International Business

                                                International Business

CASE STUDY 1

Big business is attractive, with huge profits for some. But there's something to be said about small business as well, with lower risk and the potential for creativity. Darren Robbins of Big D Custom Screen Printing in Austin, TX found success in his business by pursuing customers with orders both large and small. Although Big D started out catering only to large orders, the shop sat idle in between orders, and through effective scheduling and transparent pricing, was able to fill in dead times with smaller orders. Big D found a profit in a market segment that other local screen printers weren't clamoring to fill. Experts believe this was a smart strategy, allowing Big D to spread out risk in their business and offer customized products. But at least one person is critical of the offering, pointing out that the niche has little upside potential, and may hurt the company's efficiency.

Answer the following question.

Q1.      What strategy was adopted by Big D for­profit?

Q2.      Give an overview of the case.

            Case study  2: 

The 2000s witnessed the entry of several international retailers into emerging markets. The reason for this could be as much attributed to saturated markets and cut-throat competition in developed countries as to the untapped opportunities in emerging markets. Tesco, the UK-based retailer, operated in several emerging markets in Europe and Asia. The case focuses on the entry and expansion strategies of Tesco in the Chinese market. Tesco made several international forays in the 1990s and 2000s. Tesco developed an international strategy that involved having consistent processes and policies while making localization efforts that took into account cultural differences and local preferences.

The Chinese retail sector offered huge opportunities for international retailers with the average annual growth in the last 20 years being around 15 percent. Tesco entered China in 2004, after several successful Asian ventures including Thailand, South Korea, and Japan. The Chinese market was a very different market in terms of tastes and preferences from the other markets that Tesco operated in. Therefore, it decided to enter the country through a joint venture so that it could learn about the market through its partner, which had operated in the market for several years. Also, by the time Tesco entered China, other multinational retailers like Wal-Mart and Carrefour were already well established in the market. 

Tesco faced the challenges in an emerging market like China by adopting strategies to suit that market. Some of the strategies like entry and expansion strategies, store management, and localization strategies..

Questions

1. Analyze the entry of Tesco in an emerging market such as China.

2. Discuss how Tesco implemented the localization strategies in China.

3. Examine the challenges faced by Tesco in China.

4. Explain the growth and development of the retail industry in China.

Case Study 3

Advertising costs money, which many businesses find themselves short of these days. But forgoing ad spending in favor of better profits can be a mistake. Experts say that in a slump, one of the best things you can do is adopt or increase your advertising strategy to attract customers. During a recession, this is especially true, as other businesses may be cutting back on their ad spending, making your voice even more prominent to customers. After seven years of growth, building from 30 to 300 locations, Firehouse Subs' growth fizzled, and company leaders realized they had to do something about it. So they returned local advertising fees collected from franchisees, not to put in their pockets, but to take hold of their own local marketing. Sales fell even more, revealing that this was not a good strategy at the time. Instead, Firehouse reclaimed their local marketing fee, and then gave franchisees the option to take part in a new marketing campaign, requiring them to pay double for local marketing, but in return, becoming part of an million advertising campaign poised for success. Experts commend Firehouse for having the courage to ask franchisees for more money where it was needed, even when times were tough.

Answer the following question.

Q1.      Why proper advertising is necessary, during recession period?

Q2.      Give an overview of the case.

CASE STUDY  4

“Chile’s Falabella – Succeeding through an Integrated Retail Strategy” traces the journey of Chile­based retailer S.A.C.I. Falabella (Falabella) to becoming one of the largest integrated retailers in Latin America. A brief history of the company shows that the company progressed with an insight into its business diversification and internationalization strategy. Falabella’s adoption of the ‘integrated retail’ strategy was quite fruitful for the company. The case also depicts the company’s focus on catering to the distinct needs of the various customers across Latin America, which helped it in not only creating a strong market position for itself, but also in staving off competition from multinational retailers. The case concludes with a look into the company’s future plans, which included an expansion of its retail footprint and strengthening of its ecommerce business.

Answer the following question.

Q1.      Evaluate the business diversification strategy for a retail company.

Q2.      Analyze the international expansion strategy undertaken by a strong regional player.

