Risk Management and International Business Operations Assignment

This assignment analyzes various aspects of international business operations. It begins with a risk management analysis for Tesco, identifying and managing political, economic, and operational risks in South Africa. The second part focuses on HR management, recommending job titles and a settlement plan for expatriate managers in a Swedish medical equipment company's Mexican factory. The third question evaluates the benefits and drawbacks of FedEx's outsourcing arrangements. Finally, the assignment explores Tesla's transition towards sustainable business practices within the context of Industry 4.0, examining the company's use of technology and its move towards electric vehicles and AI.

Running head: INTERNATIONAL BUSINESS OPERATIONS
INTERNATIONAL BUSINESS OPERATIONS
Name of the Student
Name of the University
Author Note

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Q1 You can choose any international company, who has faced any one of the country risks:
political, economic, operational or competitive, in the last 12 months in one of the following
regions: 1) South America, 2) Africa, 3) Central Asia, and 4) Middle East. Identify, analyses and
manage the risk as if you were employed as a consultant by your chosen company. Any risk
management technique which has already been adopted and utilized by the chosen company will
NOT be accepted in your answer.
Tesco is a supermarket giant which is known for operating in UK as well as in many
other countries globally. The company is known for dealing with British Multinational groceries
and general merchandise retailer with more than 115 countries all over the world. The largest
store is located in UK taking a market share of more than 84% of the overall profit earned by the
company from the global areas. The South African Government of the country has recently
affected the performance of the company as well as the revenue earning of the company in terms
of production and promotion in terms of goods and services.
The government has recently adopted various types of tax measures that has affected
Tesco according to the author Andersson, Jordahl and Josephson, (2019). In the year 2018 the
African Government increased the VAT rate from 17.5% to 20% with the aim of increasing the
government revenue from the giant companies. The increase in the VAT rate will be lowering
down the spending power of the customers. According to the author Penton and Hammerschlag
(2019) the negative impact of the sales figure is affecting the growth of the company in South
Africa. It can be recommended that the company should try to build in new policies which will
be responding to such threat and risk faced by the company in the present date. The company
should try to introduce policies and launch campaign like brand new healthy food range

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Regarding the economic risk it can be said that the company has been facing various
types of economic risk in Africa and its surrounding areas. The African economy is known for
showing negative signs of recovery from the financial crises after analyzing the lower rate of
economic growth in various areas of the country. According to the author Penton and
Hammerschlag (2019) the main reason for facing the risk is that there are various types of
employees who are known for working on a low wage rate. This is a big problem for the
company as because with this issue the company might be able to face various types of economic
issues. It can be recommended that the company should try to bring in low priced good and
commodities which will fit into the hands of the low income customers in the country. It will
help the company to recover from the economic recession it has been suffering from.
The company is also known for facing various types of operational related issued in
South Africa as because here the company has to pay huge amount of money to the wholesaler
and as well as other resource locators in the business. Therefore it leads to higher cost of
operations in the manufacturing business for the long term. With the risk regarding operations it
can be said that the company should try involve in getting low operational cost saving
techniques. In order to minimize the excess operational cost incurred by the company in the
present date.
The risk management technique which can be sued by the company in order to maintain
the risk and mitigate them are avoiding the risk as well as retaining it in order to get rid of the
risk for a long term. The company can try to avoid the risk so as by taking care of its operations
in the specific market as well as maintain the factors responsible for maintaining it. The company
can try to make various types of strategies in order to form a board and discuss regarding the
outcomes of risk and try to manage them effectively.

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Q2 You have been promoted to HR Director in the Swedish company which manufactures and
sells the medical equipment (MRI scanner). Being very hi-tech, the equipment have until now
been made in Sweden by the company’s skilled team. Your employer has just purchased a
factory in Mexico for the manufacture of medical equipment that have been selling well in the
USA. There is a budget for three expatriate managers to be sent to manage its operation in
Mexico for four years. The CEO has asked you to recommend the job title for three expatriates
with your justification for each job title and prepare a plan to help these expatriates’ early
settlement in Mexico
The three job titles which are selected fir the paper is the Radiologist technical manager,
the MRIO technician Manager and the Test identification managers. The radiologist technical
manager is known for specifically dealing with various types of medical disciplines that are used
in the technical medicinal value of the medicine. The aim of the manager is to treat the medicine
as peer the usage in the community as well as it is used by various types of people living in the
selective community in a stimulated geographical area or location. The variety of the radiologist
technical managers to mainly deal with various types of latest technique slake the X ray dealing
and various types of radiographic displays, the ultra-monographic display and the nuclear
medicinal value in the specific compound (Dawkins, Duncan and Stevens 2017).
The manager is also known for dealing with various types of modern practice of
medicines who are involved in various other sectors in the health care industry. The second title
is the Technician manager who is completely responsible for testing various types and kinds of
machines which are used in the company or the laboratory company. The technologist manager
is known for operating the new machines and objects which will be used in the company. The

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technologist manager is known for describing the employees in order to deal with the machines
in a proper way so that they can be made useful for the long run.
The test identification manager is known for dealing with the test procedures with the
new techniques and machines used in the company. This manager also help the employees to get
involved with the new machines and technologies used in the company when treating customers.
The managers also gets various types of roentgen discovered in the company which later on
deals with other priorities thus helping the patient to get the treatment done. The manager also
deals with new technologies used and derives how the company can gain sustainability for a long
period of time.
Plan to help these expatriates’ early settlement in Mexico
Job expatriates Training and development Time needed
Radiologist technical
manager
Medical equipment training 1 month
MRIO technician Manager Medical equipment training 15 days
Test identification managers Medical equipment training 20 days
Q3 Choose any international company who has outsourced one of its business functions to a
local company in their international operation (For example: DHL’s use of local Indian company
for its inbound freight distribution in India) and critically discuss the benefits and drawbacks of
its outsourcing arrangement with the local company. An outsourcing arrangement between the
two companies should be post 2010.

