International Business: Molex Case Study Analysis and Reflection

This report presents a detailed analysis of Molex's international business strategies, focusing on its expansion into global markets. The report begins with an introduction to international business and provides an overview of Molex, an electronics company. It then delves into a case study, addressing various questions. These include an examination of the theoretical concepts implemented by Molex, such as Porter's generic strategies (cost leadership, differentiation, focus) and vertical integration. The analysis extends to Molex's international strategies, including its multinational approach and multi-domestic strategies. The report also evaluates appropriate performance indicators, HR staffing approaches (geocentric), and the motives behind Koch Industries' acquisition of Molex. Furthermore, the report includes a reflective statement, discussing the theories used to understand the case study, the module's contribution to learning, and any barriers encountered during the analysis. The conclusion summarizes the findings and the report includes references to support the analysis.

INTERNATIONAL
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
PROJECT 1- Case Study.................................................................................................................2
Question 1........................................................................................................................................2
Theoretical concepts implementation in Molex case study........................................................2
Question 2........................................................................................................................................5
Molex international strategies.....................................................................................................5
Question 3........................................................................................................................................8
Appropriate performance indicators of Molex............................................................................8
Question 4........................................................................................................................................9
HR staffing approach utilised by Molex.....................................................................................9
Question 5......................................................................................................................................10
Motives for acquisition of Molex by Koch Industries in 2013.................................................10
PROJECT 2- Reflective Statement (Synoptic experience)............................................................11
Question 1......................................................................................................................................11
The theory used to make sense of respective case study of Molex...........................................11
Question 2......................................................................................................................................12
Module contribution in enhancing own learning and transferable skills..................................12
Question 3......................................................................................................................................13
Learning process and various barriers experiences during answering to the respective
questions....................................................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
International business is the group of commercial activities and operation that are carried
out beyond the boundaries of political environment of country. This involves business
transaction between the different region, countries in the world. International business actions
comprise of sales of productions, export and import of company production, establishing in new
production lines in countries which are differentiated by political boundaries. These all should be
managed by the effective strategies of growth and helps in dealing confidently with the existing
international competition in market (Beaglehole and et. al., 2011). International firm are
developing various type of expansion strategies through utilising their competitive advantage to
capture new markets in overseas countries. This helps inn increasing the profitability of firm
through globalisation. Going for international business may be an difficult decision and have to
face many critical problems for the developing successful business in market.
Molex is an electronics company engaged in delivering its products to the market of
United kingdom. The company is delivering its products and services to large number of
countries to expand business overseas. The first establishment of the company is opened in Japan
in 1970 and the second establishment was the manufacturing plant in Ireland in year of 1971 for
the expansion of business overseas. The Company was later on acquired by the Koch industries
in 2013 to expand the company share as well as market share with sharing of same customer
segment.
In this report various theoretical concept are discussed which can be used by Molex to
expand the business overseas. The company can go through various expansion strategies like
transnational, global or multinational strategies in order to increase the profitability of firm. The
company should make efficient decision relate to the section of international staffing strategies
working in compliance with the organisation globalisation plans in order fulfil all the gaols of
firm effectively (Beamish, 2013). In the reflective statement I observed that the Vertical
Integration and Porter Generic Strategies are contributing in the growth of Molex to large extent.
Through my learning while critically analysing this respective case study of Molex I have
developed many skills to manage effective internal business growth strategies along with
defining good HRM practising of geocentric staffing approach.
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PROJECT 1- Case Study
Question 1
Theoretical concepts implementation in Molex case study.
Molex is the company of United states which is engaged in delivering electronic and
related products in market (Brown and et. al., 2012). The company have to develop various types
of development strategies in order to capture new market in the different countries. The various
theoretical concept defines the growth strategies of Molex which can be applied in practice in
order to expand business beyond the country political boundaries. Porter generic strategies
defines the company approaches relate to development of leadership in product prices and the
product line through attracting different customers segment towards organisation services and
finished goods. While analysing the competitive advantage of Molex helps in defining various
strategies that can be profitable to access the competitive market in various countries. The
various theoretical approaches of the Molex in order to expand business in overseas are
described below.