SUBJECT : INTERNATIONAL BUSINESS

COURSE :                                                                                                   Total Marks : 80

CASE 1                                                                                                                           (20 Marks)

Kodak started selling photographic equipment on Japan 1889 and by the 1930s it had a dominant position in the Japanese market. But after World War II, U.S occupation forces persuaded most U.S companies including Kodak to leave Japan to give the war torn local industry a chance to recover. Kodak was effectively priced out of the market by tariff barriers; over the next 35 years Fuji gained 70% share of the market while Kodak saw its share slip to miserable 5%. During this period Kodak limited much of its activities in Japan.

This situation persisted until early 1980s when Fuji launched an aggressive export drive, attacking Kodak in the north American and European markets. Deciding that a good offence is the best defense, in 1984 and the next six year, Kodak outspent Fuji in Japan by a ratio of more than 3 to 1. It erected mammoth $ 1 million near signs as land marks in many of the Japan’s big cities and also sponsored Sumo wrestling, Judo, and tennis tournaments and even the Japanese team at the 1988 Seoul Olympics. Thus Kodak has put Fuji on defensive, forcing it to divert resources from overseas to defend itself at home. By 1990’s, some of Fuji’s best executives had been pulled back to Tokyo.

All this success, however , was apparently not enough for Kodak. In may 1995, Kodak filed a petition with the US trade office, that accured the Japanese government and Fuji of “Unfair trading practices”. According to the petition, the Japanese government helped to create a ‘ profile sanctuary’ for Fuji in Japan by systematically denying Kodak access to Japanese distribution channels for consumer film and paper. Kodak claims Fuji has effectively shut Kodak products out of four distributors that have a 70% share of the photo distribution market. Fuji has an equity position in two of the distributors, gives large year –end relates and cash payments to all four distributors as a reward for their loyalty to Fuji, and owns stakes in the banks that finance them. Kodak also claims that Fuji uses similar tactics to control 430 wholesale photo furnishing labs in Japan to which it is the exclusive supplier. Moreover Kodak’s petition claims that the Japanese government has actively encourages these practices.

But Fuji a similar counter arguments relating to Kodak in U.S. and states bluntly that Kodak’s charges are a clear case of the pot calling the kettle back.

(a)  What was the critical catalyst that led Kodak to start taking the Japanese market seriously?

(b)  From the evidence given in the case do you think Kodak’s charges of unfair trading practices against Fuji are valid? Support your answer.

CASE 2                                                                                                                            (20 Marks)

Two Senior executives of world’s largest firms with extensive holdings outside the home country speak. Company A : “We are a multinational firm. We distribute our products in about 100 countries. We manufacture in over 17 countries and do research and development in three countries. We look at all new investment projects both domestic and overseas using exactly the same criteria”.

The execution from company A continues, “ of course the most of the key ports in our subsidiaries are held by home country nationals. Whenever replacements for these men are sought, it is the practice, if not the policy, to look next to you at the lead office and pick some one (usually a home country national) you know and trust”.

Company B : “ We are multinational firm. Our product division executives have worldwide profit responsibility. As our organisational chart shows, the united states is just one region on a par with Europe, Latin America, Africa etc, in each division”.

The executive from Company B goes on to explain, “the worldwide Product division concept is rather difficult to implement. The senior executives incharge of this divisions have little overseas experience. They have been promoted from domestic ports and tend to view foreign consumers needs as really basically the same as ours. Also, product division executives tend to focus on domestic market, because it generates more revenue than foreign market. The rewards are for global performance, but strategy is to focus on domestic. Most of the senior executives simply do not understand what happens overseas and really do not trust foreign executives, even those in key portions?

Questions :

1    Which company is truly Multinational ? Why?

2    List three differences between Company , Multi National company and Trans Multi National Company ?

CASE - 3                                                                                                                         (20 Marks)

Strategic R & D by TNCs in Developing Countries

TNCs have had long units in developing host countries for adapting products and processes to the local conditions, and in a few cases, to products for local markets. Since the min-1980s, however, they have also started locating strategic R & D centres in some developing countries, for developing generic technologies and products for regional or global markets. The main incentives for this are : (a) access to highly qualified scientists as shortages of research personnel emerge in certain fields in industrialised countries, (b) Cost differentials in research salaries between developing and industrialised countries, and (c) rationalisation of operations, assigning particular affiliates the responsibility for developing, manufacturing, and marketing particular products worldwide. Th new trends are more visible in industries dealing with new technologies, such as microelectronics, biotechnology, and new materials. In these technologies, the location of R & D can be geographically de-linked more easily from the location of manufacturing. It is also possible to separate R & D in core activities from that in non-core activities. Consequently, countries like India, Israel, Singapore, Malaysia or Brazil serve TNCs as good locations for strategic R & D.

