International Business Activity and Arrival Ltd: A Comparative Study

Key Issues in International Business Activity

(1) Knowledge and understanding of the key issues in internationalbusiness activity in the context of contemporary globalisation.

(2) Capacity to evaluate and select an appropriate nationalmarketplace in terms of political, economic, cultural, ethical andlegal frameworks.

(3) Knowledge and understanding of multinational enterprises’responses to external influences and possible modes of entry into new markets.

(4) Capacity to critically assess the activities of a given multinational enterprise in terms of its business interests.

UK electric vehicle maker Arrival eyes faster expansion after $13bn Nasdaq IPO Trials of its electric bus will begin in the UK later this year with FirstGroup Arrival makes electric buses and vans

Shares in Arrival (NASDAQ:ARVL) rose on the first day of trading after completing its US$13bn (£12.5bn) US initial public offer, as the Oxford-based company outlinedplans for the launch of its first electric buses and vans on the road, along with the expansion of production facilities.

In what was one of the largest ever UK tech flotations, the company merged with ‘blank check’ vehicle CIIG Merger Corp and announced that its electric van is expected to begin public road trials with customers this summer and its electric bus in the final quarter of 2021 with the First Bus division of FirstGroup PLC (LON:FGP). Production for the Arrival bus is expected to begin in the fourth quarter of 2021 and the Arrival van in the second half of 2022, with the UK government having earlier this month announced plans to deliver 4,000 new British-built electric or hydrogen buses during the current parliament.

The company, which says it has developed a unique new method for the design and production of electric vehicles (EV) that enables it to build quality vehicles for a similar price to fossil fuel equivalents, said it plans to use its US$660mln gross proceeds to ramp up delivery of its electric vehicles and expand its global network of its ‘microfactories’.

Arrival currently has three 'microfactory' plants, with the first in Bicester near Oxford recently joined by a pair in North and South Carolina in the US. Microfactories are “rapidly scalable and enable decentralised production that can be deployed in local communities, hiring local talent, paying local taxes and using the local supply chain designed for the local region’s mobility requirements”.

The listing comes after these US openings and following customer trials of its latest van and bus products in recent months and ahead of the UK public road trials planned with key customers this summer.

Evaluation and Selection of National Marketplace

Its fully electric van, made with lightweight aluminium frame and proprietary composite body panels, is designed to offer a much lower total cost of ownership, the company says, as well as zero emissions, with hardware and software components upgradeable over time to keep up to date with the latest technology, and a modular battery ranging from 44kWh to 133kWh to allow operators to choose the configuration that best suits their range requirements.

Founder and CEO Denis Sverdlov, whose 76% stake is now worth US$9.8bn, said:“Going public is an opportunity that will allow us to continue to scale globally, bringing these products to more and more cities and people.”

Required and Recommended Reading(s)

In order to complete the above essay, students are expected to draw on a range of advanced literature (scholarly journals and academic textbooks) and primary data sources.

Firstly, as a minimum, submissions must demonstrate sustained engagement with- and therefore command over- the core introductory source(s) connected to the particular IB theory that they have selected as the framework for the essay. These core sources are available in a clearly marked folder in the ‘Week Three’ section of the module VLE page. Insights from these texts should be applied to the given question and in relation to the Arrival case study.

Use ONE of the 3 theories to compare and contrast Arrival's prospects for internalisation into TWO national markets at your choice:

1) Internalisation Theory (Buckley & Cassion)

2) The Eclectic Paradigm (Dunning)

3) The Uppsala Model (Johnson & Vahlne)

Evaluate the utility of your chosen theory as a strategic tool for this case study.

• Secondly, students must draw on relevant parts of the module textbook, which is available via Kortext:
• Thirdly, the essay must also draw upon sources specifically connected to the Arrival case study. This will likely include contemporary journalistic pieces and/or official documents/websites of the company itself.
• Fourthly, it is recommended that students engage with various other relevant texts that are included across the rest of the VLE weeks.
• Lastly, as this is a Level 6 assessment, it is recommended that students go beyond the sources that have been provided via the VLE and Kortext, by conducting their own independent research via the ARU Digital Library and/or Google Scholar.

1. Knowledge and understanding of the key issues in international business activity in the context of contemporary globalisation
2. Capacity to evaluate and select an appropriate national marketplace in terms of political, economic, cultural, ethical and legal frameworks
3. Knowledge and understanding of multinational enterprises’ responses to external influences and possible modes of entry into new markets
4. Capacity to critically assess the activities of a given multinational enterprise in terms of its business interests

- Addressing the Task: the extent to which the essay has directly engaged the given case study and provided a complete response to the specified task(s), without digressing or straying into generalities. [30 marks]

- Analytic Content and Organisation: the extent to which the essay offers a coherently organised critical analysis in response to the task(s), on the basis of aptly deployed core concepts, rather than pure description or narration, on the basis of ill-defined key terms. [30 marks]

- Literature and Evidence: the extent to which the essay demonstrates knowledge and understanding of required and recommended scholarly readings, while supporting and illustrating its claims with apposite examples and reliable evidence. [30 marks]

- Demonstration of Academic Skills: the extent to which the essay maintains a clear and scholarly style that adheres consistently to referencing conventions. [10 marks]

- The overall word count should be 3000 words

- You may include appropriate graphics to support your points if you consider they will add value to your answer

- Any tabulated data should be included within an Appendices section at the end of the document

- Cover page, Reference List and Appendices are NOT included in the wordcount

- You should use scholarly works and reliable data sources to support your text; any theory used should be applied to the context of the scenario

- You must use in-text citations to evidence your work, in addition to producing a full reference list. All of these should conform to Harvard Referencing format.

- The bulk of this text should be your own original work and should not be excessively paraphrased.