This document provides guidance for an individual essay assignment assessing internationalization of business. It outlines the requirements for selecting and analyzing a multinational corporation (MNC) that has invested in another country. The analysis must include: 1) key data on the MNC, 2) analysis of one factor from the host country influencing internationalization, 3) explanation of the MNC's foreign entry strategies using academic sources, and 4) discussion of the MNC's contributions to and focus areas in the host country in line with UN Global Compact Principles. The assignment aims to integrate international business theories and assess analytical skills relating to foreign market entry strategies.
1. 50% weightage
Internationalisation of Business
Individual essay assignment
You need to select a multinational corporation from Fortune’s
GLOBAL 500 MNCs list (http://fortune.com/global500/). We
suggest you to think of your future career and industry that you
are interested in while selecting a company from the list.
Step 1
Insert a map of your country.
2
Although it is not mandatory, we encourage you to select an
MNC from an emerging country (such as Brazil, Russia, India,
China, Indonesia, South Africa, UAE, Vietnam, Malaysia, South
Korea, members of AEC or Mercosur)
Step 1
Insert a map of your country.
3
2.1 The Analysis of your Multinational Corporation
2. In this section you will need to present and analyse key data
supporting the status of your company as a multinational
corporation.
You can include the following : year established, business or
industry involved in, Fortune 500 ranking in 2015, recent years
sales and profit performance/figures, global sales/profits, key
competitive advantage, markets or countries served,( milestones
in appendix) if relevant to show its internationalisation trends
It is highly recommended that you use key academic sources to
illustrate and explain the concept of MNC in this section.
Which country and which industry will this essay focus on.
Select one country where your company has invested in (in any
foreign direct investment forms). Then, you need to analyse the
internationalisation of the company. In doing this you can
follow the following points:
STEP 2:
Insert a picture of one of the geographic features of your
country.
4
Global sales/profits trends,
%of sales or profits from overseas business
Ranking in Fortune 500.
No of countries and total workforce
Overview of the company as an MNC
What are its internationalisation objectives, industrial products
and countries (key markets if operating in many countries) in
which it operates
3. :
You will need to focus on ONE factor from the host country that
influences the internationalisation process of the firm. As we
focus on political economy and socio-cultural factors in the first
part of this course, we recommend you to answer the following
questions in this section:
What is the key factor (refer the above factor – is it political
economy or is it socio-cultural factor)from the host country that
promotes the internationalisation process of your firm? Why?
Please use one theory from the course to support your
argument(s). The application of some theories from this course
such as Uppsala Internationalisation theory, Eclectic paradigm,
and Porter’s diamond theory can also be useful at this point.
STEP 2: Host Country Analysis
Insert a picture of one of the geographic features of your
country.
6
Using Samsung’s entry into India market as example
Analyse one relevant factor in depth to support your argument
why that particular factor has positive or negative impact on
India’s mobile phone industry and Samsung’s choice of entry
mode at the later part of the essay.
FDI can refer to setting up marketing distribution channel to the
Indian consumer market or manufacturing or setting up R&D
operations in the mobile phone industry in India.
Use good reference websites Global Edge and General
references, Passport Monitor (RMIT database), EIU (Economic
4. Intelligence Unit)
Focus on relevant issues and time frame. E.g. Samsung began
manufacturing operations in India by opening its first plant in
Noida, Uttar Pradesh, near New Delhi, in 1997. Your country
or industry analysis should focus around 1995-1998 period.
HOST Country analysis
Insert a picture of one of the geographic features of your
country.
7
HOST Country analysis
Most MNCs going to emerging economies are seeking low cost
production. Find economic indicators that support this.
Identify economic conditions that increase risk, lower profits,
increase operational costs or improve efficiency, or vice versa
Negative economic conditions include recession or market
down-turns, currency crises, or sudden bursts of inflation.
Most of these factors arise from imbalances in the under-lying
economic fundamentals of the host country , such as a balance
of payment crisis.