For instance, Sony Corporation of Japan has around nine R & D units in Asian developing countries. It has three units in Singapore conducting R & D on core components such as optical data shortage devices, integrated chip design for audio products and CD-ROM drives, and multimedia and microchip software. It has three units in Malaysia working on video design, derivative models and circuit blocks for new TV chases, radio cassettes, discman and hi-fi receiver designs. It has one unit in Republic of Korea focusing on the design of compact discs, radio cassettes, tape recorders, and car stereos. It has one in Taiwan designing and developing video tape-recorders, minidisk players, video CDs, and duplicators. Finally, it has one unit in Indonesia focusing on the design of audio products.

Such units often work in collaboration with science and technology institutes in the host country. For instance, Daimler Benz has established such a unit in Bangalore, India, in collaboration with the Indian Institute of Science to work on projects related to its vehicles and avionics business. Current work includes interface design of avionics landing systems and smart GPS sensors for use by the group’s business worldwide.

Source: World Investment Report 1999.

Questions:

(a)  Explain why MNCs have located R & D centres in developing countries?

(b)  Mention the areas where R & D activities can easily be decentralised.

CASE -4                                                                                                                         (20 Marks)

VK Ltd a multi-product Company, furnishes you the following data relating to the year 2000.

First Half of the year		Second Half of the year
Sales	Rs. 45,000	Rs. 50,000
Total Cost	Rs. 40,000	Rs. 43,000

Assuming that there is no change in prices and variable costs and that the fixed expenses are incurred equally in the two half years periods calculate for the year 2000.

1.  The Profit Volume ration

2.  Fixed Expenses

3.  Break-Even Sales

4.  Percentage of margin of safety.

5    marks each

International Business

Answer the following question.

Q1. Describe the factors which are affecting the growth of International business. (10 marks)

Q2. Discuss polycentric approach to globalization. (10 marks)

Q3. What are the corrective measures in India’s foreign trade by the government? (10 marks)

Q4. List out various types of services & explain any one in detail. (10 marks)

Q5. Explain exports of goods services in foreign exchange management act1999. (10 marks)

Q6. Why do you need international trade ? (10 marks)

Q7. How does political atmosphere effects international business ? (10 marks)

Q8. Define international marketing research.

INTERNATIONAL BUSINESS

Q1) Explain and bring out the nature and feature of International HRM?

Q2) Discuss the Nature of international Business?

Q3) What is technology transfers? Discuss the various aspects of managing

technology transfers?

Q4) Enumerate and explain the Theories of global trade and investments?

Q5) Write short notes (any two)

a) World trade centre

b) Social Responsibility in International Business

c) Ethical issues in International Business

Q6) Explain the following concept (any two)

1) Political Environment

2) Technical environments

3) Cultural Environment

Q7) Explain the features of International Organization structure?

Q8) What is International strategic management? Discuss its feature and nature?

International Business

Q1. Explain theory of global competitiveness alignment

Q2. Describe technical & advisory assistance of IBRD.

Q3. What kind of organisation should use industrial distribution channel ?

Q4. Explain Methods for Setting the International Advertising Budget.

Q5. Explain global human resource management

Q6. What are the other encouragements of an outline EXIM policy 20049?

Q7. Write a short note on IMF.

Q8. Discuss the two modern theory of trade.

International Business

Q1. How cultural factors do influences international business?

Q2. List out the role of RBI.

Q3. Discuss about organization structure of the WTO

Q4. What are the different forces of globalisation ?

Q5. Explain the role of globalisation in the formation of a new economy.

Q6. What is International Business Risk ?

Q7. What are the different forms of indirect distribution channel ?

Q8. Explain Methods for Setting the International Advertising Budget.

SUB : INTERNATIONAL BUSINESS

Total Marks: 80

Note : All Questions are Compulsory

Each Question Carries Equal Marks 10 Marks

(c)  List out agencies/funds noticed by government of India for the purpose of deemed export benefits.

