International Business Operations: Analysis, Strategies, and Report

This report provides an in-depth analysis of international business operations, covering key aspects such as expatriate management, location selection, and marketing strategies. It begins by defining the roles and skills required for expatriate managers, emphasizing cultural intelligence, adaptability, and leadership. The report then examines the factors influencing the optimal location for a business, using an automobile factory as a case study to compare Germany, Portugal, and France, ultimately recommending France. Furthermore, the report contrasts China and India as manufacturing powerhouses, highlighting India's advantages in terms of demographics, government policies, and economic growth. Finally, the report analyzes Cadbury's marketing mix (product, price, place, promotion) and its application in the UK, considering adaptations needed for the Turkish market. The report offers a comprehensive overview of international business operations, providing valuable insights into strategic decision-making and market analysis.

International Business Operations

Table of Contents
Introduction......................................................................................................................................3
A1.....................................................................................................................................................3
A2. ...................................................................................................................................................4
A3.....................................................................................................................................................5
A4.....................................................................................................................................................7
Conclusion.......................................................................................................................................8
REFERENCES................................................................................................................................9
....................................................................................................................................................9

Introduction
The international business and operations have emerged as a new and effective
opportunity in the market. To handle the new ventures expatriate managers are sent abroad with
adequate training about their roles and skills that will help them survive their and conquer the
market. Location proximity is also highlighted in this report, with the marketing mix concepts.
A1.
Expatriate managers are those employees who are living abroad for few years for
handling business abroad. As expatriate managers are to be sent to Brazil to handle the factory of
Optical Instruments there (Bayon, Hawn and Hamilton, 2012). The roles and the skills needed
for them would include whole new level of energy and efforts.
The Skills of the expatriate managers include:
 Cultural Intelligence: As the expatriate managers would go abroad , the culture over
there is entirely different from our culture. They should be adapting the culture and
should learn certain things about their culture. Their behaviour there must be according to
the cultural settings adapted there.
 Adaptability and flexibility: These managers should be well adaptable to every situation
and they must be flexible enough to change themselves according to their cultural values.
 Relational Quality: They should be friendly in nature and should be able to mix up with
people easily and build strong relationships.
 Curious: the manager must be curious as only then he will take interest in the work and
his willingness to understand how the work is done .
Roles of the expatriate managers: The expatriate managers plays a very significant role as they
are loaded with double responsibilities( Beamish, 2013), they have given a huge responsibility to
manage the whole new venture abroad. They have to work in various roles.
 Manager as a Leader: The manager who has gone abroad has to work as a leader as to
guide the employees and handle the project. They have to train them, motivate
them,develop them according to the requirements of the project.
 Manager as a Liaison: He has to coordinate all the activities of the workers there as this
comes in the duty of liaison. In this role he has to make contacts with the managers of

other firms to gather information. The expatriate managers is the representative of their
firm.
 Manager as a Monitor: Expatriate Manager gets the information from everywhere. he
manages them to use it for achieving goals(Birkinshaw, Brannen, and Tung, 2011). He
has to monitor every task going on in the company.
 Manager as a Spokesman: They represent the company and speak on its behalf. He has
to keep his official informed and pass on the information needed for their subordinates.
He has to inform about the companies financial position to the shareholders and directors
and customers about the new ventures and products.
These roles have to be performed by the expatriate simultaneously as they cant preform one role
at a time that will not add value(Dunning, 2012). An expatriate must work as a strategist and use
all his skills and roles in making decisions.
For preparing them for the task they should be trained well before leaving and should be
guided well about the roles and responsibilities that they has to abide by. They must be prepared
for the challenges and adverse situations. They should be trained about the language spoken
there. All these training will boost their confidence and they will perform much better.
A2.
The location of the industry plays a very significant role in the success of a business set
up. The Auto-mobile Factory is to be set up for the targeted customer base of European Union.
Potential countries where the industry could be set up are : Germany, Portugal and France.
For choosing the location of an auto-mobile business few things that are important to be kept in
mind are:
 Raw Material Availability: The availability of raw material is very essential as it is the
initial requirement to start making a product(Hennart, 2010). The raw material should be
near to the industry . This will decrease the lead time and transportation cost of raw
material will be minimal.
 Availability of Labour: That country should be selected in which the labours are
available and the wage rates are cheap compare to the other country. And where labour
laws are in favour of the industry.

