The purpose of this essay is to provide answers to the four questions provided in the case study, relating to the recent consortium between Canada’s Magna International Inc. and Russia’s Sberbank Rossii. This paper will draw on a number of external sources in addition to…
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Your answer should address possible reasons why Magna and Sberbank identified each other as suitable partners, why a consortium was chosen as the vehicle of co-operation and what external events gave rise to the opportunity of investing in General Motors European Operations.
Firstly this paper will identify what events lead to the opportunity for companies to invest in GM’s European operations using a PESTL analysis as well as Porters Five forces. Secondly this essay will provide an example as to why it is that a consortium might be the best possible solution to acquire a stake in GM’s European Operations. Lastly, this essay will provide an answer as to why Magna and Sberbank chose to form a consortium with each other.
Political: In the domestic market it is the case that in the public’s eye there was a very negative reception to “Bailing-out” the American automobile manufactures owing to the transition to a new government as well as a general feeling in the American public that it was larger corporations that brought about the economic crisis. As a result, the company sold off a number of its brands including its newly established and highly cherished ‘Hummer’ brand (Smith, 2009). As anybody familiar with the Senate hearing on bailing out the automobile industry, all of the company heads were negatively portrayed in the media for flying-in on private jets.
Economic: In regards to economic factors it is the case that according to Hughes et al. (2009) the company recognized poor sales across all of its brands in the international markets owing to increased competition and a portfolio that were dependant on outdated, heavier models that required far ore fuel than many competitors. In the wake of higher oil prices this negatively affected the firm, and as a result, Japan’s Toyota Motor Corp. overtook General
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5 3. Risk associated with Joint Venture….………………………...... 7 4. Foreign Exchange Rate Movements..…………………………… 9 Part B 5. Challenges in doing business internationally...….......................... 12 References …………………………………………………………..….
In particular, they are placing due emphasis on providing high quality products that are in line with the established international standards. British Petroleum is a world renowned petroleum company that has operations across the globe. Its exploration of the Russian business environment has however been compounded by a host of controversies.
On the other hand, the Chinese have a notion that Americans are antagonistic, impersonal and excitable in their negotiation. However, these differences are attributed to their cultural background; thus, there is need to understand these differences to avoid misunderstanding between individual for establishment of mutual business relationships.
Knowing business trends allows careful planning and budget management. Moreover, knowledge of business practices is essential to identify challenges beforehand and establish good relationship with partners and competitors. When doing business in China, familiarity with culture, economy, and business practices is just a must.
In the aforementioned movie, one can see the opportunity in the drug and gun business. However, since it is illegal, there are so many dangers involved in it. There are the risks of imprisonment, rivalry which could lead to fights or worse, deaths. Although there is indeed much money in the business, the risks are so high that it could be considered a lose-lose proposition.
ries and territories present different problems to companies, even those which are very large and which have the resources and the experience culled from decades of successful operations. Political changes, changes in the global economy, fluctuations in the exchange rates,
e France, in the form known as “Departement d’Outre-Mer-DOM.” Superficially, one can conclude that Martinique has similar customary economic and social attributes of the metropolitan France. Its GDP per capita is US$23,931. Martinique has advanced telecommunications,
The Asian empire was at the center of global trade in the early modern era. Europeans desired to trade with the Chinese in silk and porcelain, spices of South East Asia, and cotton textiles and Indigo from India. The problem was that the Europeans had nothing to trade that the Asians wanted.
Moreover, there is a comparative analysis of the first and second entry attempt by Kellogg Company into the Chinese market. The national and organization cultures highlighted in the case study are examined
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