Q NO 1

Executive summary of the consulting report:

The Germany car parts industry want to expand their market share by supplying car

parts to the US car vehicles industry now. This strategy leads to the Germany with success

but it has to use some strategies that overcome their business threats and risks attached by this

business expansion plan. According to the market survey the Germany one of the largest

automobile industry and in the world so in this respect if the car parts industry start their

exports to the US then they can enhance their market share but also they increase their annual

output. So when we make merger with different industry we have to face many challenges

and business risk due to two different industries.

When the business starts internationally specially for making exports to the other

country it has impacts internally and externally factors. In international trade relationship

become very complex and challenging but the opportunities in the foreign market increased.

The use of behavioural theories increased in international business.There as different impacts

when the Germany car parts industry starts their business in US they are discussed below:

Potential changes to the industry:

Strong market position:

When the Germany car part industry start exports or business in the US they have

chance to enhance their business internationally and also take the benefit of enjoy the

economies of large scale which cuts its cost and expands their profit so in this way it’s a

strong point for the German car parts industry.

Have more possibilities to make innovations in their car parts:

 When German car parts industry starts their business with US then it has many

opportunities to make innovation in their car parts because according to the need of the US

people car parts are supplied to the US. So in this way they expands their market demand as

compared to other car parts supplier which is distinctive point for the German car part

industry.

Sound financial performance:

When business is expand internationally its profit margin has been also increase so if

the German car parts industry exports their products to the US it also impacts on financial

position of the German industry.

Significant growth in US:

If the Germany starts its business and trade in the US then it has opportunity to make

business growth in the US economy. There are so many competitors of the Germany car parts

industry in the US Korea and Japanese are the biggest competitors in the US. But no doubt

Germany country considered one of the best automobile industries in the world. So in this

respect it can be avail the business growth by doing trade with US.

High level of competition:

When the German car parts industry starts its trade in the US then it face many

competitors so its big challenge for the German company to compete with their competitors

specially fight to Korea and Japanese companies which provide car parts to the US . so the

German company use that strategy which make it distinguished with others competitors and

due to this distinguish point the US make trade with the Germany car parts company.
 The decision to make trade with the US is good but it required that the Germany has

to use strong strategies to meet with the risks and uncertainty face by the Germany car parts

company face at the time of making business with the US country.

References:

1. "Emerging Economies and the Transformation of International Business" By

Subhash Chandra Jain. Edward Elgar Publishing, 2006 p.384

2.  "Acronyms BRIC out all over". The Economist (The Economist). September 18,

2008. Retrieved April 14, 2011.http://www.business-standard.com/india/news/brics-

is-passe-time-now-for-%5C3g%5C-citi/126725/on

3. "Iran-US Rapprochement: Historic Opportunities Beckon". -Business Monitor

International. January 10, 2014. Archived from the original on March 23,

2014. FT.com / Columnists / John Authers - The Long View: How adventurous are

emerging markets?

Q NO 2

Merger proposal by the deputy manager of the baby food firm:

Being a deputy manager of the dairy firm I have a proposal for merger in which our

company starts business with other industry to enter in the Brazil market. In this we expand

our business international level. If we make merger with the fast food industry in the Brazil

country then we can avail many benefits and also avail the opportunity of diversified business

environment. Because by doing the merger we have avail many benefits which leads our
company to the success and more business growth and development. These benefits are

discussed below:

Capital cash and credit:

By doing merger our company become more valuable because when our company

merge with other company then the share of financing the company is distribute among the

partners. We can invest more capital in our company because after merger there are more

partners who invest in the business. So in this way the source of financing the business

become easy. So when

Our company merge with the fast food industry it has much opportunity to avail the

diversified business befits. So due to this merger we can avail the benifits of following:

1. Increase in the revenues

2. trim down in the overhead and redundancies

3. have avail the more capital

4. increase in the value of the owners equity in the company

Proposal for Revenues shared and equity shared in merger:

By doing merger the revenues and equity are shared among the business partners

according to their share in the business. It is distribute according to the predetermined ratio at

the time of merger. The benefit to equity payment if we are the acquirer is so as to the

issuance of equity could get better our company’s debt rating which in turn will diminish our

prospect asking price of liability financings. So the in this case the revenue should be 70%

shared on the basis of the equity share of each of the partner in merger while 30% of the
revenues or profits should be shared on the basis of the participation in operations. So as

major share of the operation will be handed over to the Brazilian partner, their share will be

slightly higher.

The partners who organize and run the operations:

When we make merger with the fast food industry in the Brazil then we have to decide

how much we acquire the assets of the company so according to this we decide that how

much management under our control. But our purpose is to acquire the fast food industry so

many part of the management is our under control and we organize the overall operations of

the business. but because the business nature is different of our subsidiary company so we

have to give management to fast food company partners so that the operations of our

company run smoothly and we can make our management more efficient and productive so

this is very important to organize the business by relevant business nature partners.

In this case as the baby food requirements in Brazilian market is quite different from that

of the home country, so the Dutch partners will leave it to the local partners to manage the

demand and the operation related to these demands and all the other operations will be done

on mutual basis.

References:

1.  Derek van deer Plat (9 September 2013). "Four Companies That Know How to

Acquire". Private Company Mergers and Acquisitions. Retrieved18 February 2015.

