BUSM1227 Semester 2 2014
Assessment 1 – Assignment - Case study
• Type: Individual
• Value: 50%
• Word limit: 2500 words (variation within 10% more or less is allowed) • Due: To be announced
Aims and background
Choosing an appropriate market entry mode is an important decision-making process for international businesses when they expand their business to foreign markets. Appropriate decision on entry mode is more likely to occur when solid analysis of the firm’s and the target markets’ situation are in place. By studying a real world case, this assignment is designed to help you consolidate your understanding on entry modes, the environment analysis associated with entry modes, and the strategic consideration behind entry mode choices. This activity also aims to sharpen your analytical skills and abilities for problem analysis and solving. Procedures and questions:
1. Choose a real company from an automobile (car) industry which is involved in international business. 2. Identify an entry mode that has been used by the selected company when expanding its car business to a foreign market location. The identified case should be from 1990 and onward. 3. Answer all of the following questions:
Question 1) Is this entry mode appropriate for the target foreign market? Why? Answer this question by analysing: • Strategic Consideration: a) Is this entry mode in line with the company’s then strategic direction? why?; b) Do you think the level of control, risks, return and integration associated with the entry mode is appropriate for the company’s strategy? • Environmental factors: PESTEL Analysis of the foreign market location. You only need to analyse any 3 PESTEL factors that you think are most related to your case. Note you must analyse how the entry mode suits these 3 PESTEL factors. • Whether the timing of entry and the scale of the entry are appropriate? Why Question 2) Based on above analyses, what recommendations would you make to improve this entry?
This assessment task should include the following sections:
• Title page (title of your report, your name, student number and word count - References are excluded from the word counts) • Introduction
• Answer question 1 in this section. You need to design a heading for this section and can make your own sub-headings. • Answer question 2 in this section. You need to design a heading for this section and can make your own sub-headings. • Conclusion
• Reference List (is excluded from word counts)
1. The core of this assignment is to assess your level of mastery of the subject matters and your analytical skills in relation to market entry modes. Being descriptive is NOT appropriate for this assignment. 2. Keep the Introduction and Conclusion short (maximum 200 words each) and focus on the analysis.
A minimum of six (6) academic journal articles must be read and cited. The assignment must be well-structured and well-presented.
The clarity of expressions together with the appropriate use of grammar, spelling and punctuations are important to maintain. Any use of comments, information, data or quotations from others (books, journals, newspapers, web etc.) must be cited using Harvard referencing style. The 12 point font in Times New Roman should be used throughout. Appropriate spacing (1.5 lines) and margins on all sides (at least 2 cm) need to be maintained. Number each page.
• Level of mastery of the subject matters
• Quality of analysis and justification
• Academic writing clarity, logic and skills
• Quality, relevance and sufficiency of references
Internationalization is defined as “the process of increasing involvement in international operations” (Buckley & Ghauri 1999). Over the past decades, there are increasing numbers of organizations expanding their operations internationally. With advance technologies, improved...
References: Buckley, P. J. & Ghauri, P. N. 1999, The internationalization of the firm, 2nd edn, Cengage Learning, United States
Chung, M. (2009). Globalization strategies of Korean motor vehicle industry: a case study of Hyundai. Universite D 'evry. Mode Of Access:< Http://Www. Gerpisa. Univ-Evry. Fr/Ancien-Gerpisa/Actes/22/22-5. Pdf>. Date Of Access, 1.
Faure, G.O. & Sjöstedt, G. 1993, Culture and negotiation: An introduction. In Culture and Negotiation, edited by Guy Olivier Faure and Jeffrey Z. Rubin. Newbury Park, California
Lansbury, R., Suh, C. and Kwŏn, S., 2007. The global Korean motor industry. 1st ed. London: Routledge.
Johnson, J., & Tellis, G. (2008). Drivers of success for market entry into China and India. Journal Of Marketing, 72(3), 1--13.
Lim, Y. (1997). Hyundai crisis: Its development and resolution. Group, 2000(2001).
López-Duarte, C. and Vidal-Suárez, M., 2010. External uncertainty and entry mode choice: Cultural distance, political risk and language diversity. International Business Review, [online] 19(6), pp.575-588. Available at: [Accessed 5 Sep. 2014].
Pan, Yigang and Peter S.K. Chi (1999), “Financial Performance and Survival of Multinational Corporations in China,” Strategic Management Journal, 20 (4), 359–74.
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