Assignment 1: Introductory case – Alibaba

Alibaba Group has grown to become one of the most dominant e-commerce companies. Today, the
company and its segment companies run wholesale and retail online marketplaces, as well as internet-
based businesses that provide advertising, electronic payment, cloud-based computing and network
services, among other things. Furthermore, Alibaba's cloud computing division provides cloud computing
services to sellers on its marketplaces as well as 'third-party' clients. The goal of the Alibaba Group is to
promote its cloud computing business in order to overtake Amazon from the United States not only in
cloud storage services, but in all areas where Amazon presently has competitive advantages and a strong
market presence.
The Alibaba Group is a collection of several individual companies and consumer-to-consumer
transactions. It offers a wide range of ecommerce websites, web-based business solutions, cloud
processing and data services, as well as a mobile operating system. It also runs Alipay, a secure payment
transfer service that gives it influence over the purchasing process. Alibaba Group's main businesses are
organized into regionally distinct marketplaces and related company segments. The domestic Chinese e-
commerce industry is Alibaba's largest market, accounting for 82.6 percent of total revenues in 2015. The
international market produces revenues that account for 8.5 percent of total revenues.
Assignment 2: Discussion questions
Q3. How would you explain a company’s decision to use centralized decision-making processes and
decentralized control processes, considering that the two are so interconnected? Provide an
industry example of where this may occur.
Answer:
In an organizational structure known as centralized management, a small group of people control the
majority of corporate choices. The couple makes all of their own inventory orders, marketing decisions,
and staff hiring decisions. As a business with centralized management expands, new levels of mid and
lower level managers are added, each of whom reports to a superior and has clearly defined
responsibilities within the organization. In highly competitive industries where businesses specialize in
comparable goods to their rivals, more centralized management is typically observed. Apple Computers is
a well-known example, where most of the company's direction is decided at the very top and the lesser
levels of management and employees are closely coordinated to carry out those objectives.
Decentralized management is the opposite of centralized management in that higher levels of
management delegate some decision-making processes to lower levels and even individual employees.
Although top-level managers continue to hold overall authority and set policies that have a significant
impact on the company's major decisions, the majority of decision-making authority is delegated to the
lower levels.
Example: Santander, Europe's biggest bank by market capitalization, is giving its subsidiaries more
autonomy by listing them in foreign markets, thereby strengthening their independence and autonomy
from the Spanish headquarters. The IPO improved the bank's visibility in Brazil, resulting in greater
access to local capital and increased franchise value. When Santander sold 15% of its Brazilian business,
it was worth €34 billion, more than European rivals Deutsche Bank or Société Générale. A variety of
factors will impact the manner in which decisions are made.
Q4. How are U.S. multinationals trying to introduce total quality management into their
operations? Give two examples. Would a U.S. MNC doing business in Germany find it easier to
introduce TQM concepts into German operations, or would there be more receptivity to them back
in the United States? Why? What if the U.S. multinational were introducing these ideas into a
Japanese subsidiary?