(d) What is the problem of International Liquidity? In what manner this problem has been solved by IMF?

(e)  What are the different dimensions of economic environment? What are the steps taken by government to improve FDI?

(f)   What are the benefits to customer/ vendors derived from IT projects by BPCL?

(g)  What are duty payables of soft bonded IT unit (S-BIT)

(h) Short note on free trade & warehousing zones (FTWZ)

(i)    Explain exports of goods services in foreign exchange management act-1999.

(j)    What do you understand by fundamental disequilibrium in the balance of payments? What remedies do you suggest to correct it?

Subject : International Business

Q1. What are the functions of WTO?

Q2. Explain International Trade Theory

Q3. Explain five features of globalization

Q4. Explain insta online account facility.

Q5. Discuss about cottage sector & handicrafts in EXIM

measures.

Q6. Explain different types of dumping

Q7. Define the concept of globalisation.

Q8. What is absolute advantage in international business ?

International Business

Q1. What are the different dimensions of economic environment?

Q2. Which products are majority imports?

Q3. Explain the role of globalisation in the formation of a new economy.

Q4. What is absolute advantage in international business ?

Q5. Explain the role of international marketing research.

Q6. Define international pricing.

Q7. What are International Promotional Tools and how does direct selling helps in it ?

Q8. Explain Methods for Setting the International Advertising Budget

                        International Business

Answer the following question.

Q1. What is Balance of Payment ? (10 marks)

Q2. What are the features of international business ? (10 marks)

Q3. Write in your words how does globalisation impact the underdeveloped nations. (10 marks)

Q4. What are the advantages of globalisation ? (10 marks)

Q5. Explain the functions & objectives of IMF. (10 marks)

Q6. What are the IT projects you have implemented in last one year? (10 marks)

Q7. Explain the challenges of globalization of Indian industries. (10 marks)

Q8. Foreign investment is necessary aid for developing countries like India –Discuss. (10 marks)

International Business

Answer the following question.

Q1. What is DDU? (10 marks)

Q2. List out organizations related with international economic environment affiliated with UN. (10 marks)

Q3. List out few measures seems to be suitable to increase India’s export. (10 marks)

Q4. Discuss about organization structure of the WTO (10 marks)

Q5. Describe on international chambers of commerce. (10 marks)

Q6. What is EXIM bank of India? & state its functions. (10 marks)

Q7. What kind of organisation should use industrial distribution channel ? (10 marks)

Q8. Explain Methods for Setting the International Advertising Budget.

SUBJECT : INTERNATIONAL BUSINESS

Total Marks : 80

PART A —(10 MARKS EACH)

Answer any FIVE questions.

(k)       What is meant by Technology? What is its influence on business?

(l)          What are the functions of WTO?

(m)     What is international business environment?

(n)       How cultural factors do influences international business?

(o)       State the importance of business ethics.

(p)       What are the different dimensions of economic environment?

(q)       What are the steps taken by government to improve FDI?

(r)         What are the functions of UNO?

PART B — (15marks EACH)

Answer any 2 questions.

3             Foreign investment is necessary aid for developing countries like India” – Discuss.

4             Discuss in detail the environmental factors that affect a business.

5             What is privatization? What are its merits and limitations?

6             What are the role and functions of WTO in international relations?

7             ‘The changes taking place in socio-cultural environment in India is a boon for business’ – Discuss. Explain the challenges of globalization of Indian industries.

(c)        Describe the factors which are affecting the growth of International business.

                        International Business

CASE STUDY

The case discusses the entry of France based retailer Carrefour SA (Carrefour) into Greece and its subsequent exit. Carrefour entered Greece in 1991 by investing in the ‘Continent' hypermarket in the country. In 1993, it entered the food retail segment in Greece by acquiring food supermarket chains owned by the local retailer Marinopoulos. With the acquisition of Promodès in 1999, Carrefour became the second largest retailer in the world in terms of store count, next only to the US based WalMart. The acquisition of Promodès brought supermarkets, discount retailers, and corner shops like Shopi, Dia, Score, Pryca, Promocash, Puntocash, Champion and 8 à Huit into Carrefour's fold.

Answer the following question.

Q1. Give an overview of the case.

