Topic 9: Entering Foreign Markets and International Production, Outsourcing & Logistics
In your case discussion answer you should aim to:
1. Identify the international business principles, concepts and terms and theories used in Topic 9 by reading your relevant compulsory textbook chapters.
2. Try to pose additional or alternative stakeholder views to those already discussed in lectures and tutorials.
3. Cite an example of the situation, problem or solution from your work place, experience or what you have seen in the media recently to further illuminate the key issues.
4. Where possible use theories to provide an overarching theoretical explanation for your overall view. This would normally appear at the end of your assignment. You have theories from trade and foreign direct investment, as well as from ethics, CSR and global responsibility. Much to choose from and you will become more familiar with them as the course unfolds. Lectures and tutorials held weekly will help you considerably with the approach you might take.
5. You must reference all your ideas, arguments and opinions. Otherwise, you run the risk that your discussion will be considered mere opinion with no basis. Work experience is different, because it is based on experiential knowledge. (References are not included in the word count). You will be marked down if you do not reference or provide evidence as to where your ideas come from.
You will be assessed on the extent to which you have addressed these points.
Your individual case study answer for Topic 9 should be in the XXXXXXXXXXword range.
Topic 9 case and questions.
1. What are some of the obstacles that Tesla faces to their operations nationally and internationally in its entry and growth into the German economy?
2. What entry mode have they selected for their MNC to enter Germany and forge relations with partner in this advanced economy (AE) that might be quite different if they were to enter an emerging market (EM) or partner with an EM Corporation? For example, they have a manufacturing subsidiary in China?
The case
A lesson in business German
Headnote
Tesla in Germany
BERLIN
Elon Musk takes on the unions, European edition
This is a big week for Tesla's "gigafactory" in Grünheide, near Berlin. According to the German press, the American electric-car maker will get the final green light from local authorities to start operations within days. In one way, it already has. On Fe
uary 28th Tesla workers elected their first works council, a group of employees that in German law co-decide with managers things like working hours, leave and training.
For Elon Musk, Tesla's anti-union chief executive, this must rankle. He has tried to shield his first German plant from Ger- many's strict labour laws by incorporating the business as a Societas Europaea (se), a public company registered under eu corporate law that is exempt from some "codetermination" rules, such as the requirement for firms with more than 2,000 employees to give workers half the seats on supervisory boards. ses are not, however, exempt from having a works council.
IG Metall, Germany's mightiest union, which represents auto workers, has been on a collision course with Mr Musk ever since he refused to sign up to collective wage agreements for the industry (the only other firm not included is Volkswagen, which has its own generous wage deal). It has set up an office close to the gigafactory to advise Tesla workers about their rights and listen to their complaints. It has employed a Polish speaker to organise employees that Tesla is hiring across the border in Poland. It hopes that persuading enough Tesla workers to join its ranks would add oomph to its campaign to join the collective wage deal; the union says the company pays senior staff well but that production-line workers get a fifth less than those at bmw and Mercedes-Benz. Most important, it sees the works council as the first step to full co-determination.
Mr Musk must see it differently. He may have fast-tracked the election in order to get a more sympathetic council. Tesla has so far hired only around 2,500 mostly senior and skilled workers, out of a workforce that will grow to 12,000 or so. Such employees are likelier to see eye to eye with management. The rest of Deutschland ag will be watching to see if Germany changes Tesla into something less a
asive or if Tesla changes Germany's labour relations into something less consensual
[Think: corporate governance issues, financing, political networking, etc.]
A lesson in business German
https:
go.openathens.net
edirecto
unisa.edu.au?url=https:
www.proquest.com/magazines/lesson-business-german/docview/ XXXXXXXXXX/se-2?accountid=14649
BUSS5251 IB Virtual Class - Revision Business Models and the External Environmental Impact Prof Susan Freeman (Course Coordinator)
BUSS3103 International Business
Environment:
Business models and theories to address
the External Environmental Impact of
disruptions and Internal managerial firm
ehaviou
Prof Susan Freeman
Professor of International Business
(Course Coordinator)
Some suggested international business models, frameworks and
theories to address country-level, firm-level or managerial-level
decisions around the impact of external environmental
disruptions.
Many of you are looking at cases for your Team Assignment that
take in these aspects as you formulate your research problems.
We are addressing such aspects in our topics and related cases
throughout the study period.
• There are many cu
ent issues we will discuss throughout the
course and we will address each of these key international
usiness models and theories as we progress through the
course.
• Here they are at your finger-tips to make it
easier for you to work through the assessment
and enjoy the world of international business !
