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Question 1 (10 marks)
One of the main barriers to expansion overseas is lack of knowledge about the overseas market. Companies seeking to enter international markets are faced with foreign markets about which they may know very little. Discuss the factors affecting market entry choices (including internal and external factors) for UBSS entering into an Asian market.
Question 2 (10 marks)
Before undertaking an international venture, the company should conduct a formal assessment of its readiness to internationalise. An evaluation of organisational capabilities is useful for both companies new to international business and those with considerable experience. It is similar to a SWOT analysis.
Using a suitable example, explain in detail each of the 6 steps and discuss why each step is required for the company to have a chance of success.
Question 3 (10 marks)
Barbie is the best-selling doll, produced by Mattel, a U.S. company. Mattel is targeting Barbie to foreign markets. Mattel struggles to find the right strategy because of cultural differences. In Muslim countries, Barbie faces competition from doll producers that offer Islamic alternatives that feature conservative styling. In Latin America, competitors offer dolls with tanned skin and dark hair. In Asia, many girls prefer dolls with Asian features. The fun-loving image that Barbie projects in the U.S. market is often inappropriate abroad. In marketing Barbie abroad, should Mattel management apply a strategy that is global or multi-domestic? What are the advantages and disadvantages of each approach? Is it possible to reach a compromise? Elaborate and justify your answer.
Question 4 (10 marks)
Suppose you work at Microsoft in its Xbox video game console division. Microsoft has long targeted Xbox to the advanced economies, especially in North America and Europe. Management would like to sell more Xbox 360s to emerging markets. What characteristics of emerging markets might make them attractive for sales of the Xbox? Identify the major risks and challenges that Microsoft might encounter in selling the Xbox 360 to emerging markets.
Question 5 (10 marks)
Target® is a large retailer with about 1,800 stores in the United States, but very few in other countries. It has a reputation for merchandising thousands of trendy yet inexpensive products for the home; including apparel, furniture, electronics, toys, and sporting goods. Management wants to open stores in major Asian cities but will have limited floor space there. Target hires you as a consultant to decide which products to offer in Asia. Write a brief report in which you describe the selection criteria you will use and offer some examples to back up your ideas. Be sure to justify your answer.
Question 6 (10 marks)
As the newly appointed international manager, you are taking over relationships in the firm’s two most important markets of China and USA. You will shortly leave to visit both markets to negotiate a long-term contract with each. How would the approach you would adopt at each stage of the negotiation process differ between the two regions? Discuss relating to cultural issues and concepts.