Problem 1:
Prepare a budget and financial overview for your global venture. Prepare a financial analysis in terms of currency risk management and financing of your global operation. Discuss what financial institutions and instruments you would use to achieve your global expansion
1) As a minimum, apply the following capital budgeting techniques to assess the financial viability of your project:
a) Net Present Value (NPV)
b) Internal Rate of Return (IRR)
c) Payback (PB)
2) Identify potential domestic and international sources of financing for your global venture project.
Problem 2. Examine the role of external governance and its impact to the organization.
Case Scenario: Research and Development
Research and development issues pertaining to opening a business in China will be addressed by concluding an in-depth country analysis with respect to various factors, such as political, social-cultural risks, general economic environment, industry analysis, competitive analysis, etc. Further product related research and development for the Chinese market will be done to address the peculiar cultural preferences, needs and wants for Chinese consumers. For example, if Sony wishes to introduce a particular music system in the Chinese market, the R&D department will conduct an exclusive extensive research on the priorities and preferences of Chinese consumers for music systems, and thus, develop the product accordingly. It will not be a bad idea to hire local experts in the R&D team who have a better idea about the local market.
Legal and Ethical Challenges:
Legal and ethical challenges pertaining to this venture can be best addressed by conducting an in-depth analysis of the various ethical issues and laws in advance. As China is a communist nation with conservative values, lives under the regime of tight political control, companies need to be very careful in terms of operating in the country. The expatriate employees chosen for this venture should be extensively trained regarding the various legal and ethical issues pertaining to Chinese market, so that Sony will not commit any blunders in the future.