WRITTEN REPORT (20%) & PRESENTATION (10%)
Report Overview - You are the employees of a prestigious management consulting company and your services have been hired to help an Australian company to perform a strategic analysis as part of an international development plan. The market that this company is currently interested in is China. As consultants, your project is to prepare an International Business Development plan for an Australian firm of your choice. When you choose your “Australian company”, they should be a domestic Australian company that has not yet entered the Chinese market1. The consulting firm you work for places a premium on precise and concise reports. Your report should convey the essential information your client needs, and provide a preliminary recommendation on whether to enter China at this time and by which entry mode.
Learning Objectives (written report) - As a research exercise this project evaluates your ability to identify and retrieve valid information to inform your analysis. Your ability to communicate in writing with sufficient clarity to convey complex information in an international business context will also be developed and evaluated through this assessment.
Advice - Three approaches to strategic analysis are outlined during this unit of study - resource-based, industry-based and institution-based views of strategy. In this report you are not expected to conduct an exhaustive strategic analysis (e.g. it may not be possible to gather adequate data to conduct a comprehensive five forces industry analysis in the time allowed), however, you are expected to structure your analysis of relevant data in line with the broad analytical frameworks outlined in your lectures. You must conduct some form of strategic analysis of your chosen firm’s organizational capabilities, taking into account the industry environment in mainland China and the impact that institutional difference will have on the firm’s ability to compete in China. For example, you should consider:
CRITICAL ANALYSIS: Only use data that you can demonstrate to be relevant (i.e. data that can be convincingly used to help you make on decision on, if, when and how this firm should enter China). The time you have to complete this project is limited and therefore, there are understandable limits on the amount of data you can
1 If you have undue difficulty finding a company with no presence in the Chinese Market you may choose a company that has made some initial investment in China with a view to assessing the potential for a greater strategic commitment to China (e.g. moving from exporting to a JV or wholly owned subsidiary).
collect. Your ability to explicitly analyze the data you have is the primary concern of the examiners of this report (i.e. your ability to draw out the implications of the data for your chosen firm). You must consistently interpret and/or explain the implications of the data for your chosen firm, rather than writing on the topic or presenting information and leaving it to the examiner/or the board of directors to analyze what it all means. You must consistently spell out the implications of the industry and institutional environments for the company’s decision to enter this market, the likelihood of profit in the industry and how this analysis leads to the recommendation of an appropriate mode of market entry. You should also note that, based on your data and analysis, it might be appropriate to come to a negative conclusion. This assignment should not be interpreted as an order to enter China at all costs. Do not come to conclusions at odds with the data presented in the report. All data should be discussed in a logical and coherent manner. Your data should logically build to the conclusion/recommendations and your discussion should be consistent throughout the report.
LEVEL OF RESEARCH: This report must provide enough evidence to make a well-informed decision or reasonably robust recommendations to the board of directors who have commissioned this report. If there is a paucity of relevant information in one-area (e.g. no data on market size) you are expected to compensate by using other relevant data to make your recommendations. For example, drawing inferences about market potential based on the number and strength of competitors; examining the markets statistics for cognate or substitute product; or using a broader definition of the industry (e.g. if you wanted data on the wine market you could draw valid inferences from the number of foreign and domestic competitors in China or data on alcohol consumption in China). This analytical flexibility will result in every group having enough data to write a report and to make strategically sound recommendations. Please remember, the more relevant the data is to your chosen company the easier it will be for you to explicitly analyze its strategic implications in the context of your business developmental plan for China. In the unlikely event that your preliminary research leads you to the conclusion that there is not enough data on your chosen firm and the industry and institutional environments in China, then you will need to choose another firm. This is a decision that will need to be taken by your group early on in the assignment therefore, you will need to conduct some preliminary research immediately after you group has chosen its employing firm.
Writing, referencing, formatting, submission and word count – Please use size 12 font, 1.5 line spacing and ensure that your project is a maximum of 2500 words in length. You are required to submit this assignment electronically through Turnitin (a hard copy may be requested by your lecturer upon request). All sources consulted should be consolidated in a bibliography at the end, in a consistent format in accordance with the format outlined in the Student Manual. You may also wish to add appendices to the report. Do not include data in the appendices of the report that is not referred to in the main body of the report. The appendices should be consistent with and used to complement the discussion in the body of the report. Deadline – see course outline. The final marks of the project are peer moderated.
INTERNATIONAL BUSINESS STRATEGY
Overview of the significance of resource-based, industry-based and institution-based views of strategy
Before developing the business to new international markets, the company needs a proper analysis of all the aspects that will serve to establish a successful business strategy. It will help the company to achieve a good position in the new market and will help to maintain a stable and systematic business operation in the future. In the following, the significance of the three viewpoints of analyzing the business competence in order to develop successful business strategies for entering the new business market is discussed.
Before starting the business in the new markets of China, the company needs to do the resource-based analysis that will help the company to develop its business strategy that will be suitable for the new business market. The resources based analysis will help Estia Health to properly understand the resources they will need to do successful business development in China and how to strategically utilize those resources to gain competitive advantages in the respective market of the country for stable and successful business operation (Hong, Wang & Kafouros, 2015). VRIO analysis in the resourced based view strategy will help to understand the capabilities of the firm in the market, which is essential for systematic development. Through the resource-based business analysis, the company will be able to know how they can effectively utilize their existing resources and acquire the resources necessary as well that are essential for operating the business in the new business markets of china.
In order to successfully develop the business strategies, Estia Health needs to do an industry-based analysis of their business, which will help them to identify the industrial requirements of the company in the new market of China. Five forces model analysis is very much significant in understanding the industry competitiveness, and Estia Health will get further information regarding the industry situation by following the industry-based view strategy. It will help the company to understand the conditions of the industry and evaluate the firm’s efficiency to meet those conditions (Knight & Liesch, 2016). Thus doing the industry based analysis will help Estia Health to develop proper business strategies that will be able to fulfill all the industrial conditions for the successful future operation of the company in the new country market.
The institution-based analysis of the company provides a proper understanding and evaluation of various factors that are related to the institution that influences the business operation. An appropriate assessment of the institutional business environment and its practices is very important for developing proper business strategies before entering a new business market in a new country (Sadeghi et al., 2019). It will help Estia Health to properly evaluate the institutional business strategies that are essential for doing successful business in a new market. In order to achieve success in the new business market, the company needs to develop and modify their institutional business strategies according to the new market situations.