International Business Essay 2500 words
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2016_sem_2_ib_essay.pptx50% weightage
Internationalisation of Business Individual essay assignment
You need to select a multinational corporation from Fortune’s GLOBAL 500 MNCs list (http://fortune.com/global500/). We suggest you to think of your future career and industry that you are interested in while selecting a company from the list.
Step 1
Insert a map of your country.
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Although it is not mandatory, we encourage you to select an MNC from an emerging country (such as Brazil, Russia, India, China, Indonesia, South Africa, UAE, Vietnam, Malaysia, South Korea, members of AEC or Mercosur)
Step 1
Insert a map of your country.
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2.1 The Analysis of your Multinational Corporation
In this section you will need to present and analyse key data supporting the status of your company as a multinational corporation.
You can include the following : year established, business or industry involved in, Fortune 500 ranking in 2015, recent years sales and profit performance/figures, global sales/profits, key competitive advantage, markets or countries served,( milestones in appendix) if relevant to show its internationalisation trends
It is highly recommended that you use key academic sources to illustrate and explain the concept of MNC in this section.
Which country and which industry will this essay focus on.
Select one country where your company has invested in (in any foreign direct investment forms). Then, you need to analyse the internationalisation of the company. In doing this you can follow the following points:
STEP 2:
Insert a picture of one of the geographic features of your country.
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Global sales/profits trends,
%of sales or profits from overseas business
Ranking in Fortune 500.
No of countries and total workforce
Overview of the company as an MNC
What are its internationalisation objectives, industrial products and countries (key markets if operating in many countries) in which it operates
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You will need to focus on ONE factor from the host country that influences the internationalisation process of the firm. As we focus on political economy and socio-cultural factors in the first part of this course, we recommend you to answer the following questions in this section:
What is the key factor (refer the above factor – is it political economy or is it socio-cultural factor)from the host country that promotes the internationalisation process of your firm? Why?
Please use one theory from the course to support your argument(s). The application of some theories from this course such as Uppsala Internationalisation theory, Eclectic paradigm, and Porter’s diamond theory can also be useful at this point.
STEP 2: Host Country Analysis
Insert a picture of one of the geographic features of your country.
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Using Samsung’s entry into India market as example
Analyse one relevant factor in depth to support your argument why that particular factor has positive or negative impact on India’s mobile phone industry and Samsung’s choice of entry mode at the later part of the essay.
Foreign Direct Investment can refer to setting up marketing distribution channel to the Indian consumer market or manufacturing or setting up R&D operations in the mobile phone industry in India.
Use good reference websites Global Edge and General references, Passport Monitor (RMIT database), EIU (Economic Intelligence Unit)
Focus on relevant issues and time frame. E.g. Samsung began manufacturing operations in India by opening its first plant in Noida, Uttar Pradesh, near New Delhi, in 1997. Your country or industry analysis should focus around 1995-1998 period.
HOST Country analysis
Insert a picture of one of the geographic features of your country.
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HOST Country analysis
Most MNCs going to emerging economies are seeking low cost production. Find economic indicators that support this.
Identify economic conditions that increase risk, lower profits, increase operational costs or improve efficiency, or vice versa
Negative economic conditions include recession or market down-turns, currency crises, or sudden bursts of inflation.
Most of these factors arise from imbalances in the under-lying economic fundamentals of the host country , such as a balance of payment crisis.
Host Country’s financial risks
The origins of currency crises could be a progressively deteriorating trade imbalance (e.g., India in the late 1980s)
Declining exchange rate (look at trends) will lead to a fall in revenues and profits
Poorly developed banking infrastructure, access to loans or capital – affect mergers and acquisition entry mode
Ability to remit funds or profits to home country or make payments overseas. Weak currency countries often have restrictions by imposing remittance tax or strict limits on US or other hard currency conversions.
Country’s political risk analysis
Look for country rating for comparison. Euromoney Country risk rating – allows free trial for 48 hours
http://www.euromoney.com/Poll/10683/PollsAndAwards/Country-Risk.html
http://bmo.businessmonitor.com/BM4/help/methodology_ratings.html
High investment risk (political risk) means higher chance of failure
Country’s political risk analysis
Government policies or regulations on business e.g. business licenses or permits for the mobile phone industry, any tax, price control or import restrictions .
Pay attention to special requirements or restrictions for foreign owned businesses.
Transparency and consistency of government policies and regulations. Corruption - rating ? Cronyism?
Political stability. Are there any threats or possible events that can affect smooth operations of business
Identify events or policies that have a negative impact on Samsung’s operations, costs, revenue, growth etc.
Political analysis
Insert a picture that illustrates some part of your country’s economy.
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Economic ANALYSIS
Insert a picture of the head leader of your country.
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HoSt Country Analysis – industry specific
Investment climate of the mobile phone industry in India can include statistics and research articles that show size and growth trends of this industry.
Market opportunities in terms of local demand or exports for mobile industry.
Market potential (demand for mobile phones in India) can be gauged from population size and growth, per capita income or spending power, growing economy, imports for those products.
Level of competition and key players that dominate the industry. Is the industry growing or maturing?
HoSt Country Analysis – industry specific
Availability of relevant work force (e.g. IT skills) or availability of key factors of production that makes it competitive to manufacture and/or market mobile phones in the country.
R&D spending in this sector.
Look at FDI trends for this industry. If it is growing it is a positive sign that other companies are confident in investing in India.
Special government incentives or development that enhance the attractiveness of this industry.