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Answer:
TQM is a business strategy and set of techniques that results in the delivery of high-quality goods or
services to consumers. It is having a significant effect on manufacturing, with MNCs successfully
implementing TQM techniques such as concurrent engineering/interfunctional teams, customer-driven
approaches, and rewards and rewards. Lenovo has used block chain technology and employee
empowerment to improve customer service, while General Electric claims that employee empowerment
has cut the time required to alter product-mix production in half. TQM is a continuous improvement
method that encourages individuals to increase output while reducing waste. Over the last 20 years,
Herman Miller, a United American office furniture business, has used the Kankaizen mindset to improve
quality and productivity by 1,000% and 500%, respectively.
Assignment 3: International management in action – How the Japanese do things differently
Japanese firms concentrate on developing and bringing to market competitively priced products,
frequently using a "target cost" strategy. This entails performing marketing research and investigating the
characteristics of the product to be manufactured. Western firms, on the other hand, employ methods that
involve ongoing cost-cutting efforts. The Japanese also consider profits in terms of product lines rather
than individual customers, and they may approve a consumer product if its projected and profit margins
are too low.
Foreign companies operating in Japan are increasingly being used by Japanese firms to attract customers
to their goods. Sony, for example, decided to construct a smaller version of its personal stereo system and
market it to older consumers, which resulted in higher-than-expected sales. Coca-Cola Japan is the top
soft drink company in Japan, introducing over 1,000 new products each year, despite the fact that its long-
term bottom line mandates the decision not to make them. Despite this, Coke remains the leading fast-
growing firm in Japan, despite fiercer rivalry than in the United States.
Assignment 4: Internet exercise – looking at the best
Q1. What types of factors may influence future management decision making in these two
companies?
Answer:
Procter & Gamble (P&G) is a multinational consumer goods corporation that manufactures and
distributes consumer goods. A broad range of household and personal care products. Tide, Pampers,
Gillette, Crest, and Pantene are among the well-known names in P&G's product portfolio. The business
Baby care, fabric and house care, grooming, healthcare, and beauty are among the services offered.
Panasonic Corporation is a Japanese multinational electronics corporation based in Osaka. Since its
inception in 1918, the company has expanded into a variety of sectors, including consumer electronics,
home appliances, automotive electronics, and business-to-business (B2B) solutions. Panasonic's product
portfolio includes televisions, cameras, audio systems, home appliances, batteries, and personal care
items.
Environment:
In reaction to the shifting climate, many businesses strive for sustainable business practices.
Organizations may alter their manufacturing procedures, raw materials, development sites, and products
as a result of changes in temperature, water levels, and other natural resources. Environmental change
may also increase the need for natural problem-solving techniques.
Economic shifts:

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Major economic changes have an impact on a lot of companies. Economic markets are subject to rapid
change, and cyclical occurrences like recessions, depressions, and boom times can have an impact on
commercial factors like buyer behavior, investment value, prices, and employment rates.
Technological developments:
Most sectors depend on technology, and it has a big influence on how businesses operate. The use of
mobile devices and social media has changed how many businesses approach marketing, and some
sectors, like those that offer streaming entertainment or customer service portals, even run their entire
company online. Aside from external changes like new machinery, automated procedures, and consumer
goods, developing technology can also result in interior changes.
Market trends:
Business can be influenced by consumer trends, particularly in sectors that offer goods. In industries like
apparel, music, entertainment, technology, toys, real estate, and automobiles, certain goods go in and out
of style. The hiring plans, marketing strategy, and profitability of a company can all be affected by
popular trends.
Q2. What types of control criteria would you expect these companies to use in evaluating their
operations and determining how well they are doing?
Answer:
Financial criteria: Financial metrics, such as revenue growth, profitability, cash flow, return on
investment, and shareholder value, are used to assess the company's financial success.
Operational criteria include metrics like inventory turnover, product quality, customer happiness, and on-
time delivery and are used to assess the effectiveness of the company's production and supply chain.
Marketing criteria: Marketing criteria include metrics like market share, customer acquisition, customer
retention, brand awareness, and advertising efficacy and are used to assess the success of the company's
marketing and sales efforts.
Human resources criteria: Human resources criteria include metrics like employee turnover, absenteeism,
training and development, employee engagement, and diversity and inclusion and are used to assess how
well the business manages its workforce.
Sustainability criteria: Sustainability criteria include metrics like greenhouse gas emissions, waste
reduction, water conservation, community involvement, and ethical sourcing and are used to assess a
company's environmental and social effect.
Assignment 5: Case study – Google in China
Q1. How would you characterize China’s market for online search and related services?
Answer:
The online search and related services markets in China are very dissimilar from those in Europe and the
Americas. Although there are a lot of potential customers, businesses in the sector must use a variety of
various business models to succeed there. The first rule is that it is almost impossible to successfully
introduce online search engines or other online services in China without the backing or goodwill of the
Chinese government. The freedom of speech is seriously constrained in China as a result of the political
climate there. Because of this, businesses in the search engines sector must prepare for significant
government involvement at this point.