Host Country’s financial risks
The origins of currency crises could be a progressively
deteriorating trade imbalance (e.g., India in the late 1980s)
Declining exchange rate (look at trends) will lead to a fall in
revenues and profits
Poorly developed banking infrastructure, access to loans or
capital – affect mergers and acquisition entry mode
Ability to remit funds or profits to home country or make
5. payments overseas. Weak currency countries often have
restrictions by imposing remittance tax or strict limits on US or
other hard currency conversions.
Country’s political risk analysis
Look for country rating for comparison. Euromoney Country
risk rating – allows free trial for 48 hours
http://www.euromoney.com/Poll/10683/PollsAndAwards/Countr
y-Risk.html
http://bmo.businessmonitor.com/BM4/help/methodology_ratings
.html
High investment risk (political risk) means higher chance of
failure
Country’s political risk analysis
Government policies or regulations on business e.g. business
licenses or permits for the mobile phone industry, any tax,
price control or import restrictions .
Pay attention to special requirements or restrictions for foreign
owned businesses.
Transparency and consistency of government policies and
regulations. Corruption - rating ? Cronyism?
Political stability. Are there any threats or possible events that
can affect smooth operations of business
Identify events or policies that have a negative impact on
Samsung’s operations, costs, revenue, growth etc.
6. Political analysis
Insert a picture that illustrates some part of your country’s
economy.
12
Economic ANALYSIS
Insert a picture of the head leader of your country.
13
HoSt Country Analysis – industry specific
Investment climate of the mobile phone industry in India can
include statistics and research articles that show size and
growth trends of this industry.
Market opportunities in terms of local demand or exports for
mobile industry.
Market potential (demand for mobile phones in India) can be
gauged from population size and growth, per capita income or
spending power, growing economy, imports for those products.
Level of competition and key players that dominate the
industry. Is the industry growing or maturing?
HoSt Country Analysis – industry specific
Availability of relevant work force (e.g. IT skills) or
7. availability of key factors of production that makes it
competitive to manufacture and/or market mobile phones in the
country.
R&D spending in this sector.
Look at FDI trends for this industry. If it is growing it is a
positive sign that other companies are confident in investing in
India.
Special government incentives or development that enhance the
attractiveness of this industry.
2.3 Foreign Entry Strategies:
Explain entry strategy/strategies performed by the company.
Please use academic resources (i.e. journal articles) to explain
the concept of the company’s entry strategy and its benefits.
Please identify some constraints of the selected entry strategy.
It is important that you combined points from academic sources
(i.e. academic journal articles) and information from the
company to analyse potential constraints of the entry. strategy.
STEP 2:
Insert a picture of one of the geographic features of your
country.
16
9. FACTORS AFFECTING THE CHOICE OF ENTRY MODE BY
MNCs
Priyanka Bedi
This is an example of academic reference to support your
analysis.
Risk, Return, Investment commitment, Control and Speed
Risk of failure and financial losses is associated with failed
operations in the foreign country due to lack of knowledge of
the country (culture, business climate, political environment,
economic environment)
Control is associated with the amount of control the company
has over its operations, technology and its core competencies
Investment in terms of financial resources, human resources,
capital outlay etc.
Joseph Johnson & Gerard J. Tellis
Drivers of Success for Market Entry into China and India -
What is considered a successful entry mode?
10. What are the major contributions of your MNC to the host
country?
From the UN Global Compact Principles, which area that your
MNC will need to focus in their current and future business?
Why?
2.4 International Business Impacts and Contributions:
This is an individual assignment (50%)
Length of this essay should be between 2,000-2,500 words
(including country analysis).
The 12 point font in Times New Roman should be used
throughout.
Line spacing (1.5 lines) and margins on all sides (at least 2 cm)
need to be maintained.
- Number each page.
This link will be useful for your writing, referencing and
academic style presentation
https://emedia.rmit.edu.au/learninglab/content/writing-skills
Due on : th October, 2016
Time: 7 p.m. Singapore time
Marked by Melbourne lecturers
Step 3
Submit your work via BLACKBOARD
11. Insert a picture illustrating a season in your country.
24
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
properly.
