Understanding and Evaluating Multinational Enterprises' Responses to External Influences

Key Issues in International Business Activity in Contemporary Globalization

(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.

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ASSESSMENT CRITERIA

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.

CASE STUDY: VMOTO

Vmoto was represented at major international shows during 2018.

Vmoto Ltd (ASX:VMT) is beginning to deliver on its strategy of becoming a global leader in the manufacture, sales and marketing of ‘green’ two-wheel electric vehicles (EVs).

The success of this strategy, incorporating the sale of higher value and higher margin EVs into international markets, has been revealed in the company’s 2018 financial results.

Total revenue in the 12 months increased to $19.6 million, an increase of up 30% on the $15.1 million achieved in the 2017 financial year.

This was primarily due to increased international sales as Vmoto capitalised on new government policies and regulations in Europe supporting EV transport and the growth of vehicle leasing and logistics projects.

There were 10,081 units of electric vehicle products sold into international markets in FY2018.

International sales revenue of $19.2 million was a 35% increase on the previous financial year.

Operating cash flow positive

Managing Director Charles Chen said: “I am very pleased to confirm that FY2018 saw Vmoto achieve record unit sales into international markets and a modest positive EBITDA.

“[This came] as our investment into international marketing and expansion of the company’s European distribution network and European warehouse began to see results”.

“Our manufacturing and international sales and marketing cooperation with Super Soco has also created synergies for both organisations and further supported our growth”.

“With the upward trend of electric vehicle sales in international markets, we are very confident for another successful year in FY2019”.

“I would like to express a special thanks to Vmoto’s management team and employees as a lot of hard work and effort has been contributed to achieve this result.”

The company invested significant resources into building international brand awareness for its own products and the Super Soco range, which Vmoto manufactures at its Nanjing manufacturing facility and holds international sales and marketing rights outside China.

This came through participation in key international market exhibitions and through the development and launch of a new product focused website and new social media platform Vmoto Soco e-mobility on Facebook, Instagram and Youtube.

In order to accelerate sales into European markets, Vmoto established a whollyowned European subsidiary and a warehouse in the Netherlands, which became operational in FY2018.

Direct support for European distributors

The company is now able to provide direct support to its European distributors and provide more confidence to potential customers with a local presence and after sales service.

Agreement was also reached with Graziano Milone, a successful Italian entrepreneur and experienced electric vehicle operator, to equally own and jointly manage Vmoto Soco Italy srl, which will focus on distributing electric two-wheel vehicle products in Italy.

This cooperation will enable Vmoto to further penetrate the Italian market, fast track distribution into Italy, including consumer markets, and bring more high performance electric two-wheel vehicle products to Italy.

The company is strategically well positioned for further growth in 2019. Chen said: “Vmoto continues to receive significant interest and sales leads due to its increased sales and marketing activities”.

“Confident of successful 2019”

“With the number of additional distributors signed up and increasing firm orders, Vmoto’s management remains confident that the company will continue to increase international sales for Super Soco B2C products and its own high-performance B2B electric two-wheel vehicle products”.

“With the continuing upward trend in sales into Europe, the company is confident of a successful FY2019”.