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Managing International Business- Assignment

   

Added on  2020-01-28

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ManagingInternational Business

TABLE OF CONTENTSIntroduction......................................................................................................................................31. Appropriate analytical framework, identifying and analyzing the criticalmacro-environmental factors that can influence Volvo’s international marketingactivities and their likely implications on the firm.....................................................................32. Recommending and justifying the most appropriate market entrymethod for Volvo’s proposed entry method in an emerging market..........................................63. Evaluating the 4 international human resource management approaches along with therecommendation for the most appropriate approach...................................................................9Conclusion.....................................................................................................................................10References......................................................................................................................................112

INTRODUCTIONInternational business can be defined as selling and purchasing of goods and serviceswithin the countries. In international business, business transaction are conducted all over theworld. The business transaction includes exchange of goods and services, technology, capital andknowledge from one country to another country (Dunning, 2012). It also includes promotion,distribution and selling of product all over the world. The present report is based on theassignment of vulnerable Volvo. As Volvo is relatively a small car manufacturer with havingless than 1% of the global market share (Volvo. About us, 2016). Furthermore, this reportidentifies the critical macro environmental factors that will influence the mentioned companyinternational marketing activities along with their implications. It also explains the mostappropriate market entry methods for Volvo's proposed entry method in an emerging market. Inaddition to this, the 4 international human resource management approaches are evaluated in thisreport along with the justification of the most appropriate approach for entering into India.1. Appropriate analytical framework, identifying and analyzing the criticalmacro-environmental factors that can influence Volvo’s international marketingactivities and their likely implications on the firmMacro environmental factors are the external and uncontrollable factors on the business.These external factors have a great influence on the company's decision making along with this itaffects the performance and strategies of the company. This environment has a great impact onthe success of the company and also on the marketing campaigns. The factors covered in themacro environmental factors are political, economical, social, technological, legal andenvironmental factors (Wild, Wild and Han, 2014). To identifying, analyzing and scan thecompany's external macro environment, Pestle analysis is used. Considering this factors willimprove the success of the company, reputation of the brand and their marketing campaigns. Theprimary external influence have a great impact on the business of the Volvo. This factors varyaccording to the different countries.The purpose of the analysis of the Pestle is to identify and analyze the factors which haveinfluence on the Volvo's international marketing activities. The pestle analysis will help thementioned company by focusing on the areas like country environment, competitive conditions,socio economic culture etc. As this will also help in identifying the future challenges. 3

Politicalfactors- This factors are related to the political situation of the country. This factor isanalysis to know the level of government intervenes in the economy (Forsgren and Johanson,2014). The areas which include in the political factors are tax policy, trade restrictions, politicalstability, etc. There are many laws and restrictions in UK, which the mentioned company has tofollow. Along with this, the political factors have a great influence on the international marketingactivities. There was many barriers in the country related to the law or the interference of thegovernment, but due to the emergence of the globalization and liberalization, many barriers wereremoved. The growing environmental concern in the country, forcing the UK government tointroduce harsher regulation for the automatic industry. For example, from the governmentpolicies, America saved the 'American big three' of the automobile manufacturers in 2009.Along with this, to make international marketing by the Volvo, government make nodifficulty with the automobile merger (Verbeke, 2013). For the international marketing activities,mentioned company have to follow the different laws and regulation of the different countries.For the Volvo, government foreign policies are important for the Volvo. For the local automaticindustry protection, there are extreme tax policies which is adopted by the UK. Economical factor- The factors includes the economic growth, interest rates, exchange rates andthe inflation rates (Atwong, 2015). These all factors affects the business operations and alsoeffect in making decision related to the international marketing. In 2008, the economic recessionin the UK, hit the automotive industry immensely. From this the sales of the company goesdown. In 2013, the sale of the Volvo were down by 18.3% and also were continuing to underperform in 2014 from the given economic turmoil. This under perform leads to filing forbankruptcy and also demise of several automotive brands (Fifield, 2012). Now withrising petrol prices, Volvo’s SUV market is under threat. There were economic slowdown inmany countries, due to the crisis in 1970-80. To make international marketing activities, thementioned company have to be aware about the interest rate, exchange rate and inflation rate ofthe other country. The sales dropped significantly and the company had to lay off someemployee to continue its business. With the rise in the prices of the fuel, there were fall in the sale of the automotiveindustry. With this rise, it affects the Volvo, and also affect the performance of the company. Forexample, the international marketing activities will be affected, if there is rise in the petrol or4

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