Mid-Term Project Guide for International Business

Mid-Term Project Overview

Choose a public-traded Multinational Corporation (MNC) for analysis
Focus on their international business strategies
Include assessment of successes and failures, along with lessons learned

Suggested Industries

Manufacturing: Lockheed Martin
Information and Communications Technology (ICT): Microsoft
Food and Beverage: Heineken
Retail: Amazon
Pharmaceutical: Novo Nordisk
Fashion: Prada

Suggested Structure for Project

Executive Summary
Company Overview
Industry Overview: Analyze macroeconomic factors affecting the industry
Competitive Positioning: Utilize Porter's Five Forces model
International Business Strategy:

Overview of the strategy (What, how, why, lessons)
Success: Focus on one country/group of countries
Failure: Focus on one country/group of countries

Conclusion
Appendix

International Business Strategy Components

Entry Strategy
Decision Factors: Where to enter, when to enter, how to enter
Business Strategy: Address pressures faced in the invested market, overall theme strategies, cost reduction and value creation
Evaluation: Determine success or failure in the market and reasons behind it
Lessons: Use a checklist for evaluation

CAGE Distance Framework

Framework for analyzing invested countries based on:
Culture distance
Administrative distance
Geographic distance
Economic distance

Cultural Distance

Factors influencing culture distance:
Language differences
Religious beliefs and traditions
Social norms and values
Consumer behavior and preferences
Trust and business practices
Key Questions for MNCs:
Need for adjustments to product or strategy?
Awareness of MNC products in target market?
Possible marketing and branding strategies?

Administrative Distance

Evaluating:
Government policies and regulations
Trade agreements and tariffs
Political stability and legal differences
Corruption and bureaucratic efficiency
Key Questions for MNCs:
Legal status of business operations?
Political safety in the country?
Benefits/challenges from trade agreements?

Geographic Distance

Considerations:
Physical distance and logistics
Transportation infrastructure
Time zones
Climate and resources availability
Key Questions for MNCs:
Suitability of supply chain in target country?
Competitiveness after transport costs?

Economic Distance

Differences affecting decision:
Income and purchasing power levels
Labor and production costs
Market size and growth rate
Industry development and tech readiness
Key Questions for MNCs:
Consumer purchasing power sufficient for product?

Timing of Entry

Assessing entry timing:
Early Entry:
- Was the MNC among the first in the market?
- Is the market undeveloped?
Late Entry:
- Entering after competitors?
- Learning from competitors' experiences?
Consider pros and cons of both approaches

Modes of Entry

Options for market entry:

Export
Turnkey Projects
Licensing
Franchising
Joint Ventures
Wholly Owned Subsidiaries

Criteria for Selection:
Investment costs and available capital
Risk tolerance in unstable markets
Desired level of control over operations
Speed of entry considerations
Knowledge of local market
Legal constraints on foreign ownership
Industry type requiring operational control
Market conditions affecting demand testing

Business Strategy Types

Strategies to manage pressures for cost reduction and local responsiveness:

Global Standardization Strategy: High pressure for cost reduction
Transnational Strategy: Balance between global efficiency and local responsiveness
International Strategy: Low pressure for local responsiveness, focus on exports
Localization Strategy: High pressure for local responsiveness

Support Activities in Business Strategy

Key activities to support the business strategy:
Company infrastructure
Information systems
Logistics
Human resources
Research and Development (R&D)
Production
Marketing and sales
Customer service

Conclusion and Q&A

Thank you for listening
Open for questions