Intl. Market Entry Report for UK Food Retail Company

SIB5001B International Business Strategy

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Task

Answer three questions out of five.

Please note: Some questions consist of two parts. If so, both parts must be answered.

Question 1: (max. 900 words, approximately half for each part)

1. You are a graduate within a large and financially strong British food retailing company with competitive advantages in marketing and information management. Following a slowing down of domestic sales and the problem of UK planning legislation to domestic expansion, management plan to invest in their first European market. The company’s cohesive management team of mixed nationalities and gender have currently no experience of international market entry. Write a report to the Managing Director discussing the following:

a. The possible strategic rationales and benefits of international market entry to the company (50 marks).

b. The possible factors influencing their choice of entry mode (50 marks).

Question 2: (max. 900 words, approximately half for each part)

a. Explain the three basic decisions that firms contemplating foreign expansion must make. Use examples where possible to clarify your answers (50 marks).

b. Outline the various roles of a foreign subsidiary and discuss the organisational and host government factors that can determine the evolution of foreign subsidiaries? (50 marks).

Question 3: (max. 900 words)

‘Firms develop international operations gradually; via a sequential mode pathway or establishment chain, enter initially perceived culturally similar markets and learn through market experience’.

Critically discuss this statement (100 marks).

Question 4: (max. 900 words, approximately half for each part)

Multinational companies can adopt the following approaches to managerial staffing within foreign subsidiaries: ethnocentric, polycentric and geocentric.

a. Discuss the potential costs and benefits of each staffing approach (50 marks).

b. Advise what measures companies should take to mitigate the potential limitations of using host country managers and expatriate managers (50 marks).

Question 5: (max. 900 words)

Examine the attractiveness of the UK market for FDI, assuming a deregulated post-Brexit UK economy aiming to compete against the European Union’s Single Market with lower social, environmental and food safety standards, interventionist industrial policy allowing targeted state aid and low corporate tax. Give examples in at least two different sectors. Draw conclusions with regards to the nature of Brexit in an increasingly interconnected business world (100 marks).

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