The financial feasibility of expanding nationally and globally: the case of a shipbuilding company in Bangladesh

Abstract

This case study evaluates the financial feasibility of expanding Western Marine Shipyard Ltd. in Bangladesh’s growing shipbuilding industry. Using secondary data and financial analysis tools, the study examines the firm’s potential for domestic expansion near key ports and international expansion into markets such as Oman. The analysis highlights Bangladesh’s competitive advantages in labor cost and global demand for small and medium vessels, alongside challenges in infrastructure, financing, and global competition. Capital budgeting techniques, cost of capital estimation, and multinational investment appraisal are applied to assess investment decisions. The study provides insights into strategic growth opportunities and financial viability for sustainable expansion.