Assignment 1: Introductory case – Starbuck’s

Starbucks Corporation, an American corporation founded in 1971 in Seattle, Washington, is a world-

renowned roaster, marketer, and retailer of specialty coffee. Starbucks operates and competes primarily in
the retail coffee and snack store industry. Starbucks coffee shops and kiosks can now be found in a wide
range of shopping malls, office buildings, bookstores, and other locations. Starbucks is cashing in on taste
trends that predate the company's inception. During this time, sales of decaffeinated coffee skyrocketed.
Starbucks' key competency has been its ability to effectively exploit their cornerstone product
differentiation tactics through the provision of a premium product mix of high-quality beverages and
snacks.

Starbucks' brand equity is built on selling the highest quality coffee and related products, as well as
providing each customer with a unique "Starbucks Experience," which is derived from superior customer
service and clean, well-maintained stores that reflect the cultures of the communities in which they
operate, resulting in a high degree of customer loyalty and a cult following. Starbucks effectively utilizes
its strong brand equity by selling merchandise and licensing its logo. With such a strong market position
and brand recognition, the company can gain a substantial competitive advantage by further expanding
into foreign markets, as well as contribute to higher growth in both domestic and international markets.
With improved distribution systems and supplier partnerships, they have gained tremendous economies of
scale over the years.

Assignment 2: Discussion questions

Q3. Some international management experts contend that globalization and national responsiveness
are diametrically opposed forces and that to accommodate one; a multinational must relax its
efforts in the other. In what way is an accurate statement? In what way is it incomplete or
inaccurate?
Answer:
An international strategy, a multi-domestic strategy, a global strategy, or a transnational strategy are the
four types of core international strategies that MNCs are typically seen utilizing. Each strategy's
suitability depends on the need to cut costs and the level of local responsiveness in each of the countries it
is intended to serve. Companies that pursue an international strategy have important core competencies
that their competitors in the host country do not, and therefore experience little pressure to increase local
responsiveness and cut costs. International businesses with a global strategy have found success include
McDonald's, Walmart, and Micro-Soft. Businesses should pursue a multi-domestic strategy when there is
a strong need for local response and little demand for cost-cutting measures. Adapting the offerings at the
local level. Increases a company's overall cost structure but boosts the possibility that its goods and
services will successfully meet regional demands.
A low-cost approach is a global strategy. High cost pressure companies should adopt a worldwide
strategy to take advantage of production scale economies, tap into their experience, and implement
aggressive pricing strategies. Where there are significant financial constraints and little demand for
locally tailored product offers, this technique makes the most sense. When there are significant financial
pressures and a need to follow a successful plan, a global approach should be taken. Demands for local
responsiveness and cost reduction are at odds with one another because localized product offers are more
expensive. Companies successfully employ a global strategy. These fundamental methods have recently

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been confirmed by analysis of MNC strategy. In-depth case studies from nine of them served as the basis
for the globalization-national responsiveness paradigm, which has been supported by extensive empirical
research. Also, it seems that adapting the approach to particular sector and nation features has a positive
performance impact.
Q6. What particular conditions that MNCs face in emerging markets may require specialized
strategies? What strategies might be most appropriate in response? How might a company identify
opportunities at the base of the pyramid (i.e., low-income markets)?
Answer:

MNCs in developing markets could have particular requirements. The political and legal systems in
emerging economies are essential for MNC corporate operations. Due to their extreme political and
economic turbulence and relatively weak institutional frameworks, emerging economies are particularly
risky. These dangers manifest as corruption, a failure to uphold agreements, excessive bureaucracy and
associated costs, and a general air of political and legal ambiguity. MNCs must modify their approach to
address these threats. For instance, it may be prudent to make limited or arm's-length equity investments
in these risky markets or to keep greater control over operations by avoiding joint ventures or other shared
ownership structures. In other situations, working with a local partner who has political connections to
help mitigate risks may be a better choice.

