BUS401 CASES: Module 1 – Case THE LEGAL AND POLITICAL ENVIRONMENT OF INTERNATIONAL BUSINESS…

BUS401
CASES:
Module 1 – Case
THE LEGAL AND POLITICAL ENVIRONMENT OF INTERNATIONAL
BUSINESS
Assignment
Overview
Walmart has recently announced
plans for expansion to China. Already a retail giant in the United States, they
now hope to tap into a growing and potentially lucrative new market. However,
such expansion is not without risks. Doing business in China is a much
different environment than doing business in the United States for a wide
variety of reasons. China is not a democracy, it is a one-party state that
enforces strict restrictions on the press and on the Internet. Corruption is
also a big concern among businesses that invest in China.
Furthermore, the Chinese
government has announced plans for a series of ambitious new reforms that add
to the level of uncertainty and may change the business environment for
international firms. These reforms include an increasingly high profile crackdown
on corruption, reforms in regulations that impact the role of state-owned
enterprises, freedom of migration to large cities, a decreasing role of
state-owned enterprises, and many other reforms that may significantly change
the business environment in China.
Read the following three
articles and do some of your own additional research on Walmart and the new
environment in China:
Best, D. (Oct. 24, 2013).
China: Walmart emphasizes plan to still expand in China.Just – Food Global News.[Available in ProQuest]
Evans-Pritchard, A. (Nov. 16,
2013). China strides towards free market future.The Daily Telegraph.
[Available in ProQuest]
China’s Third Plenum: A Primer
(Nov. 8, 2013)Voice of
America News[Available in
ProQuest]
China’s Bolsters Corruption
Crackdown (Dec 13, 2012). Voice of America News / FIND. [Available in ProQuest]
Case
Assignment
After researching these issues,
write a 4- to 5-page paper answering the following question:
·
How will the new reforms in China impact the success of
Walmart’s expansion plans?
In your answer, consider the
following issues:
A.
The risks involved in expanding to China—include political and
legal risks as part of your answer along with other risks that you think may be
relevant.
B.
How specific aspects of China’s reform plans and political
changes will impact the business environment that Walmart will face. Include
proposed regulatory reforms and the recent crackdown on corruption in China as
part of your answer.
C.
The potential benefit of Walmart’s expansion to China.
Helpful Tips:
·
First read in-depth the background materials for Module 1.
·
Identify key concepts in the background materials, write a list,
and study them.
·
Read the case in-depth and conduct additional research, if
necessary.
·
Develop arguments by applying the concepts of international
business from the background materials to Walmart’s expansion plan in China.
Assignment
Expectations
·
Answer the assignment questions directly.
·
Stay focused on the precise assignment questions; don’t go off
on tangents or devote a lot of space to general background materials.
·
List supporting references and cite sources in proper format.
See this link for Trident’s basic writing guidelines:.trident.edu/files/Well-Written-Paper.pdf”>Student Guide to Writing a High-Quality Academic Paper.
Module 2 – Case
THE FINANCIAL AND ECONOMIC ENVIRONMENT OF
INTERNATIONAL BUSINESS
Assignment
Overview
DirecTV is one of the largest
providers of satellite television in the world. It is a U.S.-based corporation
but has subsidiaries throughout Latin America in countries such as Argentina,
Chile, and Venezuela.
Latin America is volatile part
of the world with issues of political strife and often extreme economic
fluctuations. Inflation and currency exchange rates are often especially
volatile in this part of the world. DirecTV Latin America even filed for
bankruptcy protection in 2003 due to its many woes from the unrest and economic
hardship in this part of the world. The company is currently doing much better
but still faces a lot of risks.
Using the online library, do
some research on DirecTV and its operations in Latin America. Here are a some
articles to get you started:
Ramachandran, S. (Feb. 14,
2013). DirecTV Profit Rises on Latin America Growth.Wall Street Journal (Online),New York, NY [Available in
ProQuest]
Yao, D. (Feb 25, 2014). DIRECTV
faces currency devaluation risks in Venezuela.SNL Kagan Media & Communications
Report[Available in
ProQuest]
Case
Assignment
After researching DirecTV and
reviewing the background materials on international financial management, write
a 4- to 5-page paper addressing the following questions:
1.
What major political events in Latin America are the biggest
threat to DirecTV’s financial performance? What steps can be taken to protect
against these risks?
