Choose an emerging market multinational enterprise that has significant international investments and operates in more than one country using foreign direct investment modes. Analyse the host country’s business environment using the PESTLE tool.

Aramex Entering into Brazil

The task is to analyse the business environment of your chosen host country (must be a developing or emerging economy) and identify the opportunities and risks to a real-world emerging market multinational enterprise (EMNE) that is aiming to enter the host country or has recently entered.

Following your analysis, you must then provide some recommendations to the EMNE regarding entry mode, location choice, localisation of products (or services) and management of ethical and external stakeholder issues.

The following describes the brief in detail. As part of the assessment:

You should first choose an emerging market multinational enterprise (EMNE) that has significant international investments and operates in more than one country using foreign direct investment (FDI) modes (e.g. joint ventures or wholly-owned subsidiaries). You should then select any one foreign host country (emerging or developing market) where the EMNE has either (1) not yet entered or (2) has established operations recently (e.g. within the last 15 years). You should provide an introduction to the report based on this information.

You should then analyse the host country’s business environment using the PESTLE tool. The PESTLE tool must be used to highlight the key features of the political, economic, socio-cultural, technological, legal and ethical issues that are faced by firms in your chosen host country. Your analysis should be based on data or information that is up-to-date and comes from reliable sources.

Analyse the key differences in culture between the EMNE’s home country and your chosen host country. Also discuss other dimensions of distance that would be most applicable to the case you have chosen.

Based on the above two analyses, you must provide a clear assessment of (1) the opportunities (i.e. attractiveness aspects) and (2) the risks (especially, political and legal) in the chosen host country.

Following this, you should conduct a VRIO (VRIN) analysis of the EMNE you have chosen. Using a resource-based view analyse the internal resources of your EMNE from an internationalisation perspective [value (V), rarity (R), imitability (I) and organization (O)].  Use the VRIO to examine the competitive advantages that the EMNE may have over local rivals.

Based on your overall analysis, you need to provide some detailed recommendations to the EMNE. If your chosen EMNE has not yet entered your chosen host country, then you must provide recommendations related to the following: suitable entry mode, locations within the host country, and product- or service-related localisation needs. If your chosen EMNE has recently entered the chosen host country, then you must provide recommendations related to the following: further penetration into the market or divesting (exiting) from the market, targeting new locations, new product ideas, etc. In both of the cases, you should also provide additional recommendations such as how the firm can deal with ethical issues in the chosen host country and how they can manage external stakeholders.
Correct referencing must be used – only APA or Harvard referencing may be used.