Global and International business

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Assignment

You are employed by a consulting company. Your company has recently been approached by a European company that is looking for new business opportunities overseas. One option that has been suggested to the board of directors is the mobile telecom industry in South Africa. Your task is to evaluate the attractiveness of this industry. You are required therefore to carry out the necessary research to construct an analysis of the overall competitiveness and investment attractiveness of South African mobile telecom industry. You should use a range of published sources of information in this task, such as books, academic journals, periodicals, web resources and relevant databases.

Part 1: Porter’s National Diamond Analysis (2160 words)

Apply the extended version of Porter’s National Diamond (PND) model to the of South African mobile telecom industry

· Insert diagram with summary of analysis; stating clear the (+) and (-)

· DO NOT change the diagram/arrows

· Use each condition of the model as a header, use sub-headers when necessary

· Analyse each condition with relevance to the industry

· Ensure points are relevant.

· Use table, charts, diagrams when necessary.

· State your sources clearly.

Part 2: Market Entry Strategy (720 words)

Based on your research and analysis of the country’s institutional environment, discuss the advantages and limitations of using Foreign Direct Investment (FDI) as an entry strategy for South African mobile telecom industry. You need to evaluate at least two relevant market entry modes and provide a clear recommendation.

· Discuss 2 Foreign Direct Investment (FDIs) on its advantages & limitations.

· Select & recommend 1 FDI based on your analysis in Part 1.

· If Joint Venture or Acquisition -> recommend a South African company & justify why

· If Greenfield -> recommend location & justify why

Part 3: Contemporary Management Issues (720 words)

Discuss TWO key management issues identified from your analysis (Part 1 and Part 2) that should be taken into account before starting operations in South African mobile telecom industry.

· Problem faced when operating in South Africa,

· Regulation

· Culture