IB0012 - Management of Multinational Corporations

Dear students get fully solved assignments

Send your semester & Specialization name to our mail id

->  help.mbaassignments@gmail.com

or

call us at -> 08263069601

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

->  help.mbaassignments@gmail.com

or

call us at -> 08263069601