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.
BACKGROUND TO THE COMPANY
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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