bank of England stopped pension funds
from failing, by intervention.
Business investment in Britain decreased after the 2016 brexit vote and conditions worsened
when covid pandemic hit in 2020. During the second quarter of this year the business
investment in the country is 6% lower than what it was six years ago in 2016. Many current
businesses are expanding the business operations to other countries to maximize profits in
current decreasing economic conditions.

Norway welcoming FDI projects:

New policy for UK nationals: residents of UK after Brexit are treated as per the rules of
non-EEA citizens. This new policy not only affects the single individuals but also small
businesses and corporations who wish to move business operations to Norway. Because
now they all need to apply for the residence permit.
FDI in Norway: Foreign direct investment in Norway has increased by 10.3 billion USD
since the last quarter. The following data presented shows that the FDI in Norway was all
time high in 2010 when FDI reached 19.9 billion USD.
Data graph:

Reasons for Norway expansion: (Organizations may take advantage of new possibilities
through global growth, which also improves profitability, generates more income, and builds
brand recognition. There are many advantages to growing your business internationally, and
multinational corporations can explore the boundaries of what is feasible for their brands and
target markets.). Such as there is a very high level of education among Norwegian people
and productivity is also high. And they have a culture of long standing innovation. Norway's
economy is one of the world's strongest economies. Innovation, technology and knowledge
development are given strong priority for the sustainable business environment.
Energy sector: (Norway is a global leader in oil and gas, energy, marine, and fisheries.
Companies in other industries are also building a name for themselves. Medical technology,
finance technology, education technology, and other technological clusters are thriving.)
International firms can benefit from the innovation centers and technological clusters that
can provide the skilled and specialized knowledge to the international small businesses.
Also there are many potential partners that look to make investment in high innovative firms.
Ease of doing business: According to a 2016 survey, Norway is ranked 6th in terms of ease
of doing business. So it is relatively easy to setup a business in Norway. Country is feasible
not only for the established businesses but also for the startup businesses.
Norway power consumption is also based on the renewable energy. Rich natural resources
makeup 98 percent of the power renewable. Norway is working towards the sustainable
environment with more green businesses. It is also pioneering different sources power to
make businesses more sustainable. These activities towards sustainability also improves the
image of the firm showing that business care about the corporate social responsibility. For a
telecom business like Firstcom it is suitable as it makes innovation and technological
advancements in the society. Companies can reap the benefits from such environment.
Egalitarian: Norway has a very high skilled workforce with efficiency and competence.
(balanced three party cooperation between the government, labour unions and industry
confederations are an important basis for Norwegian competitiveness across industries.)

Strategy:
Organizations can benefit from the Global expension strategies to access markets outside of
their native Markets. This helps in making better financial decision by gaining business
opportunities in different parts of the world. These opportunities help when business
occasionally exhaust of its domestic market for growth opportunities. In such situation
growth strategies can be a wise move towards better business. Among the many Fastcom is
wishing to implement multi-domestic strategy to enter the market of Norway.
Multi_ domestic strategy:
This strategy can help Fastcom to accomodate local markets and culture of Norway. All
products and services will be tailored according to the local taste of Norwegian people. With
the population of 5.4 million almost all of them (5.04 million people) has access to
smartphone with the high speed internet. According to a 2018 report approximately 75% of
the people were doing shopping from local and international online stores. Fastcom can use
this tech savvy market to provide fast telecom services at international standards tailored
with the needs of the local market. This strategy does not compete in the pricing rather focus
on gaining and pursuing new customers. This strategy is also very commonly used by B2B
partners.

PESTEL ANALYSIS
Political:
Norway has a very stable political environment unlike the United Kingdom. Government
ensures safety in the country and the crime rate is the lowest. People's property is protected
by the law. Being a member of the European Free Trade Association (EFTA), Norway
engages in trade with almost all of the European market. According to a 2021 report by the
World Bank, Norway is ranked 9th in terms of ease of doing business. The Ministry of
Finance provides 19% deductions in the form tax credit for the cost incurred in R&D for the
meaningful results (OECD, 2021). Norway's corporate tax rate is 22% and is projected to
remain the same in 2023 while the UK corporate tax will increase to 25%. VAT is 25% and
income tax is 22% and social security contribution on the average worker 29.7%. Norway
enjoys a healthy economy because of the firm political leadership.
Economical:
Norway GDP is around 520 billion USD and it has the fourth largest GDP per capita in
Europe. Norway's unemployment rate is low at 3.2 percent. Central bank has kept the credit
interest rate at 2.25% which is favorable for businesses and entrepreneurs. Cost of capital
required for a business to run is determined by this credit interest rate. Norway's main
economic activities include fishing, mining, manufacturing and it also exports oil and gas
which are the main backbone of the economy. Government owns the majority of the state oil
that keeps the prices stable. Country has a very strong support system that helps
underprivileged people of the society.
Socio-Cultural Factors:
Public of Norway holds a very strong respect for its culture. And business decisions are also
influenced by these social and cultural factors. For example, people are very much aware of
the low carbon footprint and use renewable sources of energy and keep the environment
clean. These factors force companies to offer clean and green services and products that
don't harm the environment. Norway is a progressive society that is proud of its traditional
Nordic culture. It also features several monuments that remind of its rich past and honors it.
Technological Factors:
The technological ecosystem in Norway is prospering to the fullest. Many tech companies
are opening offices in every corner of the country. Tesla is one example. Tesla as of now is
the best selling car manufacturer in Norway. The Norwegian government has provided
incentives for the EVpurchase. There is 25% VAT tan exemption given to EV owners. Also
there is no annual road tax for electric cars. In such a technological advanced country the
new businesses in the technological field i.e Fastcom can benefit from it.
Environmental Factors:
Norway is highly focused on green energy. The government has implemented strategies to
safeguard the environment to keep up with the objective of staying green. Such policies can
favor Fastcom performance in Norway. Being a leader in renewable energy, Norway commits
to reduce the carbon footprints. Norway also benefits from its scenic landscapes and its
tourism revenue was 7.04 billion dollars in 2019.
Legal Factors:
Every business has a responsibility to ensure that it abides by the law and regulations of the
country in which it is operating. The legal system in Norway is crystal clear and gives all
law-abiding citizens complete freedom over their choices. The adoption of EU regulations
based on the European Economic Area (EEA) Agreement has had an impact on legal
evolution since the early 1990s. The legal system in Norway encourages a free and
transparent economic environment. Along with having a low crime rate, Norway also has a
progressive judicial system. The Norwegian legal system has been used as an example of
how a just and progressive legal system should operate by numerous international groups.