2.
What major international financial or economic risks in Latin
American economies should DirecTV’s financial management team worry about the
most? What can they do to hedge against these risks?
3.
What major business risk from international competitors do you
think DirecTV might face? What can it do to protect against these risks?
Assignment
Expectations
·
Answer the assignment questions directly.
·
Stay focused on the precise assignment questions; don’t go off
on tangents or devote a lot of space to general background materials.
·
List supporting references and cite sources in proper format.
See this link for Trident’s basic writing guidelines:.trident.edu/files/Well-Written-Paper.pdf”>Student Guide to Writing a High-Quality Academic Paper.
Module
3 – Case
The
Cultural Environment of International Business
Assignment
Overview
The
number one semiconductor company in the world, Applied Materials, recently
merged with the world’s number three semiconductor company, Tokyo Elecktron.
The stock prices of both companies went up significantly after the merger was
announced, which shows that investors welcome this move that may create
synergies and help both companies battle declining revenues in the
semiconductor industry. However, even though there are potential benefits to
this merger in terms of operational synergies, the human side of a merger can
often be difficult. Furthermore, Japanese and American cultures are widely
perceived as being extremely different from each other, which may add to the
difficulties in managing the human side of this merger.
For
this assignment, review the following two articles and do some of your own
research on these two companies:
McClatchy,
S. (Sep 2013) Applied Materials to merge with Tokyo Electron, Tribune News
Service, Washington [Available on ProQuest]
Negishi,
M. (Sep 2013) Deal-shy Tokyo Electron chief pushed for sale to Applied
Materials; Tetsuro Higashi’s decision was based on experience watching Japanese
peers flounder, Wall Street Journal (Online), New York, N.Y [Available on
ProQuest]
MODULE
3 Case Assignment
Once
you’ve finished researching these companies and reviewing some of the key
concepts of cross-cultural management in the background materials, write a 4-
to 5-page paper answering the following questions:
1.What
do you think the biggest challenge in terms of cross-cultural management will
be in the merger of these two companies? Remember to consider the issue of
differences in national cultural values between Japan and the United States.
2.What
steps do you recommend be taken to help ease cultural differences between the
two companies?
——————————————————————————————————————————————
MODULE
4 CASE:
International
Human Resource Management
Assignment
Overview
Arik
Air is one Nigeria’s largest airlines and one of the largest airlines in all of
Africa. Its employment situation is a bit unique in that close to 10 percent of
its employees are expatriates. Recruiting and retaining expatriates to work as
pilots or other positions in Nigeria can require higher salaries than are
typically paid to local workers. However, disparities in wages between
expatriates and local employees can lead to resentment. Overall, the human
resource situation for a company that operates globally and hires globally such
as Arik Air can be quite complicated.
Do
some research on Arik Air and the human resource situation in Nigeria. Below
are a few articles to get you started:
Arik
Air customer base soars (Jan. 31, 2014). AllAfrica.com. Washington. [Available
in ProQuest]
Nigeria
loses N500 billion annually to expatriate pilots. (Jan. 24, 2014).
AllAfrica.com [Washington] 24 Jan 2014.
Fajana,
S., Owoyemi, O., Elegbede, T., & Gbajumo-Sheriff, M. (2011). Human resource
management practices in Nigeria. Journal of Management and Strategy, 2(2), 57.
Now
suppose that Arik Airlines has been purchased by an American company, which now
has to develop a plan to address the issue of hiring and maintaining a
well-qualified pilot staff and making all of Arik’s employees feel welcome
under the new American parent company. Also, suppose that you have been tasked
with coming up with a solid human resource plan for the new American owners of
Arik Air. You need to make major decisions such as how much to rely on local
staff, how much to rely on employees from the United States or other countries,
and how to deal with the sensitive issue of how an American company manages local
employees who may be resentful of their new owner. In order to do this, you
will need to use what you’ve learned in the background materials in this module
as well as what you’ve learned in the previous modules about assessing the
local environment of a country.
MODULE
4 Case Assignment
In
a 4- to 5-page paper, present a strategic human resource plan considering the
following issues:
1.The
economic/political environment in Nigeria—how will this influence the
difficulty in hiring local staff or recruiting expatriates to come work in
Nigeria? How will this influence your strategy?