CASE STUDY

Tesco, a major UK based retailer, entered the US market in November 2007, opening a small format store named Fresh & Easy. Fresh & Easy's adopted the entry strategy, touching on market research, store format, layout, location, etc. However the retailer attracted some criticisms in the US. In April 2007, the retailer decided to halt the opening of new Fresh & Easy stores for three months, after 61 stores had been opened. The reasons for the failure were the unfavorable macro environment in the US, with inflation and recession rearing their heads.

Answer the following question.

Q1. Discuss the entry strategies of a retailer.

Q2. Analyze the importance of location, store format, layout, pricing, assortment planning, promotion and customerorientation in the retail industry

CASE STUDY

Research has shown that nonfinancial incentives can have equal effect on employee motivation when compared with standard financial incentive systems. In a society that does not allow for significant income disparity, nonfinancial incentives can play a key role in motivating employees to sell. Nonfinancial

incentives for employees include: Reserved preferred parking spaces Increasingly flexible work hours (e.g. late start) Additional vacation hours Reduced work hours on Fridays Free meals or gym membership Access to a company vehicle Tickets to popular events The specifics of these incentives can be tailored to fit the available incentive budget. In addition, management should query the employees to determine other areas of interest for future incentives. In order to emphasize the desired corporate culture, recognition for high performing employees should be public; moreover, attendance for public recognition events should be mandatory for all employees. By providing such recognition, a social structure can be established that intrinsically motivates employees to perform and thus gain status. Public recognition can be combined with nonfinancial incentives in order to establish a focused strategy for motivating employees to perform to their utmost. nature of Austrians promotes herding of people, there is a danger of social rejection if an employee is seen as

different from the group. Hence, the employee must be perceived as being rewarded for contributing to the collective good. When establishing culture change, it is critical that employees be comfortable with management so that they have confidence in the path forward and are not afraid to raise new ideas and objections, which can often be incredibly helpful to the process. It also increases the likelihood that employees will “buy in” to the new culture. In order to conquer the gap between both multinational backgrounds and between management and employees, teambuilding events that mix cultures and job functions should be established. The type of events can be tailored to the employees’ interests (e.g. lunches, company retreats, sporting events, or other activities). Cross functional collaboration between various service departments is essential for client to implement core mission value and transition from a service based company to a solutions based company. Managers and employees must be educated on the various offering in other departments. Cross functional team projects and activities will ensure that employees get to know their counterparts in other departments and understand the benefits of solutions based offerings.

Answer the following question.

Q1. Give an overview of the case.

Q2. What are the nonfinancial incentives? Explain about each.

CASE STUDY

The case examines the 'China Strategy' of Danfoss, the Danish heating, ventilation and air conditioning equipment manufacturer. It describes the reasons why Danfoss entered the Chinese market and the initial hurdles faced by the company. Danfoss plans to make China its 'second home' after Europe. The company had been making losses in the country until 2001, after which the company broke even and started making profits. Danfoss had set a sales target of US$ 480 million in China by 2008. The company followed the strategies to turn its operations profitable, whether the company will be able to achieve its 2008 revenue target or not.

Answer the following question.

Q1. Examine the advantages and disadvantages of doing business in China.

International Business

CASE STUDY (20 Marks)

It happens all the time: good employees get a promotion, and suddenly, they're not so good anymore. Such is the case for cat shelter Paws Need Families, as Della, a cleaner turned assistant manager, and then manager started arriving late, letting applications sit, and slipped on inoculations, all serious offenses. Instead of confronting Della directly, general meetings were held, and an assistant manager was hired to compensate for Della's shortcomings. Ultimately, Della never cleaned up her act, and was fired. Ken Blanchard, co-author of The One Minute Manager believes this situation could have been avoided with frequent meetings and support with a system of review, both of which can identify issues before they become real problems.

Answer the following question.

Q1. Why newly appointed assistant manager Della was fired?

Q2. How the worst situation could have been saved? Give your views.

CASE STUDY (20 Marks)

Carrefour, one of the largest retailers in the world, decided on expanding into Asia during the 1980s due to the high growth potential in the region. After considering several markets, it decided to start its Asian foray from Taiwan, and entered into a joint venture with a local partner. The case focuses on Carrefour's strategies in Taiwan. The retailer adopted the entry and expansion strategies including store management, product and pricing, supplier management, and localization. Carrefour faced a number of the challenges and also wanted bright future prospects in Taiwan, despite the worsening economic conditions.