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The chosen company for the answer is FedEx who is known for using the domestic
outsourcing of various types of good and services. Few of the advantages of using internal or
domestic outsourcing services are cost advantages techniques which are most obvious and visible
benefits to the cost saving techniques. The internal or domestic outsourcing of good is known for
saving huge amount of cost for the company in terms of external sourcing of goods through other
retailers. Therefore the internal distribution of good and services through the outsourcing
companies are known for saving more than 60% of overall cost. It also helps in delivering better
quality services by providing high amount of quality services ensuring low cost of travelling
expenses (Kabachia and Kihara 2019.).
The company also gains various types of advantages like increased in the efficiency in
the business needs. The outsourcing companies are known for building in years of experiencing
in the business practices and expertise in delivering various types of complex outsourcing
techniques used in the business projects. Thus with this the business organizations can do better
jobs with the obtained skills and knowledge by understanding the domain. According to the
author Hammerschlag, (2019) this is known for leading to an increase in the production and
effectiveness of the business in the process of manufacturing and production, thus contributing to
the bottom line of the business. The main advantage which is also faced by the company is it
helps the business organizations in focusing on various types of core areas of the business.
According to the author Hammerschlag, (2019) the outsourcing of the business process
will be able to free out the energies, thus enabling the company to focus on building the career
and building the brand in the market. The company with this will be able to save huge amount of
time and money thus investing in research and development to add move higher value to the
company. The company will be able to save huge amount of money in the infrastructure and

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technology part of the business. Outsourcing helps the company to save huge amount of money
in further investment in the sourcing partners associated with the company. It might make use of
the same infrastructure again and again till the long run. With this the company is also gaining
advantage by getting various types of skilled resources and skilled workers. According to the
author Penton and Hammerschlag, (2019) companies like FedEx transportation solution so as by
taking care of the pool of highly skilled resources in the company.
Disadvantages of outsourcing mainly includes the company might be able to lose control
over the work which is given to the agencies. In most of the cases it has happened that the
company lose its control in monitoring the issues taking place. Also the company has to pay
various types of hidden cost to the outsourcing agencies to get the things done in a proper
manner. According to the author Gusmerotti, Testa and Rizzi (2019) in a particular research it
has been found out that the popular giant transporting companies sign big contract with small
agencies which include huge amount of fine issues and fine printing issues. Therefore these are
the few disadvantages or drawbacks of outsourcing arrangements with the local companies.
Q4Recently, a notion of ‘Industry 4.0’ or ‘Fourth Industrial Revolution’ has become of a center
of attention in the business world. Some associated technologies, such as additive manufacturing,
advanced robotics, Drones, IoT, Blockchain, and AI, have been rapidly developing and many
firms are contemplating different ways to exploit these technologies. Choose any international
company utilizing one of these technologies and discuss their journey in moving away from its
traditional business to more sustainable business
Taking for the example of Tesla it can be said that the company has significantly moved
in developing various types of electric vehicles and electric cars in order to lead its way into
sustainability. The company has achieved a great achievement in order to build various types of

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cars which run fully on electric. The company in the present date besides making various types
of electronic devices and cars have also started building drones in order to give a tough
competition with the competitors in the business.
The company is known for using various types; electronic companies which deal with
various types of AI techniques and latest use of technologies. The company in the present date is
working with various types of business analyst to build the latest fighting drones and helpful
drones. The company has recently joined hands with various types of fast food serving
companies in order to deliver the food through the drones to the customers present in the market.
This is a very important technique planned by the company. According to the author
Ruotsalainen (2019) this plan is known for getting its implementation in the recent few decades.

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References
Ahmadi, F., Aazami, M. and Sadeghi, T., 2019. EVALUATION OF OUTSOURCING
EFFECTIVENESS IN KURDISTAN HOSPITALS. Journal of Economic and Social
Research, 18(2), pp.92-96.
Andersson, F., Jordahl, H. and Josephson, J., 2019. Outsourcing Public Services: Contractibility,
Cost, and Quality. CESifo Economic Studies, 65(4), pp.349-372.
Dawkins, A., George, N., Ganesh, H., Ayoob, A., Lee, J., Nair, R., Kiper, C., Duncan, K. and
Stevens, S., 2017. Radiologist and Sonographer Interpretation Discrepancies for Biliary
Sonographic Findings: Our Experience. Ultrasound quarterly, 33(4), pp.261-264
Gusmerotti, N.M., Corsini, F., Testa, F., Rizzi, F. and Frey, M., 2019. OUTSOURCING
ENVIRONMENTAL SERVICES: NEW INSIGHTS INTO THE FACTORS INFLUENCING
THE CIRCULAR ECONOMY. Environmental Engineering & Management Journal
(EEMJ), 18(2).
Kabachia, S. and Kihara, A., 2019. EFFECT OF PROCUREMENT OUTSOURCING ON
PERFORMANCE OF KENYA AIRWAYS LIMITED. International Journal of Supply Chain
and Logistics, 3(3), pp.34-55.
Pedaci, M., Braga, A. and Guarascio, C., 2019. Outsourcing of services and collective bargaining
coverage in Italy. An analysis on cleaning, ICT and facility management companies/services.
Penton, M.E., Otto, C. and Hammerschlag, M.R., 2019. Outsourcing Microbiology Services in
Medical Centers: Is It Worth It?. Journal of the Pediatric Infectious Diseases Society.

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Ruotsalainen, R., 2019. Outsourcing public services: A multilevel model of leadership-driven
gradual institutional change of public services provision. In Microfoundations of institutions.
Emerald Publishing Limited.