Theories from the course (BUSM1222 International business)
MUST be incorporated in your analysis
Marking criteria is available from the learning hub.
We focus on the quality of reference. Make sure you combine
both academic and industrial or trade information. Please use, at
least, six academic journal articles to form your arguments.
Step 3
Insert a picture illustrating a season in your country.
25
Evidence of creative insight and originality in terms of
comprehension, application and analysis and at least some
synthesis of the international context and the actions of the
organization in a broad range of aspects.
Academic literature was effectively used to analyse the key
internationalization issues.
Key aspects of the academic literature were applied to the
actions of the organization (choice of entry mode).
Not just describing the actions of the company. The evaluation
12. of the organization was based on the evidence (actions and
literature).
InterNATIONALISATION AND CHOICE OF ENTRY MODES
EVALUATION
Hint: Review topic 1 on pros and cons of globalisation
Review topic on IB Actors: MNCs and
Review topics on Impacts of IB – corporate social
responsibility.
Support your analysis with evidence. Either from theories, IB
concepts, newspaper reports/articles on the impact on host
country.
Contributions of the company to the host country
(positive/negative)
Strong articulation of key lessons on internationalisation and
choice of entry mode learnt from this essay.
It also summarised the analysis and gave recommendations for
the improvement of the company’s internationalisation process
and entry mode decision where applicable.
Links with international business were made.
REFLECTIONS & Conclusion
How to obtain better grades
A good assignment is well researched.
20-30 reference sources from academic research articles,
13. academic or business reports, write ups in business journals or
newspapers including statistics and trends.
Organise the flow of discussion in a sequential and logical
order.
Avoid repetitive information or analysis. You don’t have to
follow the sequence set out in the essay guide as long as it
makes logical sense.
Analysis of macro environmental factors relating to country and
industry should be during the period it enters the foreign market
for this essay.
Caution:
For a particular idea, have more than one view or perspective to
have a balance view.
Do not make unsubstantiated claims or conclusion. Cite
credible and relevant references. Support your claims with
evidence using statistics, (quote and/or analyse the statistics),
IB theories/concepts from textbooks, and research findings from
relevant articles/sources.
All references / citations must be completed without error using
Havard referencing style.
Do not side track into marketing (4ps). This is an international
business essay. Please avoid marketing and general management
points/analyses in this essay. Avoid using journal articles from
Marketing or Strategic Marketing journals
1. The core of this assignment is to assess your level of mastery
of the subject matters and your analytical skills in relation to
foreign market entry strategies. It is important that you can
integrate key international business theories from the course to
your analysis of an MNC in this assignment.
14. 2. Do not perform PESTEL/SWOT/ five forces analysis in this
essay.
Caution:
International Business Individual Assignment
2500 words Number each page, 12 point font Times New
Roman, 1.5 spacing and 2cm margin on page
Select company from Global 500 MNC
Select country where company has invested in, analyse
internationalisation of company (in terms of FDI)
QUESTION: What is the internationalisation process of your
chosen company in this industry and country?
1) Analysis of MNC:
Key data supporting company's status as an mnc/use academic
resources to illustrate and explain concept of mnc
A multinational corporation can be defined as a business
organisation that operates in more than 2 countries. These
companies tend to be based in their country of incorporation,
with the establishment of subsidiaries in foreign countries
(Smelser, Bates, 2001). It is crucial to distinguish clearly
between what constitutes a multinational corporation capital
flow to a foreign country. An organisation may be able to invest
in another country in the form of capital, generally to seek
higher returns. This would be equivalent to expanding the
organisation's portfolio of investments and assets. However, the
key component of a direct investment is an organisation's claim
of ownership despite it being located in one country, over the
operations in a foreign subsidiary or firm. Essentially, a
multinational corporation is the result of foreign direct
investment (FDI) that leads to the organisation effectively being
in control of operations held in a foreign country (Smelser,
15. Bates, 2001). As such, a more complete definition would be a
business enterprise that is engaged in foreign direct investment
and owns a stake, or performs value added operations in at least
another country (Dunning, 1993).
