project

The research project PART II is also on a group basis, but in the format of a WRITTEN REPORT. It is focused on an international market entry (new FDI) or the existing operations (established FDI) of a U.S based firm in a foreign (host) country. The selected U.S firm is from the industry you presented in the project PART I. It is suggested that these work will completed based upon the analysis and conclusions of your international investment environment analysis report (Project PART I).

Again, you represent a consulting group which has been retained by the board of directors (BOD) of a large, highly diversified multinational corporation with the headquarter in the U.S.A. The New International Investments Group of this MNC has contracted you to conduct a comprehensive investment analysis in order to make a smooth entry and/or to improve the performance of their existing activities in a specific host country. You are expected to apply the knowledge and research capabilities gained in MGMT405 by analyzing a "real world" international business case.

A foreign direct investment (FDI) is an investment that gives the investor a controlling interest in a foreign company. Based on the host country conditions as well as the characteristics of the industry in which a foreign direct investment (FDI) takes place, you are expected to analyze a potential international entry into the host country market, and/or the existing business operations of the firm in that host country, and to make final recommendations to the firm’s BOD.

Selection of a firm:

You are encouraged to select a U.S firm (the country of origin of the firm is the U.S, such as General Electric, Apple, Gap or McDonalds) which is of most interest to you, or the one which most resembles the one in which you plan to begin your career. The firm is not necessarily large and well-established. The internalization of small/medium firms in their early stage is becoming increasingly popular to study nowadays (You are also encouraged to study local small/medium firms which might be more familiar with).

Target Audience:

Again, the presentation should be directed toward the firm's BOD. Please keep in mind that board members are extremely busy individuals who are not very willing to have to "dig" for the information. It is your task as consultants to distill the available information and present it in an easily digestible format.

Research project - Written report

Your team will turn in a comprehensive case report to the BOD. This report should contain a thorough, yet concise, analysis of the firm researched. The main focus of the case analysis report should be on the entry and/or operations in a particular host country which should be of interest to the firm’s BOD. Please limit your report narrative part to 15 pages, double-spaced, using Times New Roman 12 font and 1’-1’ page margin. You may add additional pages for appendix and references if needed.

Guidelines

Your goal will be to provide the firm with the most relevant factors and recommendations regarding their entry and/or international operations in the host country, so that the firm can make a well-informed international business decision. Your case can be addressed from one of the following two approaches:

The new entry to the host country, or

The established/ongoing international business operations in that host country

The following are some of the major points to research and address in the final case report. Again, this is not a comprehensive list. At the same time, you do not have to address each and every one of these factors in your report:

Background/introduction

Basic description of the firm profile

The firm’s current international presence (if any), such as international business strategy, structure and supply chains, etc.

A summary of the main conclusions in your investment environment analysis which you have taken in the project PART I (midterm project) and that are most relevant to your final project.

Case analysis body

For the international entry, you may want to discuss:

The mode, speed and scale that the firm may adopt in the host market entry

How the firm adjusts its value chain activities (i.e. R&D, production, marketing, distribution, service, etc.) to adapt to the local market

Potential risks and how the firm responds to such risks

For the international business operations analysis, you might want to address:

The firm’s current value chain activities in the host country (i.e. R&D, production, marketing, distribution, and subsidiary management, etc.).

How this affiliate fits into the firm’s global map (the strategic role this affiliate is playing within the whole firm).

Difficulties and risks that the firm is encountering in the host market

* Please note that you do not need to cover all items listing in this section. Again, it is your responsibility to present the information that is most relevant to the conclusions and that will help the BOD make their decisions.

Main conclusions and recommendations

Recommendations on the market entry or business operations in the host country.

You will need to integrate the information by providing a recommendation of action. Remember that your recommendation is targeted at the firm’s BOD. Your final recommendation should follow logically from the information presented in previous sections. The goal of the report is not to arrive at THE correct answer, but rather to provide a logical recommendation based on the firm/country/industry analyses.