Given the transitional character of these markets, developing nations may be especially significant. They
include gaining scale economies from prospects for gaining that larger share and forming alliances with
the most desirable local partners, as well as collecting learning effects crucial for growing market share.
There might only be a brief window of time during which these opportunities can be most effectively
taken advantage of in rising economies that are going through fast transitions like privatization and
market liberalization. First-mover strategies give newcomers the opportunity to foreclose on rivals, gain
an early advantage, and shape the competitive landscape in a way that benefits their long-term goals and
market position.

Although FDI in emerging economies has increased quickly, the majority of it has gone to the large
emerging markets of China, India, and Brazil. Even in these markets, most MNC emerging-market
strategies have ignored the vast majority of people who are thought to be too poor to be viable customers
and instead have concentrated only on the elite and emerging middle-class markets. Because it may be
simpler to add costs and features to a low-cost model than to remove costs and features from high-cost
models, business models developed effectively at the base of the pyramid have the potential to expand
financially to higher-income markets. The framework for globalization and national responsiveness
outlined at the beginning of the chapter and the possibility for MNCs to develop a truly transnational
strategy are both significantly affected by this final result.

Q7. What conditions have allowed some firms to be born global? What are some examples of born-
global companies?
Answer:

The distinctive characteristic of born-global organizations is that they have global roots, as evidenced by
management's emphasis on the world and the allocation of specific types of resources to global
operations. Here, we place more emphasis on the firm's age than its size when it enters international
markets. Born-global businesses start with a "borderless" perspective of the world and develop the
strategies necessary to expand overseas at or shortly after the firm is founded, in contrast to the

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conventional pattern of businesses that operate in the home country for many years before gradually
transitioning into international trade. Such companies frequently have offerings that complement those of
other global competitors, make use of international IT infrastructure, or find other ways to meet consumer
demand for goods or services that, at their core, are reasonably consistent across national geographic
markets. While many businesses may fit into this category due to their products, born-global businesses
truly have operations and clients all over the world because of a combination of exporting and foreign
direct investment.

Assignment 3: International management in action

Africa has experienced dramatic advances in information and communications technology (ICT),
particularly in developing countries, leading to sharp increases in penetration of the Internet and wireless
phone networks. Low literacy rates, poor infrastructure, corruption, and other political obstacles have
prevented entrepreneurs from seeing great potential for success. However, smartphones, which are the
primary method of Internet access for Africans, are still out of reach for many due to expensive data plans
and a lack of full liberalization.

For businesses aiming for the base of the economic pyramid, profits are crucial. Selling at a profit at the
base of the pyramid is challenging, but it is possible. Businesses must concentrate on the foundations of
their industry and launch their initiatives with a thorough awareness of two major obstacles in low-
income markets: changing consumer behavior and altering the production and delivery of goods.
Businesses who underestimate these obstacles underestimate the time, money, and ingenuity required, and
project teams become ill-equipped to complete the task. With the help of the map, businesses can plan
and launch projects that meet their resource and financial goals while still turning a profit. Some
businesses may discover that the map advises them against launching attention-grabbing endeavors. It's
best to start with smaller-scale, incremental sales possibilities that have a better chance of succeeding.
Profits, no matter how small, will allow businesses to pursue riskier development prospects with greater
social benefit. Profits come first. This is the most effective and long-term strategy for businesses to
improve the lives of the poor.

Q1. How do you believe international strategic management is reflected on the website?
Answer:

Infosys is an Indian firm that was founded in the early 1980s and is a global leader in information systems
consulting. By the end of the 1980s, the corporation began to expand its geographical area of activity by
launching an internationalization strategy in the United States in 1987. The company's website indicates a
well-established international strategy since it offers information vital to international strategy
management, such as the fact that the corporation has more than 45 locations across the world and more
than 249,000 employees, emphasizing its global reputation. With so many people of all origins and
countries under its successful management, it is clear that the company is pursuing and developing a
diversity strategy.

