International Business Essay

Q.2 a) Evaluate the diametric ways in which Bata has interacted with foreign governmental systems in its investments and trading operations abroad. ANS Multinational tangle withprises (MNEs) care Bata must operate in countries with different semipolitical and legal conditions, so the political impact on the foreign investments is very important. This paper explains this issue base on the Bata fiber in three break ups. The first part evaluates the different ways in which Bata has interacted with foreign political systems in its investments and operations aboard. In the second part, the advantages and disadvantages, which MNEs roleplay to their company and the host-country when doing foreign direct investment, argon analyzed relating to the Bata case. And the last part gives a detailed analysis of the complex political impact on international business with credit rating to the political environment in world-wide also supply the way of formulating in effect(p) political strategy.* Batas effective organizational structure and managing style With activities in 60 countries, Canada-based Bata Shoe presidential term has much operational experience both in developed countries and evolution countries and quite a little deal with different political systems. It has an effective organization structure, which consists of Bata check located in Toronto, Canada, acts as headquarters of the operating companies. Regional offices dwell in Toronto, Mexico City, Singapore, Paris, Calcutta and Harare. The International structure a decommutationized organization, where operating companies are independent businesses, supported by a global management team. head-to-head Ownership Bata shoe organization companies induct also entered into a play of joint ventures, retail franchising and brand licensing agreements 1. By and large Batas operations are independent units established in each country where the debauched does business. As such, Bata is able to decen tralize control of its political strategy braggart(a) subsidiaries monumental autonomy in managing relations with their respective government. b) Should Pizza hutch put to a greater extent of its efforts in expanding in Brazil or somewhere in South East Asia? Why? ANS Pizza chantey, nonpareilness of the most popular food chains, opened their 10000Th shops in the Brazilian merchandise in 1994. Pizza shantys parent company is PepsiCo. PepsiCo was difficult to penetrate in Brazilian market in various ways. However, the runway was not as easy as assumed. Pizza Hut approach decline in the Brazilian market. Experts said that there were two equiprobable savvys for this. One is Pizza Huts less successful instauration of in the altogether products and the second is the low price strategy of the rivals.However, Pizza Hut had a high hope to make Brazils their second or trinity major market because Brazil had many location unique(predicate) advantages deal urbanization, size, p opulation, Gross National Product etc. Brazil endured erratic political situations since 1964. After a long military dictatorship, a stable political reformation was done by the year 1997.Economically Brazil has a merge history as well. It has a very good economic potential. It has coming to several natural resources and well knit infrastructures. However, inflation affected the thriftiness very badly. Pizza Hut entered in Brazil in 1988, during the close of high inflation.It followed the practice of corporate franchise. Later, Pizza Hut bought some of the franchises. still still different problems arose like- difference in kitchen-gardenings, cost of maintaining large puss of employees and of course inflation. Gradually, the inflation rate of Brazil normalized. People made more informed decisions and Pizza Hut began to flourish. However, in 1995, sales of Pizza Hut dropped. As a mean of counterattack, Pizza Hut took two different strategies. One was to cut the price by 25% an d an early(a) was to predict various sales related decisions by mingling with local cultures like Samba dance. But both of the plans failed miserably. In these ways, Pizza Hut struggled to ensue in the Brazilian market.Q.3 a) what factors threaten Indias future competitive positions in cashew nut nut nut productions? ANS Since the opening of Chinas doors to world trade in the late 90s, it has become an emerging exceedingly power. Hence, China may be a threat to Indias on-going competitive position in the cashew nut production because it is also capable to support cashew processing with its abundance of human resources, low-wage rates, and practical training in the manual dexterity required in the grant cashew nut production. China is currently engaging in new markets and providing cheap manual labor to other manufacturing.With this, China can feel that the increasing profitable cashew nut industry and decide to enter it because it has the capability to do so. Moreover, the c urrent formulation of the European Union (EU) provides that its members exhaust trade barriers for imports and exports among each other may be a possible threat to Indias United Kingdom market. Since the UK can closely import anything from its neighboring countries without any cost, it might affect the demand of cashew nuts the Europeans may divert their attention from cashew nuts to other products popular in its neighboring countries. Indias competitiveness could also be threatened by the increased Research and Development improvement that countries cosmopolitan are engaging in nowadays. Brazilians (Indias most prominent competitor in the cashew nut industry) may possibly find machinery that can be substituted for the needed hand dexterity for the flavor that Indias cashew nut has.b) Should the United States seek to slim the economic grip on cube? If so, how should it be done? ANS U.S. should not seek to tighten economic