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Assignment 1: Expansion into a Foreign Market,Part I
Due Week 4 and worth 300 points
Assume that you are a consultant who has been hired by a major existing company of your choice to assist it in expanding its global operations. Options available to you range from foreign direct investment (FDI) to simple exporting to a joint venture. Your task is to select a country of your choice, other than the USA, and examine the country’s culture, politics, laws, ethics, and economics. For each of these topics, provide a supported example of the manner in which the topic in question will contribute positively or negatively to the country and its people, as well as to the company and its operations. Note: Avoid expressing personal opinions of the market.
Note: Use the Internet or the Strayer Library to research articles on the company and the economic, cultural, and political / legal aspects of the country that you selected.
Write a six to eight (6-8) page paper in which you:
1. Briefly describe the company and industry of your choice that you work for in your assumed role of consultant. Next, based on your research, select the country to which you would like your company to expand. Provide a rationale for your selection of the country in question.
2. Determine the key institutional constraints that must be considered. Next, analyze whether or not the institutional constraints you determined support the market entry into the new country that you selected.
3. Conduct a VRIO (Value, Rarity, Imitability, Organization) analysis to determine whether or not conditions support the proposed market entry.
4. Analyze the major cultural and political aspects of the international business environment. Next, suggest one (1) strategic action that the company should take in order to address the associated cultural and political issues. Provide a rationale for the response.
5. Determine the option (e.g., exporting, joint venture, FDI) that you believe the company should pursue. Provide a rationale for the response.
6. Determine three (3) major difficulties that may occur based on the option you selected in Question 5. Next, suggest the best strategy that the company should leverage in order to confront each major difficulty, should it arise. Justify the response.
7. Use at least three (3) quality academic resources in this assignment. Note: Wikipedia and other Websites do not quality as academic resources.
Your assignment must follow these formatting requirements:
The specific course learning outcomes associated with this assignment are:
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