IB Assignment
BUSM1227 Semester 2 2014
Assessment 1 – Assignment - Case study
• Type: Individual
• Value: 50%
• Word limit: 2500 words (variation within 10% more or less is allowed)
• Due: To be announced
Aims and background
Choosing an appropriate market entry mode is an important decision-making process for international businesses when they expand their business to foreign markets. Appropriate decision on entry mode is more likely to occur when solid analysis of the firm’s and the target markets’ situation are in place. By studying a real world case, this assignment is designed to help you consolidate your understanding on entry modes, the environment analysis associated with entry modes, and the strategic consideration behind entry mode choices. This activity also aims to sharpen your analytical skills and abilities for problem analysis and solving.
Procedures and questions:
1. Choose a real company from an automobile (car) industry which is involved in international business.
2. Identify an entry mode that has been used by the selected company when expanding its car business to a foreign market location. The identified case should be from 1990 and onward.
3. Answer all of the following questions:
Question 1) Is this entry mode appropriate for the target foreign market? Why? Answer this question by analysing:
• Strategic Consideration: a) Is this entry mode in line with the company’s then strategic direction? why?; b) Do you think the level of control, risks, return and integration associated with the entry mode is appropriate for the company’s strategy?
• Environmental factors: PESTEL Analysis of the foreign market location. You only need to analyse any 3 PESTEL factors that you think are most related to your case. Note you must analyse how the entry mode suits these 3 PESTEL factors.
• Whether the timing of entry and the scale of the entry are appropriate? Why
Question 2) Based on above analyses, what recommendations would you make to improve this entry? Format
Assessment 1 – Assignment - Case study
• Type: Individual
• Value: 50%
• Word limit: 2500 words (variation within 10% more or less is allowed)
• Due: To be announced
Aims and background
Choosing an appropriate market entry mode is an important decision-making process for international businesses when they expand their business to foreign markets. Appropriate decision on entry mode is more likely to occur when solid analysis of the firm’s and the target markets’ situation are in place. By studying a real world case, this assignment is designed to help you consolidate your understanding on entry modes, the environment analysis associated with entry modes, and the strategic consideration behind entry mode choices. This activity also aims to sharpen your analytical skills and abilities for problem analysis and solving.
Procedures and questions:
1. Choose a real company from an automobile (car) industry which is involved in international business.
2. Identify an entry mode that has been used by the selected company when expanding its car business to a foreign market location. The identified case should be from 1990 and onward.
3. Answer all of the following questions:
Question 1) Is this entry mode appropriate for the target foreign market? Why? Answer this question by analysing:
• Strategic Consideration: a) Is this entry mode in line with the company’s then strategic direction? why?; b) Do you think the level of control, risks, return and integration associated with the entry mode is appropriate for the company’s strategy?
• Environmental factors: PESTEL Analysis of the foreign market location. You only need to analyse any 3 PESTEL factors that you think are most related to your case. Note you must analyse how the entry mode suits these 3 PESTEL factors.
• Whether the timing of entry and the scale of the entry are appropriate? Why
Question 2) Based on above analyses, what recommendations would you make to improve this entry? Format
References: Buckley, P. J. & Ghauri, P. N. 1999, The internationalization of the firm, 2nd edn, Cengage Learning, United States Chung, M. (2009). Globalization strategies of Korean motor vehicle industry: a case study of Hyundai. Universite D 'evry. Mode Of Access:< Http://Www. Gerpisa. Univ-Evry. Fr/Ancien-Gerpisa/Actes/22/22-5. Pdf>. Date Of Access, 1. Faure, G.O. & Sjöstedt, G. 1993, Culture and negotiation: An introduction. In Culture and Negotiation, edited by Guy Olivier Faure and Jeffrey Z. Rubin. Newbury Park, California Lansbury, R., Suh, C. and Kwŏn, S., 2007. The global Korean motor industry. 1st ed. London: Routledge. Johnson, J., & Tellis, G. (2008). Drivers of success for market entry into China and India. Journal Of Marketing, 72(3), 1--13. Lim, Y. (1997). Hyundai crisis: Its development and resolution. Group, 2000(2001). López-Duarte, C. and Vidal-Suárez, M., 2010. External uncertainty and entry mode choice: Cultural distance, political risk and language diversity. International Business Review, [online] 19(6), pp.575-588. Available at: <http://dx.doi.org/10.1016/j.ibusrev.2010.03.007> [Accessed 5 Sep. 2014]. Pan, Yigang and Peter S.K. Chi (1999), “Financial Performance and Survival of Multinational Corporations in China,” Strategic Management Journal, 20 (4), 359–74.