International Trade Question

The entry research project allows students to put into practice the concepts and models covered during the course. It analyzes the entrance of a Multinational Corporation (MNC) into a selected country (Host Country, HC) and the comparative international management issues involved, including the design of an international strategy (IS). Students select a topic for their research paper on the FIRST WEEK OF CLASS for approval by the instructor.

Length

The project writes up should consist of a 12-page-long Body of the Paper. Besides the Body of the Paper, the project should also include a ½-page outline, a ½-page abstract, a ½-page executive summary, a ½-page Conclusions section, appendices, and references. The total length of the paper should not exceed 16 pages,

Focus of the project

Focus your analysis exclusively on international management issues and assume a marketing study already exists for your selected HC showing there is demand for your product. Your analysis is carried out ONLY from a management point of view.

Focus on the following international management issues: Entry Strategy, Organizational Structure, National Culture (Hofstede, GLOBE, Trompenaars, etc.), Corporate Culture, Communications, Negotiations Style, Leadership and Behavior, Control Factors, Motivational Factors, Human Resources, Ethics (CSR, Code of Ethics, Corruption, Sustainability, etc.). For the MNC and HC country of your choice, examine these and other management issues relevant to the success of your planned international venture.

In your analysis, use two or more of the following analytical tools:

Cultural Factors (GLOBE, Hofstede, Trompenaars, etc.,)

KSF

PESTLE

SWOT

VRIO

Doing Business in ……, The World Bank rankings of the ease of doing business around the world,

Here is a plan to help you complete your entry research project:

Conduct a thorough analysis of international management issues relating to the possible entry of an MNC to a Host Country (HC) of your choice (subject to availability, first-come-first serve, see recommended countries below). You will select:

A Multinational Corporation (MNC)

A Host Country (HC) from the list below

An International Strategy (IS) as result of your research

First, select a company (MNC), then use the information below to analyze the suitability of the selected country (HC) for possible entry, then decide on a specific international strategy (IS) based on your research findings

A.Select a multinational corporation:

Select a multinational corporation (preferably a publically held company such as EMBRAER, Bombardier, Nike, Nokia, Cemex, Nordstrom, Johnson, and Johnson, Radisys, etc.). You might consider selecting a non-US firm. If the company is very large, you can select one business unit or division to analyze. Again, be sure to identify the reason for the expansion into the country.

B.Select a Country (Countries among which to choose)

Argentina, Australia, Canada, France, Germany, Italy, Japan, the Netherlands, Spain, the United Kingdom, Brazil, China, India, Indonesia, Mexico, Russia, South Africa, South Korea, Thailand, and Turkey.

C.Select an International Strategy**

Determine whether the company is expanding or setting up operations in this country to sell, manufacture (FDI), establish a customer service center, or as part of an offshoring operation, etc. You will then examine whether the selected HC is a suitable place for the MNC. Finally, you must select an International Strategy and justify why these choices (MNC, HC, IS**) are the optimal approach.

**IS International Strategy including Entry Mode (FDI, Exports, JV, Franchising, etc.), scale of entry (limited vs. overwhelming resources), speed of entry (gradual vs. massive), Organizational Structure, etc.

**International Strategy: A plan to successfully enter foreign markets and expand globally. Example see Walmart Case Study, p. 264.

D.Some examples of different kinds of expansion are:

a) Retail store expansion (examples: Zara, Nordstrom, Disney Consumer Products, Jamba Juice, Red Robin, etc.)

b) Manufacturing expansion (examples: products manufactured for Mattel, Nike, Columbia, etc.)

c) Customer Service expansion (examples: customer service for Apple, Comcast, Standard Insurance, etc.)

d) Offshoring expansion: (examples: Cognizant, iPhone to Foxconn/Hon Hai)

e) Other (Strategic Alliances, Franchising, etc.)