2.  Investment banking explained pp. 223-224

3.  "Mergers and acquisitions explained". Retrieved 2009-06-30.

4.  Hansel, Gerry; Kengelbach, Jens; Walker, Decker. "Lessons from Successful Serial

Acquirers". Transaction Advisors. ISSN 2329-9134

Q No 3

Part (1)

Different impacts of business groups in emerging markets:

Emerging market is a broad term which represents the lesser developed countries

which are commencement to occurrence speedy economic growth as well as liberalization.

Due to the many benefits received from the emerging market the many business groups

continue to involve in the emerging market. when we assess that many business groups show

their positive behavior for emerging market then its means they attracts by the benefits

received from the emerging market. It has many impacts on the business.

For example when different business groups make business in emerging markets they

face more complex realities in the world economy, they have low labor costs, extra helpful

implication other than as well contested expected the low transactional cost and save their

highly profit margin because they doing business internationally and on large scale and enjoy

the competitive benefits from the emerging and diversified business environment. The

possible chances of searching of challenges and opportunities are increased and in doing

business international in emerging markets both in the academic and business consultancy.

The impacts of emerging market as below:

Opportunities:

When the different groups starts their business in emerging market then they have

many opportunities to avail for example the population of that country is start to grow, the
standard level of the middle class group is going to rise, the maximum demand of the people

have been met, the political stability increased, trade liberalization, innovations etc.

Challenges:

The business groups have many changes in the emerging markets for example insufficient

infrastructure, feeble rule of laws, frail financial institutions, be deficient in of transparency,

deprived relation instruction labor market. some other impacts are below:

Emerging Markets

1. Enjoy better political environment

2. Low transactional cost

3. More investment opportunities

4. High level of risk

5. Fight with Additional challenges

6. More chances of growth and opportunities

7. Diversification

8. Explore the potential benefits

9. Uncertainty

10. High profit margin

11. Faster growth

When business groups which works in the emerging market then they have enjoy many

benefits and disadvantages both because when business works internationally and work in the

diversified environment then it has to face many challenges and threats from their business

environment. So the groups and countries want to do business in emerging market then they
have to courage to fight in the tough competition. So we can say that there is big challenge

for the business groups to work in the emerging markets but they have also enjoyed many

benefits which lead them to the business growth and development. So due to this many small

business invest in the emerging market and doing business internationally so in this way they

expands their business internationally and earn more profit and business growth,

Q NO 3

PART (2)

Business groups from emerging markets are now rapidly internationalizing:

There are so many western countries that show their willingness for emerging markets

so in this respect when they become the multinational firms in emerging markets then

sometimes they have to carefully doing business especially in doing:

1. Direct exports

2. Investing little

3. Short term prospective

4. Multi country focus

5. Focus on the top of economic pyramid

6. Business model unchanged

Global changes:

There are so many firms who relates to the emerging market effectively

internationalized taking on traditional multinationals by the side of home and abroad

inventive business models move about up the worth succession in addition to develop into

most important companies, it seems that exclusive of important resources, skills and

knowledge .
Reverse innovation:

It is very challenging for the firms to do business internationally in emerging markets

they have opportunity to win in leading markets with their Own brand and Highly quality

products and services.

One of the most important benefits of the emerging market which attracts to the

business groups is that it provides opportunity to the business groups are now rapidly growth

to do business on international level. The internationalization of business groups based in

emerging markets springs as of numerous purposes. In which one purpose is to start from the

overcome small scale in the home market for example acquiring worldwide competitive scale

for to get the raw material or information to FDI projected for to conquer the export obstacle.

So the business groups who want to overcome the home oppressive regulatory barriers at

home. When business groups work in the emerging markets then they can diversify their

business and make trade with different countries so due to doing business internationally their

business risk diversify and they experience with labor intensive technology and also

managements different expertise.

When Emerging markets become the internationalizing then normally that it

considered the there are problem exist which leads to the lack of resources. But different

business groups take that risk to avail the all other major benefits received from the emerging

market internationalized. This tendency starts when business groups analyse that they have

better opportunities if they works with emerging market internationally. When they start

diversification then they enhance their business growth and development. So it is true that
when business groups in emerging markets starts business internationally then they face

many challenges and more risks and uncertainty. But now due to high level of competition

every business groups want to enhance their market share and enhance their business

internationally so that they can enjoy better business opportunities and make progress in the

different business environment.

References:

1. Almeida, E. D., Lu, X., Rangnekar, A., & Schemer, D. 2010. Foreword. In Savants, K. P.,

Mashed, W. A., & McAllister, G. (Ends). Foreign Direct Investment from Emerging

Markets: The Challenges Ahead. New York: Palgrave Macmillan.

2. Aula, P.S. 2007. Emerging multinationals from developing economies: Motivations, paths

and performance. Journal of International Management, 13: 235-240.Aulakh, P.S., Kotare,

M., & Texan, H. 2000. Export strategies and performance of firms from emerging economies:

Evidence from Brazil, Chile, and Mexico. Academy of

Management Journal, 43(3): 342-361.

3. Bartlett, C., and Goshen, S. 2000. Going Global: Lessons from Late Movers. Harvard

Business Review, 78(2): 132-142. Bengalis, F., Goldstein, A., & Mathews, J. A.

2007.Accelerated internationalization by merging markets’ multinationals: The case of the

white goods sector. Journal of World Business