WRITTEN RESPONSE: Strategy in International Business/Entry Modes
Instructions: Refer to the key concepts covered in Chapter 13 and Chapter 15 of the text and the power points about the challenges and opportunities of the International Business. Utilize this information to answer the questions 1-3 indicated below. Read and analyze End of Part Five case "Coca-Cola" on pages 486-7 and Management Focus: "Foreign direct Investment by Cemex" on page 229 (10th edition) and answer questions 4 and 5. For Question 6, conduct research on the Internet and follow the instructions provided. Your answers must be typed, double-spaced, size 12 font, preferably in question-answer format with complete answers and approximately 3-4 pages in length. .
Due Date: Hard copy to be handed in no later than Thursday, August 18, 2016.
1) What are the two types of pressures that firms competing in the global marketplace typically face? Under what types of conditions do these pressures arise?
2) What are the four main strategies or approaches firms may follow to face these pressures? Describe the basic approach of each of these strategies, specifically in terms of its response to the two basic pressures.
3) Once a company has identified the general strategy it will pursue in an international market, it must determine how it will enter the market (entry mode). Discuss how the need for control over foreign operations varies with a firm's strategies and core competence. What are the implications for the choice of entry mode?
4) Read the Case on "Coca Cola" and answer the following questions, using facts from the cases to support your answer and considering the four main strategies you identified in question 2:
a) Why do you think that Roberto Goizueta switched from a strategy that emphasized localization toward one that emphasized global standardization? What were the benefits of such a strategy?
b) What were the limitations of Goizueta's strategy that persuaded his successor, Daft, to shift away from it? What was Daft trying to achieve? Daft's strategy also did not produce the desired results. Why do you think this was the case?
c) How would you characterize the strategy pursued by Coca-Cola under Isdell's leadership? What is the enterprise trying to do? How is this different from the strategies of both Goizueta and Daft? What are the benefits? What are the potential costs and risks?
d) What does the evolution of Coca-Cola's strategy tell you about the convergence of consumer tastes and preferences in today's global economy?
5) Read the Management Focus: "Foreign direct Investment by Cemex" and answer the following questions, using facts from the cases to support your answer:
a) Why did Cemex choose to use wholly-owned subsidiaries instead of licensing or exporting to participate in the international market?
b) What are the benefits that Cemex brings to the host country, its people, and its economy?
c) Why did Cemex decide that it should expand internationally?
d) Why did Cemex prefer to buy another company (acquisition) instead of going into a country and starting a completely new operation (greenfield ventures) as a way to enter these foreign markets?
e) Why is majority control so important to Cemex?
6) Visit www.mcdonald's.com and look at the bottom of the home page on the right side; click on McDonald's International and open it up. You will see a list of regions you can select as shown below.
Select three of the five regions and take a look at the website for one country from each of these three areas. (In other words, select a total of three (3) countries, each one from a different region). You may not be able to understand the language [though many of them have a translate feature], but there are many differences that you will find if you surf around this websites.
Study the websites you have looked at and write a short essay (minimum two paragraphs) about some of the changes that McDonald's has made in response to pressures for localization. These changes can include offering different menu choices, different services, emphasizing certain aspects of the McDonald's brand, communicating in a different manner on the website (e.g. more pictures, less graphics, etc.), etc. Keep in mind that McDonald's makes adjustments in its international markets beyond menu adaptations, such as offering delivery service and even wedding service in selected international markets.
Attachment:- Assignment.rar