STRATEGIC INTERNATIONAL BUSINESS MANAGEMENT - 2022

Running head: STRATEGIC INTERNATIONAL BUSINESS MANAGEMENT
Strategic International Business Management
Name of the Student
Name of the University
Author Note

STRATEGIC INTERNATIONAL BUSINESS MANAGEMENT1
Table of Contents
Introduction:...............................................................................................................................4
Comparative Macro environmental Analysis:...........................................................................4
Political:.................................................................................................................................4
Economic:..............................................................................................................................5
Social:.....................................................................................................................................5
Technological:........................................................................................................................6
Environmental:.......................................................................................................................6
Legal:......................................................................................................................................7
Five Forces Model:....................................................................................................................7
Competitive Rivalry:..............................................................................................................7
Bargaining Power of Buyers:.................................................................................................8
Bargaining Power of Suppliers:.............................................................................................8
Threat of Substitution:............................................................................................................9
Threat of New Entry:.............................................................................................................9
VRIO Framework:...................................................................................................................11
Strong Global Presence of the business entity:....................................................................11
Pricing Strategy:...................................................................................................................12
Modes of Market Entry:...........................................................................................................13
Conclusion:..............................................................................................................................14
References:...............................................................................................................................16
Appendix:.................................................................................................................................19

STRATEGIC INTERNATIONAL BUSINESS MANAGEMENT2

STRATEGIC INTERNATIONAL BUSINESS MANAGEMENT3
Introduction:
The initiation of the global business processes is seen to be one of the top most
growth consideration for the business entities operating in the modern world of trade.
However, the sustainability of the business entities is expanding their business processes is
seen to be reliant on on the excellence of feasibility analysis of the organizations (Lozano
2015). In such situation, the significance of different feasibility analysis tools such as Porter’s
Five Forces analysis, PESTEL analysis or SWOT analysis is seen to be notably high (Sarsby
2016). The study is based on the evaluation of the market feasibility associated with the idea
of business expansion of a selected organization named as Lidl. The study assesses the macro
environmental factors that can affect the success of the organization in expanding their
business operations to Mexico and Norway. In addition to this, the study evaluates the
competitive nature of the market with the utilization of Porter’s Five Forces model. Other
than this, the study provides an important assessment on the resources and capabilities of the
business entity with the application of the VRIO framework. With a detailed understanding of
the outcomes of the above mentioned analysis, the study provides an important discussion on
the probable modes of market entry that the organization is expected to use for their business
expansion.
Comparative Macro environmental Analysis:
Political:
Mexico is observed to be affected with considerably high corrupted political situation
where the political leaders and the ones on power, are seen to have an increased tendency of
taking bribes for their personal benefits (López-Alonso and Vélez-Grajales 2017). On the
other hand, Norway is seen to have a stable political situation. Norway is regarded as