2.Nigeria’s
national culture—what implications will cultural differences between the United
States and Nigeria have on your strategic plan? What difficulties do you
anticipate, and how do you propose to deal with them?
3.
How much should the American company rely on local pilots and managers vs.
expatriate pilots and managers? Keep the issue of potential local resentment of
expatriates in mind.
Remember
that your paper should reflect an integration of both what you learned in the
background materials about the key general aspects of international human
resource management, and what you’ve specifically learned about the unique
issues involved in managing human resources in an airline in Nigeria. Your task
is to apply the background materials to the specific issues that would be faced
by an American company if it were to purchase Arik Air.
Assignment
Expectations
•Answer
the assignment questions directly.
•Stay
focused on the precise assignment questions; don’t go off on tangents or devote
a lot of space to general background materials.
•List
supporting references and cite sources in proper format. See this link for
Trident’s basic writing guidelines: Student Guide to Writing a High-Quality
Academic Paper.
MODULE
5 CASE:
International
Market Selection and Market Entry
Assignment
Overview
Zipcar
is a highly successful new company specializing in a brand-new model for
automobile rental services, allowing their customers long-term and flexible
access to shared vehicles on a daily or hourly basis. Zipcar’s innovative model
allows those who sign up for their membership services to share cars with other
members on a flexible basis, creating a cost effective alternative to car
ownership. Since its founding in 2000, it has grown to become a major player in
the U.S. automobile rental market and has expanded internationally to Canada,
the U.K., Spain, and Austria, and offers rental services to almost 1 million customers.
Read
the following two articles and do some of your own additional research on
Zipcar:
Zipcar
expands in Sacramento becoming 26th major metro market: Based on strong demand,
Zipcar increases number of vehicles, will open office (Nov. 6, 2013) PR Newswire
(available on ProQuest)
Esswein,
P. M. (July, 2011). Zipcar: Robin Chase. Kiplinger’s Personal Finance, 65, 1
(available on ProQuest)
Zipcar,
Inc.; Zipcar acquires leading car sharing service in Austria, CarSharing.at.
(July 25, 2012). Mergers & Acquisitions Week , 196. (available on ProQuest)
MODULE
5 Case Assignment
Now
suppose you have been hired by Zipcar to come up with an international
strategic plan. Write a 4- to 5-page strategic plan for Zipcar that addresses
the following issues:
1.What
country or countries should Zipcar enter next beyond the five countries they
already operate in? Explain your reasoning for this selection based on criteria
from the background materials.
2.What
mode of entry should Zipcar use to enter the country or countries that you
chose? For example, should it use a joint venture, franchising, a greenfield
strategy, something else?
Assignment
Expectations
•Answer
the assignment questions directly.
•Stay
focused on the precise assignment questions; don’t go off on tangents or devote
a lot of space to general background materials.
•List
supporting references and cite sources in proper format. See this link for
Trident’s basic writing guidelines: Student Guide to Writing a High-Quality
Academic Paper.
SLP
1
For
your SLP this session you will first need to pick a country that you are
interested in. For each module, you will examine a different aspect of doing
business in this country of your choice.
For
SLP 1, you will be looking at the institutional environment of your country of
choice. This will include various legal and regulatory requirements in this
country faced by businesses, the political system in this country, and other
factors such as corruption.
The
World Bank has being doing an extensive study of the ease of doing business.
Their “Doing Business†annual report is available on ProQuest and at thedoingbusiness.orgwebpage.
This will give you a pretty detailed picture of various aspects of the
institutional environment in your country.
In
addition to the Doing Business report, use at least one other source. For
example, Transparency International does an annual report on corruption around
the world. The World Bank also publishes a set of Worldwide Governance
Indicators including indices of political stability, rule of law, and several
other institutional factors that may impact doing business in a country. These
are just suggestions, you may find other sources as well.
Once you are doing your research
on the country of your choice, write a 2- to 3-page paper covering the
following issues:
The overall picture of how
easy it is to do business in this country.Type of government and
level of political stability.The legal/regulatory system
in this country and whether or not it is conducive to doing business.The impact of corruption on
doing business in this country.
SLP 2
Do
some research on the currency and banking situation in your country.
(AUSTRALIA)
We
normally think of currency and banking risks as being something confined to
third-world or developing countries. But events in the past few years such as
the Euro crisis or the financial crisis in the United States have shown that
not even the wealthy, developed countries are without risks on the financial
side. So it is important for any company doing business in your country to
carefully consider the risks that they face.