BUSS3103 International Business
Environment:
Business models and theories to address
the External Environmental Impact of
disruptions and Internal managerial firm
ehaviou
Prof Susan Freeman
Professor of International Business
(Course Coordinator)
To help you to get us started here are some summary slides:
1. 4 International Business risks (great framework for evaluating
uncertainties and risks across 4 areas in international
usiness) in a single slide with some explanations.
2. Trade and Foreign Direct Investment (FDI) theories (provides
a quick summary of the country level and firm level trade and
FDI theories for explaining behaviour of managers, firms, and
nations in trade and FDI related decisions and activities) a
single slide.
3. Ethical principles and theories (explains and summarises the
ange of theories and perspectives from an ethical and CSR
point of view and why managers, firms and governments
might behave unethically) a single slide
1. Also defines an ethical dilemma which you need to be able to do to shape
your research problem for investigation in your team assignment.
4. Market (country) attractiveness (explains how to evaluate a
new foreign market location quickly and easily in a single
slide.
This set of slides provides a quick overview, of the theoretical
frameworks you might like to consider for all your assessment,
whether it be the team assignment, the individual assignment, or
the continuous assessment as we discuss the cases. In one way or
another they highlight ethical dilemmas.
A word on
Covid-19 and
other external
(environmental)
disruptions,
such as the
Russian
insurgence into
Ukraine
With the impact of Covid-19 on businesses we have observed a
number of phases – what are they?
• This is impacting business models - What is a business model?
• Which ones don’t seem to be working? In which phases
(When)? Why?
• What ones seem to be working? When? Why?
• What are the global and regional drivers of disruption in
Europe? Asia and the Middle East? Africa? US and the
Americas? And at home, domestically?
• We can now unfortunately add the Russian insurgence into
Ukraine
• How do they differ? Why? What about the phases?
• These are issues we will discuss throughout the course and we
will address each of these key international business models
and theories as we progress through the course.
• Here they are at your finger-tips to make it easier for you
to work through the assessment and enjoy the world of
international business!
4 IB Risks: Source: Cavusgil, S.T.,
Knight, G., Riesenberger, J.R.,
Rammal, H.G, & Freeman, S.
(2012) “International Business:
The New Realities”, Australasian
Edition, Pearson Australia.
The Four Types
of Risks in IB
Cross-cultural risk: a situation or event where a cultural
miscommunication puts some human value at stake
Country risk: potentially adverse effects on company
operations and profitability holes by developments in the
political, legal, and economic environment in a foreign
country
Cu
ency risk: risk of adverse unexpected fluctuations in
exchange rates
Commercial risk: firms potential loss or failure from poorly
developed or executed business strategies, tactics, or
procedures
Risks: Always
Present but
Manageable
• Managers need to understand their
implications, anticipate them, and take
proactive action to reduce adverse effects.
• Some risks are extremely challenging, e.g., the
East Asian economic crisis of 1998 generated
substantial commercial, cu
ency, and country
isks. Political and social unrest surged to
Indonesia, Malaysia, South Korea, Thailand, and
the Philippines.
• And another – Covid-19
• What do we consider to be the next? When?
Why?
What theoretical explanations do we
have for
International Business dilemmas?
International Business Trade and
Investment Theories
Reminder: Theories of International Trade and Investment
8Cavusgil, S.T., Knight, G., Riesenberger, J.R., Rammal, H.G, & Freeman, S. (2012) “International Business: The New
Realities”, Australasian Edition, Pearson Australia, Chapter 6, Exhibit 6.1, p. 150.
Ethics and CSR perspectives
What Are Ethical Dilemmas?
➢Ethical dilemmas - situations in which none of the available
alternatives seems ethically acceptable
➢ real-world decisions are complex, difficult to frame, and involve
consequences that are difficult to quantify
➢ the ethical obligations of an MNE toward employment conditions, human
ights, co
uption, environmental pollution, and the use of power are not
always clear cut
➢ the right course of action is not always clea
Why Do Managers
Behave Unethically?
2. Decision-making processes - the values and norms that are
shared among employees of an organization
➢ organization culture that does not emphasize business culture
encourages unethical behavio
3. Organization culture - organization culture can legitimize
unethical behavior or reinforce the need for ethical behavio
4. Unrealistic performance expectations - encourage managers to
cut corners or act in an unethical manne
Why Do Managers
Behave Unethically?
5. Leadership - helps establish the culture of an organization, and
set the examples that others follow
• when leaders act unethically, subordinates may act unethically, too