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Wikipedia is a tool in a similar vein. Wikipedia is not allowed in China because its archive also includes
information that is crucial to the government. Also prohibited by the Chinese government are discussions
of religion, social problems, or unfavorable historical events. Due to the gaps that large corporations like
Google or even Wikipedia leave available, local players can take advantage of them. As previously stated,
you must abide by the regulations set forth by the Chinese government in order to succeed on the market.
If you do that, tolerant western nations like the United States will criticize you. Because of this, Google
was in a difficult situation, which they were able to resolve by focusing more on other goods for the
Chinese market in addition to the search engine.
Q2. Why was Google initially attracted to China? What changed its perspective?
Answer:
The Chinese search engine market's magnitude is what draws the most interest. In China, the number of
daily internet users exceeds 600 million. The market for Chinese search engines is therefore six times
larger than that of Germany. Google therefore wished to protect its stake there. The dynamic nature of the
Chinese industry is another draw. Despite the fact that only about half of Chinese citizens use the internet,
the industry is still expanding. Because of this, there is still a ton of room for growth, which also helps to
expand the industry.
The third factor driving Google's desire to dominate the Chinese market is the company's global allure
and self-set ambition to dominate search engines globally. The business cannot simply ignore such a large
industry in order to accomplish that. Since Google has not been performing well in Asia, China would
have made a suitable base from which to invade the Asian markets. The final point of interest is that by
dominating the Chinese market and keeping competitors small there and subsequently in other foreign
markets, Google could have directly thwarted businesses and prevented the development of competition.
With the Chinese government's growing interference in the search engine's operation, people's
perspectives began to shift. Not only did the censoring make Google's service worse, but it also went
against the company's core principles. Because communism and transparency are not the best of friends,
Google found it difficult to provide its original services and qualities in China due to government
interference. The business received a lot of criticism and fines as a result of allegations of copyright
infringement, concealment of human rights, and unethical advertising. The Chinese authorities desired the
complete reverse. Additionally, such service could not be adequately given without the support of the
Chinese government.
Q3. Should companies like Google conform to the Chinese government’s expectation regarding
privacy, censorship, and distribution of information?
Answer:
The weight that values are given in relation to the need for growth and profit will determine the answer to
this issue. The business must always abide by the current legal requirements and administrative
regulations if it hopes to succeed in the marketplace. Respecting established norms and guidelines is
unquestionably a crucial strategy. Intervention and sabotage will only grow if you behave improperly.
The Chinese government's hacking of Google's service serves as the finest illustration of the effects of a
disregard. Consequently, adapting to local conditions is necessary if the business wants to succeed and
grow its customer base.
Businesses that operate search engines are subject to a unique set of obligations. They hold the key to
information dissemination in the twenty-first century. Acting in accordance with the demands of the
Chinese government also entails sacrificing user privacy and regulating the flow of information and
knowledge. Normally, censorship does not go well with a business like Google. Google fails in its
mission if users in China only use the search engine to discover information when they could be reading

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in any Chinese library. Giving the user the chance to discover global, important, and independent
information is more important. Every person should have the freedom to express their opinions in the
twenty-first century, as well as access to additional sources of knowledge.
Q4. What advantages does Baidu have over Google in the Chinese marketplace? How might Google
overcome those advantages?
Answer:
On the Chinese market, Baidu had and continues to have numerous benefits. Baidu could effectively roll
out more services. They had great success with discussion boards, a social network, and a business
directory in addition to their imitation of "Google - Maps." Baidu demonstrated a better grasp of the
industry. The precision of their search results is the finest illustration. The logarithm is a replica of
Google's page rank, but Google's search results are superior and more precise. Baidu could do this
because of its superior market and societal expertise. Due to the complexity of the Chinese language,
minute inaccuracies affect how precise search results are. Baidu was also superior at comprehending
Chinese preferences. Additionally, Baidu is regarded as a secure search engine.
Google won't be able to compete with Baidu in the market for search engines and associated online
services until Chinese politics and jurisdiction change. They can only retaliate by moving into other parts,
such as dependence building and need creation. Google is concentrating on its mobile goods, such as
Android, for this reason. Due to its extensive local expertise, Google can thus leverage its first mover
advantages on the Chinese market. There is no doubt that Chinese businesses will attempt to imitate these
goods, but it is much more challenging to keep track of high-tech innovations. That is the precise area
where Google must intervene.
Q5. What recommendations would you make for Google in China going forward?
Answer:
Google is moving in the correct direction by shifting its emphasis to the Chinese market. Google invests a
ton of cash into research and development. They are among the most technologically advanced businesses
in the world in terms of future developments. The Chinese buyer does not prefer to buy inexpensive
goods. There is a growing market for creative and high-quality goods. Because of this, Google finds
China to be very appealing as a market, independent of the online services. Google needs to take
advantage of the Chinese market for its other goods. Although not lost, its fundamental competencies
should be put on hold for a while. Google must foster dependencies on and needs for its goods. In China,
the number of Android-powered smartphones is already very significant. This already existing customer
base should be used to implement new innovative services and functions.
Assignment 6: Case study - How Starbucks Convinced Indians to Embrace Coffee
Q1. What inspired Starbucks to venture into India? What were some of the company’s early
concerns and obstacles?
Answer:
Starbucks is a well-known coffee company in the US that offers a coffee house atmosphere along with a
variety of coffee and tea beverages and snacks. India has become a significant player in the global
economy, holding the seventh-largest economy in the world and the second-largest developing market in
terms of GDP. Starbucks' entry into India was influenced by a number of variables, including the
country's access to necessary resources and markets.