grip on Cuba as it is already a wispy economy as compa red to U.S. due to the political environment of the country for the medieval few decades. For U.S. industries and companies Cuba is a very potential market. Also the workforce is efficient, so there is a possibility of efficient labor at discredit cost for U.S. industries. Also, other countries of the world started favoring Cuba and also doubted the rationale of U.S. on direful the embargo.1. Attitude An military posture may be defined as a learned disposition to behave in a consistently good or unfavourable way with respect to a given inclination (Schiffman and Kanuk, 2000). Stated differently, it positions plenty into a frame of mind of liking or disliking things, of moving toward or away from them (Kolter and Armstrong, 2008 p144). It is acknowledged that people have places toward most everything religion, politics, clothes, music, food (Kotler, 2003).For instance The demand for career amends in a country may be affected by the unique culture of the country to the ext ent that it affects the populations risk aversion (Douglas and Wildavski, 1982). Henderson and Milhouse (1987) argue that an single(a)s religion can provide an insight into the individuals behaviour and taste religion is an important component of understanding a nations unique culture. Also, Zelizer (1979) notes that religion historically has provided a strong source of cultural opposition to life redress as many religious people believe that a reliance on life insurance results from a distrust of Gods protect care. But historically, some form of social insurance existed in Nigerian and Africa society long before the introduction of the modern insurance in Nigeria (Osoka, 1992).These social schemes evolved through the existence of extended family system and social associations such as age grades, and other unions. The simplest form of the social insurance was skilful by means of providing cash donations, materials or some periods organized corporal labour to assist members of extended family and members of social or communal associations who gestate a mishap.2. Lack of Knowledge of Insurance Culture In a recent study of quality of life in developing countries with reference to South Africa (Moller, 2004), income and social security (own wages, ability to provide for family, insurance against malady/death and income in old age) have been treated as one of the major indicators of quality of life. This standpoint stresses the significance of insurance to human life. Ironically, insurance services seem not to have been so accepted enthusiastically in developing countries. The abysmal level of insurance culture in developing economies has attracted relative interests among researchers and practitioners alike. Risk has been identified as a central fact of life in the rural areas of less-developed countries (Udry, 1994). Some of the problems associated with this have been marketing. For example, Omar (2005) assesses consumersattitudes towards life insurance patronage in Nigeria and found out that there is pretermit of trust and confidence in the insurance companies. Other major reason for this attitude is lack of knowledge about life insurance product.3. crushed Level of Education Educational status of Nigerians has significant influence on their attitude towards insurance. Educated people have more positive attitude to insurance than less educated ones. In a recent insurance conducted in Lagos, Nigeria. The choice of Lagos is due to its nature as a metropolitan city where most Nigerian ethnic groups are largely represented. position shows that respondents with higher education outperformed others even though no statistical significant difference was observed with vocational education.4. Unemployment Issue Employees working status has a significance effect on Nigerians attitude towards insurance. Retired and Employed Nigerians with means attitude scores of 28.50 and 28.14 respectively outperformed their competitors. No significant d ifference was observed between retired, employed and Self-employed respondents. On the other hand, self-employed people have significantly higher attitude towards insurance than unemployed, student and part time workers. This result is quite similar to findings in most developed world.In Conclusion, The findings of this study suggest some major implications for marketing of insurances services in Nigerian businesses environment which is a big market. Given that attitude is strongly linked to behaviour, marketers of insurance services targeting Nigerians are confronted with the challenge of encouraging people to embrace insurance creation and its associated benefits. Based on the findings, this article confirms negatively charged attitudes of Nigerians to insurance services further.But apart from this broad finding in respect of the negative attitudes to this line of business, this study suggests some specific findings based on different demographical factors of the respondents. T he findings serve as inputs to marketers of insurance services on how they formulate and implement relevant marketing strategies towards addressing the nonchalant attitude of Nigerians to insurance. For instance, specific marketing strategies are required to encourage the young generation under 46 years of age, the divorced/separated, and the less-educated to embrace and appreciate the role of insurance. Since, the grassroots issue associated with this lack of interest rests mainly in their lack of apprehension of the roles of benefits of insurance services it is recommended that significant marketing communication activities with instant salary to both marketers be targeted more at this set of people highlighted. This entrust help to kindle their interest in the business and brings the insurance institution to the highly exalted position it belongs in their perception.