International Business – formulation of the internationalisation strategy

International Business – formulation of the internationalisation strategy

A) Scenario:
You are required to submit a report to the Chief Executive Officer (CEO) of a major multinational company to aid in the formulation of the internationalisation strategy of that company.

You are a consultant hired by an Indian or Chinese firm seeking to make its first entry into your home country. You are advising a large firm (you can choose one from the following

industries, advertising, computer gaming, education, finance or the hospitality industries, or any other service sector, with agreement) on the advisability of such a move. Your role is to

identify and provide advice on the challenges and opportunities from embarking upon such a path for your client. This will require analysis of the general business environment and, if you

decide the project should proceed, advice on how to enter the market, with explanations of how the advice is arrived at .

B) Considerations:
1) The foreign company (Indian or Chines) is coming to your home country (Bahrain)
2) The chosen foreign company is from Service sector only
3) Couple of paragraphs about the company and which industry and the current profile, business,…
4) Tools to use for your advice & Consultation & Evaluate of the environment ,Use tools like SOWT/PESTLE/Porter’s 4 forces…….
5) Require analysis of the business and your national environment and culture for BOTH based on either Hofstede’s Cultural Dimensions OR Trompenaars’ Cultural Dimensions
6) COMPARE the national culture and foreign culture of the coming company based on either Hofstede’s OR Trompenaars cultures dimensions
7) After summary of your advice and consideration
a- How to proceed with the move and do joint venture
b- then advice how to enter the market and recommend the mode of entry. WITH explanation.

8) Add pictures/graphs if possible.
9) Add facts & figures with reference
10) The Report should not be more than 4,000 words.
11) It should be written in report form
12) Consider industry-specific characteristics using appropriate framework, e.g. diamond.
13) Advice on the general business context – both internationally and nationally
14) Advice on entry mode – i.e. what would be the most appropriate entry mode and why
15) Advice on dealing with institutional and cultural differences and other opportunities and challenges between the host and home countries.
16)Recommendations on how and whether the investment should go ahead (all the previous analysis should be leading to support your recommendation)
• The advice given should be based on the academic literature on theory and evidence on factors relevant to the location and sector.
• Detailed data (statistics, and material that defines or explains the meanings of terms used in the report etc) used to support your advice should be put in appendices. Such appendices

will not count towards the word limit. However, material that is in appendices which is not data to support the case for the advice given in the report will not be marked. That is, appendices

cannot be used to overcome the word limit by including in appendices material that should be in the body of the report.

C) Advice on the structure of the report

The report should include the following.

1) Executive Summary (very brief) – main areas investigated and a summary of the advice given. Executives are busy people with short attention spans and may not read the whole report.

Therefore, this must be brief but also include the main points of the report and key findings
2) Introduction – terms of reference, an outline of the industry and the ‘problem’, a summary of the structure of what is contained in the report, and a short outline of how the research for

the report was done.
3)The main body of the text – this should be well structured and build towards your recommendations and conclusions.
4)Recommendations and conclusions for the key areas outlined above. There should be a separate section for each area, which puts the case for the various options and provides an argument back

by analysis and evidence for the recommended option.
5)Reference list – full references for sources used in the report. NB There should not be a bibliography. All the material in the reference list should be referred to in the text of the

6) Appendices – data (as defined above used in the report).
Suggested References)
• Cheng, Y. (2006) ‘Determinants of FDI mode choice: acquisition, brownfield, and greenfield entry in foreign markets’, Canadian Journal of Administrative Sciences, Vol. 23, Iss. 3; pg.


• *Hardy, J. Currie, F. Ye, Z. (2005) “Cultural and Political Embeddedness, Foreign Investment and Locality in Transforming Economies: The Case of ABB in Poland and China”, Competition

and Change, Vol. 9, No. 3, September.

• Kim, I and Gray, S. (2008) “The impact of entry mode choice on foreign affiliate performance: the case of foreign MNEs in South Korea”, Management International Review, Vol. 48, Issue

2, pp. 165-88.
• Li, M., Zhnag, Y. and Jing, R. (2008) “Does ownership and culture matter to joint venture success?” International Management Review, Vol.4, Issue 1, pp. 88-100.
• Bergsten. C. (2008) ‘A partnership of equals: how Washington should respond to China’s economic challenge’ Foreign Affairs, Vol. 87, Issue 4, pp. 57-69.
• Ceglowski, J. and Golub, S. (2007) “Just how low are China’s labour costs?” World Economy, Vol. 30, Issue 4, pp 597-617.
• Eichengreen, B. Wyplosz, C. and Park, Y. (2008) China, Asia and the new world economy, Oxford: Oxford University Press.
• Enderwick, P. (2007) Understanding Emerging Markets: China and India, London: Routledge.

• Chen, X and Chen, C. (2004) ‘On the Intricacies of the Chinese Guanxi: A Process Model of Guanxi Development’, Asia Pacific Journal of Management, 21, 305-24.
• Hoffman, R. (2007) ‘The strategic planning process and performance relationship: does culture matter?’ Journal of Business Strategies, Vol. 24, Issue 1, 27-48.
• Hofstede, G. (1980) Culture’s consequences: international differences in work-related values, Beverley Hills, Ca: Sage.
• Hofstede, G. (1991) Cultures and Organisations: Software of the Mind, London: McGraw Hill.
• Zhu, Z. and Huang, H. (2007) ‘The cultural integration in the process of cross-border mergers and acquisitions’, International Management Review, Vol. 3, Issue 2, 40-4.
• Agarwal, Sanjeev (1994), “Socio-Cultural Distance and the Choice of Joint Ventures: A
• Contingency Prospective,” Journal of International Marketing 2 (2), 63 – 80.


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