Report on Formulation of International Strategy for Business


Imagine that you are employed by an international company and that you have been charged with the task of producing a report for your CEO to aid in the formulation of the internationalization strategy of a company.  The company need not be a real company.  Given the requirement to relate your report to the background to 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.

Overall, the purpose of the assignment is for you to demonstrate your practical understanding of the topics covered in the module as well as to develop your skills in preparing reports for managers.

  • 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.

Your  company  has  an  international  joint  venture  with  the  leading German MNC in this industry. The German MNC is unhappy with the performance of the joint venture because of what it regards as theft of its intellectual property by its Asian/Latin American partner.

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 organizational structures and control strategies. For more details about the conditions of the report, please refer to the PDF document attached.


The question belongs to Corporate Strategy and it is about International Business Strategy. An example of an electronics company Oriental Electronics from Europe has been taken. Oriental Electronics is from Europe and it wants to expand into international markets. In one of its initial ventures with a German company, it failed and the report focuses on how to enter into another joint venture and make its international entry worthwhile.

Total Word Count 3550


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