Analysis of Strategies, Trends, and MNCs in International Business

This report provides an overview of international business management, focusing on cooperative strategies such as strategic alliances and joint ventures, and their cultural implications. It highlights challenges arising from current trends like diversification, liquidity issues, and technology adoption in the global market. Furthermore, the report examines the factors attracting multinational corporations (MNCs) to emerging economies, considering both the risks and opportunities involved, including lower costs, growth potential, and untapped resources. The analysis emphasizes the importance of understanding local markets and adapting to diverse national policies for successful international expansion. Desklib offers a platform to explore similar reports and solved assignments for students.

International
business
management

Table of Contents
INTRODUCTION...........................................................................................................................1
Various cooperative strategies and Culture: ............................................................................1
Challenges highlighted in trends and developments : ............................................................2
What attracts MNC to emerging economies risk and opportunity...........................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
TASK 1
Various cooperative strategies and Culture:
It refers to the planning strategy in which two or more company operate together in
regards to attain a basic objective. A cooperative strategy provides a company advantage,
individual to the company beneficial, specially to organisation that have a lack of
competitiveness know how or factors. It help to develop competitive strategy by growing
the qualities that afford competitiveness benefits. It can also give power to corporate
planning by creating the corporate goals more successfully. It consist a various types of
strategy that described in below.
1. Strategic alliance - it is also known as strategic partnership, a strategic alliance is
a cooperative arrangement between two or more organisation. The strategic
confederation is the first cooperative planning. It is a non equality industry
understanding between two or more companies for encouraging their joint
competing benefits. This is created to assist each other in company for mutual
benefits. It didn't estate creating a new industry structure. The partners is strategical
confederation have no formal position like a joint venture. The partners instead
work cooperatively under an agreement. The cooperative agreement should outcome
in win win consequences for all the members to confirm ultimate attainment. No one
loses where as every one gets success. It makes good stage for the allies to execute
research, develops offers and share automation. In sharing R&D details they
corporate on automation development, come with new goods that appreciate each
others in the target market, and construct networks of dealers and distributors to
manage their goods. For example strategic alliance includes HP and Intel, Microsoft,
UPS and many others.
2. Joint venture - it is the second type of cooperative strategy. A joint ventures notes
a new company by two or more units. It is an agreement where two or more
companies control share capital in a business. In this business all the members
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industry has certain degree of a control. The equity arrangement between
independent enterprise results in this creation of a new business entity. The share
capital organised between independent business leads to the making of a new
company. It means that the encouraging structure compose of a new organizational
entity. It agency that the supporting administration. The partner manages the newly
created companies. Two business should be in agreement to present a new
establishment to create a joint venture (.Prud’homme, 2019). It is beneficial for
making an possibility to combine the quality and inventory of partners crucial to
launch a good venture. A joint venture is a formidable method to enter into a
foreign trade when the market entry limits by governing bodies with a local
members in a international region. Whereas both ease joint investigation attempt,
engineering mutuality, joint use of operation installation, marketing one another
goods and joining forces to produce factors or assemble complete goods.
Thus, when a company is properly aligned with personal values drives and requirements. It
can assist to unleash power and assist the company thrive. All of these reflect behaviour,
attitudes and beliefs and this is what the management by administration culture. It is
beneficial for company to having a good culture in a company will be assistance in satisfying
the workers with in the company it makes feel valued in the organisation. The firms like
tesco, amazon and many other adapts a various kind of company culture so that they can
operate the company smoothly.
Task 2
Challenges highlighted in trends and developments :
As the economy is growing rapidly the business may have to look at selling globally
to remain profitable. Before examination foreign markets, the person have to be aware of the
prime trends in international business are increasing rapidly and the person can take benefits
of the changing surrounding to make a down market for the organisation. Here are some
major issues that has been faced in current trends which is listed in below (Nisula, and Pekkola,
2018).
1. Diversification - in magnitude to fitting the anticipate of the users the establishment
definite quantity a lot of investigation and the variegation in the different commodity can
be ambitious for the arrangement when it comes to spread out world. The company need
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to meet the actual trend accordant to the nation which is not easy to follow. This requires
a lot of research by the industry.
2. lack of liquidity - rising markets are less liquid in comparison of develop
economies. This market imperfection results in high value state of mind. Capitalist
who tries to sell inventories in an illiquid market place faces substantival risks that
their orders will not be filled with unfavourable conditions (Brunet-Thornton, and
Martinez, eds., 2018).
3. Technology - this is big issue faced by the company which has its presence in
worldwide. There is the requirement of high digitalisation technologies needed to
manage its segment globally. This needs a lot of the value where the organisation
to manage its earning net income can be challenged for the organisation.
4. Policies- This is the situation where it is crucial for the structure to fit it. The various laws
and insurance which are obligatory by the authorities according to the state and region
can contact the concern arrangement. This is the worldwide situation which the company
need to look because it has to keep in mind the policies of the country in which it is
operated and in the country in which it is spread out.
Task 4
What attracts MNC to emerging economies risk and opportunity.
Multinational companies basically attracts to developing economy by lower values,
strong growth values and in many cases untapped natural resources. In other regions which
are hardly key drivers of foreign investment political and macro economics stability, quality
of structure and rule of laws among others most improving stability, quality of infrastructure
and rule of laws. By various steps however improving nations are creating quite a bit of
progress. Developing nations are not a homogeneous units. However . The larger the nations,
the more possibility and where as more chances for investment. These organisation come
up with the new opportunity to enhance the business in international market. This includes
that the firms are capable of understand the local market deep down and then they are
emerging in the market place (Aggarwal, Jindal, and Seth, 2019).
Just as company like mark and Spencer will be that it will be have the traditional and
linguistic barriers which it requires if it is shows the varied nations. There is the risk
that if people internationally will be capable to accept the goods and services provided by
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the company. Now of the opportunity is considered the company is well constituted in the
great Britain so it has addition the loyalty in the mind of the people. This can have the
chance to mark the large consumers globally (.Reshetnikova, and Magomedov, 2018).
CONCLUSION
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REFERENCES
Books and Journals
Aggarwal, R., Jindal, V. and Seth, R., 2019. Board diversity and firm performance: The role of
business group affiliation. International Business Review, 28(6), p.101600.
Brunet-Thornton, R. and Martinez, F. eds., 2018. Analyzing the impacts of industry 4.0 in
modern business environments. IGI Global.
Nisula, K. and Pekkola, S., 2018. How to move away from the silos of business management
education?. Journal of Education for Business, 93(3), pp.97-111.
Nisula, K. and Pekkola, S., 2018. How to move away from the silos of business management
education?. Journal of Education for Business, 93(3), pp.97-111.
Prud’homme, D., 2019. Re-conceptualizing intellectual property regimes in international
business research: Foreign-friendliness paradoxes facing MNCs in China. Journal of
World Business, 54(4), pp.399-419.
Reshetnikova, N.N. and Magomedov, M.G., 2018, October. Influence strategic competitive
advantage international business cooperation in the frame of financial crisis. In The
International Science and Technology Conference" FarEastСon" (pp. 399-408).
Springer, Cham.
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