International Business Strategy
Produce report for your CEO to aid in the formulation of the internationalisation strategy of a company. The company need not be a real company. Given the requirement to relate your report to the background of the company and its strategic objectives (see section on Background below) it will normally be easier to use a fictitious company rather than try to find a real company that fits in with the background conditions.
The company is an Asian or Latin American firm considering entry to Europe. ? The company is working in either in the manufacturing or services sectors. ? All the major US MNCs in this industry are firmly established in Europe and they are involved in significant R&D and product development work in their European subsidiaries. Similarly the major European MNCs in the industry have subsidiaries in the US and they are involved in significant R&D and product development work in the US. The subsidiaries of US and European MNCs in Asia and Latin America are engaged in very limited R&D and product development work
The most important strategic goal of your company is that it plans to enter Europe to develop its capabilities in the areas of R&D and product development and to become one of the technological leaders in this industry. They hope to use the technological knowledge gained from the investments in Europe to develop products and production processes in their home base and to use this to expand their exports to Europe and the US. It is not a major objective of the company to export from its European subsidiaries
Your must select an industry in which the firm is located and clearly identify all the major industry specific factors which may affect the selection of the European country. You must also consider any institutional and cultural factors which affect the selected industry and impact of any industry-specific factors on organisational structures and control strategies.
Content of report
Advice on which European country should be selected. b. Advice on dealing with institutional and cultural differences in Europe. Advice on the entry mode your company will use. Advice on the best organisational structures and control strategies for subsidiaries to help to attain the major objectives of the parent company and advice on managing corporate responsibility issues identified by your company. The advice given should be based on the academic literature and the theory and evidence of factors relevant to this case and in the context of the background information previously provided. Material from relevant websites should also be useful to provide information and frameworks from which to base the advice offered in your report. 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. These appendices will not count towards word limit. However appendices cannot be used to overcome the word limit by including material that should be in the body of the report. The Asian/Latin American firm need not be real. It is unlikely that the Asian/Latin American firm will be real as this will require gathering information that is likely to be commercially sensitive
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