 Land: Choose the land where its cost is low in comparison to other countries. If you are
taking it on lease then choose the most beneficial deal.
 Transportation: For an auto-mobile business good transportation system is required.
The roads should be good and they should be within the reach. For raw material
transferability(Jenkins, 2013), for employees to reach them etc.
 Zoning: Every country has different zoning requirements that needed to be check before
the signing any deal. That whether your industry is fit for that zoning or not.
 Proximity: This is the very important factor as it comprises of the advantage that you can
get from the nearby businesses(Kojima, 2010). Say for instance there is an corporate
office nearby so their employees may convert into your clients.
 Competition: look out for your competitors , whether they are nearby and keep a check
on their activities as they can influence your resources.
Now as far as these candidates are concerned by keeping in mind these factors I think France is
the country which is fulfilling most of the criteria. The wage rate there is very cheap as compared
to Germany and Portugal. The proximity factor is in favour of France . The cost of land is low as
compared to both, as Germany is having very high prices in real estate and Portugal is no less.
Portugal ordinance and zoning does not allow us to operate so it is out as a option. And between
Germany and France, transportation facility of Germany is better then France but it will not
impact that much as the raw materials are available nearby(Kolk, and Tulder, 2010). France
has most of the factors in favour and competition is moderate in France , so it will help the
business to set up properly and the new car that is to be launched will be given a fair chance to
grow in the market. The research and development that has been done for the launching of new
car will certainly help and the location which will be suited for the industry is definitely France.
A3.
China has been in lead in the area of manufacturing of merchandising goods, over a last
few decades. However with the analyses of some of the analyst stated that it will no longer be in
lead as the nation which is emerging now in manufacturing of merchandised goods is India. For
becoming a superpower a country must have political democracy, economic freedom, power to
its military, legal system has to be strong, living standard should be high and China is lagging far
behind in theses areas as compare to India. China have communist government that will not

sustain in later years, and it is not giving its citizens right to choose the government. Economic
freedom of china is not good as it stood at rank 137th in world economy. India is the emerging
superpower and this is clearly shown by its demographic trends(Liesch, And et. al., 2011), its
economy is expanding rapidly and its GDP rate, it has become worlds largest growing economy.
The GDP rate in 2015 was 7.3%. India has developed a lot now and because of the new
government there has been many changes in the policies and regulations of India. The new
government has liberalised the rules for manufacturing. And the points that make India better
then China in leading the merchandising goods are:
 Young Population: As we all know the china has the worlds highest position in terms of
population but there are only 20% youngsters and rest has become old. While in India
65% of the population comprises of youngsters (below 35 years) and 50% are below the
age of 24. which give it an advantage over China.
 Government policies: The policies of the government has given advantage to the
manufacturing industries so that they can produce more effectively and conveniently.
They are providing subsidies to the manufacturers and that has instigated them and they
are touching heights.
 Labour: The labour available in India is very efficient and they have very reasonable
rates(Preston, and Windsor, 2013). They are huge in numbers as India is considered to be
a labour abundant nation. The labour laws have been designed so well that it take cares of
all the labour rights and it is followed by the manufacturers strictly.
 Economy: India stood third at the world's largest economy in terms of real GDP. The
manufacturing sector is growing at the rate of 11-12% which will make it new
superpower in manufacturing.
 Geopolitical: This is one of the vital factor that could help India for becoming a
superpower is its geopolitical advantage. Since the time of the new government the prime
minister of India has put strong efforts to strengthen their relations with foreign countries
like Japan, Russia, and the U.S. This has opened the door of foreign countries for Indian
citizens and it will give employment opportunities.
So keeping in mind these points we came to the conclusion that china loosing its tag of
superpower and India is emerging as a new superpower and will lead the economy.

