Activity 1: Analyzing Entry Modes
With your team, review the entry mode activity that you completed during the Task. Together you should have five different examples of company entry modes for each member. Organize your companies into like modes. You may have to negotiate and look up more information on the company and entry mode if you have conflicting information. Discuss why each was chosen and what the pros and cons of the choice are.
Then design a poster that shows the companies categorized by entry mode, product/service provided, international region or regions, and unique management requirements.
Activity 2: Team Project
This project is designed to introduce you to the complexity of negotiations and to help develop your negotiating skills. You will work in teams to complete the project.
Background: A Western European automobile manufacturer is considering entering markets in Southeast Asia. The company wants to construct an assembly plant outside Ho Chi Min City, Vietnam, to assemble its lower-priced cars. Major components would come from manufacturing plants in Brazil, Poland, and China. The cars would then be sold in emerging markets throughout Southeast Asia and the Indian subcontinent. Managers are hoping to strike a $100 million joint venture deal with Vietnamâ€™s government. The company would supply technology and management for the venture, and the government would contribute a minority share of financing to the venture. The company considers the governmentâ€™s main contributions to be providing tax breaks (and other financial incentives) and a stable business environment in which to operate. Financial capital is flowing into Vietnam at a fair pace. The currency is strong, and inflation remains low. As with other nations in the region, investors are generally wary of the nationâ€™s stability. The new auto assembly plant would boost the local economy, reduce unemployment, and increase local wages. But some local politicians fear the company might be interested only in exploiting the countryâ€™s relatively low-cost labor.
Activity 3: Case Study Telecom
As a team read and analyze the case study at the end of Chapter 13 on Telecom. Use the following questions to guide your discussion but you will need to also do more research and dig deeper into the situation and issues.