The Assessment (contains 4 parts, 3,000 words)
1 – Choose TWO multinational enterprises (MNEs) operating in the same industry, and in THE SAME foreign market of your choice (eg. two MNEs originally from different countries operating in Camboja). The competing MNEs do not have to be originally from the same country, but either have to be competing directly in the selected market, or have formed a strategic alliance between themselves in the selected market.
Note: A strategic alliance is an agreement between two or more parties to pursue a set of agreed upon objectives needed while remaining independent organizations. This form of cooperation lies between mergers and acquisitions and organic growth.
2 – Prepare an Introduction for your essay.
A good introduction will include a brief analysis of the global industry in which the two MNEs operate and a characterization of the selected market under analysis. It should also include a brief history/overview of each MNE; and an explanation of the scale of the business activities and geographical scope in which the two MNEs compete.
3 – Compare and analyse critically the international business strategies of the TWO MNEs in the selected foreign market:
Discuss topics such as their rationale for internationalisation; choice of mode of entry used (if you chose a strategic alliance, you should characterise the alliance and the aims of the two MNEs in forming that alliance); the different types of challenges and risks they have encountered in the selected market and how they have handled those risks and challenges (eg. liability of foreigness); the positioning of the home and host activities of each MNE in the international value chain; the types of organizational structures of the MNEs; the adequacy between the organizational structures in place in foreign markets and the strategies followed; and level of centralisation in decision taking.
You are expected to justify the selection of analytical techniques and use them effectively. Your choice of options and application of theory/models/frameworks should be supported with references to appropriate publications. A good analysis of the international business
strategies will include detailed evidence/factors about the MNEs. It should rely on relevant secondary sources such as the press, company annual reports, and industry reports. You are not required to use primary sources. However, if you wish to use primary sources such as interviews or company records, that would be welcome. Avoid relying solely or extensively on company websites. The usual expectations apply with respect to taking a rigorous and critical approach to these sources.
4 – Conclusion – provide an overview of the adequacy of the international business strategies of the two MNEs; link those strategies to the performance in the MNEs in the selected foreign market, and also to the overall long-term positioning and international competitiveness of the MNEs in the industry.