Q2. What major strategic planning steps would Infosys need to carry out in order to remain a
world leader with such diverse offerings?
Answer:

The company is well-known and esteemed throughout the world for its work in information systems
consulting. In fact, the company has created world-class, award-winning technologies. In order to

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maintain its position as a global leader, the company must first assess its environment, namely the aspects
that represent advantages and disadvantages. The organization can also do an internal analysis, in which it
will evaluate its resources and skill sets and relate them to its strengths and shortcomings. The
organization should learn from this research who it is in tangible terms and what it is capable of. The
business will therefore be able to establish realistic goals and create cogent plans to achieve them,
maintaining its position as the industry leader while presenting a new, more varied product.

Q3. What potential threat, if it occurred, would prove most disastrous for Infosys, and what could
the company do to deal with the possibility of this negative development.
Answer:
The business must keep expanding and adjusting to new cultures. It must therefore continuously adapt its
internal communication strategy in order to smooth information transmission, strengthen teams, and
prevent any kind of miscommunication or conflict. Simply put, the threat provided by rival businesses is
another threat to the corporation. It is a lucrative market with a growing number of consumers, which
promotes competitiveness. Cyber-attacks and the inability to provide adequate cyber security for its
customers are two of the most catastrophic risks that can befall any IT-related business. To be prepared
for evolving cyber security, the organization must exercise extreme caution and constantly enhance its
technology and software. The organization should be completely equipped to deal with any breaches that
may occur. 
Assignment 5: International Spotlight – UAE
Q1. Given that the country is actively seeking foreign investors and appears to be creating a pro-
business atmosphere, what nonoil businesses do you think would be best suited for expanding into
the UAE?
Answer:
Businesses searching for a centralized location for worldwide expansion now turn to the UAE as a
business hub. The nation offers a variety of business options and is tax- and business-friendly with clear
legislation. Among other industries, renewable energy, healthcare, and education have all helped the UAE
become more diverse. The UAE can take advantage of its advantageous location midway between east
and west to establish itself as the "Capital of the Islamic Economy" and a key trading route into Asia,
Africa, and Europe. Through coordinating cooperation between emirates, free zones, and transportation
authorities, it enhances Dubai's strengths in trade and logistics. The UAE wants to become a top tourist
destination, thus tourism may be another potential sector given the region's stunning beaches and less
challenging desert experiences. Significant investments in technology, renewable energy, healthcare, and
how the easing of restrictions on foreign investment is promoting growth.
Q2. If you were a foreign investor, what concerns would you have about the country? Would you
make an investment in the country?
Answer:
Yes for sure, for the next five years, the UAE's GDP growth is predicted to be stable and in the range of
3% to 3.5%. The nation is popular and a great place for foreign investments. Foreign investment is
supported and encouraged by the political and legal systems of the nation. In UAE, there are several
business prospects due to the diversity of the country's inhabitants. Numerous factors, including the
establishment of internationally known institutions, improved employment prospects, a diversity of

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student nationalities, the high standard of living in Dubai, and relaxed visa policies that draw foreign
investment to the United Arab Emirates. 
Q3. If you were recommending a sponsorship deal for a team, would you advise choosing Emirates
over a domestic or nongovernmental bid that may not be as large?
Answer:
Yes, Because of its high standing, I strongly recommend Emirates. The Investment Corporation of Dubai,
a state-owned holding corporation, owns the entire Emirates Group. Emirates has experienced
tremendous success in recent years, and the airline is now the fourth largest in the world in terms of
foreign passengers carried. The airline's marketing includes a number of high-profile sponsors from
European football, rugby, and cricket clubs. Emirates are sponsors of many huge fan following sports
clubs like Real Madrid from Spain, Arsenal from London, AC Milan from Italy, etc. Hence these attracts
their fans. Choosing Emirates for a sponsorship deal is great as they have huge reputation in the market.