Porter generic strategies- This is the strategic model given by Porter in order to develop
action plan of company through analysing the competitive advantage and target the prospective
market effectively. This defines the action plan for achieving the targets of establishment of
successful international organisation. This theory can provided significant strategies to Molex to
develop cost leadership and differentiation focus strategies in practice to counter with the highly
competitive foreign market through utilising the organisation capability of its competitive
advantage effectively (Bryson, 2011). This strategies controls over the competitive advantage
and the available resource and capacity of the external market to the growth plans for the
company profitability in other countries. The various strategies are described as follows:
Cost leadership: The porter generic policies and strategies helps in gaining competitive
advantage by the company in different fields to help in targeting the various segment of market.
This strategies follows the reducing cost of manufacturing which will result in delivery of
products at lower prices as compared to the other competitors in market. This will helps in
increasing the sales of Molex electronic products in many folds (World, country, and sector
factors in international business cycles. 2013). The Molex company is focusing upon gaining
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cost leadership in market through reducing the production cost and establishing manufacturing
plant in the different countries which requires low expenses to access the business.
Differentiation: The company is adopting various policies in action in order to develop
an differentiation competitive advantage in market. This will result in increasing the profitability
of firm as this strategy will helps in providing variant products to the customer with higher
efficiency to fulfil demand of consumer in continuous changing environment. The Molex
company of focusing upon the differentiating the quality services from its competitiveness This
will helps in dealing with higher competition in market by Molex efficiently (Cantwell, Dunning
and Lundan, 2010). This will helps in attracting large numbers of customers because of
standardised and unique product line the manufacturing plans of Molex. This can be achieved
through adopting new technology in production and develop new design. These strategies should
be working in compliance with the different product design, maintaining good quality of product
in new manufacturing line in order to develop higher loyalty of customers with the brand image.
Focus strategies: The focus strategies can be defined as the development plan of
company which is designed or planned in order to target the specific needs of some certain group
of customers. These focus strategies are focusing upon the needs and desired of the niche market.
The various approaches that are developed during adopting ficus generic strategies in practise by
the organisation growth are defined as below. Differentiation Cost focus- This is the plan in which the company is enveloping its
competitive advantage through targeting the special needs and wants in the product
qualities and variation by the niche market. This strategies is followed when an customer
is ready to pay higher amount fro some extra specifications in the product. This is
followed by developing an differentiated product line for certain group of niche market.
Molex is following this respective strategy for accomplishing specifically the some
special needs of customers in market.
 Differentiation focus- This strategy also focuses some specific group who customer
which are appealing for the products focusing upon the special cost of goods of company.
This is developing an product within the defined range of price by the niche market
(Cavusgil and et. al., 2014). This is targeting different market segment according to the
cost focusing strategies in business environment. Molex is following this respective
strategy in order to target different class in the overseas countries analysing the
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disposable income of various segment of people in the region to expand business
successfully through gaining higher sales in external marketplace.
Lower cost: Molex is focusing upon the developing lower cost product in manufacturing.
The company is developing various type of strategies in practice in order to reduce the cost of
productions which will leads to delivering the goods to customer at lower prices as compared to
other competitors in market, this helps in increasing the profitability of firm in many folds and
helps in generating higher revenue in new market of target overseas countries. The international
business strategy should focus on the objectives of firm which helps in gaining higher customer
satisfaction (Chabbott, 2013). Molex has established its manufacturing plan in more that 20
countries which are having lower cost of production and able to accomplish all the goals of firm
effectively. These target countries is having competencies to the large number of customer base
also which helps in reducing the cost in transportation and value chain and ultimately helps in
achieving the low cost targets of Molex in international market.
Standardise Products: The company is also focusing on the standardising the products at
global level. This can be archived through following effective strategy to maintaining uniqueness
and quality standards in manufacturing plan of electronic by Molex company. This helps in
maintaining good image in the global market through its standardised products and services to
the target customers. The company is focusing upon the delivery of standard quality of product
in all the accessing countries. Molex is providing efficient training to its employees which helps
in developing standardisation in manufacturing by the company in every targeting region of
other political boundaries.
Vertical integration- This referred as integrating the operation in from the operation
chain. The integration may be backward or forward depending upon the organisation capability
and competitive advantage in the functions. Like for instance the forwards integration in
operation can be defined as integrating the functions with the value chain and logistics
companies to delivery product in effective manner to the customers (Chelliah, Sulaiman and
Yusoff, 2010). While the backward integration can be described as coordinating the function
with the supplier of raw material etc. The Molex can integrate the function from both the forward
and backward hierarchy of functioning in order to bring integration in the production and
manufacturing actions. This strategies is followed by acquisition or merger with the other
companies who are engaged in the part of production line. Molex is acquired by Koch industries
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which helps in integrating the functions of organisation with large number of production line.