Daimler, the internationally renowned parent company of
Mercedes Benz, is considered to be a multinational corporation.
To date, Daimler employs 284'000 employees across the world
with production facilities in 19 countries and 8'500 sales centres
(Daimler Annual Report, 2015). In addition, Daimler has a
comprehensive network of research and development, financing
and digitization facilities to support its bid in automotive
industry dominance.
2) Host Country Analysis
One factor from host country that influences the
internationalisation process of the firm and why?
Daimler's investment in China, leading to the creation of
Beijing Benz Automotive Co., Ltd, can be considered to be a
market seeking investment. Production commenced in July
2005, with an expected annual production capacity of 25'000
cars (China Daily, 2004). To date, the annual production
capacity has grown to 250'000 cars (Daimler, 2016). I would
argue that the decision by Daimler to invest in China has paid
dividends as, with 373'459 cars sold in 2015, China has
developed into the largest individual market for Daimler
(Daimler, 2016). According to Daimler's 2015 Annual Report,
the Chinese market has grown by 9% and was the largest
contributor to the increased production volume.
Daimler's entry to China has greatly benefited China by creating
new jobs which utilise local labour, the transferring of
technology and manufacturing process and knowledge,
increasing the industrial output in terms of automobile
production, and its joint venture with Beijing Automotive Group
has enabled local entrepreneurs and companies to form a
partnership with an internationally established brand. The
creation of Beijing Benz also intensified competition between
16. car manufacturers in China.
Use theory from course to support argument, e.g Uppsala
Internationalisation, Eclectic paradigm, Porter's diamond theory
3) Foreign entry strategies
Explain entry strategies performed by company. Use journal
articles to explain concept of company's entry strategy and
benefits
Identify constraints of selected strategy. combine journals and
info from company to analyse constraints
4) International Business Impacts and Contributions
MNC's major contributions to host country
Use UN Global Compact Principles, where does mnc need to
focus in current and future business? why?
References:
Dunning, J. H., (1993) The Globalisation of Business: The
Challenge of the 1990s, London: Routledge
Smelser, N. J., Baltes, P. B., (2001) International Encyclopedia
of Social & Behavioural Sciences, Amsterdam: Elsevier
Daimler Annual Report 2015, Daimler, viewed 01/10/2016,
<https://www.daimler.com/documents/investors/berichte/gescha
eftsberichte/daimler/daimler-ir-annual-report-2015.pdf>
China Daily 2004, JV renamed Beijing Benz - DaimlerChrysler,
Daimler, viewed 01/10/2016,
<http://www.chinadaily.com.cn/english/doc/2004-
12/07/content_397951.htm>
Daimler, Beijing Benz Automotive Co., Ltd. viewed
01/10/2016, <https://www.daimler.com/career/job-
search/locations/detail-pages/location-detail-page-5268.html>
Daimler, 2016, Investor Relations Release - Mercedes-Benz
achieves fifth record year in a row, viewed 01/10/2016,
<https://www.daimler.com/documents/investors/nachrichten/kap
italmarktmeldungen/daimler-ir-release-en-20160108.pdf>
17. 1
Guide for
International Business Essay:
Internationalisation of Business
Prepared by Associate Professor Natt Pimpa & IB Team
2
Objectives:
The internationalisation process of multinational corporations is
complex. In recent decades,
more and more companies have started to operate outside their d
omestic markets. There are
also new technologies that promote the growth of internationalis
ation of firms from all
countries around the world. It is, therefore, important for us to b
e able to comprehend the
nature of internationalisation process of business.
In this task, you are asked to perform an international business
analysis. In doing so, you will
need to understand some international business theories from thi
s course. This assignment
will help you to be able to ‘learn’ and ‘apply’ key international
business theories from the
course to ‘reallife’ multinational corporations (MNCs).
- Type: Individual
- Value: 50% (length: up to 2,500 words)
18. - Due: 16 October 2016 (online submission only)
Structure of your Essay:
The key question for this essay is:
“What is the internationalisation process of company…… in (in
dustry and country)?