After
you’ve done some research about financial issues in your country, write a 2- to
3-page paper covering the following issues:
The currency of your
country. Is it stable? Does the exchange rate fluctuate a lot?The banking system in your
country. How safe is this system? Any recent banking crisis in your
country?Overall does the financial
system in your country make it easy or difficult to do business? What kind
of steps would you recommend for a company doing business in your country
to hedge or minimize its financial risks?
BUS401
SLP’s 3-5.
BUS401
SLP’s:
Module
3 – SLP
Module
3 – SLP
The
Cultural Environment of International Business
For
your Module 3 SLP, find out as much as you can about the national culture of
your country. A good place to start is Hofstede’s indices on national culture:
http://geert-hofstede.com/countries.html
No
need to consider all six dimensions of national culture, but pay close
attention to individualism and power distance.
Keep
in mind that it is controversial to try to quantify national culture, so don’t
rely only on Hofstede for this paper. Do some additional research and try to
find additional information about the cultural aspects of doing business in
your country.
Then
write a 2- to 3-page paper addressing the following issues:
1.What
do Hofstede’s measures of national culture tell you about doing business in
your country?
2.What
other information besides Hofstede have you been able to find about culture in
your country? How does this impact doing business?
3.Overall,
does the national culture of your country make it easy or difficult to do
business? What cultural pitfalls might an American company investing in your
country face?
SLP
Assignment Expectations
•Continue
to write about the country you selected in Module 1.
•Write
2–3 pages focused on issues 1–3 above.
•Try
not to rely on just one source—use multiple sources from the library if
possible.
•Use
appropriate writing style (organization, grammar, and spelling—see writing
guidelines) and include both a bibliography and in-text citations.
SLP
4
Module
4 – SLP
International
Human Resource Management
This
SLP will focus on human resources and human resource strategies, policies, and
practices that may impact on the ease of doing business in your country.
Find
out as much as you can about the human resource situation in your country. For
example, how well educated is the workforce? What is the unemployment rate
like? Also, try to find out as much as you can about labor regulations or
common human resource practices in your country. For example, some countries
have greater unionization than others. Some countries also have strong
restrictions against worker dismissals.
In
addition to looking for articles about human resources in your country,
international organizations such as the World Bank or the OECD have data on
some indicators of education and/or labor market regulations. Doingbusiness.org
also includes information about labor market regulations and minimum wages, and
some advocacy groups such as the Fraser Institute or the Heritage Foundation
publish “economic freedom†reports that include labor market regulation
information on each country.
When
you have finished researching the human resource situation in your country,
write a 2- to 3-page paper addressing the following issues:
1.The
general skill and education level of the country.
2.The
types of labor market regulation that exists in your country, such as minimum
wages, or ease of dismissing workers.
3.Your
overall assessment of the human resource situation in your country. Feel free
to include other issues besides labor market regulations or education if you
find anything relevant in your research.
SLP
Assignment Expectations
•Continue
to write about the country you selected in Module 1.
•Write
2–3 pages focused on issues 1–3 above.
•Try
not to rely on just one source—use multiple sources from the library if
possible.
•Use
appropriate writing style (organization, grammar, and spelling—see writing
guidelines) and include both a bibliography and in-text citations.
MODULE
5 SLP
Module
5 – SLP
International
Market Selection and Market Entry
For
this final SLP, you will be doing research on what kind of strategies American
companies have taken in investing in the country that you chose for Module 1.
Locate
at least one American company that operates in the country you selected in
Module 1. Find out as much as you can about this company, with special
attention on the strategies they took in entering this country and the
experiences that they faced.
In
a 2- to 3-page paper, cover the following issues:
1.How
did this company enter this country? What strategies did they use?
2.What
kind of experiences did they have in this country—positive and negative?
3.What
additional strategies do you recommend for this company in this country?
SLP
Assignment Expectations
•Continue
to write about the country you selected in Module 1.
•Write
2–3 pages focused on issues 1–3 above; no need to devote a lot of space to
general background information.
•Try
not to rely on just one source—use multiple sources from the library if
possible.
•Use
appropriate writing style (organization, grammar, and spelling—see writing
guidelines) and include both a bibliography and in-text citations.

 

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