A4.
Cadbury is the most widely marketed product in the U.K. The elements of marketing that
Cadbury is using are Product, Price, Place, Promotion(Schaffer, and et. al., 2011). They had a
very good control on their marketing mix. The marketing mix of the Cadbury includes:
 Product: They have a vast line of products. The variety they are offering is very wide,
although they do have one or two products as cash cows but they almost have star
products. They have covered chocolates( bournville, dairy milk, perk, five star, eclairs),
biscuits(oreo), beverages( bournvita), mouth fresheners(halls)(Temiz, and Gökmen,
2014).
The standards that are needed to be taken care of while marketing it in Turkey are that they have
to take care of the taste and preferences of the people of turkey. Its not sure that whether they
will like the product or not.
 Price: Quality products are generally of high price as it includes the cost of maintaining
quality and advertising it so as to be on top. It is considered as a premium brand. it offers
products that are costly as well as that are reasonable. It has very smartly covered all the
segments of customers. For high end customers they have Bournville, Dairy milk, and for
low end or medium customers they have perk, eclairs, five star.
The conditions of turkey is not so good politically and economically so while marketing it in
turkey, price is to be set very carefully, should keep in mind the purchasing power of turkey.
How much the people there can spend on these products, and accordingly price is to be set.
 Place: The distribution network of Cadbury is very strong they are presented everywhere.
It has shown its presence in every tier cities(Verbeke, 2013). When the chocolates comes
in bulk they are further put in a supply chain as :
Company > C&F agent > Distributors > Retailers > Consumers
So while marketing in Turkey, the supply chain has to be very strong as to capture the market.
and make its presence everywhere.
 Promotion: The promotional activities of Cadbury has always been very touching to the
heart. They have positioned Cadbury for gifting purpose. It has become the best possible
gift to give to someone. It has positioned its every product differently like bournvita is a
healthy drink, eclairs has low cost position.

While positioning it in turkey it has to be taken care of their emotions, their culture. One has to
be very cautious while marketing products in different cultural environment. Deep study of
cultures and their beliefs and values must be done before launching your product in that country.
So while marketing in turkey all these standards must be kept in mind for the success of
the product, otherwise things fail because of carelessness(Wild, Wild, and Han, 2014). When
devising the plan, marketing mix should be properly followed and the detail study about the
cultures of turkey should be done. They must study about their economical and political
conditions also. Studying about legal conditions would also help in understanding the legal
procedures.
Conclusion
As per this report it has been concluded that for setting up business internationally
various factors are to be kept in mind such as the marketing mix of that place where the
product has to be launched, the location factors are to be analysed beforehand. The roles
are to be determined before sending expatriates. And the fact that to be in the superpower
one needs to improve continuously.

REFERENCES
Books and Journals
Bayon, R., Hawn, A. and Hamilton, K., 2012.Voluntary carbon markets: an international
business guide to what they are and how they work. Routledge.
Beamish, P., 2013.Multinational Joint Ventures in Developing Countries (RLE International
Business). Routledge.
Birkinshaw, J., Brannen, M.Y. and Tung, R.L., 2011. From a distance and generalizable to up
close and grounded: Reclaiming a place for qualitative methods in international business
research. Journal of International Business Studies. 42(5).pp.573-581.
Dunning, J.H., 2012.International Production and the Multinational Enterprise (RLE
International Business). Routledge.
Hennart, J. F., 2010. Transaction cost theory and international business. Journal of
Retailing.86(3).pp.257-269.
Jenkins, R., 2013.Transnational Corporations and Uneven Development (RLE International
Business): The Internationalization of Capital and the Third World. Routledge.
Kojima, K., 2010.Direct Foreign Investment: A Japanese Model of Multi-National Business
Operations. Routledge.
Kolk, A. and Van Tulder, R., 2010. International business, corporate social responsibility and
sustainable development. International business review,19(2).pp.119-125.
Liesch, P.W. And et. al., 2011. The evolution of the international business field: a scientometric
investigation of articles published in its premier journal. Scientometrics. 88(1). pp.17-
42.
Preston, L.E. and Windsor, D., 2013.The rules of the game in the global economy: Policy
regimes for international business. Springer Science & Business Media.
Schaffer, R. and et. al., 2011.International business law and its environment. Cengage Learning.
Temiz, D. and Gökmen, A., 2014. FDI inflow as an international business operation by MNCs
and economic growth: An empirical study on Turkey. International Business Review.
23(1).pp.145-154.
Verbeke, A., 2013.International business strategy. Cambridge University Press.
Wild, J., Wild, K.L. and Han, J.C., 2014.International business. Pearson Education Limited.