State and Host Nation Contexts Impact on Global Business Strategy: A Case Study of Volkswagen

Global business
strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Essay...........................................................................................................................................3
CONCLUSION .............................................................................................................................10
REFERNCES:................................................................................................................................11
Books and Journals:..................................................................................................................11

INTRODUCTION
International business refers to trade among different countries by the use of latest
technology and effective transportation. There is need of managing the work in such a manner
that the business organisation are able to carry on the work in international market (Guercini and
Milanesi, 2020). There is need of analysing the strategies and trends that will help the business
organisation to enhance the operations in effective manner. This report is based on Volkswagen
that is a Europe based organisation. The company has operations around the world. The Group
operates 120 production plants in 19 European countries and a further 10 countries in the
Americas, Asia and Africa. It is necessary to know about the best strategies that would help the
business organisation to operate in effective manner. This essay has discussion related to the
theories that help to carry on the business operations in international market in effective manner.
The company has to assure that they are able to fulfil their mission in the international market as
well. The use of effective strategies help them to manage the work. The challenges that are faced
in international business are also evaluated and the ways of overcoming the same are also part of
this report.
MAIN BODY
Essay
International business has facilitated the trade across the borders. The business
organisation are able to enhance their business operations and manage the business by carrying
their operation in international market. The nature of market is dynamic and there are several
changes that take place in the market. The business organisation such as Volkswagen are able to
get broader market to carry on their operation. The sales of the business directly expands as they
have got opportunity to manage the trade across the boarders. They have much more options to
carry on the business (Buckley, Enderwick and Cross, eds., 2018). This has also enhanced the
competition in market. Volkswagen has to compete with other company that has operations in
Asia, Africa or America. The business organisation has to analyse the needs and wants of
customers so that they are able to gain competitive lead. There is regular enhancement in
competition and that is the reason Volkswagen designs new strategies that help them to carry on
their operations in effective manner. Along with that, it is seen that due to international
operations the business organisations have to face more competition and the risk in their

operations also enhance. The use of key tools and techniques and proper research help them to
carry on their operations in effective manner. This has facilitate the customers as they are able to
get wide market that enhances the choice for the customers. It helps the customers to effectively
make purchases as per their desires and wants. The employees also get opportunities to get work
in international market so that they are able to get career growth. There is need of expanding the
operations by analysing the opportunities being present in market (Cherunilam, 2020). There are
certain drivers that helps the business organisation to expand their business in international
market. There is need of knowing about these drivers as they help the company to enhance the
operations in international market. There is more opportunities in the international market. It is
seen that the Volkswagen gets more opportunities to expand their operations in Asia, America.
This helps them to expand their business and the process of production. In the starting the cost
involved is enhanced but afterwards the business profits are also more. There is need of
knowing about the global marketplace and managing the work in proper manner. The right
strategies are adopted by Volkswagen and that is the reason they are able to carry on the work in
proper manner. It helps to carry on the work in emerging market with the help of proper
capability and use of resources (Shenkar and et.al., 2020). The car manufacturing organisations
identify the places where they are able to get low cost production and enhance the operations to
gain benefit. The expansion of business helps the business organisation to gain the advantage of
economies of scale.
Hofstede dimensions of culture
It helps to know about the culture of different countries. It is seen that all the business
organisation must know about the culture of place so that they are able to carry on the operations
in effective manner (Chi and et.al., 2019). The comparison of the culture in Europe and Asia is
done to illustrate. There are certain dimension that help to understand the culture and they are
explained below:
Power distance: It is seen that in Germany where the headquarters of Volkswagen there is equal
distribution of power. All the members are given equal rights that help them to carry on the
operations effectively. There is direct communication seen among the members of the
organisation there and they work together to achieve the goals and objectives properly. On the
other side, in Asia there is high score of power distance. It is seen that there is hierarchy that the