Select a multinational enterprise (MNE), and analyze the operations of one of its international subsidiary. There is no restriction on which country the MNE is from or the industry. The subsidiary selected cannot be in Indonesia, Bangladesh and Vietnam (IMPORTANT, do not select any of these countries).
The report should identify issues that explain the subsidiary’s performance. Particular attention should be paid to issues such as competition in the subsidiary’s host country, and analysis of the strategy used by the MNE in the host country. The relevant information may be collected from annual reports or other published articles such as those available from the library electronic database, as well as other media.
The assessment will be marked on the quality of the identification, description and analysis of critical strategic issues; the inclusion of appropriate material data and the provision of enough scope for detailed analysis; and grammar and written English. Personal interviews are not recommended since confidentiality and ethical considerations have to be observed. You must do relevant additional research (apart from accessing the information on websites of the company) to successfully complete your analysis.
Length: 1500 words
This topic has been kept broad on purpose to allow you some freedom to decide how you would approach the task.
Some of the things that would be expected in the report include:
– An overview of the company’s strategy and structure (this may not always be explicitly stated on the company’s website), and how the subsidiary fits into it.
– An overview of the subsidiary’s market in terms of competition, and any information about market share.
– The top management staffing approach in the subsidiary (i.e., who is managing the subsidiary? Is it someone from the headoffice or host country).
For example, think back to the tutorial exercise on KFC. In that case study, we looked at the Chinese subsidiary/operations of KFC. As we discussed with the latest update, the company had lost significant market share, and our focus was on highlighting who the main competitors were, and what was the company’s strategic response (in the case study discussion we saw that the Chinese operations were part of a master franchising agreement, but later on was spun off.
We also spoke about potential reasons for why they faced these issues, looking at the tripod idea of Industry, Institutional, and Resources. This is something you can include in your analysis using relevant tools for each area (for example, the VRIO for resources and so on).
The assessment criteria are as follows:
Assessment of the company’s internal issues with emphasis on subsidiary (strategy, structure, resources etc), and identification of key issues. 35%
Industry and institutional level analysis of the subsidiary (who are the competitors, market share, any institutional pressures that influence the business activities etc.) and identification of key issues. 35%
Recommendations: this should flow from the previous two sections, and should address the issues identified in the report. 30%
Please note: As mentioned in the task, the assessment will be marked on the quality of the identification description and analysis of critical strategic issues; the inclusion of appropriate material data and the provision of enough scope for detailed analysis; and grammar and written English.
ref style : UTS-Harvard