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Summer
2013
Master
of Business Administration- MBA Semester 3
IB0012
- Management of Multinational Corporations -4 Credits
(Book
ID: B1200)
Assignment-
60 marks
Note: Answer
all questions. Kindly note that answers for 10 marks questions should be
approximately of 400 words. Each question is followed by evaluation scheme.
Q1. Why is
environmental analysis important for strategic decisions? What does macro
environment comprise of?
(environmental
analysis- 4 marks, macro environment- 6 marks) 10 marks
Answer : Importance of Environmental analysis :
An environmental
analysis in strategic management plays a crucial role in businesses by
pinpointing current and potential opportunities or threats outside the company
in its external environment. The external environment includes political,
environmental, technological and sociological events or trends that can affect
the business directly or indirectly. An environmental analysis is generally
conducted as part of an analysis of strengths, weaknesses, opportunities, and
threats (SWOT) when a strategic plan is being developed
Q2. Discuss
the important features of Heckscher-Ohlin theory and International product life
cycle theory.
(Heckscher-Ohlin
theory - 5 marks, International PLC theory-5 marks ) 10 marks
Answer : Important
features of Heckscher-Ohlin theory:
The
Heckscher–Ohlin model (H–O model) is a general equilibrium mathematical model
of international trade, developed by Eli Heckscher and Bertil Ohlin at the
Stockholm School of Economics. It builds on David Ricardo's theory of
comparative advantage by predicting patterns of commerce and production based
on the factor endowments of a trading region.
Q3. Discuss
the challenges and opportunities of International management.
( challenges
and opportunities- 10 marks) 10 marks
Answer :
Challenges of International management:
International
management consists of building an effective strategy, structuring an
appropriate organizational design and managing people in a cross-cultural
environment. Throughout these activities, companies must handle bureaucratic,
technical, political, economic, linguistic, behavioral and cultural
differences. Even if a small business does not pursue any international
activities, a couple of these international challenges may show up while
competing against or cooperating with a foreign company in its own domestic
market or simply operating in a local community.
Q4. Compare
the management styles and practices in China
and India .
( China- 5
marks, India-
5 marks) 10 marks
Answer : Management styles and practices in China :
In Confucian
philosophy, all relationships are deemed to be unequal. Ethical behaviour
demands that these inequalities are respected. Thus, the older person should
automatically receive respect from the younger, the senior from the
subordinate. This Confucian approach should be seen as the cornerstone of all
management thinking and issues such as empowerment and open access to all
information are viewed by the Chinese as, at best, bizarre Western notions.
Q5. List the
factors on which the location of an MNC depends. What are the four options
available to a firm to formulate the strategy?
( listing- 3
marks, 4 options- 7 marks) 10 marks
Answer : Factors
on which the location of an MNC depends:
In general,
factors that affect the location decisions can be divided into Country
decision, region/community decisions and site decision. Due to globalization,
Canon had becoming multinational company which decides the decision to set its
company based on:-
- Political View
- Economical Factor
- Cultural
Q6. Discuss
the role of joint ventures as a mode of entry in foreign market. Also explain
the types, advantages and disadvantages of joint ventures.
( role- 2
marks, types- 2 marks, advantages- 3 marks, disadvantages- 3 marks) 10 marks
Answer : Role
of joint venture :
Foreign joint
ventures have much in common with licensing. The major difference is that in
joint ventures, the international firm
has an equity position and a management voice in the foreign firm. A
partnership between host- and home-country firms is formed, usually resulting
in the creation of a third firm. This type of agreement gives the international
firm better control over operations and also access to local market knowledge.
Dear students get fully solved assignments
Send your semester & Specialization name to our
mail id
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or
call us at -> 08263069601
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