Assignment
1. What is an MNE? Give examples to explain the difference between companies that are considered MNEs and those that are not.
2. If you had been the founder of Dunkin Donuts, would you have chosen to heavily rely on franchising as your entry mode to foreign countries? Or would you have chosen to rely on wholly owned subsidiaries as your foreign entry mode? Why?
3. Briefly discuss whether the type of industry a company belongs to affects that company's decision to adopt multinational strategies and structures such as Home replication, Localization, Global standardization, and transnational strategy. Explain why you believe that industry type affects/does not affect strategy choice.
4. Cool-Colas Ltd. is a national beverage manufacturer situated in India. During the past few years, the company has suffered intense competition from major multinationals such as Coca Cola, Nestlé and Pepsi. What can Cool-Colas do to protect its domestic market?
5. Historically, many large Japanese companies used a centralized hub configuration. The 2011 earthquake in Japan resulted in a significant cost to Canon by inhibiting its production process. In response, the CEO of Canon announced in the 2011 annual report that they will have three headquarters, instead of one. These will be based in each of the US, Europe, and Japan. What are the challenges that the company will face during this transition?
6. Mr. Smith is the recently appointed CEO of a diversified MNE operating in 22 countries on four continents and in multiple industries ranging from bulk chemicals to consumer packaged goods. He became concerned that in his very decentralized organization, all businesses were managed primarily by the national subsidiaries. With a poor record in innovation, Smith wondered what he could do to improve the innovation process. What two or three changes would you recommend he consider?
7. Managing knowledge flow is important for a firm that wants to get the most from its partnership with another company. What can a firm do to ensure it gets the most from its collaboration while preventing the outflow of information they do not wish to share with their alliance partner?
8. You are a Peruvian national who serves as head of the Brazilian subsidiary of a large US multinational. While Brazil is theoretically attractive, the going has been tough and chances for becoming profitable in the next five years are not great. Headquarters has asked for your recommendation on whether to increase or decrease investment in Brazil. If a decision to cut investment in Brazil is indeed made, it is possible to focus on other Latin American countries, such as Peru. Since your parents are aging, you personally would be interested in leading operations in Peru so that you can be closer to them. What would be your recommendation?
Text Book: GLOBAL BUSINESS by Mike W. Peng, Fourth Edition.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.