2.3 Foreign Entry Strategies:
Explain entry strategy/strategies performed by the company. Please use academic resources (i.e. journal articles) to explain the concept of the company’s entry strategy and its benefits.
Please identify some constraints of the selected entry strategy. It is important that you combined points from academic sources (i.e. academic journal articles) and information from the company to analyse potential constraints of the entry. strategy.
STEP 2:
Insert a picture of one of the geographic features of your country.
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2.3 Foreign Entry Strategies:
With whom? Which entry mode did it use?
Is it with a Joint Venture partner? Acquisition? Or Wholly owned Greenfield subsidiary?
Timing – first mover or late entrant? Large or small or incremental scale of entry, speed of expansion into that foreign market.
Key challenges
Was it successful? What obstacles did the MNC encounter due to its entry mode decision and the investment climate of this country for foreign investors in this industry.
Which IB theories or IB concepts support your argument.
Questions to consider
Appropriateness of entry mode:
Motives or reasons for expanding overseas. E.g. seeking new markets, efficiency seeking? Response to cost pressure or local requirements? Entry mode need to align with company's strategy – global strategy means looking for location economies conducting production or R&D at the most cost efficient country and then export standard products globally
Degree of control or risk the company is willing to undertake. This affects entry mode, timing of entry and scale of entry.
Available resources (financial, human, core competency or knowhow etc.) for choice of entry mode.
Appropriateness need not mean absolute success.
RMIT University©yyyy
School/Department/Area
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FACTORS AFFECTING THE CHOICE OF ENTRY MODE BY MNCs
This is an example of academic reference to support your analysis.
Risk, Return, Investment commitment, Control and Speed
Risk of failure and financial losses is associated with failed operations in the foreign country due to lack of knowledge of the country (culture, business climate, political environment, economic environment)
Control is associated with the amount of control the company has over its operations, technology and its core competencies
Investment in terms of financial resources, human resources, capital outlay etc.
Joseph Johnson & Gerard J. Tellis Drivers of Success for Market Entry into China and India - What is considered a successful entry mode?
What are the major contributions of your MNC to the host country?
From the UN Global Compact Principles, which area that your MNC will need to focus in their current and future business? Why?
2.4 International Business Impacts and Contributions:
This is an individual assignment (50%)
Length of this essay should be between 2,000-2,500 words (including country analysis).
The 12 point font in Times New Roman should be used throughout.
Line spacing (1.5 lines) and margins on all sides (at least 2 cm) need to be maintained.
- Number each page.
This link will be useful for your writing, referencing and academic style presentation https://emedia.rmit.edu.au/learninglab/content/writing-skills
Due on : th October, 2016
Time: 7 p.m. Singapore time
Marked by Melbourne lecturers
Step 3 Submit your work via BLACKBOARD
Insert a picture illustrating a season in your country.
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The clarity of expressions together with the appropriate use of grammar, spelling and punctuations are important to maintain.
Any use of comments, information, data or quotations from others (books, journals, newspapers, web etc.) must be cited properly.
Theories from the course (BUSM1222 International business) MUST be incorporated in your analysis
Marking criteria is available from the learning hub.
We focus on the quality of reference. Make sure you combine both academic and industrial or trade information. Please use, at least, six academic journal articles to form your arguments.
Step 3
Insert a picture illustrating a season in your country.
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Evidence of creative insight and originality in terms of comprehension, application and analysis and at least some synthesis of the international context and the actions of the organization in a broad range of aspects.
Academic literature was effectively used to analyse the key internationalization issues.
Key aspects of the academic literature were applied to the actions of the organization (choice of entry mode).
Not just describing the actions of the company. The evaluation of the organization was based on the evidence (actions and literature).
InterNATIONALISATION AND CHOICE OF ENTRY MODES EVALUATION
Hint: Review topic 1 on pros and cons of globalisation
Review topic on IB Actors: MNCs and
Review topics on Impacts of IB – corporate social responsibility.
Support your analysis with evidence. Either from theories, IB concepts, newspaper reports/articles on the impact on host country.
Contributions of the company to the host country (positive/negative)
Strong articulation of key lessons on internationalisation and choice of entry mode learnt from this essay.
It also summarised the analysis and gave recommendations for the improvement of the company’s internationalisation process and entry mode decision where applicable.
Links with international business were made.
REFLECTIONS & Conclusion
How to obtain better grades
A good assignment is well researched.
20-30 reference sources from academic research articles, academic or business reports, write ups in business journals or newspapers including statistics and trends.
Organise the flow of discussion in a sequential and logical order.
Avoid repetitive information or analysis. You don’t have to follow the sequence set out in the essay guide as long as it makes logical sense.
Analysis of macro environmental factors relating to country and industry should be during the period it enters the foreign market for this essay.
Caution:
For a particular idea, have more than one view or perspective to have a balance view.
Do not make unsubstantiated claims or conclusion. Cite credible and relevant references. Support your claims with evidence using statistics, (quote and/or analyse the statistics), IB theories/concepts from textbooks, and research findings from relevant articles/sources.
All references / citations must be completed without error using Havard referencing style.
Do not side track into marketing (4ps). This is an international business essay. Please avoid marketing and general management points/analyses in this essay. Avoid using journal articles from Marketing or Strategic Marketing journals
1. The core of this assignment is to assess your level of mastery of the subject matters and your analytical skills in relation to foreign market entry strategies. It is important that you can integrate key international business theories from the course to your analysis of an MNC in this assignment.
2. Do not perform PESTEL/SWOT/ five forces analysis in this essay.
Caution:
