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3. What factors make the control more difficult in the international business?
a. Distance –it takes more time & expense to communicate.
b. Diversity- country differences make it hard to compare operations
c. Uncontrollable-there are more dissimilar outside stockholders
&governmental influences.
d. Degree of certainty – there are often rapid changes in the information and
data problems.
4. What is strategic planning?
The process of determining an organisation’s basic mission and long-term
objectives then implementing a plan of action for attaining these goals.
5. What is polycentric predisposition?
A philosophy of management whereby strategic decision are tailored to suit
the cultures of the countries where the MNC operates.
6. Define negotiation.
Bargaining with one or more parties for the purpose of arriving at a solution
acceptable to all
PART B (5 * 16 = 80)
11 (a) Elucidate on the strategic planning process of MNEs.
Step 1: external environmental scanning for MNC opportunities and threats
Step 2: International resources analysis of MNC strength and weakness
Step 3: Strategic Planning goals
Step 4: Identifying key factors success
Step 5: Strategic implementation: 1. Location consideration, 2. role of functional
areas.
(OR)
11 (b) What are the strategic choices available to the MNEs?
BCG :
high low
Average (winner)
(Average business) (Loser)
Business
weak (profit (Loser) (Loser)
producer)
Industrial attractiveness
development
Industrial life cycle
Growth
Competitive
shakeout
Maturity
Saturation
Decline
. Business strength
(OR)
12 (b) Explain the strategic compulsion in the form of standardization and differentiation
strategy.
Standardization differentiation
Follows similar strategy at the Distinct and unique strategy for
global level different markets.
Produces homogenous products Produces heterogeneous products
Cost pressure is high Cost pressure is low
Low national responsiveness High national responsiveness
Followed by global company Followed by multi domestic
company
Economies of scale Cost will be high in the short run
8. Define- Repatriate
Return to one’s home country from an overseas management assignments
PART B (5 * 16 = 80)
11 (a) Elucidate on the strategic control process of the MNEs.
Step 1: identify the area for control
Step 2: Determine the standard
Step 3: Measure the actual performance
Step 4: compare the standard with the actual performance
Step 5: If the standard is not met , take corrective action by adjusting the standard
Step 6 : if the standard is met , recognize the result and go for higher standard by
adjusting it .
(OR)
11 (b) Explain the different forms of international trade in detail.
Different forms of international trade are :
1. Domestic company,
2. international company,
3. multinational company ,
4. global company and
5. transnational company.
.
12 (a) Discuss the OECD guidelines for controlling multi national enterprises operations.
1. Concept and principles
2. General policies
3. Disclosures
4. Employment and industrial relations
5. Environment
6. Combating bribery
7. Consumer interests
8. Science and technology
9. competition
10. taxation
(OR)
12 (b) Explain the Organizational Structure of MNEs.
1. Initial division structure
2. International division structure
3. Global structural arrangement :
• Global product division
• Global area division
• Global functional division
4. Mixed organizational structure
5. Transnational network structure
13 (a) Discuss the i) Corporate level strategy, ii) Business level strategy, and iii)
functional level strategy of MNEs.
Corporate level strategy
Concentration, product modification, market modification, diversification,
joint venture, merger& acquisition, turnaround, retrenchment, harvesting, disinvestment,
liquidation.
Business level strategy:
Cost leadership, differentiation, and focus, BCG,
Functional level strategy: production: JIT,TQM, EOQ
Marketing: five P’s
HR: recruitment, selection, compensation, training
Finance: sources, costing , auditing
(OR)
13 (b) Explain ethical decision-making Process?
1. Identify the problem:
• Be alert and sensitive to morally charge situation
• Gather more information before jumping to conclusion
• State the case briefly with relevant fact
• Be alert to the actual or potential conflict of interest
• Consider the context of decision making
2. Specify the feasible alternative:
State option at each stage of decision
Analyze the consequences of various decisions
Account the good and bias
Be honest at your own stake
Use ethical resources to identify ethically significant factor.
3. Propose the best possible resolution
4. Analyze impact of the ethical performance on others
Implement the course of action
(OR)
14 (b) Write the various problems faced by expatriate manager in the new international
environment
International adjustment- honeymoon stage, culture shock, adjustment to learn and
Mastery
Dimensions of international adjustment- Adjustment to work place
Adjustment – interact with host nationals
Adjustment to general environment
(OR)
15 (b) Explain in detail a number of factors to be considered for firm contemplating
International production?
Global production decisions involves interrelated issues focusing on
1. Where to locate production activates
2. what should be long-term strategic role
3. should the firm own foreign production or outsource
4. How should a globally dispersed supply chain be managed
5. Should the firm manage global logistics itself or outsource it?
There are four factors that must be considered for contemplating International
Production:
1. Country factor- political economy, culture and relative factor, Location
economies
2. Technological factor- level of fixed cost, minimum efficient scale and flexibility
of technology
3. Product factor – Value to weight ration, whether the product serves universal
needs