Because of problems like Starbucks' work ethics and aggressive advertising to help the brand survive the
fierce competition from the other competitors, it was difficult for Starbucks to find a suitable partner and

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co-venture to develop and market its brand in India. Another significant obstacle to Starbucks joining the
Indian market was its pricing. Starbucks put its coffee prices at their highest level when compared to
other global businesses. To contend with the prices of other coffee retailers in India, the company's prices
must be reduced, which could result in a loss or modest profits.

The increasing prevalence of sugar-related diseases, including diabetes, obesity, heart disease, and high
blood pressure, was another significant issue. Starbucks has come under fire from numerous consumer
health organizations and World Health Organization campaigns globally. These organizations have
waged a crusade against Starbucks' high-fat and high-calorie products. For Starbucks to survive in the
southern market, it will be forced to enter it with a price below the existing market prices in order to
attract some customer. This may make Starbucks operate at negative profits for some time, thereby posing
it as a challenge to the company.

Q2. Describe why Starbucks wanted to enter India through a joint venture. Specifically, what
benefits did Star-bucks and the Tata Group both gain by partnering with one another? What
synergies were present?

Answer:

Due to the Tata Group's focus on diversification, alliances, collaborations, and acquisitions are ongoing.
The Tata Group has since developed into a multinational corporation with operations in over 100 nations
and annual sales exceeding US$110 billion. The company has undertaken international projects such as
Tata Steel's Millennium Steel in Thailand and Jaguar and Land Rover by Tata Motors in the UK. The
diverse businesses of the Tata Group have experienced great success. The largest hotel chain in India is
Taj Hotel Resorts, the biggest software business in Asia is Tata Consultancy Service, and the second-
largest producer of branded tea in the world is Tata Global Beverages, which produces tea, coffee, and
water.

The majority of Tata Global Beverages' extensive supply chain network, which comprises of plantations,
processing facilities, and packaging and distribution facilities, is owned by this company. Although the
company sources its goods from all over the globe, its largest coffee and tea plantations are in India. Due
to its strong ties to the Indian government and dominance of the beverage industry, the company has a
competitive advantage in terms of resources. Additionally, the company's mission of "becoming the most
admired natural beverages company in the world by making a significant and long-lasting difference on
tea, coffee, and water" has led to a mindset that strives for increased market supremacy.

Q3. How would you describe Starbucks’ approach to entering India? How did national cultural
differences between India and the United States influence how Starbucks adapted its offerings for
the Indian market?

Answer:

The key to Starbucks' success in India is the way the company changed its lodgings to fit in with Indian
culture. Starbucks has supported the subtly promoting of Indian culture within its cafés by customizing
product lines, interactions, and store environments. The menu selections are where societal changes are
most readily apparent, and the Indian menu has been modified to respect local religious and cultural
tastes. Elaichi Mawa croissants and tandoori paneer rolls are only available in Indian Starbucks cafés,
which also offer standard products and foods with foreign themes. Food sales in India are higher than
anywhere else in the world and account for nearly 25% of total sales as a consequence of menu changes.

