Strategy and International business

All questions are directly related to lecture materials, practical application exercises, tutorials and reading lists.

 

Use data as reported by the firm.

 

  • Explain whether or not this firm qualifies as a multinational enterprise (MNE). By reading and analysing the annual reports of the firm for the five-year period (2016-2020), report data on the total revenues/ sales/turnover, domestic revenues/ sales/turnover, foreign revenues/ sales/turnover (in absolute values), and the number of foreign subsidiaries/ affiliates of the firm for each year for the five-year period (2016-2020). Calculate the ratio (in percentage) of foreign revenues/ sales/turnover to total revenues/ sales/turnover (FS/TS), and the ratio (in percentage) of foreign subsidiaries/ affiliates to total subsidiaries/affiliates for each year for the five year period (2016-2020).
  • Present and calculate data revenues/ sales/turnover by regions (in absolute values and in percentage) as reported by the firm. Present and calculate home sales to total sales (HOMES/TS), rest of region sales to total sales (ROR/TS), total regional sales to total sales (RS/TS) and rest of world sales to total sales (ROWS/TS) (in absolute values and in percentage) for each year for the five year period (2016-2020). Identify and explain the strategy of the firm (i.e. whether it pursues a global, bi-region oriented, host-region oriented, or home-region oriented strategy). On the basis of historical data analysis, discuss the strategy that the firm will likely pursue in the next five years.
  • Explicitly state and identify the firm in the relevant cell of the FSAs/CSAs matrix (FSAs: firm-specific advantages; CSAs: country-specific advantages). You will need to discuss the FSAs of the firm with supporting data and evidence, and explain how these FSAs have been developed on the basis of home country CSAs (if applicable).

 

  • Explicitly state and identify in a diagram whether the firm builds its strategy based upon Porter’s single home country diamond, or whether it uses Rugman & D’Cruz’s double diamond/generalised double diamond approach. Critically analyse all attributes of CSAs based on the theoretical model that you use.

 

  • Use Dunning’s four foreign direct investment (FDI) motives to make plausible arguments about FDI motives of the firm. Support your answer with specific examples for each motive.

 

  • Apply appropriate theoretical concept(s) to analyse the type of corporate culture of the firm (not the home country-level national culture). Explain whether or not this corporate culture contributes to the FSAs discussed above in question 3.