This brings higher efficiency in the manufacturing and also contribute in increase in profitability
of firm (Dunning, 2012).
Question 2
Molex international strategies.
The company are following different types of internationalisation strategy in order to deal
with demand of different country market effectively. This followed up by defining various action
plan in order to target the various market globally with different approaches to dealing with
needs of customers in different region. The internationalisation is the process going overseas for
the business expansion. This may involve targeting market by only export or import or it may
develop various strategies of growth to establish production plant in different countries. Different
level of internationalisation in the commercial environment followed by an firm during
expansion of Molex are defined as below.
Multinational company: This involves various strategies to target at least one more
country to delivery their products by firm other than home country. These company are having
factories and valuable assets of organisation in more than one country (Fatoki and Chindoga,
2011). Molex established its first manufacturing plant in Japan for going in international market
in 1970. The company is having centralised headquarter which is maintaining the operation of
business globally.
Multi-domestic strategy: These are the business organisation who are engaged in
targeting the domestic needs of the different nations in global market. Molex is focusing upon its
expansion strategies to target the different nations markets through attracting the customers by
analysing the domestic demand and needs of every country. This should be followed by effective
marketing, financial, research and development competitive advantage of company by analysing
the needs of domestic market of nation.
International company: These are the companies which are dealing in global market and
are working in an tax exempted heaven environment. These type of companies are offshore
corporation and benefited from the domestic taxes rates, legislation in target countries (Fowler,
2013). The company is only following the legislation of parent country. These are also called as
international business corporation (IBC).
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Global strategy: The global strategies re the pans of expansion developed by an firm in
order to deal with the global market effectively (Four Basic International Business Activities.
2017). This type of organisation is engaged in delivering its services and product in different
countries along with carrying out various commercial activities in beyond the boundaries of
parent country political boundaries. Molex is highly motivated to expand the business globally
and first step taken by the firm towards globalisation is in 1970s through establishment of
production plant in Japan and Ireland.
Transnational company: This is the strategy of internationalisation followed by different
company in order to develop higher amount of profit through establishing business in overseas.
The companies like Molex are developing various type of action plan in order to access national
market through accessing the neds of foreign customers through delivering services by
development of factories and shops in the more than one nation (Gupta and et. al., 2010). Molex
is an transnational corporation delivering services to the more than 20 countries with
establishment of about 50 manufacturing plan in these nations.
The Molex is an international company engaged in delivering services to large numbers
of nations. This should be followed up by developing various expansion strategies working in
compliance with the organisation corporate responsibility towards the government, society and
environment. As working in global market the company is also having great responsibility
towards the ethical actions of the business in environment. The Molex is complying with all the
corporate responsibility firm through controlling the carbon footprint in their operation to serve
better environment and also contributing towards the betterment of society through ethical action
in working environment.
While developing various internationalisation strategies the Molex company have to
critically analyse the needs of business environment and the factors affecting the current
situation in the surrounding of businesses (Hadad and Moatti, International Business Machines
Corporation, 2011). The company should develop various globalisation strategies in compliance
with the changing external micro and macro environment which may effect the success rate of
the firm in commercial surrounding. The nature of products of the Molex company are
standardised and with good quality. The company is focusing in differentiating the product on
the basis of features and cost both. The company is focusing in developing unique products with
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establishing standardisation in the global market according to the needs of target market of
different countries.
The nature of the products of the Molex company is highly profitable. The company is
engaged in delivering various electronic product like connectors for devices and the custom
electronic as per the demand of the market and specific customer (Hall and Page, 2014). The
nature of the goods sold by organisation is highly productive and having greater scope of
expansion in current marketing scenarios and also have ability to accomplish all future aspects of
market profitably.
The company should analyse the financial statement of Molex before developing any of
the expansion strategies for the firm (4 Types of International Business: Are you ready to Start?.
2016). It is necessary that the company should look out the financial resources before
formulating any of the actions plan related to various international business strategies. Because it
is the most important resource of the organisation which helps in effective implementation and
development of action plan in international market to achieve targets successfully.