Step 1:
You need to select a multinational corporation from 2015 Fortu
ne’s GLOBAL 500 MNCs list
(http://fortune.com/global500/). We suggest you to think of you
r future career and industry
that you are interested in while selecting a company from the lis
t. Although it is not
mandatory, we encourage you to select an MNC from an emergi
ng country (such as Brazil,
Russia, India, China, Indonesia, South Africa, UAE, Vietnam,
Malaysia, South Korea,
members of AEC or Mercosur).
Step 2:
Select one country where your company has invested in (in any
foreign direct investment
forms). Then, you need to analyse the internationalisation of the
company. In your essay, you
will need to follow these instructions.
1) The Analysis of your Multinational Corporation (MNC):
In this section you will need to present and analyse key data sup
porting the status of
your company as a multinational corporation. It is highly recom
mended that you use
19. key academic sources to illustrate and explain the concept of M
NC in this section.
http://fortune.com/global500/
3
2) Host Country Analysis:
You will need to focus on ONE factor from the host country that
influences the
internationalisation process of the firm. As we focus on politica
leconomy and socio-
cultural factors in the first part of this course, we recommend y
ou to answer the
following questions in this section:
-
What is the key factor from the host country that promotes the i
nternationalisation
process of your firm? Why?
-
Please use one theory from the course to support your argument(
s). The
application of some theories from this course such as Uppsala
Internationalisation theory, Eclectic paradigm, and Porter’s dia
mond theory
can also be useful at this point.
3)
Foreign Entry Strategies: In this section you will need to answer
these questions:
-
Explain entry strategy/strategies performed by the company. Ple
ase use academic
20. resources (i.e. journal articles) to explain the concept of the co
mpany’s entry
strategy and its benefits.
-
Please identify some constraints of the selected entry strategy. I
t is important that
you combined points from academic sources (i.e. academic jour
nal articles) and
information from the company to analyse potential constraints o
f the entry.
strategy.
4) International Business Impacts and Contributions:
-
What are the major contributions of your MNC to the host count
ry?
-
From the UN Global Compact Principles, which area that your
MNC will need
to focus in their current and future business? Why?
Tips
1. The core of this assignment is to assess your level of mastery
of the subject matters and
your analytical skills in relation to foreign market entry strategi
es. It is important that you can
integrate key international business theories from the course to
your analysis of an MNC in
this assignment.
2. Do not perform PESTEL/SWOT/ five forces analysis in this
essay.
21. 3. This is an international business essay. Please avoid marketin
g and general management
points/analyses in this essay.
Other requirements
- A minimum of six (6) academic journal articles must be read a
nd cited.
- The assignment must be well-structured and well-presented.
4
- 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 ot
hers (books, journals,
newspapers, web etc.) must be cited using Harvard referencing s
tyle.
- The 12 point font in Times New Roman should be used throug
hout. Appropriate spacing
(1.5 lines) and margins on all sides (at least 2 cm) need to be m
aintained.
- Number each page.
Essential Information
- This is an individual assignment (50%)
-
Length of this essay should be between 2,000-2,500 words (incl
uding country
22. analysis).
-
Theories from the course (BUSM1222 International business) M
UST be incorporated
in your analysis
- Marking criteria is available from the learning hub.
-
We focus on the quality of reference. Make sure you combine b
oth academic and
industrial or trade information. Please use, at least, six academi
c journal articles to
form your arguments.
-
The clarity of expressions together with the appropriate use of g
rammar, spelling and
punctuations are important to maintain.
-
Any use of comments, information, data or quotations from othe
rs (books, journals,
newspapers, web etc.) must be cited properly.
-
- The 12 point font in Times New Roman should be used throug
hout. Appropriate
spacing (1.5 lines) and margins on all sides (at least 2 cm) need
to be maintained.
- - Number each page.
-
Due dates for submission for this essay (country analysis and th
e full essay) will be
23. discussed in the class.
-
This link will be useful for your writing, referencing and acade
mic style presentation
https://emedia.rmit.edu.au/learninglab/content/writing-skills
https://emedia.rmit.edu.au/learninglab/content/writing-skills