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BMM5422 – Outline and appraise the key elements of the international environment which have an impact on the activities of international firms.

Assignment Task

Module Learning Outcomes:

1. Outline and appraise the key elements of the international environment which have an impact on the activities of international firms.

2. Investigate the basis and recent patterns of international trade and investment.

3. Recognise a range of market selection techniques.

4. Interpret and select appropriate methods of international market entry and development.

5. Recognise and defend the main methods of risk minimization available to international companies

Task 1: Company Outline

Provide an outline of the company. It should cover a brief introduction to the company.

Task 2: Business Environment

Cover the essential ‘business environment’ concepts from the first few weeks of the semester. This means looking at the PESTLE analysis (of the target country), possibly including SWOT and Porter’s 5 forces where appropriate for specific elements.

Task 3: Strategy to market entry

Choose your suggested strategy for market entry, i.e., Joint Venture, Franchising, FDI, etc.

Task 4: Potential Risks and Strategy to Overcome Them

A discussion of the potential risks and strategies for risk management of the company may follow.

Start with the Executive summary and finish with the Conclusion.

You should start your report with an Executive summary and finish with a Conclusion. The executive summary should summarize the whole report. Additionally, a brief concluding statement emphasizing how your proposed strategy addresses the business environment should be discussed in the conclusion.

Task guidance: It provides you with a detail of what we expect from you in each section.

I. Executive Summary

The executive summary should summarize the whole report.

II. Introduction/Company Outline

Provide an outline of the company. It should cover a brief introduction to the company. What do they do? Where are they based (Country)? What are the key business strategies/ focuses?  What are the competitive advantages? What industry does the business belong to? Who are the closest competitors? And so on. In addition, introduce the purpose of the report and the key points of debate included in the main discussion.

III. Business Environment

Referring to relevant theories and models, evaluate the business environment of the target country. This is the first part of the main body. The first part of the discussion should include an introduction to the international business environment. You should use a couple of definitions.

Use PESTLE (Target Country) to evaluate the business environment and relate the analysis to your product or service.

  • Political– Type and stability of government (Maplecroft’s Political Risk ranking), attitude towards FDI and profit repatriation, tariffs and import restrictions for your product (WTO tariff database), ease of setting up a company (WB’s Ease of Doing Business index ranking).
  • Economic – type of economy (free market, CPE, Social market, mixed, developmental state) Economic Freedom Index ranking (Heritage foundation), Global Competitiveness Index ranking (World Economic Form), GNI adjusted per capita (WB), inflation, unemployment, interest, wage and growth rates, exchange rate stability, levels of public spending, trade balance etc.
  • Social – Hofstede’s cultural dimensions, demographics (e.g. age distribution), Corruption Perception and Bribe Payers index rankings (Transparency International), equality (WB’s GINI coefficient), language, religion, lifestyles and attitudes towards your product etc.
  • Technological – educational and technical skills of the workforce, level of infrastructure (WEF overall Infrastructure ranking), logistics (WB’s Logistics Performance Index) and distribution channels (Global Retail Development Index), use of IT (World Economic Forum’s NRI index) etc
  • Legal – Employment regulations, Competitive regulations, Health and safety regulations, Product regulations, Antitrust laws, Intellectual Property laws (IPRI Index), market regulations (e.g. food hygiene laws), corporate tax rate, rule of law ranking (World Justice Project), environmental and employment laws.
  • Environmental- Waste disposal laws, Environmental protection laws, Energy consumption regulation, Popular attitude towards the environment.

Please note that you should analyze opportunities and threats because of the particular business environment of the target country. In addition, you should identify the strengths and weaknesses of the chosen company in relation to its internalisation plan. What are the strengths/weaknesses for the company to operate in the target country? Why? Remember, you should always use research/ academic journal/ evidence to support/analyze your discussion.

In addition, you can use other models such as Porter’s five forces, Value chain, Porter’s diamond theory of national advantage and other relevant theories and models.

IV. Entry Mode

Building on the theories and models and additional evidence, critically analyse the proposed strategy for the chosen business. Be specific about implementation, and distribution channels; if a Joint Venture, then give details of the selected partner, if a Wholly Owned Subsidiary then give the size and location of the facilities. Apply theory to your choice, where appropriate, e.g. Uppsala (if exporting), theories OLI (if FDI), timing and scale of entry.

V. Critical Risk Factors

Describe critical risk factors (political, economic, social, competitive) faced by the company internationalising (current or in the future), including country risks. Much of this will arise from PESTLE, and SWOT analyses (corporate expertise, physical assets, human assets, marketplace image, competitive capabilities etc.).

VI. Conclusion: 

Outline the concluding statement emphasizing how your proposed strategy addresses the business environment. On the basis of the above discussion, you should critically summarise how the above-intended business strategies will be suitable for the business environment of the target country. Instead of repeating information, you should summarise the key points.

Note: The above guidance is provided only for your reference; it is just a guide; you are required to conduct detailed and independent research in the areas as suggested above.

Rationale

This is the first part of your module assessment for this module and is based on a case study that will allow you to demonstrate your understanding of relevant statute and case law, and your ability to identify, apply, and evaluate legal argument within a business-related context. You are not expected to demonstrate the full range of skills and knowledge that would be expected of a student of law, but rather those of a manager when dealing with a potentially litigious situation.

Task

To research on the case study which tackles all the potential legal issues arising from the scenario, drawing particularly on your knowledge of common law negligence. In identifying the legal issues, you will also need to set out the likely success of the respective parties’ claims.

The Case Study: ‘Jacqueline runs into a retirement problem’

With a degree in management, you now work for CustomVans Ltd (‘CustomVans’) as their legal and compliance officer. CustomVans sell vans customised for the needs of each customer. As Jacqueline was retiring soon, she planned to spend some money on a converted camper van to tour the UK and agreed to buy a van from CustomVans with some modifications, including a more powerful engine. When the van was ready, she collected it one evening, but due to stress at work, she had forgotten to put her safety belt on. After ten miles the engine stalled and she collided into a bus shelter, and narrowly avoided Osman who was waiting for a bus. Shortly afterwards, Henna, Osman’s long-time partner, was called by phone and informed that Osman was in hospital awaiting treatment.

Jacqueline suffered serious whiplash injuries and mental anguish from the impact. This meant that she could not attend work as a teacher for six months, meaning her retirement was delayed until she had fully recovered. Osman, although not physically injured, was diagnosed with anxiety following the collision. Whilst Henna has been unable to sleep easily at night for months and is much more anxious than before the collision.

Following Jacqueline’s discharge from hospital the car was examined by an expert who advised her that the fault was due to an engine defect.

Additional Information

With a case study scenario remember the following:

a) based on a factual scenario that could happen in real life

b) demonstrate your understanding of a particular area or areas of law and apply them in a practical way to the problem. So, look at the issue and see what law/legal principle applies and use your knowledge of case law or statute to show the authority for that law or legal principle

c) work through all of the relevant legal issues but remember not all of the issues will require in depth analysis. Sometimes the issue may seem trivial but look at it and if it doesn’t need exploring in detail you may need to explain why

d) reach a conclusion, although you may have a number of mini conclusions after dealing with each issue. Remember in law you need to argue both sides of a case and argue the likely success of those cases.