ER3S75A International Business: CSR & Automotive Market Entry Report

This report analyzes Corporate Social Responsibility (CSR) within the context of international business, specifically focusing on the Chinese market. It explores various CSR activities, including environmental initiatives, community engagement, human resources, and philanthropy, highlighting the benefits for companies like TAKIMAKI, such as enhanced employee satisfaction, positive brand image, and new business opportunities. The report also addresses the risks and challenges associated with CSR in China, emphasizing the importance of ethical conduct and alignment with organizational values. Furthermore, the report examines the potential for TAKIMAKI to enter the automotive market, recommending the development of car entertainment systems as a viable diversification strategy. It discusses the impact of the automotive market on TAKIMAKI's sales, the importance of sustainability and social marketing, and the need for CSR activities to align with local market requirements. The report concludes that entering the automotive market with entertainment devices can enhance TAKIMAKI's market share and revenue.

Running head: INTERNATIONAL BUSINESS
International business
Name of the student
Name of the university
Author note

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Question 1
Corporate Social Responsibility can be defined as the duty of the organization towards
the wellbeing of the society in which it operates in. It means that the company needs to engage in
the wellbeing of the other parties both in legal and economic sense (Suliman, Al-Khatib and
Thomas 2016). There exist different types of CSR activities which exist in the organization like
the follows;
Environmental based CSR: In this kind of a CSR activity the organization focuses on the eco-
issue challenges which are faced like the climate change and the world temperature.
Community based CSR: The different business enterprises in the given scenario work towards the
welfare of the Community and tend to improve the life of the people living in the particular
place.
HR Based CSR: This CSR Activity concentrates on the wellbeing of the Staff which works for
the chosen organization.
Philanthropy: Through this activity the business donates money to a good cause through an
intermediary charity partner or any other related means (Crane, Matten and Spence 2013). The
given framework can help in understanding the framework which can be used effectively to
identify the different issues which exist with respect to the Corporate Social Responsibility of a
business organization.

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Figure 1: The CSR Framework (Carroll2015).
If the company, TAKIMAKI engages in a CSR Activity in China, it will benefit in the
following manner;
Satisfied employees: When programs related to employee welfare are conducted by the
organization take place, the employees working in the company feel engaged and respected. This
perception tends to go a long way in assisting the organization to achieve higher degrees of
production as motivated and happy employees contribute in a better manner to the organization
(Cheng, Ionone and Serafeim 2014).
Satisfied customers: The CSR activities also tend to make the different customer satisfied. This
is because the customers are a part of the society and if the TAKIMAKI Company engages in
activities which make these society members happy, the customers would like to willingly
purchase from the organization.

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Positive Brand Image: A company which engages in a good share of CSR activities tends to have
a positive image in the eyes of the different consumers and this tends to go a long way in
building a positive image of the organization. When the different consumers feel that the
different companies tend to engage in the CSR activities then they want to purchase the goods as
provided by the company
More business opportunities: The Company like TAKIMAKI will be prone to more new
opportunities if they contribute well and engage in more socially responsible activities
(McWilliams2015). This is because a contribution to this kind of activity will have an impact on
the long term wellbeing of the organization.
Cost reductions: Very often the government organizations also tend to provide subsidies and
reductions to the company which helps in reducing the costs of the organizations
The scenario of the China with respect to the Corporate Social Responsibility is very
risky and although the organizations contribute well towards to the society, they need to ensure
that the activities of the company are in good faith and in line with the activities of the
organization. The different Corporate Social Responsibilities related to CSR in the chosen
country in the China are as follows:
1. Donation to disaster relief
These days different countries are prone to various activities which tend to hamper the
environment and pose a threat to the wellbeing of the people (Taiand Chuang2014). Hence, when
different hazards like a volcano, earthquake or a tsunami tend to take place, then the lives of
thousands of employees are impacted. Hence, the company can greatly contribute towards these
relief methods which are present in lieu of the disaster.

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2. Protection of Human Rights
The Human Rights in China is a questionable issue. There are several Non-governmental
organizations and certain other companies which are greatly involved in such activities and tend
to help the rights of the people. Hence, in this context even the company TAKIMAKI can
contribute towards the wellbeing of the different people who are being denied their basic human
rights. This sphere covers human slavery and trafficking which is prevalent tin certain parts of
the country.
3. Safeguarding the wellbeing of the different consumers
This can be done by ensuring that the products as provided to the consumers are based on
ethical concepts. In this reference, the company can contribute towards the wellbeing of the
different people as well by providing them with products which may last long, are made after
considering ethical standards, will not harm their life in an manner and by providing them with
external assistance.
4. Elimination of corruption
Corruption is a key issue which exists in various countries including China. Hence, when
TAKIMAKI expands to china it needs to ensure that it is able to fight against the internal
corruption which tends to take place in an organization (Schwartz2017). It needs to ensure that
all the employees are paid well and the different sanctions which are made are allocated to the
right activities.
5. Open Public Day