Answer the following question.

Q1. Analyze the entry and expansion strategies of Carrefour in Taiwan.

CASE STUDY (20 Marks)

The case discusses stores swap between two of the top retailers in the world, Tesco and Carrefour, in the Czech Republic, Slovakia, and Taiwan. In Taiwan, Carrefour was among the leading retailers. But in the Czech Republic and Slovakia, Carrefour was not able to gain market share. Tesco, on the other hand, was in a strong position in the Czech Republic and Slovakia, but its Taiwanese operations were not doing well. Both the retailers’ made a swap agreement between the two companies, after a lot of deliberations, according to which Tesco agreed to take over 11 of Carrefour's stores in the Czech Republic and Slovakia, and Carrefour agreed to take over six stores of Tesco in Taiwan. Thus both the retailers succeeded in their mission with bright future prospects of Tesco in the

Czech Republic and that of Carrefour in Taiwan.

Answer the following question.

Q1. Discuss the international expansion strategies of Carrefour and Tesco.

Q2. Explain the reasons behind Tesco and Carrefour deciding to swap some of their stores.

CASE STUDY (20 Marks)

Mahindra USA (MUSA), a wholly-owned subsidiary of Mahindra & Mahindra Ltd., a India-based automobile company, was established in 1994 in Tomball, Texas. The case discusses the company's entry strategy in the US, a market that was known for fierce competition. MUSA entered the US market with compact utility tractors, a segment that was underserved. The company began by importing tractors from India and later set up assembly plants in the US where it assembled CKD kits imported from low-cost manufacturing centers such as India and other Asian countries. The company took initiatives to build the business including customer relationship management, brand building, etc. MUSA's future prospects in the US are very bright.

Answer the following question.

Q1. Explain the entry strategy of Indian automobile company in US market.

Q2. Analyze the reasons for the success of a little known company from a developing country in one of the most competitive markets such as the US.

  International Business

Q1. What documents are involved in exports ?

Q2. What do you mean by UNCITRAL ?

Q3. What are the different international pricing strategies ?

Q4. What is international product strategy ? Describe in detail.

Q5. What are FDI and its impact on World Economy ?

Q6. What is absolute advantage in international business ?

Q7. What are the towns of export excellence in an outline of EXIM policy 2004-9?

Q8. What are the functions of UNO?

International Business

Q1. What documents are involved in exports ? (10 marks)

Q2. What is advertising ? Explain it. (10 marks)

Q3. List out the characteristics of direct distribution channel. (10 marks)

Q4. How would you manage risk at business ? (10 marks)

Q5. Write the difference between international trade and marketing. (10 marks)

Q6. What are the features of international business ? (10 marks)

Q7. Write a short note on IMF (10 marks)

Q8. Examine the effects of undervaluation and overvaluation of Current on trade and investments flows of a country?

International Business

Q1. What is impact of FDI in India ?

Q2. Write a note on evolution of International Monetary System.

Q3. What is absolute advantage in international business ?

Q4. Discuss about organization structure of the WTO

Q5. IT is an indicator of the maturity of market here financial express comment.

Q6. Explain public sector undertaking of export promotions.

Q7. Explain insta online account facility.

Q8. What is the problem of International Liquidity? In what manner  this problem has been solved by IMF?

International Business

Q1. What political risks are associated with FDI ?

Q2. Discuss the two modern theory of trade.

Q3. Write in your words how does globalisation impact the underdeveloped nations.

Q4. What is meant by Technology? What is its influence on business?

Q5. List out various types of services & explain any one in detail.

Q6. What are the IT projects you have implemented in last one year?

Q7. How do differences in culture affect in international business?

Q8. Discuss in detail the environmental factors that affect a business.

International Business

Q1. Write down the reasons for investing in foreign markets.

Q2. What are the different forces of globalisation ?

Q3. Describe on international chambers of commerce.

Q4. Describe principles of trading system.

Q5. What is DDU?

Q6. What is agricultural & village industry facility in special focus initiatives?

Q7. List out agencies/funds noticed by government of India for the purpose of deemed export benefits.

Q8. Describe piggyback of indirect method of export in entry strategies.