Global business- Foreign Direct Investment (FDI)
* Please read this assessment brief in its entirety before attempting your assignment.
Purpose of the Assessment
The purpose of the assignment is to assess studentsí ability to identify key challenges facing a firm in an industry embarking on Foreign Direct Investment (FDI) and the implications investing in a different market, political and cultural environment (using relevant business theories and data to support to their analysis). Likewise, it will provide students with the skills for problem-solving: present and discuss opportunities for business from a global perspective considering the increasingly interconnectivity and challenges in the international business environment.
The Assignment Task
The assignment should cover parts A and B.
You must choose a product (in origin) sold in a developed market of your choice for less than £10. Discuss the international business and strategy for the product into another developing market in a different continent of your choice.
Part A: should cover the following 5 sections:
1) The brand and product selected (background company information).
2) Choice of a country and analysis (it is not necessary to justify why you have chosen one developing market over another), but you must explain why the selected product would
For information only – this document does not form part of the student contract
2) be suited to that market and why the market is attractive for investment (demographics, culture, nature of competition, GDP growth, ease of doing business index, etc.). Use relevant data and business theories to support your discussion.
3) Select and justify an international business strategy that firms could adopt considering pressures for price reductions and local responsiveness. What structure and control mechanisms would you recommend for the strategy to be adopted considering the cost or implication for using vertical differentiation, horizontal differentiation, need for coordination, performance and need for culture control (as applicable to the structure and control mechanisms recommended by you)?
4) Select and justify a FDI entry mode strategy for entering the developing market (e.g. joint ventures, franchising, turnkey project, licensing and wholly owned subsidiaries etc).
5) Select and justify a strategy (ies) that your firm could use to increase its profitability either reducing cost or adding value in the existing market. Use a relevant theory (ies) to support your analysis.
Part B: Reflect upon the assignment.
Consider the learning activities, in class workshops and e-tivities. What have your learnt from these? How has your personal development progressed, identifying transferable skills and knowledge? 250 words (Not to be assessed and not part of the word count).
It is important to point out that you cannot select a product that already exists in the developing market you have chosen. For example, Coca-Cola is already sold in Poland, so you would not be able to choose this for the assignment.
It is important to point out that you cannot select entry modes that are not aspect of FDI.
Please, check the module guide (handbook) for further details.
Learning Outcomes
The learning outcomes that are being assessed in this assignment are:
- Evaluate current debates over the nature and processes of globalisation for understanding the macroeconomic factors as well as political issues that MNEs have to consider.
- Analyse the global interaction between transnational corporations, governments and global institutions.
- Analyse the differing impact of, and responses to, global economic transition and transformation on the part of specific regions and states.
- Interpret the use appropriate models and frameworks to analyse empirical scenarios for developing necessary managerial skills of doing business abroad.
Employability & Changemaker Skills
- Problem-solving: present and discuss opportunities for business from a global perspective considering the increasingly interconnectivity and challenges in the international business environment
Word Limits
Your portfolio must:
- be 2,500 words in length, excluding references and appendices. However, you will be penalised if appendices are abused. You are allowed 10% above or below the word count only;
- be expressed clearly in grammatically correct English;
- use relevant theories to analyse empirical data;
- draw relevant conclusions from the analysis; and
- be fully and correctly referenced both in the text and at the end using the Harvard system.
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