Before developing any of the expansion and international business strategy the Molex
should analyse the activities of competitors and their plans of development in order to compete
effectively and confidently in the highly competitive marketplace (Islam and et. al., 2011)
(Keohane, 2011). Competitors actions should be critically reviewed by Molex company in order
to analyse their competitive strength in production and various marketing strategies.
This should be also reviewed whether the market share of particular industry sector is
high or low. This should be managed efficiently in the practical international market to grab
various growing market share opportunities for Molex company. This should be analysed
effectively that the market which is company is planning to enter is profitable and having high
capturing market share or not.
The economic scale for the product profitably of firm should be calculated and reviewed
before making any of the development ad expansion plan for the organisation. Economic scale is
the amount of profit which can be carried out from the expansion and product differentiation
strategy by introducing Molex products in international marketplace.
Molex is having two product line for which they are continuously developing new
strategies for the growth of the company as well as for developing quality products (Killing,
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2012). These product line are device connectors and customised electronics. This helps in
developing an niche profitable market for the organisation growth strategies.
The competitors to the Molex company are Amphenol Corporation, Framatome
Connectors International, Hirose Electronic Co., Ltd which are dealing with the same segment of
customers. These companies are engaged in similar production line which creates and huge
healthy competition in market place which helps in garbing between future growth opportunities
for the company.
These expansion strategy on the international market defining the various approaches to
capture highly profitable marketplace of different countries (Martin, 2013). These strategies
helpful make sense to the development plan of the Molex company, these strategies may involve
merger and acquisitions to expand the business confidently in overseas. This is the strategic plan
of the Molex company which is highly beneficial in achieving all aims and objectives of firm.
The business strategies helps in dealing confidently with the high amount of competition
in the working market. These strategies can be linked to the nearest competitors as the
Amphenol Corporation is also developing various strategic plan of expansion to growth business
in overseas. Like this corporation is engaged in targeting the niche segment of the market
through developing customised electronic goods in the manufacturing line which similar to the
strategies of Molex (INTRODUCTION TO INTERNATIONAL MARKETING. 2015).
Question 3
Appropriate performance indicators of Molex.
KPI- Key performance indicators are the various factors that reflect the organisation
performance in the marketplace. The Molex performance can be determined through effective
analysis of the KPI in 2010 to 2013 year report. Molex profitability and actin scan be determined
through studying various factor which can be financial achievement or non financial.
Financial- These are the indicators which taste the performance level through the
financial growth in the company. Molex is earning more and more profit in the marketplace
which are the considered as the finical key performance indicators (KPI) of the firm. Net Revenue: The new revenue is the profitability earned by the firm in the market
(Mingst and Arreguín-Toft, 2013). This is defined the performance indicators which
helps in gaining the higher profit from firm. Molex is making huge number of money
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and achieving all the targets of net revenue to be achieved by the company through
developing good performance standards in workplace. Net debt: The Molex company total debt should be managed as low as possible. The
company should take care of the various debt of the organisation. It should be managed
by the company to strengthen the financial problem of Molex through controlling good
quality performance in working environment of company.
Non Financial- These are the indicators which critically measures the performance
standards of the company by the financial aspects. The non financial aspects of indicating the
performance level of the Molex company can be employment rate, new product line etc. to
measures the actions of organisation (Rice, 2013).
Employment turnover rate: The company should maintaining lower employment
turnover rate the organisation working environment. Molex should provide an healthy working
environment to their employees and satisfactory services to the workforce in order to retain the
motivated workforce of the company for longer time period. This helps in attaining the lower
employment turnover rate and contribute in good performance of the Molex firm.
Number of established new products: The new products of the company largely
influence the performance standards of the firm. The Molex company is developing large
numbers of the production line in operations in order to attain higher performance standard of the
organisation effectively (Rittberger, Zangl and Kruck, 2012). This helps in expansion of business
through targeting large numbers of customers in the newer marketplace.
Question 4
HR staffing approach utilised by Molex.
HR staffing approach- Geocentric approach: In this particular method of hiring of the
employees for the organisation is followed up by the selection of the appropriate candidate for
the specific job position irrespective of the nationality of the individual. In this approach the best
candidate for the firm is hired for the subsidiaries of the parent company in the host country
(Shaffer, 2010). The Molex company is following this particular approach in order to enhance
the performance level of the organisation through hiring motivated and appropriate candidate for
the particular job.
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