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Due to the significance of food in Indian culture, emphasis on the best ways to pair coffee with various
menu items has been promoted. To satisfy Indian expectations, changes have also been made to product
offerings, store environments, and customer interactions. Starbucks locations, for instance, have
emphasized small, quick, and convenient interactions more and more so that customers can quickly
acquire a cup of coffee before work or class. However, this mindset has been refined in India, where there
is a greater focus on the environment and less on the product. While people may come for the coffee at
Starbucks in India, they usually stay for the experience as well as to unwind and hang out.

Q5. Do you think Starbucks should be concerned by its lack of financial success within India so far?

Answer:

They should take it into account, but only to develop a more potent plan to take the lead in a market as
fiercely competitive as India. The Indian coffee industry has changed as a result of the growing number of
foreign and local cafés. Over the next five years, analysts predict that this sector will grow by about 18
percent annually, and by 2025, the global coffee market is expected to be worth US$855 million. Tata
Starbucks aspires to rapidly increase its Indian presence as a result of the company's current success in
India and sales growth that hit 28% in the final quarter of 2018. Starbucks currently serves more than 2.7
million Indian customers each week and plans to add 25 additional locations in 2019.

Q6. What is your assessment of the future outlook of Star-bucks within India? What areas for
improvement or greater focus do you think would allow the firm to prosper?

Answer:

Organizations should constantly monitor India's political developments and develop more flexible
strategies. Starbucks has given the market's escalating rivalry serious consideration. Starbucks must adopt
new marketing techniques like e-commerce because fewer people are visiting real stores, malls, and
eateries like Starbucks. More cultural awareness and adaptability techniques for India's unique cultural
practices.

Assignment 7: International spotlight – Japan

Q1. If you were a foreign investor, would you want to in-vest in a consumer electronics company in
Japan?

Answer:

I wouldn't want to invest in a consumer electronics business in Japan if I were a foreign investor. This is
as a result of the following factors: The country's populace demographics form the basis of the first
argument. The nation has a much older population, which is predicted to slowly decline in the near future,
per the information provided in the case. More specifically, case data show that the nation's median age is
46.5 years old. A population that is getting older typically indicates a group of individuals who are less
tech-friendly. The majority of consumer electronics products are heavily reliant on both advancing
technology and an aging populace.

Q2. Does the fact that many of these conglomerates are restructuring and refocusing on newer
technology impact your decision?
Answer:

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Conglomerates may be viewed as extinct in established economies, but diversified business groups are
still thriving in developing economies. Despite the current slowdown in the global economy, their sales
increased significantly over the previous ten years. That specific element is insufficient on its own.
Government policies, which currently demonstrate unbalanced favoritism to domestic firms over foreign
firms, need to be fundamentally changed.
Q3. What do you see as benefits to investing in Japan? What are some difficulties that you could
experience as a foreign company expanding into the Japanese market?
Answer:
Japan has the third-largest economy in the world, which attracts the attention of entrepreneurs looking to
expand into the Asian market. With its excellent location for commerce, prosperous state, and delectable
cuisine. Japan has a lot to offer businesses looking to grow there, in addition to stunning scenery and an
intriguing society. The best 4 advantages of conducting business in Japan are as follows:
1. Unrestricted entry into the Asian market. By expanding to Japan, businesses will have access to a wide
range of flight marketplaces.
2. The Japanese government has made efforts to be more welcoming to foreign businesses looking to
establish operations there after realizing that there is a dearth of FDI (foreign direct investment).
3. Minimal Corruptness
4. Client Loyalty
The Japanese financial industry places a strong emphasis on relationships. It is common for a company
and its bank to have developed a special connection over a long period of time, which presents difficulties
for new businesses. Being shareholders in businesses that conduct banking business with Japanese banks
is common, further demonstrating the interconnectedness, probable gradual development, and difficulty
of establishing such a relationship.
Companies are required by law to participate in Japan's complex social insurance and labor insurance
scheme. This covers pension insurance for employees as well as job, health, and nursing care insurance as
well as workers' accident compensation insurance. When a business is first incorporated or hires
employees, it must join these insurance systems.