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INTERNATIONAL
BUSINESS
CASE
STUDY (20 Marks)
Google,
the leading Internet search engine based in the US, started providing its
services in China in the year 2000. Though the company became one of the
leading search engines in the Chinese market, it started losing its market share
rapidly to the local players like Baidu. In order to remain competitive, Google
decided to launch a Chinese website www.google.cn and agreed to censor the
content, in January 2006. Though Google was criticized by the industry experts
for its decision to censor the content, the company defended its stance by
claiming that providing censored results was better than not providing any
details at all. However, soon Google started facing problems, and its website
was blocked several times for its quality of censorship, spreading obscene
content etc. The company remained second to Baidu in the local search engine
market. Google's other services like YouTube, Blogger, and Picasa were also
blocked. By the end of 2009, Google realized that its website was being attacked
and the attacks originated in China. Google also found that Gmail accounts of
some of the advocates of human rights in China were broken into. In January
2010, Google reported that its corporate infrastructure had been subjected to a
targeted attack from China and announced that it would not censor its results
anymore and was ready to shut down its Chinese operations, if required. The
events leading to its decision to stop censoring the search results in China,
adversely affected Google's operations in China.
Answer
the following question.
Q1.
Discuss the business and regulatory problems faced by multinational companies
in China.
Q2.
Examine the reasons for media censorship in China. Q3. Give an overview of the
case
Case
(20 Marks)
Progressive
Chemical Industries Ltd, is engaged in Manufacturing and export of specialty
chemicals, having turnover of Rs 300 crores. The Company is growing and having
good export orders. The CEO is in mood to expand the business and aiming to
reach turnover of Rs 1000(thousand) crores in next 5 (five) yrs. The CEO is
worried about the increase in input costs and workers demands. Union has
threatened to go on strike indefinitely. Union has demanded 50% increase in
salary and other benefits, But is not agreeing to link it to productivity. It
has also raised issues like unsafe, hazardous working conditions, leakage of
poisonous gases affecting the health of workers. The consultant has advised the
CEO to be strict and take strict action against the erring employees and be ready
to declare lockout if situation warrants.
Answer
the following question.
Q1.
Prepare a draft agreement for the above situation which could be acceptable for
Management and Union.
Q2. As
a HR Head how would you convince the Union and workers?
Q3. Do
you feel management policies/practices are right?
Q4.
What are the various laws which could be applicable in the above problems?
CASE
STUDY (20 Marks)
EU
Trade Commissioner Karel De Gucht, the Belgian Minister of Foreign Affairs
Steven Vanackere representing the Presidency of the Council of the European
Union (EU), and the Korean Minister for Trade Kim JongHoon today signed a Free
Trade Agreement (FTA) between the EU and South Korea. This FTA is the most
ambitious trade agreement ever negotiated by the EU and the first with an Asian
country. Today’s signature signals a significant step on the road to its
implementation and is one of the main events of the EUKorea Summit taking
place in Brussels today. "The agreement between the EU and South Korea
marks a significant achievement in improving our trade links. It will provide a
real boost to jobs and growth in Europe at this critical time. This wideranging
and innovative deal is a benchmark for what we want to achieve in other trade
agreements", said Commissioner De Gucht. "Tackling the more difficult
nontariff barriers to international commerce can cut the costs of doing
business as much if not more than getting rid of import duties." The text
of the FTA was initialed between the European Commission and South Korea on 15
October 2009. Since then the text of the Agreement was translated into Korean
and 21 EU languages. All EU Member States have signed the FTA ahead of today's
official signing ceremony. The date of provisional application will be 1 July
2011, provided that the European Parliament has given its consent to the FTA
and the Regulation of the European Parliament and of the Council implementing
the bilateral safeguard clause of the EUSouth Korea FTA is in place. The EU
Member States will have to also ratify the agreement according to their own
laws and procedures. One study estimates that the deal will create new trade in
goods and services worth €19.1 billion for the EU; another study calculates
that it will more than double the bilateral EUSouth Korea trade in the next 20
years compared to a scenario without the FTA. The agreement will remove
virtually all import duties between the two economies as well as many nontariff
barriers. It will relieve EU exporters of industrial and agricultural goods to
South Korea from paying tariffs. Once the duties are fully eliminated, EU
exporters will save € 1.6 billion annually. Half of these savings will be
applicable already on the day of the entry into force of the Agreement. The FTA
will also create new market access in services and investment and will make
major advances in areas such as intellectual property, procurement, competition
policy and trade and sustainable development.
Answer
the following question.
Q1.
What are the objectives and contents of the recent free trade agreement signed
between the European Union and South Korea?
Q2.
What are the economic underlying principles of this agreement?
Q3. Why
has the agreement been questioned both in the EU and South Korea?
Q4. Why
are Japanese businessmen worried about the agreement? Why are Japanese policymakers
trying to sign a similar deal with the EU?
CASE
STUDY (20 Marks)
The
cases discusses, UK based home improvement retailer, B&Q's foray into
China. B&Q entered the Chinese market in the year 1999 by opening a store
in Shanghai through a joint venture with Home Decorative Building Materials
Limited, a Shanghai based property developer. At that time, the DoitYourself
(DIY) concept had not gained popularity in China. Overcoming the initial
challenges, B&Q was able to establish itself firmly in the Chinese market.
B&Q modified its stores to suit the Chinese consumers and introduced the
concept of 'BuyitYourself.' The company's growth coincided with the rapid
infrastructural development in the country, and increased activity in the
housing sector. The rapid growth of the Chinese home improvement industry led
several leading international companies like IKEA to expand their operations in
the country. By late 2006, B&Q faced stiff competition from foreign as well
as local companies like Orient Home. The case examines the entry and expansion
strategies of B&Q in China and how the company is positioned to face
increasing competition in the Chinese home improvement industry.
Answer
the following question.
Q1.
Analyze the entry and expansion strategies of B&Q in China.
Assignment Solutions, Case study Answer sheets
Project Report and Thesis contact
ARAVIND – 09901366442 – 09902787224
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