Analyze The International Business Strategy Of A Company ✓ Solved
Analyze the international business strategy of a company of your choice
Word Count 1500 1700 Words you may want to include graphics to make your reasoning a more visual and explanatory. The in-text references and the bibliography have to be in Harvard’s citation style. Cover, table of contents, references, and appendix are excluded from the total word count. It assesses the following learning outcomes: explore key economic theories, models, and trends, and how they impact decision-making processes at different levels, including micro, macro, and international perspectives. Analyze the functioning of the market and the role of business in the international arena. Interpret various economic indicators across different levels of analysis. Develop lines of arguments linking theories and evidence on global issues. Communicate in an analytical way how business, nations, and international economic settings are intertwined. The overall aim of this case study is to analyze the international business strategy of a company of your choice (preferably from your country or from a country that you know well). In order to achieve this aim, you need to address the following issues:
1. Critically analyze the recent economic performance (since 2000) of your country
You should use the following indicators: GDP and Trade to GDP ratio since 2000. Inflation rates since 2000. Currency and exchange rate against the euro (or dollar). Has this country a floating exchange rate? Briefly compare the different exchange rate regimes. What are the leading exports and imports of this country in terms of value? Is there a pattern? That is, in what kinds of goods does it look like the country might have a comparative advantage? Which trading partners are most important to this country? This can be measured in terms of total exports, total imports, or total exports plus imports. Which countries have the largest trade deficits and surpluses with this country? Recommended data source: The WTO has extensive data on country trade and tariffs. Their main statistics page is: https://www.wto.org.
2. Critically analyze the market structure of the industry in which your selected firm operates
To describe the market structure, your report must address the following questions: Provide performance details on your selected firm, including key data and financial information. What type of market structure does your industry resemble? For example, perfect competition, monopolistic competition, oligopoly, monopoly. Support and justify your answers.
3. Explain the international strategy of the company using one of the models studied in this course
Provide an evaluation of potential strategies for the firm that will enable them to overcome potential challenges.
Sample Paper For Above instruction
The international economic landscape since 2000 has been marked by significant fluctuations and transformations that influence both national and international business strategies. In this paper, I examine the recent economic performance of [Country Name], analyze the industry structure in which [Company Name] operates, and evaluate the company's international strategy, applying relevant economic theories and models to provide a comprehensive understanding of their strategic positioning amidst global economic trends.
Economic Performance of [Country Name] Since 2000
The economic trajectory of [Country Name] since 2000 has been characterized by robust growth features interspersed with periods of downturns, largely driven by global financial crises and internal economic reforms. The country's GDP increased from approximately [value] in 2000 to [value] in 2023, representing an average annual growth rate of around [X]% (World Bank, 2023). The Trade to GDP ratio has fluctuated but generally indicated increasing openness, rising from [X]% in 2000 to [Y]% in 2023 (WTO, 2023). Such trend suggests a progressively integrated economy with strong international trade links.
Inflation and Currency Dynamics
Inflation rates since 2000 have been relatively stable, averaging around [X]% annually but experiencing spikes during certain periods, notably during global financial turmoil in 2008 and the COVID-19 pandemic in 2020. The national currency, the [Currency], has historically experienced fluctuations against the euro and the US dollar, with the exchange rate regime shifting from fixed to floating in [year]. Currently, the country employs a floating exchange rate regime, allowing market forces to determine currency value, contrasting with prior fixed or pegged regimes widely observed in the early 2000s (IMF, 2023).
Trade Patterns and Specialization
The main exports of [Country Name], valued at approximately [X] billion USD, include [key export commodities], indicating a comparative advantage in these sectors. Conversely, major imports such as [key import commodities] reflect the country's dependence on foreign goods for [specific needs]. The predominant trading partners, based on trade volume, are [Country A], [Country B], and [Country C], with [Country A] accounting for most of both imports and exports. Notably, trade deficits with [Country X] and surpluses with [Country Y] inform strategic trade policies (WTO, 2023).
Market Structure of the Industry
The industry where [Company Name] operates exhibits characteristics of [industry type], with high concentration ratios, significant barriers to entry, and differentiated products, aligning with an oligopolistic market structure. Key performance indicators such as market share, profit margins, and competitive strategies support this classification (Porter, 1980). The company's dominant position is maintained through innovation and strategic alliances, reinforcing the oligopoly.
International Strategy Using the Uppsala Model
[Company Name] applies the Uppsala incremental internationalization model, emphasizing gradual commitment to foreign markets. This strategy involves initial export activities, followed by establishing sales subsidiaries in key markets, and eventually developing local production facilities. This approach minimizes risks and aligns with the company's resource capabilities and market knowledge, facilitating sustainable global expansion (Johanson & Vahlne, 1977).
Potential Strategies for Overcoming Challenges
To address the emerging challenges, including rising tariffs, fluctuating currency values, and increased competition, [Company Name] should consider diversifying its supply chains, leveraging digital transformation, and investing in emerging markets. Engaging in strategic alliances and developing adaptive organizational capabilities will enhance resilience and maintain competitive advantage in volatile environments (Barney, 1991).
References
- Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120.
- IMF. (2023). [Country Economic Review]. International Monetary Fund Publications.
- Johanson, J., & Vahlne, J. (1977). The Internationalization Process of the Firm – a Model of Knowledge Development and Increasing Market Commitments. Journal of International Business Studies, 8(1), 23-32.
- Porter, M. E. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors. Free Press.
- WTO. (2023). World Trade Statistics. World Trade Organization Publications.
- World Bank. (2023). World Development Indicators. The World Bank.