International Business Strategy - Case Study Example

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This report has been prepared for an Indian automobile manufacturing company; India Motors Inc. is based on the literature concerning the major issues involved in the technology transfer within the MNCs. The report evaluates the importance, for effective transfer of technology, the issue relating to cultural and institutional differences at both national and organisational level between HQ managers and subsidiary or joint venture managers…
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International Business Strategy Case Study
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Download file to see previous pages In addition, this business strategy report identifies the existing cultural and institutional differences between the domestic location of the parent company and the host location of the proposed European subsidiary. The identification of differences is followed by the evaluation and assessment of the existing differences that are likely to influence the operations of the parent company in the host location and hence affect the achievement of the primary objectives of India Motors. And accordingly the report provides recommendations and suggestions as how to deal with these differences. Lastly, the report provides suggestions for the adoption of basic organisational structures and the control strategies that will be in enhance the minimisation of institutional and cultural differences.
According to Michael E. Porter, "the prosperity of a nation is not inherited but created" (Porter M.E., 1990). He emphasizes that the prosperity and opulence of a country does not stem out of its national inheritance or bequests or for that matter a nation's labour resources, its currency value or the interest rates. But a nation's competitiveness and the conclusive prosperity depends on the capability of the nation's industry to upgrade, innovate, create and harness its limited resources to the maximum (Porter M.E., 1990).
Due to the rapid advancements made in technological and information spheres, the economic developments in the last few decades have witnessed a rapid increase in the global integration of economic activities worldwide. Major countries and cities are being assimilated into the global network through the flow of technology, commodities, capital, information and labour (Dawson J.A. & Larke R., 2003). This development which is more commonly referred to as globalisation has made industries and companies to look beyond its domestic horizons towards international destinations and markets to upgrade, innovate, create and harness their limited resources to create a sustainable competitive advantage that will result in the overall national prosperity.
Companies, business firms and enterprises in every industry today, want to take advantage of this modern phenomenon of globalisation so as to increase and sustain their competitive advantage. Their search for new and more effective strategies to benefit from this phenomenon has lead to companies resorting to global strategies, which in the economic terms is known as internationalisation strategy. Strategic alliances, international partnerships, Foreign Direct Investments (FDIs) making entries into the international markets are some examples of internationalisation strategies. The basis of these strategies is to gain competitive advantage over its competitors and the long term sustenance of the gained competitive advan ...Download file to see next pagesRead More
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