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The Open Public Day concept is a popular in China and hence, adopted by various
Chinese companies. Following this even the company TAKIMAKI should conduct these
sessions regularly whereby stakeholders and the general public tend to visit the organization and
get to provide their opinion on the different concerns and the operational suggestions.
Support by the Government
The government of China highly supports the CSR legislations whereby the different
companies are highly supported in their path towards CSR success.
Question: 2
Introduction
Automotive industry can be considered as one of the potential market for the electronic
product manufacturers such as TAKIMAKI. This is due to the reason that there are number of
electronic products required in the automobile industry and with time, this is increasing rapidly.
This is due to the reason that in the current time, contemporary cars are having the more
extensive use of electronic parts and products ranging from microprocessors to car entertainment
systems. On the other hand, it is also important to consider that automobile industry is huge in
terms of revenue and size and thus the market potentiality will also be more for TAKIMAKI.
Furthermore, automobile industry is going through a transformation change in the recent time by
means of electrification. Electric vehicles are taking the place of conventional gasoline powered
vehicles. These electric vehicles are more superior compared to the conventional vehicles in
terms of use of electronic parts and technologies (Nykvist and Nilsson 2015). Thus TAKIMAKI
is having huge opportunity in foraying in the automotive sector.

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Impact of automotive market on the sales of TAKIMAKI
Currently, TAKIMAKI is only operating in the electronic appliance sector with having a
few products in their portfolio. Thus, it is not a viable option for TAKIMAKI in entering in the
global market or in a particular market with this limited product portfolio. It is also important for
TAKIMAKI to come up with new products for new markets in order to cover more diverse range
of customers in the global market. According to the Ansoff matrix, this strategy is termed as
diversification. Initiation of the diversification strategy will help TAKIMAKI to have their
presence in different market segment and having products that will be different from their
existing product line. It will enable TAKIMAKI to have more diverse product portfolio to target
diverse range of customers and will also enable them to enhance their brand value and exposure
(Penrose 2017). On the other hand, automotive market is way bigger than that of electronic
appliance market and thus the market potentiality for TAKIMAKI will also get increased.
Recommended products for TAKIMAKI to develop
In the current automotive industrial scenario, electronic products are being used in mainly
two forms, hardware and software. For instance, LED screens of Samsung are being used as car
entertainment system in the automotive industry. While on the other hand, software such as car
play system from Apple and Android for the cars (Fleming 2015). However, in this case, it
should be considered that some of the electronic products are being sold in business to business
format while some can be sold in business to customer format. Majority of the software products
such as car play system and the microprocessors are being sold to the carmakers and not to the
end customers. While on the other hand, hardware products such as the entertainment systems
are being sold both to the carmakers as well as to the end customers.

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Thus, it is recommended that TAKIMAKI should target the hardware market over the
software sector. This is due to the reason that huge investment and expertise is required n
developing the software products. In addition, the existing players in this market are already
established and there is very less chance of penetrating in this market by TAKIMAKI. Hence, it
is recommended that TAKIMAKI should come up with latest car entertainment system such as
LED screens, sound systems and Bluetooth connectivity device. Operating in this sector will
help TAKIMAKI to sell their products to both the end customers and the carmakers. Thus, the
market size and potentiality will get increased.
Consideration of different issues
There are number of factors should be considered in marketing the recommended
products in the global market. One of the major factors is the sustainability. This is important due
to the reason that in the modern business scenario, business organizations should be sustainable
enough in order to have long term potentiality along with having fewer impacts on the
environment and surrounding community (Gao and Bansal 2013). It is suggested that
TAKIMAKI should initiate the social marketing strategies in order to have both social and
commercial aspects. Initiation of the social marketing strategies such as offering cheaper
hardware in low cost possible for the affordable cars will help them to meet the social
expectation as well as meeting the business objectives (Burchell, Rettie and Patel 2013). CSR
activities should be initiated in line of their business due to the reason that new products should
get publicized through their CSR activities. For instance, offering of entertainment devices to the
schools. This will help in meeting the social responsibilities along with making the potential
customers aware about the products.

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It is also suggested that social innovation and CSR activities should be initiated in
accordance to the local market requirement of the target country. This is due to the reason that
social requirement will be different in different countries and activities should be initiated in
such a way that it will meet the local requirement of the target country.
Conclusion
Thus, it can be concluded that TAKIMAKI should come up with car entertainment
devices in order to enter in a new market. This paper discussed about the potential benefits to be
gained by TAKIMAKI by entering in the automotive market. It is concluded that offering
entertainment devices for automobiles will help TAKIMAKI to enhance their market share and
revenue. In addition, the factors that should be considered by TAKIMAKI in marketing their
products in the new markets are also being discussed.

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Reference
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